Members mistakenly believe that property investors are exempt from the requirement to provide a seller’s disclosure because the investors never lived in a property. That is not true. There is no exception to the seller’s disclosure requirement in Property Code Section 5.008 for investors who never lived in the property. They are required to complete the seller’s disclosure to the best of their knowledge. However, if sellers legitimately do not know answers to questions on the disclosure, they can mark those questions unknown and still fulfill the obligations under the Texas Property Code.
— Traci Jackson, staff attorney