Texas Seller's Disclosure Notice 2026: What Dallas Sellers Must Know Before July 1
TREC updated the Texas Seller's Disclosure Notice (Form 55-0) and created a new water rights form (61-0) — mandatory July 1, 2026. Here's what Dallas sellers must disclose before listing.
What changed on the Texas Seller's Disclosure Notice in 2026?
Texas updated its Seller's Disclosure Notice (TREC Form 55-0) and created a brand-new standalone water rights form (TREC No. 61-0) effective July 1, 2026. Sellers must now disclose whether their property is currently insured (and whether they've been unable to obtain insurance), whether a private road borders the property, whether there are aboveground storage tanks over 500 gallons, and whether the property is in a conservation easement. The new water rights form requires separate disclosure about groundwater districts and wells. Contracts executed on or after July 1 must use the updated forms.
By Paul Blair | June 2, 2026
If you're planning to list your Dallas home in the next few months, there's something you need to know before you sign a listing agreement: Texas changed its seller disclosure requirements, and the new forms become mandatory on July 1, 2026.
That's less than a month away.
The Texas Real Estate Commission (TREC) adopted the updates on May 4, 2026, following direction from the state Sunset Advisory Commission. The changes affect what every Texas seller is legally required to disclose to buyers — and one of them is going to catch a lot of people off guard.
Here's what's changing, why it matters, and what to do before you list.
What the Seller's Disclosure Notice Actually Does
The Texas Seller's Disclosure Notice is a TREC-promulgated form (Form 55-0) that sellers of single-family residential properties must complete and deliver to buyers before — or at the time of — contract execution. The form covers the property's physical condition, known defects, systems, environmental concerns, and legal status.
It's not a pass/fail inspection. It's your sworn representation of what you know about the property. Get it wrong, and you're exposed. Around 77% of real estate lawsuits in Texas are tied to disclosure issues.
The form must be delivered before or at the time the purchase contract is signed. If you deliver it after signing, the buyer has the right to terminate the contract within seven days of receiving it, for any reason, and get their earnest money back. That's a hard deadline that sellers frequently underestimate.
What's New on Form 55-0 Starting July 1
The updated Seller's Disclosure Notice adds four new disclosure items that weren't on the previous form:
1. Insurance coverage — including whether you've been unable to insure
This is the one that's going to matter most for DFW sellers.
You now must disclose whether the property is currently covered by homeowners insurance, including windstorm coverage, and whether you have been unable to obtain insurance on the property for any reason.
Why does this matter? Over the past few years, several major insurance carriers have reduced coverage or exited Texas entirely — particularly for homes with older roofs, previous hail claims, or certain construction types. In DFW, where hail storms are a regular spring event, some homeowners have discovered their roof age makes them uninsurable with standard carriers, forcing them to the Texas FAIR Plan at significantly higher premiums.
A buyer who closes on a property and then discovers it's uninsurable has a serious problem. Under the new rule, sellers must disclose that before the contract is signed.
If you haven't had a coverage issue, this is a checkbox and you move on. If you have had trouble getting or maintaining insurance, this is something to discuss with your agent before you list.
2. Private roads
If there is a private road on or adjoining your property that the buyer would be responsible for maintaining — financially or otherwise — that must now be disclosed. This comes up more in rural and semi-rural areas, but it also affects some older established neighborhoods and certain estate-sized properties in the DFW suburbs.
3. Aboveground storage tanks over 500 gallons
If the property has had aboveground storage tanks larger than 500 gallons that stored petroleum products or other chemicals, that must be disclosed. This is relevant for agricultural properties and some acreage lots in the outer suburbs — Prosper, Celina, Anna, McKinney — where properties may have been used for farming or ranching.
4. Conservation easements
Sellers must disclose if the property is located in a conservation easement. Conservation easements limit how the land can be developed or modified, which is a material fact for any buyer evaluating the property.
The Brand-New Form: Water Rights Disclosure (TREC No. 61-0)
Beyond the changes to Form 55-0, TREC created an entirely new standalone form: Water Notice — Seller's Disclosure About Groundwater and Surface Water Rights (TREC No. 61-0).
This form did not exist before 2026.
Sellers will now be required to disclose what they know about the groundwater and surface water rights associated with their property, including:
- Whether the property is located in a Groundwater Conservation District
- Whether there are water wells on the property
- Other relevant information about water rights connected to the land
For most buyers purchasing a standard single-family home in Plano, Frisco, or Richardson, this form will be a quick acknowledgment. For properties in the outer ring — acreage in Prosper, Celina, Melissa, Lucas, or anywhere on the eastern growth edge — water rights are genuinely material. Buyers in those areas need to understand whether the land sits over a regulated aquifer and what that means for their use of the property.
