The short answer
You can sell, and you must disclose. Texas Property Code §5.008 requires a seller of residential property with not more than one dwelling unit to give the buyer a written seller’s disclosure notice. The Texas Real Estate Commission’s form, prepared under Texas Property Code § 5.008(b), asks about the foundation in three places.
What the disclosure form asks
| Where on TREC’s form | What it asks about | What to write if your house has had trouble |
|---|---|---|
| Known defects or malfunctions | Foundation/Slab(s), alongside floors, walls, doors and windows | Known cracks, movement or problems you’re aware of now |
| Conditions you’re aware of | Previous Structural or Roof Repair | Any foundation repair, with the date and who did it |
| Conditions you’re aware of | Landfill, Settling, Soil Movement, Fault Lines | Known soil movement or settling, including repaired movement |
The form asks what you’re aware of. If you’ve had an inspection, an engineer’s report or a repair, you’re aware. Attach or offer the documents rather than summarizing them from memory; your agent or a real estate lawyer can help with wording.
What the buyer will check
A home inspection. A Texas home inspector must give a written opinion on how the foundation is performing and report the visible indications of adverse performance behind that opinion, such as binding doors, sloping floors and cracks. Inspectors aren’t required to provide engineering services, so a flagged foundation often leads to the next step.
An engineer’s evaluation. Buyers commonly hire a structural engineer during the option period when the inspection flags the foundation. The Foundation Performance Association recommends buyers get a baseline elevation survey in any case, as a reference if the house moves later.
A plumbing test. TREC’s hydrostatic testing addendum lets a buyer, at the buyer’s expense, have a licensed plumber test the drain lines. On a house with foundation movement, expect a buyer’s agent to suggest it.
The lender’s appraiser. For FHA loans, HUD’s handbook says the lender must confirm that all foundations will be serviceable for the life of the mortgage. It lists evidence of possible structural failure, such as settlement or cracked masonry or foundation, among the conditions that can require an inspection by a qualified individual or entity. HUD doesn’t name a structural engineer, but in practice that’s usually who writes the letter.
Three ways to sell
| Option | Works well when | Watch for |
|---|---|---|
| Repair before listing | You want the widest pool of buyers and loan types | Permit and engineer timing; get the final report before you list |
| Disclose and price it in, or offer a credit | The problem is modest and well documented | Buyers will want their own engineer and a repair quote |
| Sell as-is | You need speed or can’t fund a repair | Cash buyers price in the repair and their risk |
Whichever you choose, a written repair plan from a contractor and, for a large job, an independent engineer’s opinion give you a number to negotiate around instead of a buyer’s guess.
Records that help a sale
If the house has been repaired, gather:
- The repair contract and pier drawing, showing what was done and where.
- The city permit, with its number and final inspection. In McKinney, a repair permit requires an engineer’s letter to open and a final engineer’s report to close; Frisco and Plano also involve an engineer. The permit guide covers each city.
- The engineer’s letter and final report. One DFW contractor notes that a structural engineer’s report gives the owner, and a future owner, some degree of security.
- After-repair elevation readings, and any later survey showing the house has stayed put.
- Plumbing test results from before and after the lift.
- The warranty, with its transfer terms and any fee.
A repair without a permit can surface at the worst moment, when a buyer’s inspector asks for it. If you’re missing documents, the city’s permit records and the contractor may have copies.
If you’re repairing to sell
Repair timing is the main constraint. In McKinney, Frisco and Plano the engineer’s documents come before the permit, and the work and final report come after, so start early. The inspection page explains what a contractor’s inspection and an engineer’s report each give you, and the cost page shows typical prices.
Don’t count on insurance to fund it. Texas policies usually exclude settling and soil movement; the insurance guide explains the plumbing-leak exception.
Want a contractor to look at it? Call to schedule an inspection.