TREC Form 61-0: What DFW Buyers Need to Know About Texas Water Rights Disclosures
Texas Form 61-0 requires sellers to disclose water wells, groundwater districts, and surface water rights. Here's what DFW buyers should verify before closing.
Does a Texas seller have to disclose groundwater rights and water wells?
As of July 1, 2026, yes -- under most circumstances. Texas now requires sellers to complete TREC Form 61-0, the Groundwater and Surface Water Rights Disclosure, whenever the property may have a water well, surface water rights, or is located within a groundwater conservation district. If a seller answers "no" to all five screening questions, the form is not required. For buyers purchasing homes in Collin County, Denton County, and other parts of North Texas where groundwater districts cover large portions of the suburban growth corridor, this form is becoming a routine part of closing.
By Paul Blair | November 13, 2026
Texas added a lot to the standard real estate contract in 2026. New insurance disclosures, generator provisions, updated FinCEN requirements -- most of it is paperwork that rarely changes what happens at closing.
TREC Form 61-0 is different.
This one touches something buyers in the DFW suburbs often overlook: water. Not municipal water service -- the kind you pay a utility for -- but wells, surface rights, and the underground aquifer systems that underlie large parts of North Texas. For buyers purchasing in Prosper, Celina, Anna, McKinney, and the other fast-growing Collin County suburbs, understanding what this form discloses (and what it doesn't) could affect what you discover during your option period.
What Form 61-0 Is and Why It Exists
TREC Form 61-0, officially the "Groundwater and Surface Water Rights Disclosure," took effect July 1, 2026. It was adopted by the Texas Real Estate Commission on May 4, 2026 as a companion to changes made to the 1-4 Family Residential Contract.
Before July 2026, water rights and well disclosures were buried in the broader Seller's Disclosure Notice. The new form pulls that information into a standalone disclosure so buyers can evaluate it clearly -- separate from roof age, foundation history, and the other items on the main disclosure form.
The form is triggered by paragraph 7(I) of the TREC 1-4 Family Contract. If that paragraph applies to the transaction, the seller completes Form 61-0.
The Five Screening Questions
A seller does NOT have to complete Form 61-0 if they can honestly answer "no" to all five of the following questions:
| Screening Question | What It's Really Asking |
|---|---|
| Does the property have a water well? | Any well on the land, active or capped |
| Is the property served by a water well (even if shared)? | Community wells, shared rural wells, neighbor-shared wells |
| Does the seller claim any surface water rights? | Rights to creeks, ponds, streams, or lakes on or bordering the property |
| Is the property within a groundwater conservation district? | GCDs cover much of Collin, Denton, and surrounding counties |
| Does the seller claim any groundwater rights separate from surface ownership? | Mineral-style groundwater rights on record |
For most city-lot homes in established Dallas neighborhoods -- Highland Park, the M Streets, Lakewood, Uptown -- the seller answers "no" to all five and the form is not required. The property uses the municipal water supply, sits outside any groundwater district boundary, and has no well.
For buyers purchasing acreage in Anna, Celina, or Prosper -- or any rural-adjacent lot with an older structure -- at least one of those questions will often come back "yes."
What Form 61-0 Actually Discloses
When the form IS required, sellers must disclose:
Water wells on the property. Type (domestic, irrigation, monitoring), approximate location, whether currently in use, and the last known test results if available.
Groundwater district membership. Which district the property falls within, the district's permit requirements, and any existing permits or restrictions associated with the property.
Surface water rights. Whether the seller holds or claims any surface water rights, and whether those rights are licensed with the Texas Commission on Environmental Quality (TCEQ).
Transfer of rights. Whether the seller intends to convey or retain any water rights at closing.
That last one matters. It is possible -- and legal -- for a seller to retain groundwater rights while selling the surface. If you're buying land in an area where groundwater rights have economic value, you need to know before you close whether those rights transfer to you.
Collin County Context: Why This Is More Relevant Than You Think
Collin County sits over parts of the Woodbine Aquifer and the Trinity Aquifer system. The North Texas Groundwater Conservation District covers portions of Collin County, and additional groundwater districts regulate other parts of the county. As development has pushed north into Prosper, Celina, Anna, and beyond, properties that were rural five years ago are now being sold as residential lots -- sometimes with wells intact.
The pattern that shows up in Collin County transactions: a newer-construction home in a platted subdivision uses municipal water and Form 61-0 is not required. But a home on a larger lot outside city limits, or a resale on acreage that was once a rural tract, may have a well that hasn't been used in years and was never properly abandoned.
Texas law requires that abandoned wells be properly plugged. An unplugged abandoned well on a property you're buying becomes your responsibility after closing. That's a cost that can run from $1,500 to $15,000+ depending on depth, casing condition, and groundwater district requirements.
If the seller's Form 61-0 discloses a well, verify its status during your option period. This is not covered in the standard home inspection -- you need to request it separately. For more on what happens when properties have both wells and septic systems, see the North Texas buyer's guide to well and septic inspections.
