Buying a home is one of the biggest financial investments you’ll make. That’s why it’s upsetting and frustrating when you discover your new home has a defect that will cost thousands of dollars to repair, in addition to the money you’ve already spent to purchase it.
Sellers are required to disclose certain known problems with a property, and when they fail to do so, there can be serious consequences for both sides of the transaction.
Texas’ seller disclosure requirements
Home sellers usually need to complete a Seller’s Disclosure Notice regarding the property’s condition. This can include issues such as structural defects, past flooding, pest infestations or plumbing or electrical problems.
While sellers are not expected to disclose problems they don’t know about, they can’t ignore or hide defects they are aware of. Sellers are not required to provide environmental assessments or to disclose whether the home was built on a former industrial site.
A seller can face legal problems if they knowingly provide false information, omit important details or conceal a defect.
If a buyer discovers a defect that should have been disclosed, they do have options. They may be able to seek compensation for the cost of the repairs or the reduced property value. In cases where there is clear evidence of fraud, the buyer may seek to rescind the transaction, though that remedy is rare.
A significant challenge in these cases is proving that the seller actually knew about the problem. Proof against the seller may include indirect evidence, such as prior repair records, earlier inspection reports or communications that reference the issue. Without it, it can be difficult to hold a seller legally responsible, even if the property has a major problem.
While the law offers remedies, prevention is often the better approach. Between the seller’s disclosure, home inspection and follow-up questions, buyers can often uncover potential problems before closing.
If you suspect that important information about your new property’s condition was deliberately withheld, speaking with a legal representative can help you understand your rights and determine the best path forward.
