Texas Seller's Disclosure Notice

What's Changing in the Texas Seller's Disclosure Notice on July 1, 2026?

By Cindy Dunnican | June 22, 2026

If you're selling a home in Texas — or about to go under contract on one — there's a form you've probably signed before without thinking too much about it: the Seller's Disclosure Notice.

That form just got significantly more comprehensive.

On May 4, 2026, the Texas Real Estate Commission officially adopted updates to the Seller's Disclosure Notice along with a brand-new companion form. Both become mandatory on July 1, 2026 — which means if you're listing, currently under contract, or planning to buy in Rockwall, Rowlett, or the broader North Texas market this summer, you need to know what changed.

Here's a plain-language breakdown of what's new and what it means for you.

What Is the Texas Seller's Disclosure Notice?

The Seller's Disclosure Notice (TREC Form 55-0) is the document Texas law requires most residential sellers to complete before closing. Under Texas Property Code §5.008, sellers must disclose known material defects — structural issues, flooding history, HVAC problems, past repairs — to the buyer before the sale is final.

For buyers, it's your roadmap for due diligence. For sellers, it's both a legal obligation and a risk-management document. Undisclosed known defects remain one of the most common causes of post-closing disputes in Texas, and liability under the Texas Deceptive Trade Practices Act can run up to three times actual damages — with no clean cutoff date, since claims can surface years after closing when a buyer discovers a problem.

The 2026 updates make the form more detailed than it's ever been, and for good reason.

The Six Major Changes Effective July 1, 2026

1. Insurance Disclosure — The Most Important Update

Sellers must now disclose two things about insurance:

• Whether the property is currently covered by homeowners insurance, including windstorm coverage
• Whether the seller has been unable to insure the property for any reason

This is the most significant change in the 2026 update, and it reflects what's happening in the Texas homeowners insurance market right now.

Several major carriers have reduced or stopped writing new residential policies in North Texas. Homes with roofs older than 15 years, prior hail or wind claims, or locations in flood-prone areas are increasingly difficult to insure at standard rates. More than 120,000 Texas homeowners are now on the Texas FAIR Plan — the state's insurer of last resort — and that number continues to grow. A property on the FAIR Plan can cost $5,000 to $7,000 or more per year to insure, compared to $3,500 to $4,500 for a standard policy in the DFW area.

For buyers in Rockwall and Rowlett, where many homes were built in the 1990s and early 2000s and have been through multiple hail seasons, insurance costs and insurability have become a real factor in purchase decisions. Previously, buyers often didn't discover a property was uninsurable — or only insurable at a punishing rate — until they were already weeks into the transaction.

The new disclosure requirement changes that. If a seller has been dropped by their carrier, received a non-renewal notice, or has been insuring through the FAIR Plan, that information goes on the form.

2. New Water Rights Form (TREC Form 61-0)

TREC adopted an entirely new standalone form: the Water Notice: Seller's Disclosure About Groundwater and Surface Water Rights.

This form requires sellers to disclose:

• Whether the property has water wells (active or abandoned)
• Whether the property is located in a Groundwater Conservation District
• Whether groundwater rights have been leased or sold separately from the land
• Whether the property has ponds, lakes, water tanks, or access to surface water — and their status

For most homes in established Rockwall and Rowlett subdivisions connected to municipal water, this form is straightforward to complete. Where it carries more weight is in Heath, McLendon-Chisholm, Sunnyvale, and rural areas of Collin and Hunt County — communities where acreage properties with wells are common, and where water rights can meaningfully affect property value and use.

Texas water law is complex. This form is a starting point, not a substitute for professional legal review when water rights are a meaningful part of what's being purchased.

3. Permanently Installed Generators

The updated form specifically adds permanently installed and built-in generators to the list of improvements sellers must disclose.

Standby generators became significantly more common in North Texas following Winter Storm Uri in 2021. If a seller installed a whole-home generator — Generac, Kohler, or similar — the buyer needs to know it's there, understand its condition, and factor it into the transaction. This is straightforward for most sellers, but it's a required disclosure now, not an optional mention.

4. Private Roads

Sellers must now disclose if the property sits on or adjoins a private road that the buyer would be financially responsible for maintaining.

This is most relevant in rural and semi-rural areas — Heath, McLendon-Chisholm, acreage communities — where road maintenance falls on property owners rather than a city or county. A private road obligation can mean meaningful ongoing costs that buyers deserve to weigh before closing.

5. Above-Ground Storage Tanks Over 500 Gallons

The form now requires disclosure of above-ground storage tanks containing petroleum products or chemicals, if the tank exceeds 500 gallons. This applies primarily to properties with heating oil tanks, farm fuel storage, or certain commercial-adjacent parcels.

