The 86th Texas Legislature passed two bills that add questions to the Seller’s Disclosure Notice (TXR 1406) regarding flooding, such as whether the seller’s property is located wholly or partly in a 500-year floodplain or whether the seller has ever filed a claim for flood damage. The revised disclosure notice is mandatory starting Sept. 1, 2019.
When Will the Revised Form be Available?
The updated disclosure notice will be available August 1 on texasrealestate.com and from form-fill vendors.
Which Transactions Need to Use the Revised Form?
The revised version of the Seller’s Disclosure Notice must be used in transactions when the sales contract is executed on or after Sept. 1, 2019. It may also be used on a voluntary basis for transactions where the contract is executed prior to that date.
Did Texas REALTORS® Support These Changes?
Texas REALTORS® supported the bills that resulted in these changes. This pro-consumer law is the most comprehensive update to the seller’s disclosure since the statement’s creation in 1993. The updates add significant information related to flooding and provide buyers with in-depth information about past flooding on a property and its structures.