What Happens If You Don't Disclose Properly
Let's be direct about the risk here.
Failing to disclose a known material defect in Texas can expose a seller to liability under the Texas Deceptive Trade Practices Act (DTPA), which can result in damages up to three times actual damages if the violation is found to be knowing or intentional. You don't have to intend to deceive — you just have to have known something and failed to disclose it.
The new insurance disclosure is particularly consequential. If a buyer purchases a property, can't obtain standard homeowners insurance, and then discovers the seller knew about this problem and didn't disclose it, that's a lawsuit waiting to happen.
The practical answer here is not "fill out the form and sign it fast." It's to think carefully through every item, discuss anything uncertain with your agent, and get it right.
Sellers frequently underestimate this form. They check boxes quickly, miss items, or assume something isn't material when it is. The updated form adds new categories that many long-time homeowners won't have thought about before.
What Dallas Sellers Should Do Before July 1
If you're listing before July 1, the current form is still in effect, but the updated version is already available for voluntary use. Getting ahead of it is smart.
Here's what I walk my clients through before we list:
Review your insurance history. Pull any cancellation notices, non-renewals, or coverage gaps from the past few years. If you've had to switch carriers because of a claim or roof age, document it and be ready to disclose.
Check for private road issues. If your driveway connects to a shared road, easement, or private way, clarify ownership and maintenance responsibilities before you list.
Know your water well status. If you have a well, know whether it's active, what type it is, and whether your property falls within a Groundwater Conservation District. Your county appraisal records and Texas Water Development Board resources can help.
Talk to your agent before you fill out the form. This isn't a form you should rush through at the kitchen table. A good listing agent will sit down with you and go through it section by section. The stakes are too high to guess.
If you've already listed and your disclosure was based on the old form, you may want to review whether the new disclosures reveal anything material before your first offer arrives.
For everything that happens after an offer comes in — what the option period looks like, how inspection negotiations work, and what to expect through closing — the post What Dallas Sellers Can Expect After Accepting an Offer: Your Texas Timeline walks you through it step by step.
And if you're thinking through the full cost picture — beyond the disclosure itself — What Dallas Sellers Actually Pay at Closing: Your Texas Net Proceeds Breakdown gives you the numbers.
The Bottom Line
The Texas Seller's Disclosure Notice has changed. Starting July 1, 2026, the updated Form 55-0 and new water rights Form 61-0 are mandatory for all Texas residential sales. The biggest new item — the insurance disclosure — is going to surprise some Dallas sellers who've had trouble getting or maintaining coverage on their homes.
The right move is to review these changes before you list, not after you've signed a contract. This is exactly the kind of thing I walk my clients through before we put a sign in the yard.
If you're thinking about selling and want to make sure your disclosure is accurate and complete before you list, I'm happy to walk through it with you. Get in touch here — or if you'd like to know what your home is worth first, start with the home value tool.
Frequently Asked Questions
When do the new Texas seller's disclosure requirements take effect?
The updated Seller's Disclosure Notice (TREC Form 55-0) and the new Water Notice form (TREC No. 61-0) were adopted by TREC on May 4, 2026, and become mandatory for all contracts executed on or after July 1, 2026. Both forms are already available for voluntary use before that date.
What happens if I fail to disclose something on the Texas Seller's Disclosure Notice?
Failing to disclose a known material defect can expose you to liability under the Texas Deceptive Trade Practices Act. If the omission is found to be knowing or intentional, you may owe up to three times actual damages. Separately, if you deliver the disclosure after the contract is signed, the buyer has seven days to terminate for any reason and recover their earnest money.
Does the new insurance disclosure apply to all Texas sellers?
The new insurance disclosure applies to any seller completing the Seller's Disclosure Notice, which covers most single-family residential properties in Texas. Sellers must disclose both whether the property is currently insured and whether they have been unable to obtain insurance for any reason. If there's no coverage issue, this is a simple checkbox. If there has been a problem, it needs to be disclosed.
What is the new TREC water rights form (Form 61-0)?
TREC No. 61-0 is a brand-new standalone form — the Water Notice: Seller's Disclosure About Groundwater and Surface Water Rights — that didn't exist before 2026. It requires sellers to disclose what they know about groundwater and surface water rights on the property, including whether the property is in a Groundwater Conservation District and whether there are water wells. This form is particularly relevant for acreage and properties on the outer edge of the DFW suburbs.
Does the seller have to complete the disclosure if the buyer is purchasing as-is?
Yes. Under Texas law, even an as-is sale requires the seller to complete and deliver the Seller's Disclosure Notice. The as-is language in the purchase contract addresses the buyer's ability to request repairs — it does not exempt the seller from the disclosure obligation under Texas Property Code § 5.008.
About Paul Blair
Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 | CA DRE #01792671.