Seller Disclosures and Probate Sales in Texas: Key Facts for Personal Representatives
TLDR: In Texas, a personal representative such as an executor or administrator selling estate property during probate is generally exempt from providing the Seller’s Disclosure Notice under Texas Property Code § 5.008. However, if they know about a material defect, they must still be truthful and avoid misrepresentation. The exemption does not apply if the property has already been transferred to an heir or beneficiary who then sells it.
When a property is sold during probate in Texas, the topic of the Seller’s Disclosure Notice often comes up. While this form is common in most residential sales, the requirements can be different when a personal representative such as an executor or administrator sells property from an estate.
Below are some key facts from Texas law and practical considerations from a real estate perspective.
Texas Property Code § 5.008
Texas Property Code § 5.008 is the section of state law that addresses the Seller’s Disclosure Notice for residential property. It lists certain transfers that are exempt from the disclosure requirement.
Among the exemptions is:
“a transfer by a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust.”
This means that if a court appointed executor or administrator is selling property as part of settling the estate, the statute says the formal Seller’s Disclosure Notice is not required.
When the Exemption Does Not Apply
The exemption only applies to the fiduciary sale itself. If the property has already been distributed to an heir or beneficiary, and that person sells it in their own name, the standard Seller’s Disclosure Notice requirement in Texas Property Code § 5.008 will generally apply.
Knowledge of Material Defects
Even when a sale qualifies for the exemption, sellers must still be truthful about known facts. If a personal representative has actual knowledge of a material defect — something that would be important for a reasonable buyer to know — general real estate principles and other state laws prohibit misrepresentation or concealment of that information.
The exemption from the Seller’s Disclosure Notice form does not remove the obligation to avoid false statements or omissions. In other words, while the form may not be required, honesty and accuracy remain important in all communications about the property.
Summary Table
| Type of Sale | Seller’s Disclosure Required by § 5.008? | Notes |
|---|---|---|
| Executor or Administrator selling estate property | No | Exemption applies if the sale is by a fiduciary settling an estate |
| Heir or Beneficiary selling property in their own name | Yes | Normal disclosure rules apply |
| Any seller making false or misleading statements | N/A | Risk of dispute regardless of exemption status |
Why This Matters in Probate Real Estate
Understanding when the statutory exemption applies can help set correct expectations with buyers and other parties to the transaction. In practice, some sellers who are exempt still choose to share certain information about the property to keep the process smooth.
Disclaimer: This article is provided for general informational purposes only and is not legal advice. Real estate transactions involving probate can involve complex legal issues. For legal advice about your specific situation, please consult a licensed Texas attorney.
