The short answer is this: you should always disclose any issues with your home that you know about when selling it. Before you put your home on the market, your realtor will ask you to complete the required Seller's Disclosure Form. The purpose of the form is to disclose any issues with the house you are selling that you are aware of and give the potential buyers information and a historical account of your home. If a seller who is required to provide a Seller’s Disclosure fails to do so within the specified timeframe in the sales contract, the buyer can terminate the sale without any financial ramifications.

Do all sellers have to fill out a disclosure? While there are several exceptions to having to fill out a Seller’s Disclosure, such as transfer pursuant to a court order or foreclosure sale or by a trustee in bankruptcy, standard owner occupants always need to fill one out.

THINGS YOU ARE REQUIRED TO DISCLOSE:

Past fires you are aware of
Foundation damage or repair
Any “Water Penetration” or “Previous Flooding.”
Termite or Wood Rot Damage Needing Repair

THINGS YOU ARE NOT REQUIRED TO DISCLOSE:

A death in a house unrelated to the condition of the property
The HIV status of any occupants of the property
Any conditions that you are truly unaware of

Failing to disclose can come back to bite you later. In Texas, the Seller’s Disclosure survives closing, which means that if you failed to disclose something you knew of, the buyer could hold you responsible for it even after they close on the home. In severe cases, this could result in the buyer filing a lawsuit against the seller. This potential for legal issues is why being honest in disclosure is always the best policy.