If you're also buying in one of the Collin County areas with MUD or PID tax districts, it's worth reviewing how MUD and PID taxes work for new construction in DFW -- some of those districts also regulate water infrastructure separately from the groundwater district framework.
If you're buying in Prosper, Celina, or Anna and the seller discloses a water well on Form 61-0, talk with your agent before the option period ends. A well condition inspection, groundwater district permit review, and water test can all be completed within a standard 7-10 day option period -- but only if you schedule them promptly. Contact Grey Square at greysq.com/contact to get a checklist of what to request.
What Buyers Should Do During the Option Period
If Form 61-0 discloses a well, surface water rights, or groundwater district membership, here's what to verify before the option period expires:
Step 1: Review the groundwater district's permit register. Most North Texas groundwater conservation districts maintain online databases of wells and permits. Look up the property address to confirm what's on record.
Step 2: Request a well condition inspection. A licensed well inspector can assess casing integrity, pump condition (if any), and water quality. This is different from a standard home inspection.
Step 3: Confirm the ownership and transfer of water rights. Your title commitment should reflect any water rights that are part of the sale. If the seller is retaining groundwater rights, that should appear in the deed language. See what the Texas title commitment covers during your option period for more context on what to look for.
Step 4: Understand plugging obligations. If there's an unplugged well the seller hasn't used in years, negotiate who bears the plugging cost before you close -- not after.
Step 5: Check for groundwater district fees. Some districts require ongoing permits or fees for wells above a certain production threshold. If you plan to use the well for irrigation, understand the district's rules first.
What Form 61-0 Does NOT Cover
This comes up often enough to address directly:
| This IS covered by Form 61-0 | This is NOT covered |
|---|---|
| Water wells on the property | Municipal water service reliability |
| Groundwater conservation district membership | Water pressure or utility bills |
| Surface water rights held by seller | Flooding or stormwater drainage |
| Groundwater rights retained or conveyed | Septic systems or wastewater |
Septic systems -- a separate disclosure item -- are covered in the Seller's Disclosure Notice and in greater detail in a dedicated guide to well and septic systems for North Texas buyers. Form 61-0 is specifically about rights and regulatory status, not infrastructure condition.
Frequently Asked Questions
What happens if a seller fails to complete Form 61-0 when it's required?
A seller who was required to complete Form 61-0 and didn't has potentially failed to meet their disclosure obligations under the TREC contract. Buyers in Texas have the option period as a protection, but a missing required disclosure can also be grounds for rescission if the buyer discovers it after closing and can demonstrate material harm. If you close on a property and later discover an undisclosed well, consult a Texas real estate attorney.
Does Form 61-0 apply to new construction in Prosper or Celina?
It depends on the lot. A new-build in a fully platted subdivision with municipal water and no prior agricultural use will almost always generate five "no" answers on the screening questions, so the form is not required. But a new home built on a larger rural tract that previously had agricultural water use might trigger the form. Ask your builder and verify with the title company.
Can a buyer terminate the contract because of Form 61-0 disclosures?
Yes -- during the option period, a buyer can terminate for any reason. If the Form 61-0 disclosures reveal a well issue or groundwater situation you didn't anticipate, you can terminate and receive your earnest money back. After the option period, termination rights are more limited and depend on whether a specific contract contingency applies.
How is TREC Form 61-0 different from the Seller's Disclosure Notice?
The Seller's Disclosure Notice (TREC Form 7-D) is the broader document covering the property's condition -- foundation, roof, HVAC, environmental hazards, and more. Form 61-0 is a standalone supplement specifically for water rights and wells. Both can apply to the same transaction; they're not mutually exclusive.
How do I find a real estate agent in DFW who actually understands these regulatory disclosures?
Look for an agent who works regularly in the specific area you're buying -- particularly if you're purchasing in Collin County, where groundwater districts and rural-to-suburban transitions create disclosure situations that agents who focus only on urban Dallas proper don't see as often. Ask whether they've personally worked transactions involving Form 61-0 disclosures and how they handled the option period in those situations. At Grey Square, we work across the full DFW growth corridor and handle both the regulatory and negotiation sides of these transactions. You can reach us at greysq.com/contact.
For buyers under contract in McKinney or Frisco: if you've received a Form 61-0 disclosure and aren't sure what it means for your transaction, your option period clock is running. Grey Square works with buyers across Collin and Denton Counties on exactly these situations. Reach out at greysq.com/contact and we'll walk through what the disclosure means for your specific deal.
Texas keeps building its disclosure framework around the things that actually cost buyers money after closing. Water rights and well obligations are real costs -- and now there's a form specifically designed to surface them before you sign the deed. If you're buying anywhere in Collin County's suburban growth corridor, check whether Form 61-0 is part of your transaction and treat it as a signal to do your homework before the option period expires.
Paul Blair has negotiated transactions involving water well disclosures, groundwater district permit reviews, and rural-to-suburban lot transitions across Collin County, including in Prosper, Celina, and Anna.
About Paul Blair Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas, Los Angeles and Houston. With 22 years in the business, 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.
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