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.
What Changed?
See a redlined version of the Seller’s Disclosure Notice on texasrealestate.com.
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.
Yep… this is definitely needed. Since Harvey I have seen a bunch of Listings where Sellers nor their Agents are disclosing flooding “on to property” or “into property”. Immediately after the flood HAR MLS was requiring disclosure of flooding but removed the mandatory field from the MLS. I have wondered why… …best I not speculate.
How does a property owner know they are in the 500 year flood plain if they have never had any issues? How could this come back to haunt them?
Use the flood map to find their location orhave their Realtor do it for them.
Unfortunately the FEMA maps do not specifically say “500 year flood plain” they define it by – ie .2% chance of flooding….perhaps the form should use different wording so that it jives with the FEMA maps.
The seller’s insurance carrier is the best source.
Yes! This needed to happen. Thank you to all that voted in favor of!!
There should also be mandatory disclosure for lease homes, too.
Absolutely agree!!
Yes it should be also!
That will be covered in paragraph 4 of the new TREC contract
Now we just need questions pertaining to Lead Based Pipes. That is the next hotbed of problems.
What about investors? they bought flooded properties, repair its and put on the market and omit the information related or sometimes appear in the MLS “No seller’s Disclosure”
Investors are not exempt from providing seller disclosure, even though many think they are.
I believe a web address should be included in the sellers disclosure where sellers and agents could find the current Flood insurance rate map.
I agree with Emily, that Web Addy would help all of us double check to make sure we have the right information for our area.
If you are a member of SABOR,
There is a FEMA Flood Map Services Center info map at the end of CRS report
page you may pull up for the address you are looking for the info on about for flood hazard Zone.
Usually every local government agency have a department (engineering, planning & zoning, etc) that have maps or should be able to tell you if the property is in a flood zone.
If you are a member of SABOR,
There is a FEMA Flood Map Services Center info map at the end of CRS report
page you may pull up for the address you are looking for the info on about for flood hazard Zone.
Mayor of Cedar Park, Corbin Van Arsdale, let us know at a quarterly office meeting that the Floodplain Ordinances will change within the next few months. Anyone in a 500 year floodplain will now be in a 100 year floodplain. This will affect approximately 2700 homes in the Travis County area. Williamson and surrounding counties will most likely change their ordinances around the same time as well. This is based on a rainfall study and not a flood study Lawsuits will be filled and they expect the ordinance to stay in play until the lawsuits are decided by the TX… Read more »
What if you listed the house in July and closed this week and didn’t use the new form ?
One attorney’s opinion is that if the Seller or their agent sends the outdated version to a Buyer, it is as if they did not receive the SD at all and Buyer could terminate the contract.