6. Conservation Easements

If the property is subject to a conservation easement — a legally binding restriction on how the land can be developed or used — that must now be disclosed. Conservation easement restrictions transfer to buyers at closing and can significantly limit what the new owner is allowed to do with the property. This is more relevant to large-lot and rural properties, but it's a critical disclosure when it does apply.

What This Means If You're Selling in North Texas This Summer

If you're listed or about to list, the updated form should be part of your process now — it's been available since May and becomes mandatory July 1.

The insurance question deserves the most preparation. If your roof is more than 15 years old, if you've filed a hail or wind claim in the last several years, or if you've received a non-renewal from your carrier, be ready to answer honestly. Your buyer's lender will likely require proof of insurability before approving the loan, and the new form requires accurate disclosure on your end.

You're not required to know things you don't know — but if you know the property has been difficult to insure, that information belongs on the disclosure. Getting it right protects you from liability and builds the kind of trust that keeps transactions together.

Work through the form carefully with your agent. The Seller's Disclosure Notice is the single most important document in a Texas transaction after the contract itself, and completing it accurately — and early — is one of the most important things you can do before you list.

What This Means If You're Buying

First, make sure you're receiving the updated form. Any contract signed on or after July 1 requires the new version.

Second, review the insurance disclosure carefully. If the seller indicates they've had difficulty obtaining coverage, that's your signal to call your own insurance agent before you're under contract — or at minimum, very early in your option period. During the option period, you have the right to terminate for any reason and get your option fee back. Use that window to verify what insurance will cost and whether the property is insurable through a standard carrier.

A property that triggers a FAIR Plan rate or can't be insured at all changes the math on what you can afford — and that's information worth having before you're past the point of easy exit.

Third, if the property involves wells, acreage, or any rural land — especially in Heath, McLendon-Chisholm, or Collin County — review the new water rights form carefully and ask your agent to walk you through what it means for that specific property.

Frequently Asked Questions

When does the updated Texas Seller's Disclosure Notice go into effect?

The updated Seller's Disclosure Notice (TREC Form 55-0) and the new Water Notice (TREC Form 61-0) become mandatory on July 1, 2026. They've been available for voluntary use since May 2026, so some sellers are already using them. If you're signing a contract on or after July 1, the updated forms are required.

Do all Texas home sellers have to complete the Seller's Disclosure Notice?

Most residential sellers must complete the disclosure, but there are exemptions. Estate sales where a personal representative has never occupied the property, foreclosure sales, new construction where the builder has never lived in the home, and a few other narrow situations are exempt. If you're unsure whether you qualify, your real estate attorney or agent can help you confirm.

What happens if a seller doesn't disclose something they knew about?

Failure to disclose known material defects in Texas can expose a seller to liability under the Texas Deceptive Trade Practices Act (DTPA), with potential damages up to three times actual losses. The statute of limitations runs from when the buyer discovers the defect — not from closing — so claims can surface years after the transaction. This is why honest, thorough disclosure is both a legal requirement and a practical protection.

What should buyers do if the seller discloses they've had trouble getting homeowners insurance?

Contact your own insurance agent or broker before proceeding. Ask specifically about the property's insurability and what coverage would cost based on the roof age, prior claim history (your insurer will pull a CLUE report), and location. If insurance costs make the home unaffordable — or if a standard carrier won't write the policy at all — that's information you want during your option period, when you still have the right to walk away.

Does the new water rights form apply to every Texas real estate transaction?

Yes, but its practical impact varies. For most homes in established subdivisions on municipal water, it's a quick, straightforward disclosure. It becomes more substantive for rural properties, acreage parcels, and homes with wells or agricultural water features. If the form reveals something significant — like sold or leased groundwater rights — consulting a Texas water rights attorney before closing is worth the investment.

The updated Seller's Disclosure Notice is a more complete picture of what's actually being transferred when a home changes hands in Texas. As a seller, completing it accurately protects you. As a buyer, reviewing it carefully is one of the most valuable things you do during due diligence.

If you're preparing to list a home in Rockwall, Rowlett, Heath, or the surrounding North Texas communities this summer, I'm happy to walk you through what the updated form requires and how to prepare your home for the market. And if you're buying, I'll make sure you understand exactly what you're looking at before we're under contract.

For sellers getting ready to list, our free Market Ready checklist walks you through exactly how to prepare your home room by room — grab it here.

About Cindy Dunnican
Cindy Dunnican is the managing partner of The Dunnican Team at Coldwell Banker Apex, Realtors, serving the Northeast Dallas suburbs, Rockwall County, and the surrounding North Texas communities. Alongside her husband and business partner, Cory, she helps buyers and sellers navigate move-up purchases, downsizing, relocation, new construction, and luxury lake and golf course properties. Connect with The Dunnican Team at thedunnicanteam.com.