Texas Real Estate Sales Agent ExamTexas Real Estate LawMedium
A buyer's agent is assisting a client with the purchase of a residential property. The buyer expresses concerns about potential environmental hazards on the property, specifically mentioning a former dry-cleaning business that operated next door several decades ago. What specific disclosure, if any, is required from the seller regarding this potential environmental concern under Texas law?
- AThe agent must advise the buyer that only federal disclosures, such as those for lead-based paint, cover off-site environmental concerns.
- BThe seller is only required to disclose environmental hazards if they are physically located within the boundaries of the property being sold.
- CThe seller is not required to disclose environmental hazards from adjacent properties, as this falls under the buyer's due diligence.
- DThe seller is required to disclose any known presence of hazardous materials, including those from adjacent properties, on the Seller's Disclosure Notice.
Show answer & explanationAnswer & explanation
Correct answer: D. The seller is required to disclose any known presence of hazardous materials, including those from adjacent properties, on the Seller's Disclosure Notice.
In Texas, sellers are generally required to disclose known material facts that could affect a buyer's decision, which includes environmental hazards on or near the property. The Seller's Disclosure Notice specifically asks about hazardous materials.
Why the other options are wrong
- A. Federal disclosures like lead-based paint are specific. Texas law, through the Seller's Disclosure Notice, covers a broader range of known environmental hazards, including those that may originate off-site but impact the property.
- B. While direct physical presence is a primary concern, known off-site hazards that impact the property's value or safety are generally considered material facts requiring disclosure.
- C. While buyer due diligence is important, a seller cannot knowingly withhold material information about potential hazards, even if they originate off-site but affect the property.
Seller's Disclosure Notice (Texas) - Environmental Hazards
In Texas, sellers of residential property are generally required to provide a Seller's Disclosure Notice, which includes questions about known environmental hazards on or affecting the property.
- Mandated by Texas Property Code §5.008 for residential property.
- Requires disclosure of known material facts affecting the property's value or desirability.
- Includes questions about hazardous substances, toxic waste, and other environmental hazards.
- Seller's knowledge is key; they are not required to conduct inspections.
Memory trick: Known facts, no secrets, property truth, or consequences!