Water rights in Texas can affect what you are actually buying with a home, especially when the property has a well, a pond or tank, water-use paperwork, or water that does not come only from a city utility. For many Texas resale contracts using the current TREC form, a separate water disclosure may be required, and it can give you a short termination window after delivery.
TL;DR
- Ask early whether the home uses a private well, has a pond or tank, or has known groundwater or surface water rights.
- Review TREC Form 61-0 when it is required. It reports the seller’s knowledge and is not a warranty or a substitute for inspections.
- If the disclosure is delivered after the Effective Date, note the contract’s 7-day termination period right away.
- For a well, look into water quality, flow, well records, shared-well arrangements, and any groundwater district rules.
- Do not treat a city, MUD, WSC, or private water company connection as a reason to skip the contract and disclosure review.
Why Texas water rights disclosure matters this fall
Texas buyers are seeing a more specific disclosure in many resale deals: TREC Form 61-0, Seller’s Disclosure about Groundwater and Surface Water Rights. The form is effective July 1, 2026, is dated May 4, 2026, and is identified as Form 61-0.
Its job is practical. You need a clearer starting point when a property may involve a water well, a groundwater district, a shared water arrangement, severed groundwater rights, a pond or tank, or a surface water right. The form doesn’t determine who owns a right or prove a well works. It gives the seller’s knowledge so you know what to ask next.
This is timely because the Texas Real Estate Research Center highlighted the new disclosure and the buyer termination right tied to it. Its October 1, 2026 article, “Don’t Get in Hot Water: New Disclosure Document From TREC”, explains when the form is required, when to deliver it, and what it covers.
For a homebuyer, this is less about becoming a water-law expert and more about avoiding assumptions. Find out how water reaches the property and what rights or agreements support that setup. If rights are reserved, excepted, conveyed, or questioned, a Texas real estate attorney can help before you close.
When TREC Form 61-0 is required, and when it is not
The current TREC Form 61-0 is tied to Paragraph 7(I) of the One to Four Family Residential Contract (Resale), Form 20-19, dated May 4, 2026. Paragraph 7(I) says the parties shall use the Seller’s Water Disclosure published by TREC.
There is a narrow contract exception. The seller is not required to deliver the disclosure only if all five of the following are true:
- The seller is not aware of a water well on the property, whether or not the well is in use.
- 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 and administered by the Texas Commission on Environmental Quality (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 the following municipality (city), municipal utility district (MUD), other special district, water supply corporation (WSC), or private water supply company (PWC) named in the contract.
That “all true” structure matters. A seller cannot rely on this exception just because the home is in a developed neighborhood or gets a utility bill. A known abandoned well, a pond, or knowledge of severed groundwater rights can take the exception off the table.
Form 61-0 reports the seller’s knowledge. The form cautions that water-rights rules can be complex, the seller may not have complete knowledge, and others may hold rights. If the deal involves a reservation, exception, conveyance, or dispute about water rights, the form says each party should consult an attorney before signing a binding contract.
The Texas Real Estate Research Center notes that the Farm and Ranch Contract, Form 25-17, also addresses the water disclosure in Paragraph 7(K), which can matter on acreage or multi-source properties.
Delivery timing and the buyer’s 7-day termination rights
Timing is one of the most important parts of Paragraph 7(I). The resale contract provides boxes for whether the buyer has already received the disclosure, whether the seller will deliver it after the Effective Date, or whether the seller is not required to provide it because every exception statement applies.
Here is the buyer-facing version of those choices:
- Buyer has received the disclosure. The contract can show that you already have it.
- Buyer has not received the disclosure. The contract specifies how many days after the Effective Date the seller must deliver it.
- Seller is not required to deliver it. This applies only when all five exception conditions above are true.
If the seller was supposed to provide the water disclosure but hasn’t delivered it, you may terminate the contract at any time before closing and get your earnest money back. If the disclosure is delivered, you may terminate for any reason within 7 days after you receive it or before closing, whichever comes first, and receive a refund of your earnest money.
Read it as soon as it arrives. Compare it with the listing, the general seller’s disclosure notice, title materials, inspection findings, the survey, and any well or shared-water records. If you have a question, there may be little time to get an answer.
Review the current TREC One to Four Family Residential Contract (Resale) with your real estate agent or attorney. The signed contract and your deal facts control.
What Form 61-0 covers
Form 61-0 does more than ask whether a property has a working well. The form defines key terms, including:
- Groundwater: water that percolates below the earth’s surface, usually found in aquifers and accessed by water wells.
- Groundwater District: a local or regional groundwater conservation district, underground water conservation district, subsidence district, or other special district or authority that regulates drilling or operating water wells. Not all land in Texas is in one.
- Surface Water: water in lakes, rivers, creeks, streams, and in the bays, estuaries, and arms of the Gulf of Mexico.
