In Texas, selling as is means the buyer takes the house in its present condition with no repair promise from you. It does not excuse the seller's disclosure notice, the federal lead paint rules or a false statement about the house, and the buyer can still inspect and use any option period to walk away.
Selling as is means you are not promising to fix anything. The buyer takes the house the way it sits today. That is a real choice under Texas contracts, but it has limits. It does not erase your duty to disclose what you know, and it does not stop a buyer from inspecting the house or walking away during an option period.
This guide covers the statewide rules. If your house is in Tarrant, Dallas, Collin or Denton County, the DFW version of this guide lists the local flood, permit and county records worth pulling before you sign anything.
What "as is" means on the Texas contract
The Texas Real Estate Commission (TREC) publishes the standard resale contract for houses. The current version is TREC No. 20-19, which replaced 20-18. Paragraph 7D defines "As Is" as the present condition of the property with any and all defects, and without warranty except the warranties of title and the warranties written into the contract.
Paragraph 7D then gives two boxes. Box (1) says the buyer accepts the property as is. Box (2) says the buyer accepts it as is, provided the seller completes specific repairs listed on the form. The form warns against vague phrases like "subject to inspections." A repair has to be named.
Read paragraph 7D closely: it says the buyer's acceptance of the property as is does not stop the buyer from inspecting under paragraph 7A, from negotiating repairs later in an amendment, or from terminating during the option period. An as-is box limits what you promise to fix. It does not lock the buyer in.
As is does not cancel the seller's disclosure
Texas Property Code Section 5.008 requires a seller of a home with not more than one dwelling unit to give the buyer a written disclosure notice about its condition. TREC publishes its own version, the Seller's Disclosure Notice (Form 55-1). The notice asks about the roof, foundation, plumbing, termites, past flooding, flood zones, flood insurance claims, work done without permits, notices of code or deed restriction violations, and lawsuits that affect the property.
Three parts of the statute matter most to an as-is seller:
- Your knowledge is the standard. You complete the notice to the best of your belief and knowledge on the date you sign it. If you do not know the answer, you say so, and that is compliance.
- Timing. The notice is due on or before the effective date of the contract. If the buyer signs first and gets the notice later, the buyer may terminate for any reason within 7 days after receiving it.
- Some things you need not raise. The statute says a seller has no duty to disclose a death by natural causes, suicide or an accident unrelated to the condition of the house.
Paragraph 7B of the TREC contract tracks this. One box says the buyer already has the notice. Another sets a number of days for the seller to deliver it and repeats the 7-day exit.
Sales that are exempt from the disclosure notice
Section 5.008(e) lists transfers the disclosure rule does not cover. Among them:
- a sale under a court order or a foreclosure sale;
- a sale by a bankruptcy trustee;
- a sale by a fiduciary administering an estate, guardianship, conservatorship or trust;
- a transfer from one co-owner to another, to a spouse, or to a lineal relative;
- a transfer between spouses under a divorce decree or property settlement;
- a sale to or from a government entity; and
- a new home that has never been lived in.
An executor selling a parent's house may fall under the fiduciary exemption. Our page on selling an inherited house in Texas covers that situation, and our page on selling during a Texas divorce covers the divorce side. Whether an exemption fits your facts is a question for a Texas real estate attorney.
Lead paint rules for homes built before 1978
Federal law adds its own disclosure for older houses, and an as-is sale does not avoid it. The Environmental Protection Agency says that before a buyer signs a contract on most housing built before 1978, the seller must:
- give the buyer the pamphlet "Protect Your Family From Lead in Your Home";
- disclose any known lead-based paint or lead hazards and hand over any reports the seller has;
- include the Lead Warning Statement in the contract; and
- give the buyer a 10-day window to test for lead, which the parties can change or the buyer can waive in writing.
Sellers keep a signed copy for three years. The EPA lists foreclosure sales among the exemptions. Paragraph 7C of the TREC contract points to this rule, and TREC has an addendum for it.
Other notices that still apply
The as-is box does not switch off the contract's other notices. Read paragraph 6E and paragraph 7 for the ones that fit your house:
- Mold remediation. If the house was remediated for mold, paragraph 6E(11) says the seller must give the buyer each certificate of mold damage remediation issued in the 5 years before the sale.
- Owners' association. If membership is mandatory, Section 5.012 of the Property Code requires a notice, and the buyer can ask for a resale certificate.
- Districts and annexation. The form includes notices for public improvement districts, utility districts and possible annexation for homes outside city limits.
- Water rights. Paragraph 7I is new on 20-19. Unless all of its listed conditions are true, such as no water well or pond on the land, the seller must deliver TREC's Seller's Water Disclosure, and a buyer who receives it late gets a 7-day exit.
