When your seller client fills out the Seller’s Disclosure Notice (TAR 1406), he discloses what he knows about the property. But what happens if something about the property changes after the form is filled out?
While the Texas Property Code does not create a continuing duty or obligation to update the Seller’s Disclosure Notice, if information in the notice is no longer true, the seller may have a common-law duty to correct any misstatements or false impressions.
Whether it’s a recent storm damaging the roof or the seller learning about a previously unknown problem with the property, the additional information can be noted in the Update to Seller’s Disclosure Notice (TAR 1418). The form has space for the seller to rewrite relevant sections of the seller’s disclosure, ensuring he is providing the most current information about the property.
We sometimes get calls about whether listing brokers can make offers of compensation listed in the MLS dependent on some other criteria, such as applying only to full-price offers or that a buyer’s agent must accompany the buyer to the first showing. Those arrangements violate MLS rules, which state that offers of compensation must be unconditional except that the cooperating broker must be the procuring cause of the sale. Accompanying the buyer to the first showing may be a factor in determining procuring cause, but a listing broker is prohibited from making the commission conditional on that factor alone.
—David Jones, Associate Counsel