Guides
Foundation problems when a Texas house changes hands
Movement in a foundation, or an old repair to one, does not block a sale in Texas. It does add paperwork. What follows explains the state's disclosure rule in ordinary language. It is not legal advice. For questions about your own contract, speak to your agent or a lawyer who handles property.
What the law expects from a seller
Under Property Code section 5.008, someone selling a single-family home in Texas hands the buyer a signed statement describing the condition of the place. The Texas Real Estate Commission's form for this is the Seller's Disclosure Notice.
Parts of it bear directly on foundations. One question lists parts of the house and asks which have known defects, and the foundation or slab is on that list along with ceilings, floors, windows, doors and walls. Another asks about conditions the seller knows of, including earlier structural repair, settling, soil movement and improper drainage. A later one asks about alterations or repairs done without the permits they needed.
Four points that trip people up
It records what the seller knows
The statute has the seller fill it in from their own knowledge as of the signing date. Where the answer is unknown, saying so satisfies the rule.
It is not an inspection
The form says in capitals that it does not stand in for whatever inspections a buyer chooses to commission.
The clock matters
Ask your agent or attorney when the notice must be delivered under your contract and what options you have if it arrives late.
A few sales fall outside it
Some transfers have exceptions. Ask a property attorney which disclosure requirements apply to your transaction.
If you are selling
Buyers relax when a repair arrives with its paperwork. New paint over cracks, with nothing behind it, has the reverse effect.
- Gather the engineer's report, the repair drawing, the contract and the final invoice.
- Find the permit record and the final inspection, if the work needed a permit.
- Read the warranty for how it passes to a new owner. Some lapse unless the buyer registers by a deadline, and there may be a fee. The repair company can tell you.
- If you have signs but no repair, consider an engineer's report before listing. It turns an unknown into a described condition.
- Fill the notice in truthfully. For help with wording, go to your agent or a lawyer.
If you are buying
- Read the seller's notice before the home inspection and hand a copy to the inspector.
- If the notice or the inspector mentions movement or repair, hire an engineer of your own while the option period is still running.
- Ask for the seller's repair file and check that the pier drawing matches where the signs are.
- Ask the repair company whether the warranty will transfer to you, and get its answer in writing.
- Look at the yard: grading, gutters and large trees tell you how the next ten years may go.
A repair company's evaluation can tell you what a fix might involve. Calling the number on this site will put you in touch with one. For a neutral opinion on whether to buy, use an engineer, as the inspection guide explains.
Questions about buying and selling
Does past foundation repair have to be disclosed in Texas?
The standard form has a line for earlier structural repair. If you know of one, mark yes and describe what was done.
Is a house with foundation repair a bad buy?
Not necessarily. A documented repair, done under a permit and backed by a warranty that transfers, may be easier to live with than an untouched house on the same soil that has begun to move.
Can a lender or appraiser require repair before closing?
Lenders set their own conditions. Ask yours early if an inspection has raised the foundation.
Want it looked at?
Phone, say where the house is and what has changed, and you will be speaking with an independent local foundation repair company. It can book a visit to measure the floors and tell you what it finds.
Calls may be recorded. Austin Foundation Repair Help refers callers and repairs nothing itself, as the referral disclosure sets out. Call details are handled under the privacy policy.