The buyer can still inspect and walk away
Paragraph 7A requires the seller to allow access at reasonable times and to keep the utilities on, at the seller's expense, while the contract is in effect. The buyer can bring inspectors licensed by TREC. Paragraph 5B gives a buyer who pays an option fee the unrestricted right to terminate within the number of days written in the blank. If the buyer ends the deal in time, the seller keeps the option fee and the buyer gets the earnest money back.
So an inspection report can still arrive on an as-is deal. What changes is your position. You have not promised repairs, so any request after the inspection is a new negotiation, and you can say no. The buyer can then decide whether to stay or leave while the option period is open.
Lender-required repairs
A buyer using a loan brings a third party into the condition question. Under paragraph 7E, neither party has to pay for repairs the lender requires, including treatment for wood-destroying insects, unless they agree in writing. If they cannot agree, the contract ends and the earnest money goes back to the buyer. If those repairs would cost more than 5% of the sales price, the buyer may terminate.
TREC's financing addendum (Form 40-11) adds more. It lets a buyer terminate if the property does not satisfy the lender's underwriting, which can include the appraisal and insurability, on or before the third day before closing. A house with major defects can trip either exit. A cash sale has no lender, so neither one comes into play.
What an as-is sale cannot protect you from
Texas Business and Commerce Code Section 27.01 defines fraud in a real estate transaction. It includes a false statement of a past or existing material fact, made to get someone to sign a contract, that the person relied on. A person who commits it is liable for actual damages. If the person knew the statement was false, exemplary damages are possible. The statute also allows recovery of attorney's fees and court costs.
Paragraph 19 of the TREC contract adds that all representations and warranties in the contract survive closing. The safe course is plain: answer the disclosure honestly, mark "unknown" when you truly do not know, and do not cover up a defect. A Texas real estate attorney can review your disclosure if a known problem is serious.
A short as-is seller's checklist
- Decide between box (1) and box (2) of paragraph 7D before you list or accept an offer.
- Fill out the Seller's Disclosure Notice before the contract is signed, not after.
- If the house was built before 1978, prepare the lead paint addendum and pamphlet.
- Gather any inspection, repair, mold or insurance claim records you already have.
- Expect an inspection and decide in advance which requests, if any, you would consider.
- Ask the title company for an estimate of your net, and read our guide to who pays closing costs in Texas.
Selling as is to Cash Home Advisors
When Cash Home Advisors buys a house, we buy it as-is, with no repair list, and our purchase does not depend on a bank loan. We pay all closing costs, and we can close in 7–14 days. You still answer the disclosure questions that apply to your sale, and you see the full closing statement before you sign.
You can ask for a cash offer, read how our process works, or see the kinds of houses we buy. If you are behind on payments, our page on selling before a Texas foreclosure explains the timing.
Want a cash offer instead?
We buy Texas houses as-is, pay all closing costs, and can close in 7–14 days.
Get my cash offer or call (817) 635-0743
Frequently asked questions
Do I have to fill out a seller's disclosure if I sell my Texas house as is?
Yes, unless your sale fits an exemption. Section 5.008 of the Texas Property Code requires the notice when a home with one dwelling unit is sold, and the As Is clause in the contract does not change that. The statute lists exemptions, such as sales by an estate's executor, foreclosure sales and transfers between spouses in a divorce.
Can a buyer back out of an as-is contract in Texas?
Yes, in several ways. A buyer who paid for an option period can terminate for any reason before it ends. A buyer who gets the disclosure notice after signing can terminate within 7 days of receiving it. A financed buyer may also have exits in the financing addendum.
Does selling as is protect me if I knew about a problem?
No contract clause makes a false statement safe. Texas Business and Commerce Code Section 27.01 makes a person who uses a false statement of a material fact to get someone to sign a real estate contract liable for damages. Ask a Texas real estate attorney about your own facts.
Who pays for repairs a lender requires on an as-is sale?
Under paragraph 7E of the TREC resale contract, neither side has to pay for lender-required repairs unless they agree in writing. If no one agrees to pay, the contract ends and the buyer gets the earnest money back.
Sources
- Texas Real Estate Commission, One to Four Family Residential Contract (Resale), TREC No. 20-19
- Texas Property Code, Chapter 5 (Sec. 5.008 seller's disclosure of property condition)
- Texas Real Estate Commission, Seller's Disclosure Notice (Form 55-1)
- Texas Real Estate Commission, Third Party Financing Addendum, TREC No. 40-11
- U.S. Environmental Protection Agency, Real estate disclosures about potential lead hazards
- Texas Business and Commerce Code, Chapter 27 (Sec. 27.01 fraud in real estate transactions)
General information, not legal or tax advice. Talk to a Texas attorney or CPA about your situation.