Texas foundation disclosure law, in plain English
Posted August 22, 2026If you're selling a home with a foundation history, here's what Texas law actually requires you to tell a buyer, and what it doesn't. This is general information, not legal advice. For anything specific to your sale, talk to a real estate attorney or your agent.
- Based on Texas Property Code Section 5.008
- Covers the TREC Seller's Disclosure Notice
- Not a substitute for legal advice
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Texas Property Code Section 5.008
Texas requires most sellers of residential property, generally one to four dwelling units, to give the buyer a written disclosure notice describing the property's condition. The obligation comes from Property Code Section 5.008, and in practice, nearly every ordinary home sale in Texas uses the standard form the Texas Real Estate Commission publishes for this purpose, the Seller's Disclosure Notice, sometimes called TREC Form OP-H.
The core requirement is straightforward to state, if not always straightforward to apply: disclose known conditions that materially affect the property's physical condition, to the best of your knowledge, as of the date you sign the form. It has to be delivered on or before you sign a purchase contract, or within a reasonable time afterward if something genuinely prevented earlier delivery.
There are exemptions, but they're narrow. They generally involve situations like certain foreclosure sales, transfers by court order or bankruptcy trustee, transfers between co-owners, and a handful of other specific circumstances, not an ordinary owner selling to an ordinary buyer. Two situations that come up a lot and are commonly misunderstood: landlords who've never lived in the property, and executors handling an estate. Neither is automatically exempt. If they have knowledge of a condition, Texas courts have generally expected it to be disclosed.
What "material defect" means for a foundation
The disclosure form's structural section asks directly about the foundation, along with walls, roof, floors and ceilings, and it asks about known defects, previous repairs, and settling or cracking you're aware of. Foundation issues are one of the more commonly cited categories on Texas disclosure forms generally, which isn't surprising given how much of the state sits on expansive clay.
Generally expected to be disclosed
Known active cracking, doors or windows that stick due to foundation movement, previous foundation repair of any kind, any engineering report you've had done, and any insurance claim related to foundation or structural damage.
Where it gets genuinely unclear
Minor, stable hairline cracks that a seller reasonably believes are cosmetic. This is exactly the kind of judgment call where an inspection report or an attorney's opinion is worth more than a guess.
This site's own symptom checker draws a similar line, between cosmetic and structural, for a different purpose: deciding whether to call a contractor. It isn't a legal determination of what must be disclosed, and shouldn't be treated as one.
Previously repaired homes still get disclosed
This is the part that surprises people most: fixing the problem doesn't remove the disclosure obligation. The standard form asks about previous structural repairs as its own separate question, distinct from asking whether a defect currently exists. A seller who had foundation work done five years ago generally still checks that box, even if the house has been solid ever since.
The practical upside is that this cuts in the seller's favor more than it might seem. A disclosed, completed repair with a transferable warranty and documentation is a very different story for a buyer than an undisclosed history that surfaces during their own inspection. Buyers and their lenders generally treat "repaired and warrantied" as a closed chapter; they tend to treat "found out during inspection and wasn't told" as a reason to walk away or renegotiate hard.
If you're planning to sell and have a foundation repaired first, keeping the invoice, the warranty document, and any engineer's report in one place makes this part of the process considerably easier.
New construction works differently
The standard Seller's Disclosure Notice is built around previously occupied residential property. A new home that's never been lived in is generally governed by the builder's contract and warranty terms instead, which is a different legal framework with different obligations and different timelines.
This matters directly for some of the newer subdivisions covered elsewhere on this site, where fill soil can still be settling years after a house is finished. If you bought new construction and are dealing with movement a few years in, the builder's warranty, not this disclosure law, is usually the more relevant document to review first. A real estate attorney can clarify which applies to a specific purchase contract.
What happens if you don't disclose
Beyond the disclosure statute itself, Texas sellers who knowingly withhold a material defect can face exposure under the Texas Deceptive Trade Practices Act, which in some circumstances allows a buyer to pursue damages up to three times their actual losses for willful violations. Texas courts have also generally held that deliberately avoiding knowledge of an obvious problem, sometimes called willful ignorance, doesn't protect a seller who should reasonably have known.
One detail worth knowing: the buyer doesn't have to sign or initial the disclosure form for it to matter. The seller's obligation to disclose truthfully exists independent of what the buyer does with the form.
None of this is legal advice, and the details of any individual transaction can change how these rules apply. If you're dealing with a specific disclosure question, especially one involving a past claim, a partial repair, or a disagreement with a buyer, a real estate attorney is the right person to ask, not a repair company's website.
Common questions
Do I have to disclose a foundation repair if it's already fixed?
Yes. The disclosure form asks about previous structural repairs separately from current known defects. A completed repair with a transferable warranty is generally viewed far more favorably by buyers than an undisclosed history, but it still needs to be disclosed either way.
What happens if I don't disclose a foundation problem?
Under the Texas Deceptive Trade Practices Act, a buyer who discovers an undisclosed known defect after closing may be able to pursue damages, in some cases up to three times actual losses for willful violations. Deliberately avoiding knowledge of an obvious problem generally doesn't protect a seller either.
Does new construction need a seller's disclosure notice?
The standard notice applies to previously occupied property. New construction that's never been occupied is generally governed by separate builder warranty and contract terms instead, though this depends on the specific purchase contract. Worth confirming with a real estate attorney.
Is the disclosure notice legally required?
Yes, for most residential sales of one to four dwelling units, under Property Code Section 5.008. Exemptions are narrow, covering things like certain foreclosure, estate, and court-ordered transfers. Most ordinary owner-to-buyer sales are covered.
Does the buyer have to sign the form for it to count?
No. The seller's obligation to provide a truthful, complete disclosure exists regardless of whether the buyer signs or initials the form.
Where this comes from
This page summarizes publicly available legal and regulatory sources. It's written for homeowners trying to understand the general shape of the law, not as a substitute for reading the statute or the form yourself, or for advice from a licensed attorney.
- Texas Property Code, Section 5.008 (Seller's Disclosure of Property Condition)
- Texas Real Estate Commission, Seller's Disclosure Notice (Form OP-H)
- Texas Deceptive Trade Practices Act, general provisions on willful misrepresentation
Last reviewed August 2026. Texas disclosure requirements have changed before, including a mold-related update in 2025, and may change again. Confirm current requirements with your agent or attorney before relying on this page for an active transaction.
If you're dealing with an active foundation issue
These pages cover symptoms, typical costs and what to expect from a repair, city by city across Texas.