The Importance of the T-47 Residential Real Property Affidavit in Texas Real Estate Transactions

When it comes to Texas real estate transactions, a few critical documents must be handled carefully to ensure smooth closings and protect both buyers and sellers from potential legal or financial pitfalls. One such document is the T-47 Residential Real Property Affidavit (TXR 1907). This document is pivotal in situations where a seller opts to provide an existing survey instead of commissioning a new one. By confirming that no changes have been made to the property since the survey was conducted, the T-47 affidavit plays a vital role in the transaction process.

Understanding the significance of the T-47 affidavit, how to complete it accurately, and when to use it can prevent unnecessary delays, extra costs, and legal disputes. This blog will guide you through the essentials of the T-47 affidavit, focusing on why this document matters and how to properly manage it in your real estate deals.

What Is the T-47 Residential Real Property Affidavit?

The T-47 Residential Real Property Affidavit is a sworn legal document used in Texas real estate transactions. It is required when a seller provides an existing survey rather than commissioning a new one. Essentially, the T-47 certifies that the condition of the property has not materially changed since the survey was completed. It must be signed by the seller, notarized, and delivered to the buyer—along with the existing survey—at the time of contract execution.

If the seller has made changes to the property, such as adding new structures or fences, these modifications must be disclosed in the affidavit. If no changes have been made, the seller writes “None” in the relevant section of the form, affirming that the existing survey accurately represents the property.

Why the T-47 Affidavit Matters in Real Estate Transactions

The T-47 affidavit holds immense value for several reasons:

Ensures Survey Accuracy: It assures that the property has not undergone any changes since the existing survey was performed. This provides clarity to the buyer, title company, and lender, eliminating surprises after closing.
Title Insurance: Title companies often require the T-47 affidavit to issue title insurance without the need for a new survey. The affidavit, when paired with the existing survey, allows the title company to confirm the property’s condition.
Saves Time and Money: A valid T-47 affidavit can save both the seller and buyer from the time-consuming and expensive process of ordering a new survey, which can cost hundreds or even thousands of dollars.
Avoids Legal Risks: Failure to provide an accurate affidavit could result in legal disputes later if undisclosed changes are discovered after the sale. A complete and accurate T-47 protects all parties from future boundary disputes or misrepresentations.

The Critical Date in Paragraph 4 of the T-47 Affidavit

One of the most critical sections of the T-47 is Paragraph 4, which asks the seller to state the date from which they have no knowledge of changes made to the property. This date is significant because it establishes the period during which the seller affirms the accuracy of the survey.

Sellers have a couple of options when determining the correct date to list in Paragraph 4:

Date of the Last Survey: Sellers often choose the date of the most recent existing survey. This makes sense because the purpose of the T-47 is to confirm that no changes have occurred since that survey.
Date of Property Acquisition: Alternatively, some sellers opt to use the date they acquired the property, assuming no changes have been made since that time. This date represents the earliest point at which they had knowledge of the property’s condition.

The flexibility in choosing this date allows sellers to decide based on their knowledge of the property’s history. If changes have been made after the chosen date, they must be disclosed in the affidavit.

Why the Correct Date Matters

Choosing the right date for Paragraph 4 is crucial because it forms the basis for the affidavit’s validity. If the wrong date is used, or if changes are not disclosed properly, it could lead to delays in closing, title issues, or even legal disputes down the line. Sellers should carefully consider their knowledge of the property’s history before completing this section of the affidavit.

