Repairs & Condition Guide
A cracked slab does not stop you selling a house in Texas. Hiding it does. Foundation movement is so common on Texas clay that there is a whole industry built around it, and buyers, lenders and title companies all have a routine for it. What they do not forgive is a seller who knew and said nothing.
This guide covers what you must disclose, how a foundation problem changes what a lender will finance, the four ways to sell, and the one piece of paper that makes every option cheaper. It is the specific-problem companion to our broader guide on selling a house that needs repairs in Texas.
Can you sell a house with foundation issues in Texas?Yes. You can sell it repaired, sell it as-is with a price adjustment, offer a repair credit, or sell to a cash buyer who takes it as it stands. Whichever you choose, Texas Property Code §5.008 requires you to disclose known foundation defects, settling and previous structural repairs on the seller’s disclosure notice, and a licensed engineer’s report is the document that turns a vague fear into a known, priceable cost.
Most standard homeowner’s policies do not pay for damage from earth movement or slow leaks, so the repair will usually come out of the sale price one way or another. The question is who controls the number.
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Why Texas Houses Move
Much of eastern and central Texas sits on expansive clay. Geotechnical engineers describe these soils as prone to large volume changes with changes in water content: they swell when wet, shrink when dry, and open deep cracks in a drought summer. A slab poured on that clay rides up and down with the seasons, and the movement varies with how deep the moisture change reaches. Poor drainage, a leaking supply or drain line under the slab, large trees pulling water from one side of the house, and long wet-dry swings all make it worse.
Along the San Antonio-Austin corridor the picture changes within a few miles. West of the Balcones Escarpment, which roughly follows I-35, the Hill Country is mostly limestone and thin soils; east of it, the Blackland Prairie clays begin. Two houses of the same age in the same county can have completely different foundation histories for that reason alone.
The practical point for a seller: movement is normal here, buyers know it, and a house that has been properly repaired and documented is not a damaged house. It is a house with a known history.
What You Must Disclose
Texas Property Code §5.008 requires the seller of a residential property with one dwelling unit to give the buyer a written Seller’s Disclosure Notice, completed to the best of the seller’s belief and knowledge, on or before the date the contract takes effect. If you do not, the buyer can cancel for any reason within seven days of finally receiving it. The current TREC version, Form 55-1, took effect on 28 May 2026 and asks about foundations in three places:
Known defectsSection 2 asks whether you are aware of defects or malfunctions in the “Foundation/Slab(s)” and in “Other Structural Components,” with a line to explain.
ConditionsSection 4 asks about “Landfill, Settling, Soil Movement, Fault Lines,” about “Improper Drainage,” and about “Previous Structural or Roof Repair.”
Unpermitted workSection 9 asks about structural modifications or repairs made without required permits or not to code, which catches a foundation job done by an unlicensed crew without the city’s sign-off.
Three things sellers get wrong. First, a repaired foundation is still a “previous structural repair” and must be ticked: the fix does not erase the history. Second, the form asks what you know, so if you honestly do not know, you say so, and that is compliance. Third, the form does not require you to attach engineer’s reports or repair invoices, but withholding a report you have, or patching cracks and painting over them before the showing, is the kind of concealment that turns a disclosure question into a fraud claim. Our guide to selling a house as-is in Texas explains why an as-is clause does not protect a seller who hid a known defect.
The statute exempts some transfers, among them sales by a trustee in bankruptcy, by a fiduciary administering an estate or trust, between co-owners, to a spouse or lineal relative, and under a divorce decree. Even then, the fraud rules still apply to anything you actually say about the house.
The Engineer’s Report: Get It First
A foundation repair company will inspect for free and hand you a proposal. That proposal is a sales document from a business that installs piers. It is not an engineering opinion, and buyers’ agents know the difference.
What changes the conversation is a written report from a licensed professional engineer who does not sell repairs: an elevation survey of the slab, a diagnosis of what is moving and why, a repair plan if one is needed, or a statement that the movement is within tolerance and needs drainage work rather than piers. Ordered by you, before listing, it does three jobs at once:
- It sets the number. Without it, every buyer prices in the worst case. With it, the negotiation is about a specific scope, bid by contractors against the same plan.
- It answers the lender. When an appraiser notes movement, the underwriter wants an engineer’s opinion. Having it on file keeps the loan moving.
- It is your disclosure, done properly. You hand over the report with the notice, and nobody can later claim you knew more than you said.
If the house was repaired before, dig out the paperwork: the engineer’s plan, the contractor’s invoice showing pier locations, the post-repair elevation survey, and the warranty. Read the warranty. Some transfer to a new owner automatically, some only on written notice or a fee, and some are void if a different company touches the foundation later. A transferable warranty is a selling point; an untransferable one is a disclosure item.
Lenders, Insurers and the Appraisal
This is where a foundation problem bites a traditional sale. A buyer with a mortgage is not the only decision-maker; the lender’s appraiser walks the house too, and visible structural movement, doors that will not latch, stair-step cracks in brick, or sloping floors are the kind of thing an appraisal report flags. From there the underwriter decides what it will accept: an engineer’s letter, a completed repair, or a hold-back of funds, and lenders differ in how strict they are. The buyer may be willing; the loan may not be.
Insurance rarely rescues the situation. The Texas Department of Insurance’s consumer guide lists earth movement and continuous water leaks among the things most home policies do not cover, and lists “damage to foundations or slabs” as an add-on endorsement companies may offer rather than standard coverage. If your movement was caused by a sudden plumbing break, talk to your agent and read your policy; if it was slow soil movement, assume the repair is yours.
