The short answer
You can sell. Texas law requires a seller of a single-dwelling home to give the buyer a written disclosure notice. The form asks directly about the foundation and about soil movement. Disclose what you know, then choose among three paths: repair before listing, give the buyer a credit or price cut, or sell as-is to a buyer who accepts the risk. Each can work; which is best depends on the market, the size of the problem and how much time you have.
What the Texas disclosure notice asks
The Texas Real Estate Commission’s Seller’s Disclosure Notice was prepared under Texas Property Code § 5.008(b). Three items on it touch foundations:
| Item on the form | What it covers |
|---|---|
| Foundation/Slab(s) | Known defects or malfunctions in the foundation or slab, alongside floors, walls, doors and windows |
| Landfill, Settling, Soil Movement, Fault Lines | Conditions you’re aware of on the property, including settling and soil movement |
| Previous Structural or Roof Repair | Past structural repairs, including foundation work |
The form asks what you’re aware of. It doesn’t require you to commission an inspection before selling, but once you have a report, you know what’s in it. On clay soils around Austin, where some movement is routine, a short factual note, such as “north corner piered, warranty attached”, usually reads better to a buyer than vague language.
Repair, credit or sell as-is
| Path | Works best when | Watch out for |
|---|---|---|
| Repair before listing | The problem is clear, the repair is moderate, and you have time | Buyers will still want the plan, readings, permit and warranty; a rushed or unpermitted job can raise more questions than it answers |
| Credit or price cut | The buyer’s inspection finds movement and both sides want to close | The buyer’s estimate may be higher than yours; get your own written plan to negotiate from |
| Sell as-is | The repair is large, or you’d rather not manage it | Fewer buyers, more investor offers, and lenders may still require an inspection |
If you repair, do it properly: an elevation survey before and after, a permit where the city requires one (Austin lists foundation repair under its Minor Repairs, or Express, permit), and a written warranty with clear transfer terms. If you choose a credit, base the number on a real written plan rather than a guess.
What the buyer’s side will look at
The home inspection. A Texas home inspector must give a written opinion on the foundation’s performance and report the visible indications of adverse performance behind it: binding doors, sloping floors, cracks, deflecting masonry. An inspector’s comment is often what starts the negotiation.
An engineer’s report. Buyers or lenders often ask for one when the inspection flags the foundation. HomeAdvisor says a general structural report averages $550. A Texas contractor’s blog points out that the report gives a future owner some security too, not just the current one.
The lender. HUD’s FHA handbook requires the lender to confirm that all foundations will be serviceable for the life of the mortgage. When an appraiser can’t confirm a property meets HUD’s standards, an inspection by a qualified person or firm may be required, and the handbook lists evidence of possible structural failure, such as settlement or cracked masonry, among the triggers.
A plumbing test. On a slab house, buyers sometimes ask for a hydrostatic test of the drain lines. The TREC addendum for it has a licensed plumber run the test at the buyer’s expense.
If the foundation has already been repaired
Gather these before you list, in one folder:
- the repair plan and the drawing of pier locations;
- elevation readings from before and after the repair;
- the permit number and final inspection, if the city required a permit;
- any engineer’s letter or report;
- the warranty, its transfer terms and any fee;
- receipts, including plumbing tests.
A buyer who sees a documented repair with a transferable warranty is often more comfortable than one looking at an unexplained crack. Call the repair company early: some require the transfer to be filed within a set window after closing.
If you’re the buyer
- Read the seller’s disclosure notice closely, especially the three foundation items.
- If the inspector flags the foundation, get a foundation inspection or an engineer’s evaluation before your option period ends.
- Ask for every record of past repairs, and confirm the warranty actually transfers.
- Consider a baseline survey. The Foundation Performance Association recommends buyers obtain a baseline elevation survey, which gives you something to compare against later.
The engineer guide explains what an engineer’s evaluation includes and what it costs.
Want a contractor to look at it? Call to schedule an inspection.