How to sell land
in Texas.
A 2026 guide.

The annexation notice (land outside city limits).

Under Property Code § 5.011, the seller gives the buyer a written notice that reads substantially like this: if the property "is located outside the limits of a municipality, the property may now or later be included in the extraterritorial jurisdiction of a municipality and may now or later be subject to annexation by the municipality."

• When: before the date the contract binds the buyer. It can be a separate notice or part of the contract.
• If it is missed: the buyer may terminate "for any reason" within seven days after receiving the notice, or by the transfer date, whichever comes first.
• When it does not apply: land "located wholly within a municipality's corporate boundaries," court-ordered and foreclosure sales, transfers by an estate fiduciary, between co-owners, to a spouse or lineal relative, and to or from a government.

The extraterritorial jurisdiction (ETJ) is not a formality around Dallas-Fort Worth. Under a 2023 state law, Fort Worth landowners had released about 3,000 acres from the city's ETJ by September 2024, with 169,297 acres still inside it (Fort Worth Report).

The pipeline notice (unimproved land).

Property Code § 5.013 says "a seller of unimproved real property to be used for residential purposes shall provide to the purchaser of the property a written notice disclosing the location of a transportation pipeline," including natural gas, natural gas liquids, petroleum and hazardous-substance lines. You state it to the best of your knowledge; if you do not know, the notice says so. It is due on or before the contract's effective date, and if it is missed the buyer may terminate within seven days after the effective date. The notice is not required when the seller must furnish a title insurance commitment and the buyer can terminate if title objections are not cured.

District notices: PID and MUD.

If the land is in a public improvement district, the seller "shall first give to the purchaser of the property the written notice" set out in Property Code § 5.014, which explains the district assessment. Land inside a municipal utility district (common around Houston) comes with a statutory MUD notice under Water Code § 49.452 (Texas A&M Real Estate Research Center). Your title company will know whether either applies.

Selling to a cash buyer who may assign the contract.

Some cash land buyers assign their purchase contract to another buyer instead of closing themselves. Texas allows it without a real estate license only if the person "does not use the option or contract to purchase to engage in real estate brokerage" and "discloses in writing the nature of the equitable interest to any seller or potential buyer." Without that disclosure, the law treats it as "engaging in real estate brokerage" (Occupations Code § 1101.0045). Ask any cash buyer how they intend to close, and expect the answer in writing.

Our policy: if we may assign our purchase contract to another buyer, we say so in writing before you sign anything.

Transfer tax and minerals.

Transfer tax. The Texas Constitution says that "after January 1, 2016, no law may be enacted that imposes a transfer tax on a transaction that conveys fee simple title to real property" (Tex. Const. art. 8, § 29).

Mineral rights. In Texas the mineral estate is dominant. Where minerals are owned separately from the surface, the mineral owner can use as much of the surface as is reasonably necessary (Texas A&M Real Estate Research Center). If your minerals were reserved by an earlier owner, say so up front: it is one of the first things a buyer will check in West Texas.

Local things buyers check.

• Houston: the City of Houston has no zoning, and recorded deed restrictions govern what can be built (City of Houston). Harris County's draft MAAPnext flood maps may change which properties are in the floodplain (MAAPnext).
• San Antonio: building, clearing or excavating over the Edwards Aquifer recharge zone needs a state-approved Water Pollution Abatement Plan first (TCEQ).
• Lubbock: flood zones sit mostly next to the playa lakes, and new buildings must be at least 12 inches above the top of the curb (City of Lubbock).

Your three ways to sell.

1. List with a licensed agent

Best for land with road frontage and utilities that retail buyers can finance. Expect a commission and a longer timeline; the notices above still apply.

2. Sell it yourself

You keep the commission and handle the notices and closing with a title company. Use the current promulgated contract forms rather than a homemade agreement.

3. Sell to a direct land buyer

Usually faster for tracts with no utilities, severed minerals, ETJ questions or title clean-up, at a price that reflects those issues. Ask how they priced it and whether they intend to assign.

How Lions Capital Deals buys Texas land.

We look at vacant lots and acreage in Houston and Harris County, Dallas-Fort Worth (Dallas, Tarrant, Collin, Denton, Ellis, Johnson and Kaufman counties), San Antonio and Bexar County, and West Texas (Lubbock, Midland and Odessa).

1. Send us the parcel number, address or a map pin.
2. We check the flood map, city limits and ETJ, deed restrictions, district status and mineral ownership before we quote.
3. We reply within one business day, with a written offer or the questions we need answered first.
4. If we may assign the contract, we tell you in writing before you sign.
5. Closing runs through a Texas title company.

Common questions.

Do I have to give an annexation notice when selling land in Texas?

Usually, if the land is outside city limits. Texas Property Code 5.011 requires the seller to give the buyer a written notice that the property may be in, or later added to, a city's extraterritorial jurisdiction and may be annexed. It must be delivered before the buyer is bound. If it is not, the buyer can terminate within seven days of receiving it or by closing, whichever comes first. Land wholly inside city limits is exempt.

Do I need to disclose pipelines when selling vacant land in Texas?

If the land is unimproved and will be used for residential purposes, Property Code 5.013 requires a written notice of the location of any transportation pipeline, to the best of the seller's knowledge. It is not required if the seller must furnish a title commitment and the buyer can terminate for uncured title objections.

Is there a transfer tax when selling land in Texas?

The Texas Constitution, Article 8, Section 29, says that after January 1, 2016, no law may be enacted that imposes a transfer tax on a transaction that conveys fee simple title to real property.

What must a Texas cash land buyer disclose if they assign the contract?

Under Occupations Code 1101.0045, a person may assign a purchase contract without a real estate license only if they do not use it to engage in brokerage and they disclose in writing the nature of their equitable interest to any seller or potential buyer. Without that disclosure, the assignment counts as real estate brokerage.

Can I sell Texas land if the mineral rights were sold off?

Yes. Many Texas tracts change hands with minerals already severed. Buyers will ask who owns them, because in Texas the mineral estate is dominant: the mineral owner can use as much of the surface as is reasonably necessary.

Sources.

1. Texas Property Code, Chapter 5 (§§ 5.011, 5.013, 5.014)
2. Texas Occupations Code § 1101.0045
3. Texas Constitution, Article 8, § 29
4. Texas A&M Real Estate Research Center, MUD notices
5. Texas A&M Real Estate Research Center, mineral and surface estates
6. Fort Worth Report, ETJ releases (Sept. 2024)
7. City of Houston, deed restrictions FAQ
8. TCEQ, Edwards Aquifer Water Pollution Abatement Plan
9. City of Lubbock, floodplain

Selling in another state? Read our Arizona guide or Florida guide.