Disclosure

TXR 1408 — Commercial Property Condition Statement

This form is a disclosure of the seller's or landlord's knowledge of the condition of a commercial property as of the date signed. It covers environmental conditions, flood history, structural defects, building systems, drainage, pests, ADA compliance, and other material conditions. It is not a subs

Source: TXR
Form Number: 1408
Category: Disclosure
Revised: July 8, 2022

Used For

Commercial Sales, RESIDENTIAL_LEASING

Form Outline

The TXR 1408 form is organized into the following sections:

  1. Property Identification and Disclosure Notice
    Header section identifying the property and establishing that this disclosure reflects the seller's or landlord's knowledge as of the signing date, and is neither a substitute for inspections nor a warranty.
  2. Environmental, Land, and Property Conditions (Improved or Unimproved)
    Part 1 covers 19 awareness categories applicable to both improved and unimproved commercial property, including environmental contamination, drainage, easements, zoning, lawsuits, association fees, subsurface structures, mineral rights, and encumbered personal property.
  3. Flood-Related Disclosures (Improved or Unimproved)
    Part 2 addresses flood history and location with 11 questions including flood insurance status, prior flooding events, floodplain/floodway/flood pool/reservoir location, NFIP claims, and FEMA/SBA assistance. Provides definitions of 100-year floodplain, 500-year floodplain, flood pool, floodway, and reservoir.
  4. Improved Property Conditions
    Part 3 is only for improved property. Section A asks about material defects in structural items, plumbing, HVAC, electrical, and other systems (including commercial-specific items like loading docks, cranes, and elevators). Section B covers water/drainage conditions, structural repairs, settling, pests, mold, fires, unpermitted modifications, and ADA compliance.
  5. Signatures and Receipt Acknowledgment
    Signature section with blocks for seller/landlord and buyer/tenant. Includes notice that brokers relied on the statement and buyers/tenants are encouraged to obtain their own inspection.

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