Texas updated its Seller's Disclosure Notice in 2026 to require several disclosures that didn't exist before, most notably whether the property currently has homeowners insurance and whether the seller has ever been unable to insure it. The form also now asks about permanently installed generators, Alkali-Silica Reaction (commonly called "concrete cancer"), conservation easements, and storage tanks. If you're preparing to list a home in Preston Hollow, Prestonwood, Bent Tree, Northwood Hills, or Lake Highlands, this is the form you'll fill out before your home ever hits the market — and getting it right matters more than most sellers realize.
By Brandon Travelstead | September 28, 2026
If you sold a home in Dallas a few years ago, the disclosure paperwork probably felt like a formality — a form your agent handed you, mostly about foundation repairs and roof age. That's changed. Texas revised the Seller's Disclosure Notice this year, and the update reflects two things happening in this state right now: an insurance market under real strain, and a legislature paying closer attention to what buyers actually need to know before they close on a home.
If you're thinking about listing in North Dallas this fall or into 2026, here's what's actually different, and why it matters more in the $1M–$4M range than the headlines suggest.
The Insurance Question Is the Big One
The single most significant addition to the disclosure form is a new section asking whether the property currently carries homeowners insurance, and whether you've ever been unable to insure it.
This isn't a random addition. Texas has been dealing with a genuine insurance crisis — carriers pulling back from certain risk profiles, premiums climbing, and a growing number of homeowners statewide relying on the Texas FAIR Plan as a last resort, often at $5,000 to $7,000 a year or more.
For a $2 million or $3 million home in Preston Hollow or Prestonwood, insurability isn't a minor line item. It affects a buyer's total carrying cost, their lender's requirements, and in some cases whether financing works at all. If you've had a carrier drop your policy, had a claims history that made renewal difficult, or ended up on a higher-cost plan, that's now something you're required to disclose — and something a buyer's agent will ask about directly.
The practical takeaway: talk to your insurance agent before you list, not after you're under contract. If there's a wrinkle in your coverage history, you want to know exactly how to describe it accurately on the form, and you want time to explore whether a different carrier or policy structure might solve it before a buyer ever sees the disclosure.
Generators, Concrete Cancer, and What Else Is New
A few other additions are worth knowing about before you fill out the form:
- Permanently installed generators. If you have a built-in Generac, Kohler, or similar whole-home generator — common in North Dallas after Winter Storm Uri made backup power a real consideration for larger homes — it now has to be disclosed, including its condition and maintenance history.
- Alkali-Silica Reaction (ASR), or "concrete cancer." This is a structural condition affecting concrete foundations and flatwork, and it's showing up often enough in Texas that TREC added a specific question about it. If you've had any foundation or structural evaluation that flagged this, it needs to be on the form.
- Expanded inspection documentation. The form now more clearly requires disclosure of any evaluations you've had done on major systems — roof, HVAC, plumbing, electrical, pool equipment — even if you didn't act on the findings. A pool inspection report from two years ago that you never addressed still counts.
- Conservation easements, private roads, and storage tanks. These apply less often inside Dallas proper, but if your property backs up to a creek easement, sits on a shared private drive, or has an old aboveground tank from a prior owner, it's now called out specifically rather than left to general catch-all language.
None of these are reasons to panic. They're reasons to be thorough — and to work through the form with someone who knows exactly what a buyer's agent in this price range is going to flag.
There Are Two Versions of the Form — and the Choice Matters
Texas actually gives sellers two options: the bare statutory minimum form (TREC 55-1), and the more detailed Texas REALTORS® version (TXR 1406), which covers everything in the statutory form plus additional questions that give you more documented protection.
In almost every represented transaction in this market, the fuller TXR 1406 version is the standard. It's what buyer's agents expect to see, and it does more to protect you if a dispute comes up after closing. I don't recommend the bare-minimum form to my sellers — the extra thoroughness up front is worth far more than the few minutes it saves you filling it out.
Timing Matters More Than You'd Think
Here's the part sellers tend to overlook: under Texas Property Code Section 5.008, if you don't deliver your disclosure notice by the contract's effective date, the buyer gets the right to terminate the contract for any reason within seven days of finally receiving it — and walk away with their earnest money back.
That's a real risk on a deal you've already negotiated. It's not a paperwork technicality; it's a door that stays open for the buyer to exit a transaction you thought was done. The fix is simple: have your disclosure notice complete, accurate, and ready before you go under contract, not scrambled together after you've accepted an offer. This is exactly the kind of detail I walk through with every seller before we even talk about listing photos or pricing strategy — it's foundational, not an afterthought.
If you're also weighing what you'll actually walk away with after the sale, it's worth reading through what capital gains tax looks like on a Preston Hollow home sale (https://travelsteadrealestate.com/blog/capital-gains-tax-when-selling-your-preston-hollow-home) alongside this — disclosure and net proceeds are two pieces of the same pre-listing conversation.
Frequently Asked Questions
Do I have to disclose that my home was previously uninsurable?
Yes. The updated Seller's Disclosure Notice specifically asks whether you've ever been unable to insure the property, not just whether you currently have coverage. Answer accurately — buyers and their agents are asking about this directly in this market.
Which disclosure form should I use, the statutory form or the Texas REALTORS® version?
In almost every represented sale, the more detailed TXR 1406 form is the better choice. It covers everything the statutory minimum requires plus additional protections, and it's the version buyer's agents in North Dallas expect to review.
What happens if I deliver my disclosure late?
Under Texas Property Code Section 5.008, a buyer who receives your disclosure notice after the contract's effective date can terminate the contract for any reason within seven days of receiving it, and get their earnest money back. Delivering it accurately and on time protects the deal.
Does this affect buyers as well as sellers?
Yes — buyers should know these disclosures exist so they know what to ask for and what to expect on the form, particularly around insurance history and any structural evaluations the seller has had done. If you're relocating to Dallas and buying in this price range, it's worth understanding what you're entitled to see before you write an offer.
Do these new disclosure requirements apply to new construction?
The Seller's Disclosure Notice generally applies to previously occupied homes. New construction and custom builds follow different disclosure and warranty rules, which is worth a direct conversation if you're comparing a resale purchase to a new build in Preston Hollow or Bent Tree.
If you're preparing to list in Preston Hollow, Prestonwood, Bent Tree, Northwood Hills, or Lake Highlands, getting your disclosure notice right from the start protects your timeline and your closing. Reach out for a private, no-pressure listing consultation (mailto:[email protected]?subject=Confidential%20Consultation%20Request) and I'll walk you through exactly what your disclosure should say before your home ever goes on the market.
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About Brandon Travelstead
Brandon Travelstead is a top 2% producing Compass agent with 16 years of experience in the Dallas market, specializing in North Dallas neighborhoods like Preston Hollow, Prestonwood, and Northwood Hills, as well as Lakewood and Lake Highlands. He works with sellers preparing to list and buyers relocating to or within Dallas, with a particular focus on infill new construction and custom-built homes. Brandon's business runs almost entirely on referrals — a track record built on getting high-stakes transactions right.
Brandon Travelstead is a real estate agent affiliated with Compass Real Estate.
