Your sellers may be required by law to fill out a seller’s disclosure, but buyers are not required to sign the disclosure. Even though the Texas REALTORS® Seller’s Disclosure Notice (TXR 1406) and the TREC Seller’s Disclosure Notice (TREC OP-H) provide places for a buyer to sign on the last page, a buyer does not have to sign or initial at all.
The lines for the buyer are there, however, because obtaining a buyer’s signature is one way for a seller—and the seller’s agent—to prove that the buyer received a copy of the seller’s disclosure. And, for that reason, some brokerages make it office policy for listing agents to attempt to get buyers’ signatures. Keep in mind that a buyer’s signature indicates nothing except that the buyer acknowledges receiving the disclosure.
Whether buyers sign or do not sign your seller’s disclosure, it’s a good idea to note in the transaction file when the buyer was given the disclosure notice.
There is a place in the 1-4 Family contract that a buyer indicates whether or not they got a copy of the seller’s disclosure. I always insist that my buyers get a home inspection, regardless of the SD they received. It is still a good practice to get the buyers to sign and initial the SD. They also shows the buyer’s agent that they at least looked at it.
Why have a form with available signatures and initials and yet not be required, makes no sense as well as most offices require it being signed & initialed by the Buyer. Just go ahead and make it mandatory for a Buyer to initial and sign and be done with it or do away with the lines for the Buyers initials and signature then it will conform with Paragraph 7 Buyer has received a copy period.
Why have a form with signature spaces and not make it required? Because state law doesn’t require it. Feel free to lobby the legislature if you feel so strongly about it. Of all the issues that arise in real estate, this, frankly, is about as small as it gets.
The above answer from TR is incomplete. –It fails to mention that the entire subject of delivering the SDN to the buyer is covered by Paragraph 7 of the TREC contract. Because of that, there IS no requirement for the buyer to sign the last page of the 1406 form. That form is NOT part of the contract. ~It is neither an attachment nor an addendum. One Broker’s office cannot make it mandatory for another Broker to follow some office policy, and so it is ludicrous for such policies to even exist. ~The sad part about this discussion is that… Read more »
Rick, I agree with you, the problem is neither the Buyers Agent or the Sellers agent have any way to prove the Buyer ever rec’d the SD, (even though it says in paragraph 7) and you know if it winds up in court the Buyer will say he never rec’d the SD, and the way things go the courts will side with the poor Buyer who was taken advantage of. As I mentioned above either remove the signature/initial lines or make it mandatory for all parties to sign/initial and be done with it.
Good to know! My brokerage required fully executed Seller’s Disclosure to complete that file! Thank you!
I liked the paragraph “Whether buyers sign or do not sign your seller’s disclosure, it’s a good idea to note in the transaction file when the buyer was given the disclosure notice.”
Maybe write a statement into buyers rep agreement that buyer agrees to sign acknowledging receipt of any disclosures or other written information about the property supplied by seller
Or just keep the email that shows you sent it to the buyer. No need to complicate things.
This blows my mind! How long has this policy been in effect? In my 37 year career I have heard of lawsuits by buyers because the sellers disclosure had incorrect information on it and they have won but only because they signed it and proved that they had it could this have occurred
That’s a great response. That shows that both sides can benefit, and of course, knowledge is power.
I actually had this issue. MY buyer didn’t sign the SD. After close the Listing agents brokerage wouldn’t stop harassing me to get my buyer to sign the SD. They said it is mandatory and they can’t close their file till he does. I told them it’s not mandatory and to go ahead and leave their file open, does not bother us. They said they were going to contact TAR/TREC and never got back to me. I guess they learned their in house rule was not a real rule.
Why to have it on the form, if it is not required of buyers to sign. It is redundant and must be deleted to save time to busy realtors!
Or maybe “busy” agents should learn the law and rules that relate their chosen profession.
I had a deal go south the week before closing because the buyer’s agent did not deliver the sd to the buyer in time, and the law is he has 7 days once it is received to be able to back out and get his earnest money back! So if the SD gives a buyer a way out of a contract, how on earth can it not be a requirement of the contract?????
What makes no sense to me is having them to initial below where they signed (TXR-1406 pgs 5 & 6).
Is TREC Contract binding between Seller & Buyer without the signature of Seller’s legal wife?
Can a seller back out from the buyers offer for valid reason?
Must ALL legal owners sign the seller’s disclosure? For example, is the seller’s disclosure prepared and signed by Buyer 1 acceptable even though there is an Owner 2?