- Surface Water Rights: a permit, certified filing, or certificate of adjudication administered by TCEQ that authorizes diversion, impoundment, or use of surface water. Not every surface-water use needs one.
- Water Well: an artificial excavation drilled or dug to explore for or produce groundwater.
Among other items, the form asks the seller about:
- Whether any portion of the property is in a Groundwater District, and, if so, the district name and website.
- Known water wells on the property, how many are in use, and how many are not in use and have been capped, covered, plugged, or abandoned.
- Registrations or permits (by number) from a Groundwater District for those wells.
- Whether wells are owned or operated solely by the seller for the property, or by someone else for a named beneficiary under an agreement.
- Whether the property receives water from a water well on another property (not counting city, MUD, special district, WSC, or private water company service), and any agreements that govern access.
- Whether a well on the property relies in whole or in part on groundwater rights owned or leased from land outside the property.
- Whether any groundwater rights to the property have been severed, sold, or leased in whole or in part, with or without the right to drill or operate a well on the property.
- Whether the seller owns any surface water right associated with the property, identified by permit, filing, or certificate of adjudication number.
- Whether the property has a pond, lake, or water tank, whether currently with or without water.
Each answer can lead to another question. A neighboring-tract well may raise access and agreement issues. A Groundwater District answer may lead you to that district’s rules. Severed groundwater rights may require a deed and title review, plus legal advice. The form also notes that district rules differ, and that some districts have ad valorem taxing authority.
How Form 61-0 differs from the Property Code seller’s disclosure
Texas Property Code Section 5.008 is the general seller’s disclosure framework for property condition. It still matters, but it does not replace the water-rights disclosure.
The general seller’s disclosure helps you understand what the seller knows about the property’s condition. Form 61-0 focuses on groundwater, wells, Groundwater Districts, severed groundwater rights, surface water rights, and ponds, lakes, or tanks. Review both where they apply. If one mentions a well and the other does not, ask in writing and investigate during your option period.
Water rights can overlap with, but are not the same as, mineral rights. If the purchase also raises mineral questions, see our guide to mineral rights and oil wells for Texas homebuyers. Our guide to title insurance in Texas can help you read Schedule B exceptions that may mention water or mineral interests.
Rural wells vs. city, MUD, WSC, and private company water
A property may receive water from a city, a municipal utility district (MUD), another special district, a water supply corporation (WSC), or a private water supply company (PWC). In other cases, it may depend on an individual well or a well on another tract.
For an individual well, ask about water quality testing, flow, equipment age and condition, maintenance history, location, permits or registrations if applicable, septic proximity, and Groundwater District requirements. A general home inspection is not automatically a full well or water-quality evaluation.
For water supplied from another property, ask what agreement gives access, who maintains the system, whether the agreement transfers, and whether it shows up in the title materials.
For city or district water, confirm the provider and connection status. The contract exception refers to property that receives water only from the named provider. A well, pond, tank, or known water-rights issue can still matter even when utility water is the main household source.
TCEQ provides regulatory information on surface water authorizations. Its water rights resources can be a useful starting point when a disclosure identifies a permit, certified filing, or certificate of adjudication. For title, ownership, or contract interpretation, speak with an attorney.
How private wells can affect financing
A private water system can affect the property review for a mortgage, but it does not automatically stop a purchase. The company funding your loan will evaluate the file and the property requirements that apply to the program and the transaction. We review each file based on its facts.
For FHA-insured financing, HUD Handbook 4000.1 addresses individual water supply systems (wells). Water quality must meet the requirements of the health authority with jurisdiction. If there are no local or state water quality standards, water quality must meet the EPA National Primary Drinking Water regulations in 40 CFR Parts 141 and 142.
HUD also sets flow standards under its minimum property requirements. Existing wells must deliver a continuous water flow of at least three gallons per minute. New-construction wells must deliver a continuous flow of at least five gallons per minute for at least four hours, among other requirements. Shared wells have additional rules, and distance requirements involving property lines, septic tanks, and drain fields apply, with local authority requirements controlling when they are greater. Buyers can review HUD’s Handbook 4000.1, but they must check the applicable handbook provisions and the property facts for the transaction.
For conventional financing, private water systems must meet the applicable investor and property-eligibility standards. At a high level, the water source and the property must meet those requirements. Fannie Mae’s Selling Guide (B7-2-05) treats outstanding oil, water, or mineral rights as a minor title impediment for conventional loans when they are customarily waived in the market and do not materially alter the contour of the property or impair its value or usefulness for its intended purposes. That is a property-by-property test. A severance, reservation, shared-water arrangement, or unusual title exception may still need careful review.
Bring up the water source early, ideally before your inspection deadline, so your agent, title company, inspectors, and mortgage broker have time to identify what may be needed.
