Beyond Bending Tell You How
If you own or lease property in Texas, it’s essential to be familiar with the state’s property codes. One of the most important is Texas Property Code 24.005, which relates to the disclosure of certain information to potential buyers or tenants. This code outlines the responsibilities of property owners and lessees and is designed to ensure transparency in real estate transactions. In this article, we’ll take a closer look at Texas Property Code 24.005 and what it means for property owners, lessees, and buyers.
What is Texas Property Code 24.005?
Texas Property Code 24.005 is a state law that requires property owners and lessees to disclose specific information to potential buyers or tenants. The code states that property owners and lessees must provide written notice to prospective buyers or tenants of any known material defects or conditions that could affect the value or desirability of the property. This includes defects or conditions that are not readily observable and that would not be discovered through a reasonable inspection of the property.The purpose of this law is to ensure that buyers and tenants are fully informed about the condition of the property before making a decision to purchase or lease it. By providing this information upfront, property owners and lessees can avoid potential legal disputes down the road and ensure that all parties are on the same page regarding the condition of the property.
Who is Affected by Texas Property Code 24.005?
Texas Property Code 24.005 applies to all residential and commercial properties located in Texas. This includes single-family homes, apartments, condos, townhouses, and commercial buildings. The law applies to both property owners and lessees, meaning that both parties have a responsibility to provide written notice of any known material defects or conditions.
Property Owners
As a property owner, you have a legal obligation to provide written notice of any known material defects or conditions to potential buyers or tenants. This includes defects or conditions that you are aware of but that may not be readily observable. It’s important to note that this requirement applies even if you have never occupied the property or if you have never experienced the defects or conditions yourself.
Lessees
If you are a lessee, you also have a responsibility to provide written notice of any known material defects or conditions to potential sublessees or assignees. This includes defects or conditions that you are aware of but that may not be readily observable. It’s important to note that this requirement applies even if you are not the legal owner of the property.
What is Considered a Material Defect or Condition?
Under Texas Property Code 24.005, a material defect or condition is defined as “a condition that would have a significant adverse effect on the value of the property; that would significantly impair the health or safety of future occupants of the property; or that if not repaired, removed, or replaced would significantly impair the use and enjoyment of the property.”Examples of material defects or conditions include:
- A leaky roof
- A foundation that is in need of repair
- Mold or mildew in the property
- Termite damage
- Presence of lead-based paint
- Presence of asbestos
- Problems with the electrical, plumbing, or HVAC systems
It’s important to note that the definition of a material defect or condition can vary depending on the circumstances. If you are unsure whether a particular issue qualifies as a material defect or condition, it’s best to consult with a real estate attorney.
What Information Must be Disclosed?
Under Texas Property Code 24.005, property owners and lessees must provide written notice of any known material defects or conditions that could affect the value or desirability of the property. This includes defects or conditions that are not readily observable and that would not be discovered through a reasonable inspection of the property.When disclosing material defects or conditions, the notice must be in writing and must include the following information:
- A description of the defect or condition
- The implications of the defect or condition
- The repairs or remedies that have been made or that are needed to address the defect or condition
It’s important to note that the notice must be provided to potential buyers or tenants before the purchase or lease agreement is signed. Failure to provide this notice can result in legal action being taken against the property owner or lessee.
What Happens if a Material Defect or Condition is Not Disclosed?
If a property owner or lessee fails to disclose a known material defect or condition, the buyer or tenant may have legal recourse. Under Texas law, the buyer or tenant may be able to:
- Rescind the purchase or lease agreement
- Recover damages resulting from the non-disclosure
- Obtain a court order requiring the property owner or lessee to repair or remedy the defect or condition
It’s important to note that the buyer or tenant must show that the property owner or lessee knew or should have known about the material defect or condition at the time of the sale or lease. If the defect or condition was not known or could not have been reasonably discovered, the property owner or lessee may not be held liable.
Conclusion
Texas Property Code 24.005 is an important law that helps ensure transparency in real estate transactions. By requiring property owners and lessees to disclose any known material defects or conditions, buyers and tenants can make informed decisions about the condition of the property. If you are a property owner or lessee in Texas, it’s essential to be familiar with this law and to comply with its requirements to avoid potential legal disputes down the road.
