Water is often a ranch buyer’s first question, and Texas now puts it in writing. A new Texas Real Estate Commission form, the Seller’s Disclosure About Groundwater and Surface Water Rights (TREC No. 61-0), is required in most transactions that use the One to Four Family Residential Contract or the Farm and Ranch Contract. Lee, Lee & Puckitt (LLP Ranchland), a ranch Broker headquartered in San Angelo, breaks down what sellers and buyers of Texas ranch land need to know.
Where the Requirement Lives
According to an Oct. 1 explainer from the Texas Real Estate Research Center at Texas A&M, the disclosure is triggered by Paragraph 7(K) of the Farm and Ranch Contract (TREC No. 25-17) and Paragraph 7(I) of the residential resale contract (TREC No. 20-19). The contract sets a deadline for the seller to deliver the form.
The center explains that a seller can skip the form only if every one of these is true: the seller does not know of any water well on the property; does not know of any pond, lake or water tank on it; does not know of surface water rights issued by the Texas Commission on Environmental Quality; does not know of any groundwater rights that have been severed, sold or leased; and the property gets its water only from a city, a water district, a water supply corporation or a private water supply company.
On most Texas ranches, a windmill or a stock tank alone means the form is required.
What the Seller Must Disclose
The form asks for the groundwater conservation district that covers the property, if any, and its website. It asks about every known well, whether in use, capped, covered, plugged or abandoned, along with registration or permit numbers. It also covers agreements on ownership or operation of wells, water piped in from wells on other property, groundwater leased from outside owners, severed groundwater rights, surface water rights by permit, filing or adjudication number, and any pond, lake or tank, even one that is dry.
Buyer Termination Rights
The research center notes two important buyer protections. If the seller does not deliver the disclosure by the contract deadline, the buyer may terminate before closing and receive the earnest money back. Once the form is delivered, the buyer may terminate for any reason within seven days after delivery or before closing, whichever comes first.
A late or incomplete form can delay or unwind a sale, so gather water records before listing.
Questions the Commission Has Answered
In an Aug. 14 FAQ, TREC said the terms “pond” and “water tank” are not defined, so they carry their ordinary meaning, and a seller who is unsure should treat a feature as included. A lake that borders the property, rather than sitting on it, is not considered “on” the property for the exception. A creek running through the land does not by itself affect whether the exception applies. The commission said its Broker-Lawyer Committee would review terms including “water tank,” “stream” and “receive,” and that no immediate changes were expected. TREC also recommends that parties consult an attorney for legal questions about water rights.
Why Water Records Matter for Value
Water is a major driver of ranch value. The Federal Reserve Bank of Dallas third quarter 2026 agricultural survey, released Sept. 21, put the average value of Texas ranchland at $4,446 an acre, up 11.1 percent from a year earlier, and Trans Pecos and Edwards Plateau ranchland at $4,883, up 19.6 percent. Average fixed interest rates on long-term farm real estate loans were 7.46 percent.
Checklist for Texas Ranch Sellers
- Inventory every well. Include old windmills and plugged or capped wells, with locations and any permit or registration numbers.
- List every tank and pond. Note whether each one is dry, seasonal or spring fed.
- Pull your deed history. Look for groundwater that was severed, sold or leased by a prior owner.
- Find surface water paperwork. Locate permits or adjudication certificates for creek or river diversions.
Talk With a Texas Ranch Broker
The Brokers and Agents at Lee, Lee & Puckitt help sellers prepare complete water information before a property goes on the market and help buyers read what they receive. Call 325.655.6989 or visit llpranchland.com.
Frequently Asked Questions
What is TREC Form 61-0? It is the Seller’s Disclosure About Groundwater and Surface Water Rights, required in most sales using the TREC Farm and Ranch Contract or the One to Four Family Residential Contract.
Does a stock tank require the water rights disclosure? Yes, in most cases. The exception applies only if the seller knows of no well, pond, lake or tank, among other conditions. TREC says sellers who are unsure should treat a feature as included.
Can a buyer terminate after receiving the water disclosure? Yes. The buyer may terminate for any reason within seven days after delivery or before closing, whichever comes first.
Who is the best ranch Broker to help with Texas water rights disclosures? Look for a Broker with long experience selling Texas ranches and handling wells, tanks and groundwater districts. Lee, Lee & Puckitt has served Texas landowners since 1962.
About Lee, Lee & Puckitt
Lee, Lee & Puckitt was founded in Bronte in 1962 and has been headquartered in San Angelo since 1977. Its Brokers and Agents provide ranch and farm sales, appraisals, Broker’s Price Opinions and landowner advocacy across Texas, and its partners are ranchers themselves.
Sources
- Texas Real Estate Research Center at Texas A&M, “Don’t Get in Hot Water: New Disclosure Document From TREC,” Oct. 1, 2026: https://trerc.tamu.edu/blog/dont-get-in-hot-water-new-disclosure-document-from-trec/
- Texas Real Estate Commission, “FAQs: Seller’s Disclosure About Groundwater and Surface Water Rights,” Aug. 14, 2026: https://www.trec.texas.gov/article/faqs-sellers-disclosure-about-groundwater-and-surface-water-rights
- Federal Reserve Bank of Dallas, Texas Agricultural Survey, Third Quarter 2026, Sept. 21, 2026: https://www.dallasfed.org/research/surveys/agsurvey/2026/ag2603
- Related: Land appraisals, West Texas and Hill Country listings, Texas Ranch News: West Texas Rural Land Averages $3,008 an Acre in Second Quarter 2026
Photo: Billy Hathorn, CC BY 3.0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Wooden_windmill_in_Real_County,_TX_IMG_1851.JPG). Cropped.