Two more practical consequences. A buyer’s inspector will look hard at the foundation, so the issue will surface in the option period even if nobody noticed it at the showing. And an insurer writing the buyer’s new policy may ask about prior foundation claims or repairs, which is one more reason the documentation matters.
Four Ways to Sell, Compared
There is no universally right answer; it depends on the size of the repair, your equity, your timeline, and how much supervision you are willing to do. Here is how the routes compare.
| Route | Who pays and manages the repair | Financing risk | Best when |
|---|---|---|---|
| Repair, then list | You, before listing, to an engineer’s plan | Lowest; repaired and documented houses finance normally | Modest repair, good equity, no rush |
| List as-is with the report | Buyer, after closing; price reflects the bid | Higher; the lender may require repair before funding | Cash or renovation-loan buyers are likely |
| List with a repair credit or escrow | Buyer, using your money at closing | Medium; lenders cap credits and some will not allow structural hold-backs | Buyer is financed but motivated |
| Sell to a cash buyer as-is | Buyer, after closing, no contingency | None; no appraisal, no underwriter | Large or uncertain repair, or a firm deadline |
| Do nothing and hope | Nobody, until the inspection | Highest; deals die in the option period | Never |
One trap worth naming: the belief that fixing the foundation adds its cost back to the sale price. Usually it does not. Buyers expect a sound foundation; paying for one restores the house to the price it would have fetched anyway, minus your time and the risk the first contractor underbid. That is the same logic behind what not to fix when selling a house: spend where it changes the buyer pool, not where it merely restores baseline.
Where a repair does earn its keep is when it moves the house from “cash buyers only” back into the financed market, because that roughly triples the number of people who can buy it. The engineer’s report tells you which side of that line you are on.
6 Steps From Crack to Closing
- Order the engineer’s report before you do anything else. Independent, licensed, not affiliated with a repair company. Everything downstream depends on it.
- Fix the water first. If the report points to drainage, gutters, a plumbing leak or irrigation against the slab, correct that regardless of which route you take. It is cheap relative to piers and it stops the problem getting worse while you sell.
- Assemble the file. The report, any prior repair plans and invoices, warranty documents, permits, and photos. This is what you hand over with the disclosure notice.
- Get two bids against the engineer’s plan if you are considering a repair or a credit. Same scope, same pier count, so the numbers are comparable.
- Choose the route with your numbers, not your hopes. Equity after the repair, time you have, and whether financed buyers are realistic for this house in this condition.
- Complete the disclosure notice honestly and attach the report. Then let the buyer’s inspector find exactly what you already told them. Deals survive known problems; they rarely survive surprises.
Disclosure and insurance points here reflect Texas Property Code §5.008, TREC Form 55-1 (effective 28 May 2026) and the Texas Department of Insurance consumer guide as of October 2026. Repair costs vary with the method and the number of piers, so we have not quoted figures; get them from an engineer-specified bid, not a blog.
Rather Not Manage a Foundation Job?
We buy houses with foundation problems as they stand across San Antonio, New Braunfels and the Austin corridor. No repairs, no appraisal, no engineer’s letter to chase: you give us your disclosure and any reports you have, we price the repair ourselves, and we can close in as little as 7 to 14 days. No agent commissions, no service fees, and we cover standard closing costs.
Quick FAQs
Do I have to disclose foundation problems when selling a house in Texas?
Yes. Texas Property Code section 5.008 requires a written Seller’s Disclosure Notice for a residential property with one dwelling unit, completed to the best of your knowledge. The current TREC form asks directly about defects in the foundation or slab, about settling and soil movement, and about previous structural repairs. A repaired foundation still has to be disclosed as a previous structural repair.
Can you sell a house with foundation issues as-is in Texas?
Yes. An as-is sale means the buyer accepts the condition and you make no repairs, and it is common with foundation problems. It does not remove the duty to disclose what you know, and it does not protect a seller who concealed a defect. The cleanest as-is sale comes with an engineer’s report attached so the buyer prices a known scope.
Will a buyer be able to get a mortgage on a house with foundation movement?
Sometimes. If the appraiser notes structural movement, the lender usually wants an engineer’s opinion and may require the repair to be completed, or funds held back, before closing. Lenders differ in how strict they are. A documented, completed repair generally finances normally; an unrepaired, undiagnosed problem often pushes the house toward cash or renovation-loan buyers.
Does homeowner’s insurance cover foundation repair in Texas?
Usually not. The Texas Department of Insurance’s consumer guide lists earth movement and continuous water leaks among the losses most policies exclude, and lists damage to foundations or slabs as an optional endorsement rather than standard coverage. Damage from a sudden plumbing break may be treated differently, so read your policy and ask your agent before assuming either way.
Should I repair the foundation before selling or sell it as-is?
Get an independent engineer’s report first, then decide with numbers. Repair before listing when the scope is modest, you have the equity and time, and a repair would bring financed buyers back. Sell as-is, with the report disclosed, when the repair is large or uncertain, the timeline is short, or you would rather not manage contractors. A repair rarely adds more than its cost to the price; its real value is widening the buyer pool.
Also worth reading: selling a storm- or fire-damaged house in Texas, the documents you need to sell a house in Texas, or browse the rest of the blog, or reach us at info@moneyfast4houses.com.