Selling a home is stressful enough on its own, but when you’re selling a property on behalf of a deceased loved one, the pressure hits a whole different level. You aren’t just managing a transaction; you’re managing memories, family dynamics, and a mountain of paperwork.
One of the first questions I get from clients navigating this process is about liability. Specifically, they worry about the Seller’s Disclosure Notice (SDN). If you’ve never lived in your late aunt’s house, how are you supposed to know if the roof leaked in 2015? Do you have to fill out that long, detailed form?
The short answer is: It depends on your specific legal role in the sale. While the selling inherited property in Texas often comes with special allowances, the rules are stricter than most people realize. Let’s break down how seller disclosures for estate sales in Texas actually work, so you can close the sale without looking over your shoulder.
(Note: I’m a real estate expert, not an attorney. This information is based on current Texas regulations as of 2026, but you should always verify your specific situation with a legal professional.)
The General Rule: Texas Property Code Section 5.008
To understand the exception, you first have to understand the rule. Under Texas Property Code Section 5.008, almost every seller of a single-unit residential property in Texas is legally required to provide a written notice of the property’s condition.
The state mandates this to prevent fraud and ensure buyers aren’t walking into a money pit blindfolded. The standard disclosure form asks about everything under the sun: Is there a termite warranty? Has the foundation been repaired? Does the heater work?
For a standard homeowner who has lived in the house for ten years, this is straightforward. You know about the time the dishwasher flooded the kitchen. But for an executor handling the Texas probate process, answering these questions can feel impossible. That is why the law carved out a specific niche for fiduciaries.
The Fiduciary Exemption: When Executors Are Exempt
Here is the good news for many of you. Texas law recognizes that court-appointed representatives usually haven’t lived in the home and cannot truthfully vouch for its history.
According to Section 5.008(e) of the Property Code, you are not required to complete the standard seller’s disclosure if you are a fiduciary acting in the course of the administration of a:
- Decedent’s estate
- Guardianship
- Conservatorship
- Trust
This means if you have been appointed by a court as the Executor or Administrator, and the Estate is the actual seller on the contract, you are generally exempt from the requirement to fill out the form. This exemption acknowledges that you can’t disclose what you honestly don’t know.
However, precise wording matters here. This exemption applies to the role of an executor in Texas acting on behalf of the estate. It does not apply to everyone involved in the process, which leads us to the most common trap sellers fall into.
When the Exemption Does NOT Apply: Heirs and Beneficiaries
This is where things get tricky, and where I see families accidentally open themselves up to lawsuits. The exemption in the code is for fiduciaries (like executors), not for heirs.
If the title of the home has already been transferred to you—perhaps through an affidavit of heirship Texas or after the probate has officially closed—you are now the owner. If you are the owner and you sell the house, you are generally not exempt.
Even if you are the son or daughter of the deceased and you never spent a single night in the house as an adult, the law views you as a standard seller. You must complete the Seller’s Disclosure Notice. In this scenario, you are no longer selling as the “Estate of [Name]”; you are selling as “[Your Name].” That distinction changes everything regarding your disclosure obligations.
How to Fill Out the Disclosure If You’ve Never Lived There
So, what happens if you are an heir, you aren’t exempt, but you genuinely have zero idea if the sprinkler system works?
The standard for disclosure is based on the “best of seller’s belief and knowledge.” The form is not a guarantee that the house is perfect; it is a report of what you know.
When you are filling out the form, you will see options like “Yes,” “No,” and “Unknown.”
- Use “Unknown” liberally: It is perfectly legal and honest to mark “Unknown” (or “U” on some forms) if you truly do not know the condition of the roof, plumbing, or electrical wiring.
- Do not guess: The dangerous move is marking “No” (implying “No defects”) when you actually don’t know. If you mark “No” on the foundation section, and the buyer later finds a giant crack you didn’t know about, they could argue you misrepresented the condition. “Unknown” protects you; guessing endangers you.
Also, check your paperwork. If you have inspection reports from previous potential buyers who backed out, you generally must disclose those findings. You can’t un-know what a professional inspector has already told you.
The “Known Defect” Trap: Exemption ≠ Immunity
Let’s circle back to the executors who are exempt from filling out the form. Does this mean you can sell a house with a massive hole in the roof and just keep quiet about it?
Absolutely not.
Being exempt from the form does not exempt you from the truth. Under Texas law, common law fraud and negligence claims still apply. If an executor or trustee knows about a Material Defect—something that would significantly affect the property’s value or a buyer’s decision—they must disclose it.
For example, if you go to the house to clear out furniture and see the basement flooded with six inches of water, you now have “actual knowledge” of a defect. Hiding that fact, even if you don’t have to fill out the checkbox form, can be considered misrepresentation. The smart move is to disclose known issues in a separate writing or a special provisions addendum to the contract.
Do You Have to Disclose a Death in the House?
This is easily one of the most frequently asked questions I get. People are often worried that a “stigmatized” property won’t sell, or they worry about the legal requirement of telling a buyer someone passed away there.
In Texas, the rules are fairly specific:
- Natural causes, suicide, or accidents: You are not required to disclose a death that occurred on the property if it was due to natural causes, suicide, or an accident unrelated to the property’s condition.
- Condition-related death: You must disclose if a death was caused by the property itself (for example, faulty wiring causing a fatal fire or a balcony collapse).
- Murder: The statute is silent on murder. However, because violent crimes can heavily stigmatize a property and lead to angry buyers later, most legal experts recommend disclosing it to ensure full transparency.
- HIV/AIDS: Under federal and state law, you are prohibited from disclosing that a previous occupant had HIV or AIDS, as this is a protected class.
Best Practices for Reducing Liability
If you are navigating this minefield, you want to get to the closing table with your peace of mind intact. Here is how seasoned agents and sellers handle it.
First, consider selling “As Is.” Ensure your purchase contract specifically states the property is being sold “As Is, Where Is.” This signals to the buyer that you aren’t going to make repairs, though it doesn’t protect you if you hide known defects.
Second, if you are unsure about the condition, you might pay for your own pre-listing inspection. It sounds counterintuitive to look for problems, but it allows you to disclose everything upfront. This kills the “surprise” factor during the buyer’s option period and reduces the chance of them claiming you hid something later.
Finally, when in doubt, over-communicate. If you think something might be an issue, disclose it. And most importantly, consult a Texas real estate attorney to review your disclosure strategy. The cost of a simplified legal review is a fraction of the cost of a post-closing lawsuit.
