Originally printed in Texas Legal Update Part 1 Edition 9.0

When is a Seller’s Disclosure Notice NOT required? Disclosing defects of a property is required in all real estate transactions. Doing so using the Seller’s Disclosure Notice, however, is only required when transferring residential real property with only one dwelling unit except:  

1. pursuant to a court order or foreclosure sale;

2. by a trustee in bankruptcy; 

3. to a mortgagee by a mortgagor or successor in interest, or to a beneficiary of a deed of trust by a trustor or successor in interest; 

4. by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a deed of trust or a sale pursuant to a court-ordered foreclosure or has acquired the real property by a deed in lieu of foreclosure;

5. by a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust; 

6. from one co-owner to one or more other co-owners; 

7. made to a spouse or to a person or persons in the lineal line of consanguinity (kinship) of one or more of the transferors; 

8. between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement incidental to such a decree; 

9. to or from any governmental entity; 

10. of a new residence of not more than one dwelling unit which has not previously been occupied for residential purposes; or 

11. of real property where the value of any dwelling does not exceed five percent of the value of the property. 

Texas Property Code §5.008(e)

Special thanks to Jodi Sherretts www.BrokerJodi.com for digging this up for me.