Water rights and wells: do’s and don’ts
Do
- Read Paragraph 7(I) before you sign and confirm whether Form 61-0 has been received, is due after the Effective Date, or is marked not required.
- Put the disclosure-delivery date and 7-day termination deadline on your transaction calendar.
- Ask whether a well is active, capped, plugged, abandoned, shared, or located on another property.
- Ask for available well records, water testing, permits, registrations, agreements, and maintenance information.
- Review the general seller’s disclosure, title materials, survey, and inspection findings together.
- Have a Texas real estate attorney review water-rights questions that could affect how you use the home.
Avoid
- Assuming the purchase includes every groundwater or surface water right you expect.
- Treating Form 61-0 as a warranty, a well inspection, or a title determination.
- Overlooking a dry pond, tank, capped well, or old water equipment because it is not currently in use.
- Waiting until the end of the 7-day period to begin your review.
- Relying only on a listing description that says “well,” “city water,” or “shared well.”
FAQ: water rights in Texas
Q: What are water rights in Texas for a homebuyer?
A: For a homebuyer, water rights in Texas may involve groundwater connected to the land, surface water authorizations, or rights and agreements that affect how water reaches or is used by the property. The details can vary a lot. Form 61-0 identifies the seller’s knowledge of certain issues, not ownership or legal conclusions.
Q: Does a seller always have to provide TREC Form 61-0?
A: No. Under Paragraph 7(I) of the TREC resale contract, the seller must provide it only when all five stated exception conditions are true. Those conditions include no awareness of a well, no awareness of a pond, lake, or water tank, no awareness of an associated TCEQ surface water authorization, no awareness of severed, sold, or leased groundwater rights, and water supplied only by the named city, MUD, special district, WSC, or private water supply company.
Q: How long does a buyer have to terminate after receiving the water disclosure?
A: If the disclosure is delivered, you may terminate for any reason within 7 days after receipt or before closing, whichever occurs first, with earnest money refunded under the contract language. If the required disclosure isn’t delivered, you may terminate at any time before closing and receive a refund of your earnest money. Read the signed contract and speak with your real estate agent or attorney about the specific deadline.
Q: Is a private well a problem when buying a home?
A: Not necessarily. A private well is a property feature that deserves focused due diligence. Look into water quality, flow, condition, location, maintenance, shared-use arrangements, and applicable district requirements. A mortgage company may also need property information or testing based on the financing program and the facts of the file. We review each file based on its facts, so share documents early.
Q: Does the general seller’s disclosure replace the water-rights disclosure?
A: No. The general seller’s disclosure under Property Code Section 5.008 addresses property condition more broadly. Form 61-0 is the specific TREC disclosure about groundwater and surface water rights. When both apply, review both.
Plan your Texas purchase with a mortgage broker
Well records, shared-water agreements, and water-rights questions take time to sort out, so keep your financing on the same timeline. The Texas Mortgage Pros is a mortgage broker. We can help you compare home purchase loan options from the wholesale mortgage companies we work with, subject to qualification and program availability, and tell you early what documents a property water issue may require. Buying for the first time? Start with our first-time homebuyer loans page.
Questions about water rights in Texas and your home loan? Call (877) 280-4833, apply online, or contact us.
Official sources
- Texas Real Estate Commission: Seller’s Disclosure about Groundwater and Surface Water Rights, TREC No. 61-0 (effective 07/01/2026; form dated 05-04-2026) (linked above)
- Texas Real Estate Commission: One to Four Family Residential Contract (Resale), TREC No. 20-19 (form dated 05-04-2026), Paragraph 7(I) (linked above)
- Texas Real Estate Research Center: Don’t Get in Hot Water: New Disclosure Document From TREC (October 1, 2026) (linked above)
- Texas Commission on Environmental Quality: water rights information (linked above)
- HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook, Individual Water Supply Systems (Wells) (linked above)
- Fannie Mae Selling Guide B7-2-05, Title Exceptions and Impediments (linked above)
- Texas Property Code Section 5.008, Seller’s Disclosure of Property Condition (statutes.capitol.texas.gov)
- Texas Real Estate Commission: Farm and Ranch Contract, Form 25-17, Paragraph 7(K) (summarized via TRERC; trec.texas.gov)
Wikipedy is not affiliated with or endorsed by the Texas Real Estate Commission, the Texas Real Estate Research Center, the Texas Commission on Environmental Quality, the U.S. Department of Housing and Urban Development, the Federal Housing Administration, Fannie Mae, or the U.S. Environmental Protection Agency, and this is not a government document.
The Texas Mortgage Pros, LLC | Company NMLS #2665861 | Gerry Nicodemus, NMLS #286371 | Equal Housing Opportunity | www.nmlsconsumeraccess.org | (877) 280-4833
Equal Housing Opportunity. We do business in accordance with federal fair lending laws.