Texas operates under its own legal framework that affects how property is bought, sold, transferred, developed, and inherited. These laws govern everything from contract enforcement and disclosures to zoning, easements, financing rules, land use restrictions, and more. If you don’t understand how these laws work or fail to follow them, you could face costly delays, legal disputes, regulatory fines, or the loss of your investment altogether. That’s why proper knowledge of Texas real estate laws is essential.
This blog serves as a practical and informative guide for Texas real estate law, tailored to buyers, sellers, and land developers. Doesn’t matter if you’re entering the market for the first time or managing ongoing property ventures; this guide will help you move forward with clarity, legal protection, and confidence.
Why is Texas Real Estate Law Unique from Other States?
Real estate law in Texas is distinct due to its foundation in both Spanish civil law and English common law, reflecting its unique legal history. One key difference is that Texas is a non-disclosure state, meaning home sale prices are not publicly recorded, which can affect appraisals and market transparency. The Texas Homestead Exemption offers unusually strong protection against creditors and forced sales. Also, real estate closings are typically handled by title companies rather than attorneys, unlike in many other states. Zoning and land use laws also vary widely across unincorporated areas, giving developers more flexibility, but also more responsibility. These factors make a localized legal approach essential when buying, selling, or developing property in Texas.
Key Legal Considerations for Buyers in Texas
Texas is a “Buyer Beware” State
Texas follows the “Caveat Emptor” principle (which is a Latin phrase meaning “Let the buyer beware”). This means buyers are responsible for inspecting the property thoroughly. Sellers must disclose known issues, but buyers should never skip independent inspections by licensed professionals.
Understand the Option Period
In Texas, buyers can pay for an option period (typically 7–10 days), allowing them to cancel the deal for any reason. This is a critical time for inspections, second opinions, or negotiations. If the buyer opts out during this period, they typically retain their earnest money.
Know About Homestead Exemption
The Texas Homestead Exemption reduces property taxes on a primary residence. Once the sale closes, buyers should file for this exemption through the local appraisal district. This tax benefit is one of many reasons individuals rely on the best real estate law firms in Texas to ensure no legal or financial advantage is missed during the transaction.
Essential Guidelines for Sellers in Texas
Understand What “As-Is” Means in Texas
Selling a home “as-is” means you won’t make repairs before the sale. However, it doesn’t excuse you from disclosing known problems. For example, if you’re aware of termite damage or mold but don’t reveal it, you could face legal action even after the sale.
Comply with Lead-Based Paint Disclosure Laws
If your property was built before 1978, federal law requires you to disclose any known lead-based paint hazards. You must also give buyers a government-approved pamphlet and allow a 10-day inspection window (unless waived).
Understand Potential Capital Gains Tax
While Texas has no state income tax, you may owe federal taxes on profits if your home sale exceeds IRS exemption limits. The Internal Revenue Service (IRS) allows you to exclude up to $250,000 in profit if you’re single, or $500,000 if married and filing jointly, provided the home was your primary residence for 2 of the last 5 years.
Ensure All Advertising and MLS Info is Accurate
If you’re listing your home or working with an agent, every detail, square footage, appliances, and school district, must be truthful. Misleading info can trigger lawsuits under the Deceptive Trade Practices Act (DTPA).
Understand the Closing Process in Texas
In Texas, sellers must vacate the property by the closing date and complete any agreed-upon repairs. However, ownership doesn’t officially transfer until funding, not just signing. It’s important to coordinate move-out and paperwork accordingly.
What Texas Land Developers Should Know About Texas Real Estate Law
Zoning Laws Are Set Locally
Texas doesn’t have statewide zoning. Every city or county sets its own zoning categories, like residential, commercial, or industrial. Developers must verify that their intended use is allowed or apply for rezoning, which involves public hearings and local approval.
Platting is Required for Land Subdivision
Before subdividing land, developers must submit a plat map for approval. This requirement is part of the broader legal structure that governs buying and selling property in Texas, especially when dealing with undeveloped or newly zoned areas.
Comply with Environmental Rules and TCEQ
Developments near wetlands or protected areas are governed by the Texas Commission on Environmental Quality (TCEQ). Special permits may be required if your land lies within a floodplain or affects a sensitive ecosystem.
Prepare for Impact Fees
Local governments may charge impact fees to developers for infrastructure expansion, like roads, drainage, or sewer systems. These fees vary by location and should be budgeted early to avoid project delays.
Proper HOA Formation is Legally Required
If your development includes shared spaces (e.g., parks, pools), you must form a legally compliant Homeowners’ Association (HOA). This includes setting up governing bylaws, collecting fees, and assigning maintenance responsibilities.
Common Legal Guidelines for Buyers, Sellers, and Developers in Texas
Flood Zone Status and FEMA Compliance
All parties, buyers, sellers, and developers, must check if the property lies in a FEMA-designated floodplain. FEMA stands for Federal Emergency Management Agency, which maps flood-prone zones. Properties in these areas may require mandatory flood insurance, stricter construction codes, and detailed disclosure of past flooding. Non-disclosure can lead to contract cancellation or even legal liability.
HOA (Homeowners’ Association) Restrictions and Responsibilities
Whether you’re buying, selling, or developing in an HOA community, Texas real estate law requires transparency and compliance. Buyers must review bylaws, sellers must disclose HOA documents early, and developers must legally set up an HOA when planning shared amenities. Failure to comply may lead to buyer withdrawal or future legal issues.
Advertising Must Be Truthful (DTPA Compliance)
Under the Texas Deceptive Trade Practices Act (DTPA), all marketing, from MLS listings to brochures, must be accurate. Any exaggeration or misinformation, such as incorrect square footage, school zones, or amenities, can result in lawsuits or financial penalties, even if unintentional.
Clear Legal Ownership and Title Verification
Ensuring the property has a clear title, meaning no liens, unpaid taxes, or ownership disputes, is critical. Buyers need title insurance, sellers must confirm they have legal rights to sell, and developers must make sure the land isn’t involved in any legal disputes or complications. A real estate attorney in Texas or a title company can assist in verifying legal ownership.
How MBB Helps Buyers, Sellers & Land Developers
At MBB, you get practical legal support for buying, selling, and developing property under Texas real estate laws. A real estate attorney in Texas from our team helps you handle contracts, clear title issues, prepare essential documents, and ensure compliance with zoning rules. We work to keep your transaction smooth and timely by focusing on the details that matter. With our guidance, you can move forward confidently, avoid unexpected setbacks, and stay aligned with your real estate goals.