You can sell an empty Texas house like any other, but a few rules bite harder. The seller's disclosure asks how long since you lived there, TREC 20-19 makes you keep utilities on during the contract, and insurance, homestead and IRS exclusion clocks keep running while it sits.
An empty house can be simpler to show than an occupied one. There is no one to work around for showings, inspections or repairs. But a vacant house also brings its own paperwork questions and costs that keep running every month it sits. This guide covers the Texas rules that matter most when the seller no longer lives in the house.
If the house is in Dallas, Tarrant, Collin or Denton County, the DFW version of this guide covers local code, water and appraisal steps before you list.
The seller's disclosure asks about occupancy
Property Code Sec. 5.008 requires the seller of a home with not more than one dwelling unit to give the buyer a written disclosure notice. Near the top of the statutory form are two questions every vacant-house seller has to answer: whether the seller is occupying the property, and if not, how long it has been since the seller lived there.
That second question matters because a seller who has been gone a long time may not know about recent leaks, pests or failures. The statute anticipates this. Under Sec. 5.008(d), the seller completes the notice to the best of the seller's belief and knowledge as of the date it is signed. If information is unknown, the seller says so on the form and, by doing that, complies.
Unknown is not a shortcut around things you do know. If a pipe burst while the house was empty, say so. A walk-through with fresh eyes before you fill out the form can jog your memory.
Who does not have to give the disclosure
Sec. 5.008(e) lists transfers the section does not cover. The ones most often tied to vacant houses are:
- a transfer under a court order or a foreclosure sale;
- a sale by a fiduciary in the course of administering a decedent's estate, a guardianship, a conservatorship or a trust;
- a transfer from one co-owner to one or more other co-owners; and
- a transfer to a spouse or to a person in the lineal line of consanguinity of a seller.
An executor selling a parent's empty house often falls under the fiduciary exception. Our guide to selling inherited property in Texas covers the probate side. Paragraph 7B of the TREC 20-19 contract has a checkbox for the case where the seller is not required to furnish the notice.
Timing: deliver it before the contract is signed
Under Sec. 5.008(f), the notice is due on or before the effective date of the contract. If the contract is signed first, the buyer may terminate for any reason within seven days after receiving the notice. For a seller who lives out of town, that means having the form signed and ready before offers come in, not after.
Keep the utilities on during the contract
Paragraph 7A of the TREC 20-19 resale contract says the seller "at Seller's expense shall immediately cause existing utilities to be turned on" and keep them on while the contract is in effect. The same paragraph lets the buyer inspect with licensed inspectors. An inspector cannot test the HVAC, water heater, plumbing or appliances without power, water and gas.
If you shut service off when the house went empty, plan for the lead time to restart it. Our guide to utilities in a vacant house explains the choices.
Other contract terms that work differently when no one lives there
- Lead-based paint. Paragraph 7C notes that federal law requires a lead-based paint disclosure for a home built before 1978.
- As Is. Paragraph 7D defines "As Is" as the present condition with all defects and no warranty except title and contract warranties. A buyer who accepts As Is can still inspect, negotiate repairs or end the contract in the option period.
- Possession. Paragraph 10A says possession by the buyer before closing, or by the seller after closing, without a written lease creates a tenancy at sufferance, and it tells both sides to consult their insurance agent. Letting a buyer move into an empty house early without a lease can create exactly the kind of occupant problem covered in our guide to squatters' rights.
Insurance while the house is on the market
A house can sit empty for weeks or months while it is listed. The Texas Department of Insurance says some policies exclude losses that occur after a house has been vacant for the number of days the policy specifies, and that most companies stop coverage when a house is vacant 60 days or more, though they usually keep liability coverage. Ask your agent what applies while the house is listed.
Property tax and income tax timing
| Rule | What it says | Why it matters for a vacant sale |
|---|---|---|
| Homestead absence, Tax Code 11.13(l) | Homestead character continues during a temporary absence of less than two years if you intend to return and have no other principal residence | Once you decide to sell and move elsewhere, the intent to return may no longer fit |
| January 1 rule, Tax Code 11.42 | Exemption eligibility for a year is set by qualifications on January 1 | The year you sell, your exemption status as of January 1 shapes the tax bill being prorated |
| IRS Publication 523 | Exclude up to $250,000 of gain ($500,000 married filing jointly) if you owned and lived in the home 24 months of the 5 years before sale | Every month the house sits empty uses up part of that five-year window |
A CPA can tell you how the exclusion applies to your dates, and your appraisal district can tell you how it treats a homestead you have left.
Before you list: a short to-do list
- Fill out the seller's disclosure, and mark anything you truly do not know as unknown.
- Line up utilities so they are on from the day the contract is signed through closing.
- Call your insurer and ask what the policy says about a vacant house, and get the answer in writing if you can.
- Look up the appraisal district record and check which exemptions are listed for this year.
- Post signs saying entry is forbidden. Penal Code Sec. 30.05 counts signs reasonably likely to be seen by intruders as notice.
- Take dated photos of every room so you have a record of condition on the day you list.
- Decide who holds the keys and who will open the door for inspectors and appraisers.
None of these steps takes long, and each one closes off a problem that is harder to fix once a buyer is under contract.
Listing it, or selling it as is
An empty house shows well when it is clean and the lights work, and staging can help. But if the house needs work you do not want to manage from a distance, selling as is may be simpler. Our guides on selling a house as is and selling without a realtor compare the trade-offs.
Selling your vacant house to Cash Home Advisors
Cash Home Advisors is based in Fort Worth and buys houses across DFW, including empty ones. We pay all closing costs and can close in 7–14 days, which can cut short the months of insurance, utilities and upkeep. You see the closing statement before you sign.
Request a cash offer, read how our process works, or browse more squatters and vacant property guides, including our vacant house checklist.
Want a cash offer instead?
We buy Texas houses as-is, pay all closing costs, and can close in 7–14 days.
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Frequently asked questions
Do I have to fill out a seller's disclosure for a vacant house in Texas?
Usually yes. Property Code Sec. 5.008 applies to most sales of a single-dwelling-unit home, occupied or not, and the form asks whether the seller is occupying the property and, if not, how long since the seller did. Exceptions include sales by a fiduciary administering an estate, trust or guardianship, and transfers by court order or foreclosure.
Do the utilities have to be on when I sell an empty house?
Under paragraph 7A of the TREC 20-19 resale contract, the seller must turn on existing utilities at the seller's expense right away and keep them on while the contract is in effect, so the buyer can inspect.
What if I do not know the answer to a disclosure question about the house?
Sec. 5.008(d) says the notice is completed to the best of the seller's belief and knowledge, and if information is unknown, the seller indicates that on the form and is in compliance.
What happens if the buyer gets the disclosure late?
The notice is due on or before the contract's effective date. If the contract is signed first, Sec. 5.008(f) lets the buyer terminate for any reason within seven days after receiving the notice.
Sources
- Texas Property Code, Chapter 5 (Sec. 5.008 seller's disclosure)
- Texas Real Estate Commission, Resale contract TREC No. 20-19 (paragraphs 7 and 10)
- Texas Department of Insurance, Home insurance guide
- Texas Tax Code, Chapter 11 (Secs. 11.13 and 11.42)
- IRS Publication 523, Selling Your Home
- Texas Penal Code, Chapter 30 (Sec. 30.05 criminal trespass)
General information, not legal or tax advice. Talk to a Texas attorney or CPA about your situation.