Texas Seller Disclosure Requirements for Mold

The General Duty to Disclose

Texas Property Code Section 5.008 requires sellers of residential property to give the buyer a written Seller's Disclosure Notice covering known defects and conditions. The standard form asks about water penetration, previous flooding, prior repairs, and conditions affecting health and safety.

The operative word is known. You are not required to go looking for problems. But once you know about a condition, failing to disclose it exposes you to claims after closing — and buyers who discover an undisclosed mold problem tend to pursue them.

The Certificate of Mold Remediation Rule

This is the requirement sellers miss. Under Texas Occupations Code Section 1958.154, if a Certificate of Mold Remediation was issued for the property, the seller must give the buyer a copy of each certificate issued during the five years preceding the sale.

The obligation also appears in the standard TREC One to Four Family Residential Contract under the title notices section. It is not optional and it is not waivable by simply not mentioning it. If work was done on your home and a certificate was issued, keep it — you will need it.

What This Means Practically

Disclosure Is Not the Same as Liability

Sellers often assume that disclosing mold guarantees a price hit. In practice, a documented and properly remediated issue is frequently a non-event. What damages a transaction is the discovery of something concealed.

The failure mode that actually costs sellers money is the undisclosed problem that surfaces after closing. That is where litigation lives.