Texas · Chapter 22 of 44

Disclosure Obligations and Liability

Environmental disclosure obligations, seller's duty to disclose known defects, and licensee liability for misrepresentation.

20-minute read · Built for the TREC Sales Agent Exam

disclosure obligationsmaterial defectslatent defectspatent defectscaveat emptorstigmatized propertyMegan's Law

Caveat Emptor vs. Duty to Disclose

Traditional 'caveat emptor' (buyer beware) has been largely replaced by modern disclosure duties. Sellers and licensees must disclose material defects and environmental hazards. Failure to disclose can result in civil liability for fraud, misrepresentation, and breach of contract.

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