Off-Market Sale Rules in Texas
Selling privately removes the agent and the listing. It does not remove the disclosure notice, the title work, or your exposure if you get either wrong.
The short answer
In Texas a private, off-market home sale still requires the statutory seller's disclosure notice under Property Code section 5.008, including its flood questions, and still closes through a title company that handles the title search, liens and payoffs. You do not need a license or an attorney to sell your own house. A wholesaler must disclose in writing that they are selling a contract rather than the property.
Sellers ask us some version of this constantly: if the house never goes on the MLS, what do I actually still have to do? The honest answer is that almost all of the legal obligation survives, and the parts that fall away are the ones that were costing you money anyway.
The Disclosure Notice Does Not Go Away
Texas Property Code section 5.008 requires a seller of residential real property with not more than one dwelling unit to give the buyer a written notice of the property's condition. It is a statutory form with a long list of yes/no questions covering the structure, the systems, and known defects.
Some sales are exempt, and the exemptions matter in exactly the situations that bring people to a cash buyer: transfers by an executor administering an estate, transfers from one co-owner to another, and transfers by a trustee in a foreclosure, among others. If you are selling an inherited house through probate, check whether your particular transfer is exempt rather than assuming either way.
Where the notice does apply, it applies regardless of how the buyer was found.
The Flood Questions
In 2019 the Legislature expanded the notice with flood-specific questions. The form now asks whether the property is located wholly or partly in a 100-year floodplain, whether it is in a flood pool or reservoir, whether it has previously flooded, and whether the seller has ever filed a flood insurance claim or received federal assistance for flood damage.
In Houston these are not routine boxes. Around the Barker and Addicks reservoir pools, along Buffalo Bayou, and across large stretches of the east and southeast metro, the honest answer to at least one of them is yes for a great many houses.
Answer them accurately. A cash buyer prices flood history into the offer and buys anyway; that is much of why sellers with flood history come to us. Concealing it converts a priced-in problem into a legal one that outlives the closing.
What You Do Not Need
- A real estate license. Selling property you own does not require one. That is what makes a for-sale-by-owner or a direct sale legal in the first place.
- An attorney. Texas is a title-company state for residential closings. An attorney is sensible if the situation is contested, but it is not a requirement.
- An appraisal. There is no lender, so nobody orders one. This is a large part of why a cash sale is quick.
- A survey, usually. The title company will say whether an existing survey can be reused with a T-47 affidavit, which is faster and cheaper than a new one.
What the Title Company Actually Does
The title company is the part of the process that takes the time, and it is doing real work on your behalf, not paperwork for its own sake:
| Step | What it catches |
|---|---|
| Title search | Old liens, unreleased mortgages, judgments, mechanics' liens from work you may have forgotten |
| Tax certificates | Delinquent property tax, and any MUD or PID assessment that has to be settled at closing |
| Ownership chain | Probate that was never completed, a deceased co-owner, an ex-spouse still on the deed |
| Deed restrictions | Restrictions running with the land, which in Houston do the job zoning does elsewhere |
| Payoff statements | The exact figure needed to clear your mortgage on the closing date |
In Texas the parties negotiate who chooses the title company, and on a cash purchase it is very often the seller's call. Take it. A local company that closes Houston-area deals every day will handle a Harris County probate or a MUD payoff without drama.
The Wholesaler Rule, in Plain Terms
Texas Occupations Code section 1101.0045 addresses people who market an equitable interest in real estate rather than the real estate itself. In practice: someone puts your house under contract, then sells that contract to a third party at a markup, which is one of the three things people call an off-market sale. The statute requires them to disclose in writing that they are selling the interest they hold under the contract, not the property.
This is legal when disclosed. The risk to you is not that it is illegal, it is structural:
- The person you signed with is not the person who closes, and you may never meet the buyer.
- If no end buyer is found, the contract can lapse and you have lost the weeks.
- The assignment fee comes out of the spread, which is money that could have been in your price.
Two questions settle it. Will you be on the deed at closing? and can you show me proof of funds? A direct buyer answers both in one message.
Ownership Problems That Surface at the Title Search
These are the ones that actually delay Houston closings, and every one of them is easier to deal with in week one than week three. None of them stops a cash sale; they just need starting early.
| Problem | What it takes to clear |
|---|---|
| Probate never completed | Letters testamentary, or in some estates an affidavit of heirship. Harris County probate is routine but not instant. |
| Ex-spouse still on the deed | A deed executed under the divorce decree. If the decree ordered it and it was never signed, this is usually quick. |
| Unreleased old mortgage | A release from a lender that may have been acquired twice since. This is the one that most often adds a two weeks. |
| Contractor's lien | A release from the contractor, or a bond around the lien if they cannot be found. |
| Delinquent property tax | Nothing. It is paid from the proceeds at closing, along with penalty and interest. |
| Unresolved homestead exemption | Sorting with the relevant appraisal district. A Houston address can sit in any of six. |
The pattern is that almost none of them are dealbreakers and almost all of them are calendar. A buyer who reacts to any of these by cutting the price at day 20 was planning to do that anyway.
