Tex. Codes » Occupations Code · TITLE 7. PRACTICES AND PROFESSIONS RELATED TO REAL PROPERTY AND HOUSING · SUBTITLE A. PROFESSIONS RELATED TO REAL ESTATE · CHAPTER 1101. REAL ESTATE BROKERS AND SALES AGENTS
Texas Codes

Tex. Occ. Code § 1101.805 (2026)

Liability For Misrepresentation Or Concealment

✓ current as of May 2026
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Sec. 1101.805. LIABILITY FOR MISREPRESENTATION OR CONCEALMENT. (a) In this section, "party" has the meaning assigned by Section 1101.551.

(b) This section prevails over any other law, including common law.

(c) This section does not diminish a broker's responsibility for the acts or omissions of a sales agent associated with or acting for the broker.

(d) A party is not liable for a misrepresentation or a concealment of a material fact made by a license holder in a real estate transaction unless the party:

(1) knew of the falsity of the misrepresentation or concealment; and

(2) failed to disclose the party's knowledge of the falsity of the misrepresentation or concealment.

(e) A license holder is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction unless the license holder:

(1) knew of the falsity of the misrepresentation or concealment; and

(2) failed to disclose the license holder's knowledge of the falsity of the misrepresentation or concealment.

(f) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1172 (S.B. 1968), Sec. 13(2), eff. January 1, 2026.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003.

Amended by:

Acts 2015, 84th Leg., R.S., Ch. 1158 (S.B. 699), Sec. 90, eff. January 1, 2016.

Acts 2025, 89th Leg., R.S., Ch. 1172 (S.B. 1968), Sec. 13(2), eff. January 1, 2026.

Notes of Decisions
Cited in 11 cases (5 in the last 5 years), 2006–2026 · leading case: Van Duren v. Chife, 569 S.W.3d 176 (Tex. App. 2018).
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Van Duren v. Chife, 569 S.W.3d 176 (Tex. App. 2018). “805(e) (brokers are liable for misrepresentation or concealment of material fact made by party to transaction if they knew of the falsity of misrepresentation or concealment and failed to disclose party's or their own knowledge of falsity of misrepresentation or concealment).”
Coldwell Banker Whiteside Assocs. v. Ryan Equity Partners, Ltd., 181 S.W.3d 879 (Tex. App. 2006). “Tex. OCC.Code Ann. § 1101.805(e) (Vernon 2004); see also id.”
Stack v. Richman, 286 S.W.3d 44 (Tex. App. 2009). · cites it 3× “Next, the Richmans raise Texas Occupations Code section 1101.805 as a defense and contend they cannot be liable for a misrepresentation made by their agent.”
Ace Real Prop. Investments, LP & Formosa Prop. Mgmt. Co., Inc. v. Cedar Knob Investments, LLC (Tex. App. 2021). · cites it 2× “” Tex. Occ. Code Ann. § 1101.805 (d). Cedar Knob argued that there was no evidence M&M misrepresented or concealed material facts during the property’s sale, that Cedar Knob knew of such a misrepresentation, or that Cedar Knob failed to disclose their knowledge of the falsity.”
Ace Real Prop. Investments, LP & Formosa Prop. Mgmt. Co., Inc. v. Cedar Knob Investments, LLC (Tex. App. 2022). · cites it 2× “” Tex. Occ. Code Ann. § 1101.805 (d). Cedar Knob argued that there was no evidence M&M misrepresented or concealed material facts during the property’s sale, that Cedar Knob knew of such a misrepresentation, or that Cedar Knob failed to disclose their knowledge of the falsity.”
Cornelius Joe Ergonis & Linda Ergonis v. William Thomas Sultzbaugh, Sharon Elliott Sultzbaugh A/K/A Sharon Carr, Ebby Halliday Real Est., Inc., Kathy Gibson, Paul Wood Inspection Grp., Inc., Caleb Wood, & James Alan Peterson (2026). · cites it 2× “See Tex. Occ. Code Ann. § 1101.805 (e); Kubinsky, 811 S.”
Bow Grove v. Marion Gine Franke & Brenda Kay Lynch (Tex. App. 2019). “) (citing Tex. Occ. Code Ann. § 1101.805 (e), (f) (West Supp.”
Colton MacPherson v. Carolina Pena & Suzanne Anderson Props. LLC (Tex. App. 2022). “) (explaining the general rule); see also Tex. Occ. Code Ann. § 1101.805 (e) (creating the exception that applies if the broker is shown to have known the sellers made a representation that was false, or knows the seller misrepresented or concealed a material fact and the 20…”
Jeffrey Hammond & Callie Hammond v. Crista L. Hanser, Jeffrey W. Connell, Michael W. Clapp, DSJMM, LLC & Flutobo, Inc. D/B/A Keller Williams Realty Ne. (Tex. App. 2024). “3d at 188 ); see also TEX. OCC. CODE § 1101.805(e) (creating exception that applies if broker is shown to have known sellers made false representation, or knows seller misrepresented or concealed material facts and broker failed to disclose their own knowledge of seller’s…”
Weldon & Sharon Boehl v. Roger Boley, Ellen E. Dawson & Richard Smith Co., D/B/A Coldwell Banker United Relators (Tex. App. 2011). “” TEX. OCC. CODE ANN. §1101.805(d) (Vernon 2004).”
Robert Flynn & Wian Flynn v. Keller Williams Inc. Realtors & the Boehm Team (Tex. App. 2013). “TEX. OCC. CODE ANN. § 1101.805(e),(f) (West 2012).”
— Tex. Occ. Code § 1101.805(d) — 2 cases
Stack v. Richman, 286 S.W.3d 44 (Tex. App. 2009). “Next, the Richmans raise Texas Occupations Code section 1101.805 as a defense and contend they cannot be liable for a misrepresentation made by their agent.”
Weldon & Sharon Boehl v. Roger Boley, Ellen E. Dawson & Richard Smith Co., D/B/A Coldwell Banker United Relators (Tex. App. 2011). “” TEX. OCC. CODE ANN. §1101.805(d) (Vernon 2004).”
— Tex. Occ. Code § 1101.805(e) — 4 cases
Van Duren v. Chife, 569 S.W.3d 176 (Tex. App. 2018). “805(e) (brokers are liable for misrepresentation or concealment of material fact made by party to transaction if they knew of the falsity of misrepresentation or concealment and failed to disclose party's or their own knowledge of falsity of misrepresentation or concealment).”
Coldwell Banker Whiteside Assocs. v. Ryan Equity Partners, Ltd., 181 S.W.3d 879 (Tex. App. 2006). “Tex. OCC.Code Ann. § 1101.805(e) (Vernon 2004); see also id.”
Jeffrey Hammond & Callie Hammond v. Crista L. Hanser, Jeffrey W. Connell, Michael W. Clapp, DSJMM, LLC & Flutobo, Inc. D/B/A Keller Williams Realty Ne. (Tex. App. 2024). “3d at 188 ); see also TEX. OCC. CODE § 1101.805(e) (creating exception that applies if broker is shown to have known sellers made false representation, or knows seller misrepresented or concealed material facts and broker failed to disclose their own knowledge of seller’s…”
Robert Flynn & Wian Flynn v. Keller Williams Inc. Realtors & the Boehm Team (Tex. App. 2013). “TEX. OCC. CODE ANN. § 1101.805(e),(f) (West 2012).”
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