Environmental

Under Texas Property Code, a seller who has actual knowledge that a property is in a special flood hazard area (SFHA) but fails to disclose this on the Seller's Disclosure Notice may be liable under:

AOnly TREC regulations
BTexas DTPA for concealment of a material fact✓ Correct
CFederal FEMA regulations
DTREC's recovery fund only

Explanation

The Texas Deceptive Trade Practices Act (DTPA) prohibits concealing material facts from consumers. Failure to disclose known floodplain status can constitute concealment of a material fact under the DTPA, exposing the seller to DTPA damages (up to three times actual damages for intentional violations). Real estate agents may also face liability.

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