Disclosure

TXR 1506General Information and Notice to Consumers

A comprehensive consumer disclosure provided by the broker to buyers, sellers, tenants, and landlords at the outset of a real estate transaction. It educates consumers on over 30 key topics including broker roles, compensation, inspections, environmental hazards, flood risks, insurance, and tax prorations.

Source: TXR
Form Number: 1506
Category: Disclosure
Revised: June 15, 2026

Used For

Residential Sales, RESIDENTIAL_LEASING, Commercial Sales, Farm & Ranch, Vacant Land

Form Outline

The TXR 1506 form is organized into the following sections:

  1. Running header (pages 2–6)
    Pages 2–6 repeat "General Information and Notices to Consumers: ____" at the top. The property this notice concerns is printed there.
  2. Brokers and Compensation
    Defines broker roles (representation or intermediary), states agents are not inspectors or attorneys, and emphasizes broker compensation is fully negotiable — not set by law, MLS, or any association. Multiple compensation models exist (commission, flat fee, hourly, task-based) with payment from various sources.
  3. Environmental Concerns, Concrete Issues, and Expansive Soils
    Covers environmental hazards (asbestos, lead-based paint, mold, radon, pesticides, underground storage tanks, etc.), ASR/Concrete Cancer in foundations and pools, lead-based paint federal disclosure for pre-1978 homes, oak wilt, noise, and expansive soils affecting foundations. Recommends qualified expert inspections for all concerns.
  4. Inspection, Repairs, Walk-Through, and Termination Option
    Encourages buyers to hire licensed inspectors during the option period and accompany them. Repair obligations must be resolved in writing before the option expires. Buyer should walk through before closing. The termination option gives unrestricted right to terminate — the period is NOT suspended by repair negotiations and extensions require separate written agreement with additional fee.
  5. Financial and Legal Considerations
    Covers FIRPTA withholding for foreign sellers (up to 15%), tax prorations at closing (exemptions may not transfer, new construction prorated on land only), property values being cyclical with no agent guarantees, title insurance recommendations, and survey importance for identifying boundaries and encroachments.
  6. Property-Specific Concerns
    Covers HOA (mandatory membership, dues, foreclosure for nonpayment), mineral interests (may be severed, expert title review needed), flood hazards (insurance recommended regardless of zone), septic systems (inspection and county registration), water wells (inspection and testing), synthetic stucco/EIFS risks, utilities availability, and water level fluctuations for lakefront properties.
  7. Location and Regulatory Concerns
    Covers annexation risk for properties outside city limits, historic/conservation district restrictions, border property infrastructure requirements, school boundary verification, statutory tax districts (MUD, WID, PID), foreign buyer/renter restrictions under Texas Property Code Chapter 5, tide water notices, and surveillance during showings.
  8. Consumer Protection and Practical Matters
    Covers wire fraud warnings, property insurance (obtain before option expires), residential service contracts (home warranties), MLS data accuracy disclaimers, possession timing (written lease required for early/late possession), sex offender registry information, and square footage verification.
  9. Other and Signatures
    Two blank lines under "OTHER." for additional broker-specified information. The broker (or the broker's associate, as authorized agent of the broker) signs under "This form was provided by:", and the consumers sign acknowledging they received, read, and understand the notice. Consumers initial the footer of pages 1–5.

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