Selling a House As-Is in Texas: Legal Requirements and Disclosure Truths
In the 2026 Houston real estate market, "as-is" sales have become a popular strategy for homeowners looking to bypass the stress of pre-sale renovations. However, there is a common legal misconception that selling "as-is" provides a "get out of jail free" card regarding the home's condition.
The Legal Reality of "As-Is" in Texas
Legally, selling a house as-is in Texas means the seller is offering the property in its current state without any warranties or obligations to make repairs, upgrades, or modifications before closing. This is typically formalized using the Texas Real Estate Commission (TREC) standard contract, specifically Paragraph 7D(1).
However, "as-is" does not mean "no disclosures." Under Texas Property Code §5.008, sellers must still provide a Seller’s Disclosure Notice. You are legally required to disclose all known material defects, even if you do not intend to fix them.
Key Components of an As-Is Sale
Mandatory Disclosure: You must list known issues like foundation cracks, previous flooding (critical for Houston-area homes), roof leaks, or HVAC malfunctions.
Buyer’s Right to Inspect: Selling as-is does not waive the buyer's right to an inspection. In Houston’s current "return to fundamentals" market, most buyers will still pay for a professional inspection during their Option Period.
The "Known" Factor: You are only liable for disclosing defects you have actual knowledge of. Texas law does not require you to hire an inspector to find "unknown" problems before you sell.
Price Adjustment: In an as-is transaction, the "repair costs" are essentially baked into a lower asking price rather than being handled as a credit at closing.
Common Houston "As-Is" FAQs
1. Can I be sued after selling a house as-is in Texas? Yes, if it is proven that you knowingly concealed a material defect (like a hidden mold issue or a patched-over foundation crack) that was not disclosed in the mandatory notice.
2. Do I have to fix anything if the buyer finds issues? No. You are under no legal obligation to make repairs. However, if the inspection reveals a major "deal-breaker," the buyer may still try to negotiate a price reduction or use their Option Period to terminate the contract.
3. Are there any exemptions to the Seller's Disclosure? Certain transfers—such as foreclosures, births/deaths in a trust, or transfers between spouses—are exempt from the standard disclosure requirements.