As-Is Does Not Mean Undisclosed
Selling as-is means the buyer accepts the property in its current condition and you are not obliged to repair anything. It does not mean you may withhold what you know. A seller who conceals a known material defect can face a claim after closing, and "the contract said as-is" is not the shield people assume.
This cuts in the seller's favor more often than not. Once the foundation report, the flood history and the roof age are all on the table and priced in, there is nothing left to renegotiate at day 25.
A Short Paperwork Checklist
- Photo ID for everyone on the deed.
- The seller's disclosure notice, completed honestly, unless your transfer is exempt.
- Your mortgage account details, for the payoff statement.
- Any existing survey, plus a T-47 affidavit if it is being reused.
- Probate documents, letters testamentary, or a divorce decree, where ownership is not straightforward.
- Lease agreements if the property is tenanted.
- HOA, MUD or PID account details so the title company can request the payoff figures.
Nothing on that list needs a lawyer to assemble, and the title company will chase most of it for you. Send whatever you have at the start rather than at the end; almost every delay we see on a cash close comes from something on this list surfacing in week three instead of week one.
This is general information about how Texas residential sales work, not legal advice. We are a cash buyer and a principal in the transaction, not your attorney. For anything contested, get your own counsel.
Sources
- Texas Property Code section 5.008, seller's disclosure of property condition, including the flood-related questions added in 2019 (accessed 27 July 2026)
- Texas Occupations Code section 1101.0045, equitable interests in real property (accessed 27 July 2026)
- Texas Real Estate Commission, consumer information (accessed 27 July 2026)
Questions
Common Questions
Do I Have to Fill in a Seller's Disclosure If I Sell for Cash?
In most cases yes. Texas Property Code section 5.008 applies to residential sales regardless of how the buyer was found. Some transfers are exempt, including certain sales by an executor of an estate and transfers between co-owners, which are exactly the situations that often lead to a cash sale, so check whether your specific transfer qualifies rather than assuming.
Do I Need a Lawyer to Sell My House Privately in Texas?
No. Texas closes residential sales through title companies rather than attorneys, and you do not need a license to sell property you own. An attorney is worth having if ownership is contested, if there is a disputed probate, or if you are dealing with a short sale.
Who Chooses the Title Company?
It is negotiable, and on a cash purchase the seller very often gets to choose. It is worth taking, because a local title company that handles Harris County probates and MUD payoffs routinely will move faster than one that does not.
Is Selling to a Wholesaler Legal in Texas?
Yes, provided they disclose in writing that they are selling their equitable interest under the contract rather than the property itself, as required by Texas Occupations Code section 1101.0045. The practical risk is that they are not the buyer, so the deal depends on them finding one.
Can I Be Sued After an As-Is Sale?
As-is means the buyer takes the property in its current condition, but it does not protect a seller who deliberately concealed a known material defect. Disclose what you know. A cash buyer prices problems in rather than walking away from them, so there is very little to gain from leaving something off the form.
The smarter way to sell
Cash Sale vs Selling on the Open Market
Most Houston sellers we talk to are weighing our cash offer against staying on the market for 60 to 90 days. Both paths have real tradeoffs, and we would rather you decided with the full picture than sign in the dark.
| Comparison | Traditional realtor | iBuyer | Sell My House Fast Houston |
|---|---|---|---|
| Commissions / fees | ~6% of sale price | 5–8% service fee | $0 |
| Repairs needed | Yes, market-ready | Sometimes, post-inspection deductions | None, sold as-is |
| Time to close | 60–90 days | 14–45 days | 7–21 days |
| Financing contingency | Yes, buyer's mortgage | Yes, pre-approved buyer | No, firm cash |
| Certainty of close | Contingent | Contingent on post-inspection | Firm, proof of funds |
| Showings | Multiple showings | Photo-only walkthrough | One walkthrough |
| Sale price | Retail, if it appraises | Near retail, less fees | Below retail |
A cash offer is faster and firm; an on-market sale usually nets more but with real time, cost and uncertainty attached. Ask us for the cash number, then decide with numbers, not pressure.
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