As of July 1, 2026, Texas sellers using the state’s standard contracts must give buyers a new standalone water disclosure — TREC Form 61-0 — covering groundwater and surface water rights. A seller can skip it only when all five exemption conditions are true. A buyer who never receives it may terminate before closing and recover the earnest money.
What Changed on July 1, 2026
The Texas Real Estate Commission (TREC) revised its standard contract forms under 22 TAC Chapter 537, and mandatory use began July 1, 2026. The changes followed a special-purpose review in which the Sunset Advisory Commission directed TREC to give buyers better information about water rights tied to a property.
The centerpiece is a new form: the Water Notice, Seller’s Disclosure About Groundwater and Surface Water Rights, TREC No. 61-0 — adopted May 4, 2026, effective July 1, 2026.
It lives in the contracts themselves: Paragraph 7(I) of the One to Four Family Residential Contract (Form 20-19) and Paragraph 7(K) of the Farm and Ranch Contract (Form 25-17). Those paragraphs require the seller to state whether the buyer already received the water notice, when it will be delivered, or that no delivery is required.
The same update revised the Seller’s Disclosure Notice — now TREC No. 55-1, replacing 55-0 — with new questions covered below. If you are buying or selling in Texas, it is worth understanding how a real estate attorney protects buyers and sellers in a transaction before the paperwork starts.
The Texas Water Disclosure Form, in Plain Terms
Form 61-0 asks the seller to report what they know about water connected to the property. It reflects the seller’s knowledge — not a warranty — and does not replace the buyer’s inspections or title review.
Wells, Ponds, and Water Tanks
The seller must disclose every known water well — in use or not, capped, covered, plugged, or abandoned — and identify any registrations or permits by number. The seller must also say whether each well is solely owned and operated by the seller, and if not, name the owner, operator, beneficiary, and any governing agreements.
The form goes further: if the property receives water from a well on another property, the seller must identify that well and any access agreements. And the seller must disclose any pond, lake, or water tank on the property — whether or not it currently holds water.
Groundwater Rights That Were Sold, Leased, or Severed
In Texas, groundwater is a property right that can be separated from the surface land, much like mineral rights. A prior owner may have sold, leased, or reserved it while conveying the surface to someone else.
Form 61-0 requires the seller to describe groundwater rights owned or leased from outside land when a well on the property depends on them, in whole or in part. The seller must also disclose and describe any groundwater rights to the property that were severed, sold, or leased — in whole or in part — with or without the right to drill or operate a well.
This is the section that surprises sellers most: a buyer can own the land and still not own the water beneath it.
Surface Water Permits and Groundwater Districts
The seller must state whether any part of the property lies within a groundwater conservation district — a local district that regulates groundwater use — and give the district’s name and website. District rules can affect drilling, production, and well spacing.
For surface water, the seller must disclose any associated surface water right by its permit, filing, or certificate-of-adjudication number. Surface water rights in Texas are administered by the Texas Commission on Environmental Quality (TCEQ).
The Five Conditions That Let a Seller Skip the Separate Water Notice
The contract excuses the separate notice only when every one of the following is true. If even one fails, the seller delivers Form 61-0:
- The seller is not aware of a water well on the property, whether in use or not.
- The seller is not aware of a pond, lake, or water tank on the property.
- The seller is not aware of any certificate of adjudication, certified filing, or permit for surface water rights associated with the property administered by TCEQ.
- The seller is not aware that any groundwater rights to the property have been severed, sold, or leased, in whole or in part.
- The property receives water only from a municipality, a municipal utility district (MUD) or other special district, a water supply corporation, or a private water supply company.
The first four turn on what the seller is aware of; the fifth is a fact about the water source. A typical suburban home on city water will usually satisfy all five. Acreage with a stock tank or an old windmill well usually will not.
What Else Is New on the Seller’s Disclosure Notice
The revised Seller’s Disclosure Notice (TREC No. 55-1) adds these questions to Paragraph 9 — quoted from the form:
- Insurance. Whether the property is presently covered by insurance, whether it is presently covered by windstorm insurance, and whether the seller has been unable to insure the property for any reason. A buyer who cannot obtain insurance may not be able to close, so this surfaces financing problems early.
