Fact or Fiction: Are commercial clients required to use disclosure forms?

Like homesellers, my commercial clients must provide a disclosure form when selling a commercial property.

FICTION. While commercial sellers are required by law to disclose material facts and defects related to the property, there is no mandatory form that must be used. When your client is using either the Commercial Contract – Improved Property (TXR 1801) or the Commercial Contract – Unimproved Property (TXR 1802), your clients have two options for how to make any necessary disclosures. The first option is to check the box to attach, as an addendum, a completed Commercial Property Condition Statement (TXR 1408) to document the state of the property, including any structural damage or improvements, as of the date signed. The second option is to check the box listing items that your seller is not aware of, with a description of exceptions to that list stated in special provisions or a separate addendum attached to the sales contract. You can offer your clients the option to disclose at the time of listing but adhere to your client’s preference on the matter.