Steps to Ensure a Smooth T-47 Affidavit Process

For sellers and realtors alike, there are a few key steps to follow to ensure that the T-47 affidavit is completed correctly and delivered on time:

Request the Existing Survey Early: At the listing appointment, the seller’s agent should ask the seller if they have an existing survey that accurately depicts the property. Having the survey in hand early ensures that both the survey and the T-47 affidavit can be prepared and delivered to the buyer at the time of contract execution.
Confirm the Survey’s Accuracy:Before accepting an offer where the buyer checks Paragraph 6C(1) of the TREC contract (indicating that the buyer hopes to use the existing survey), the seller’s agent should confirm that the survey is accurate and up-to-date. The seller must be confident that no changes, such as additions, fences, or new structures, have been made since the survey was completed. If the seller is unsure, or if they do not have a survey and a notarized T-47 affidavit, to avoid paying for a new survey, Paragraph 6C(2) should be selected in the executed contract.
Prepare and Notarize the T-47: A completed T-47 affidavit must be notarized to be valid. Sellers should not assume they can sign the form and notarize it later. Failure to provide a notarized T-47 affidavit could leave the seller responsible for paying for a new survey, even if the existing survey is otherwise accurate. This is especially important when Paragraph 6C(1) of an executed contract is selected.
Deliver Both Documents: The signed, notarized T-47 affidavit, along with the existing survey, must be delivered to the buyer at the time of contract execution. This ensures that the seller meets their obligations under the contract and avoids the risk of having to pay for a new survey.

The Consequences of Not Filing a Proper T-47 Affidavit

Failing to provide a properly completed and notarized T-47 affidavit can have serious financial consequences for the seller:

Seller Pays for a New Survey: If the seller does not provide a valid T-47 affidavit along with an accurate survey, they may be forced to pay for a new survey, as outlined in Paragraph 6C(1) of the TREC contract. This can be an unexpected cost, especially if the seller believed the existing survey would suffice.
Delays in Closing: Without a T-47 affidavit, the buyer’s lender or title company may refuse to proceed with the transaction. This could delay closing, potentially costing both parties time and money.
Legal Disputes: If the seller fails to disclose changes to the property, such as new structures or boundary adjustments, they could face legal repercussions from the buyer. A complete and accurate T-47 affidavit helps avoid such disputes by providing a clear record of the property’s condition at the time of sale.

Law Talk: The TREC Contract and Paragraph 6C(1)

A critical section of the TREC (Texas Real Estate Commission) contract that directly relates to the T-47 affidavit is Paragraph 6C(1). This section allows buyers to check a box indicating they intend to use the existing survey. However, the seller must ensure they have the necessary documents in hand—both an accurate survey and a notarized T-47 affidavit—before signing the contract.

A few key points to remember:

Accuracy is Key: The seller must ensure the existing survey reflects the current condition of the property. If changes have been made and are not disclosed, the seller may be required to pay for a new survey.
Notarization is Mandatory: A T-47 affidavit is not considered valid unless it has been notarized. If the seller provides an unsigned or unnotarized affidavit, they could still be held responsible for the cost of a new survey, even if their existing survey is accurate.
Don’t Rely on Old Documents: Sellers should not assume they can easily retrieve an old survey or T-47 affidavit from a previous title company. It’s crucial to have the documents in hand before signing the contract to avoid complications.

Conclusion

The T-47 Residential Real Property Affidavit is a critical document in Texas real estate transactions, serving to confirm the accuracy of an existing survey and protect all parties involved. For sellers, providing a complete and notarized T-47 affidavit ensures that their obligations are met and helps avoid the costs of a new survey. For buyers, the affidavit provides assurance that the property matches its documented boundaries and structures.

By following the steps outlined in this blog—requesting the survey early, confirming its accuracy, and ensuring proper notarization—you can ensure a smooth transaction process. However, it’s important to remember that while the T-47 is an essential tool for real estate transactions, handling it correctly requires attention to detail and proper guidance.

This blog about the importance of a T-47 is provided courtesy of Capital City Coordination and is not a legal representation or statement of law. For any legal questions regarding the T-47 or other aspects of your real estate transaction, please confer with your legal counsel. Our transaction coordination team is here to assist you with the process, but legal matters should always be addressed by a qualified attorney. Reach out today to learn how we can support you in your next transaction!