- Private roads. Whether there is a private road on or adjoining the property for which the seller is financially responsible for maintaining. This matters most on rural acreage.
- Storage tanks. Whether there are any aboveground or underground storage tanks on the property (with a pointer to further rules in 30 Texas Administrative Code Chapter 334), and separately, whether there are aboveground tanks holding 500 gallons or more that have stored petroleum products or other chemicals. Farm fuel tanks and large propane setups now have to be listed.
- Conservation easements. Whether any conservation easement is located on the property — defined on the form as an easement, permanent or for a term of years, that restricts the use of all or part of the property to protect natural resources, wildlife habitat, open space, or historical sites. These easements can limit building and subdividing, which affects value on larger tracts.
What a Buyer Can Do If the Disclosure Is Late or Missing
The contract sets the deadline: the water disclosure must be delivered within the number of days the parties fill in, counted from the effective date.
If the buyer never receives it, the buyer may terminate at any time before closing and recover the earnest money. If the buyer does receive it, the buyer may terminate for any reason within seven days after receipt — or before closing, whichever comes first — and likewise recover the earnest money.
The regular Seller’s Disclosure Notice has its own deadline under Texas Property Code §5.008: delivery on or before the contract’s effective date. If the contract is signed first, the buyer may terminate for any reason within seven days after receiving the notice.
Consider a hypothetical: a buyer signs on October 1, the contract gives the seller ten days to deliver the water notice, and nothing arrives. Under the contract language above, the buyer could terminate before closing and recover the earnest money — even on a change of heart. Early delivery takes that exit ramp off the table. Buyers facing these deadlines may want to review our Texas real estate practice before their termination windows close.
Generators Now Count as Improvements
One practical change: Paragraph 2B of the residential contract now expressly includes permanently installed and built-in generators under “Improvements.” With standby generators now common in Texas homes, the contract names them so there is less room to argue about whether a built-in unit stays or goes.
Frequently Asked Questions
Does every Texas seller have to complete the water disclosure?
No. It applies in sales using TREC’s standard contracts, and the seller may skip the separate notice when all five conditions above are true — for example, a city home on municipal water with no well, pond, tank, or severed water rights. Because the remedy for a missing disclosure favors the buyer, many sellers deliver the form even when they believe an exemption applies.
What if I do not know the answers about water rights on my land?
The form asks what the seller is “aware of.” A seller answers from their own knowledge; the disclosure is not a guarantee about the property’s water rights. Buyers who want certainty should order inspections and have the title commitment reviewed for water-related exceptions.
Can a buyer cancel the contract if the water disclosure arrives late?
Yes. Under the TREC contract language, a buyer who never receives the water disclosure may terminate at any time before closing and recover the earnest money. A buyer who receives it late may still terminate for any reason within seven days after receiving it, or before closing if that comes first, and likewise recover the earnest money.
I live in the city on municipal water. Does this apply to me?
Possibly not, for the separate notice. If all five skip conditions are true — no known well, no pond, lake, or tank, no TCEQ surface-water rights, no severed groundwater rights, and water only from the city or a utility — the contract does not require it. The regular Seller’s Disclosure Notice under §5.008 still applies to most residential sales.
Conclusion
The Texas water disclosure form adds one more document to the closing stack, but its purpose is simple: buyers should know what water comes with the land before they commit. Sellers who understand the five skip conditions and the delivery deadlines keep the transaction on track — and keep an avoidable termination right out of the buyer’s hands.
Selling or buying Texas property and want the paperwork handled correctly? Contact Aburas Law, LLC at 862-213-9093 or visit aburaslaw.com.
Attorney Advertising. This article is for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Laws change and every situation is different. Please contact an attorney about your specific circumstances. Prior results do not guarantee a similar outcome.
Reviewed by Ahmad Aburas, Esq.
