Is an electronic signature valid?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and state UETA laws. Exceptions include wills, court orders, and certain family-law or real-estate foreclosure notices where e-signature rules may not apply.

Does this require notarization?

Not typically required for a disclosure itself, but certain states may require notarization or witness acknowledgment for attachments or related documents. Remote online notarization (RON) is permitted in most states with identity proofing and audio-video recording requirements; verify with the state notary commission.

How should I store the signed statement?

Store signed records in encrypted systems with audit trails and backups. Retain construction disclosure records for the contract term plus at least three years; tax-related records per IRC §6501(a) and healthcare records per 45 CFR §164.530(j).

Who must sign the document?

An authorized representative for each party should sign: an individual homeowner, the licensed contractor (by a person with signatory authority), and any co-owners or lenders named in the contract. Include printed name, title, and date beside each signature for verification.

Can I use digital notarization (RON)?

Yes in jurisdictions that permit RON. Remote notarization typically requires multi-factor identity proofing, real-time audio-video interaction, and retention of the notarization session for prescribed years. Check the state notary rules for specific retention and technology requirements before relying on RON.

Can I revise the statement after signing?

Yes, but amendments should be in writing, signed by all original parties, and reference the original Disclosure Statement. Record change orders or amendments as exhibits, obtain fresh signatures and dates, and circulate updated copies to all stakeholders and regulators as needed.

Electronic Signature
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Disclosure Statement for Residential Construction Contract

Disclosure Statement for Residential Construction Contract

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Disclosure Statement Required for Residential Construction Contract

KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW. YOU ARE ABOUT TO ENTER INTO A TRANSACTION TO BUILD A NEW HOME OR REMODEL EXISTING RESIDENTIAL PROPERTY. TEXAS LAW REQUIRES YOUR CONTRACTOR TO PROVIDE YOU WITH THIS BRIEF OVERVIEW OF SOME OF YOUR RIGHTS, RESPONSIBILITIES, AND RISKS IN THIS TRANSACTION.

CONVEYANCE TO CONTRACTOR NOT REQUIRED. YOUR CONTRACTOR MAY NOT REQUIRE YOU TO CONVEY YOUR REAL PROPERTY TO YOUR CONTRACTOR AS A CONDITION TO THE AGREEMENT FOR THE INSTRUCTION OF IMPROVEMENTS ON YOUR PROPERTY.

KNOW YOUR CONTRACTOR. BEFORE YOU ENTER INTO YOUR AGREEMENT FOR THE CONSTRUCTION OF IMPROVEMENTS TO YOUR REAL PROPERTY, MAKE SURE THAT YOU HAVE INVESTIGATED YOUR CONTRACTOR. OBTAIN AND VERIFY REFERENCES FROM OTHER PEOPLE WHO HAVE USED THE CONTRACTOR FOR THE TYPE AND SIZE OF CONSTRUCTION PROJECT ON YOUR PROPERTY.

GET IT IN WRITING. MAKE SURE THAT YOU HAVE A WRITTEN AGREEMENT WITH YOUR CONTRACTOR THAT INCLUDES: (1) A DESCRIPTION OF THE WORK THE CONTRACTOR IS TO PERFORM; (2) THE REQUIRED OR ESTIMATED TIME FOR COMPLETION OF THE WORK; (3) THE COST OF THE WORK OR HOW THE COST WILL BE DETERMINED; AND (4) THE PROCEDURE AND METHOD OF PAYMENT, INCLUDING PROVISIONS FOR STATUTORY RETAINAGE AND CONDITIONS FOR FINAL PAYMENT. IF YOUR CONTRACTOR MADE A PROMISE, WARRANTY, OR REPRESENTATION TO YOU CONCERNING THE WORK THE CONTRACTOR IS TO PERFORM, MAKE SURE THAT PROMISE, WARRANTY, OR REPRESENTATION IS SPECIFIED IN THE WRITTEN AGREEMENT. AN ORAL PROMISE THAT IS NOT INCLUDED IN THE WRITTEN AGREEMENT MAY NOT BE ENFORCEABLE UNDER TEXAS LAW.

READ BEFORE YOU SIGN. DO NOT SIGN ANY DOCUMENT BEFORE YOU HAVE READ AND UNDERSTOOD IT. NEVER SIGN A DOCUMENT THAT INCLUDES AN UNTRUE STATEMENT. TAKE YOUR TIME IN REVIEWING DOCUMENTS. IF YOU BORROW MONEY FROM A LENDER TO PAY FOR THE IMPROVEMENTS, YOU ARE ENTITLED TO HAVE THE LOAN CLOSING DOCUMENTS FURNISHED TO YOU FOR REVIEW AT LEAST ONE BUSINESS DAY BEFORE THE CLOSING. DO NOT WAIVE THIS REQUIREMENT UNLESS A BONA FIDE EMERGENCY OR ANOTHER GOOD CAUSE EXISTS, AND MAKE SURE YOU UNDERSTAND THE DOCUMENTS BEFORE YOU SIGN THEM.

IF YOU FAIL TO COMPLY WITH THE TERMS OF THE DOCUMENTS, YOU COULD LOSE YOUR PROPERTY. YOU ARE ENTITLED TO HAVE YOUR OWN ATTORNEY REVIEW ANY DOCUMENTS. IF YOU HAVE ANY QUESTION ABOUT THE MEANING OF A DOCUMENT, CONSULT AN ATTORNEY.

GET A LIST OF SUBCONTRACTORS AND SUPPLIERS. BEFORE CONSTRUCTION COMMENCES, YOUR CONTRACTOR IS REQUIRED TO PROVIDE YOU WITH A LIST OF THE SUBCONTRACTORS AND SUPPLIERS THE CONTRACTOR INTENDS TO USE ON YOUR PROJECT. YOUR CONTRACTOR IS REQUIRED TO SUPPLY UPDATED INFORMATION ON ANY SUBCONTRACTORS AND SUPPLIERS ADDED AFTER THE LIST IS PROVIDED. YOUR CONTRACTOR IS NOT REQUIRED TO SUPPLY THIS INFORMATION IF YOU SIGN A WRITTEN WAIVER OF YOUR RIGHTS TO RECEIVE THIS INFORMATION.

MONITOR THE WORK. LENDERS AND GOVERNMENTAL AUTHORITIES MAY INSPECT THE WORK IN PROGRESS FROM TIME TO TIME FOR THEIR OWN PURPOSES. THESE INSPECTIONS ARE NOT INTENDED AS QUALITY CONTROL INSPECTIONS. QUALITY CONTROL IS A MATTER FOR YOU AND YOUR CONTRACTOR. TO ENSURE THAT YOUR HOME IS BEING CONSTRUCTED IN ACCORDANCE WITH YOUR WISHES AND SPECIFICATIONS, YOU SHOULD INSPECT THE WORK YOURSELF OR HAVE YOUR OWN INDEPENDENT INSPECTOR REVIEW THE WORK IN PROGRESS.

MONITOR PAYMENTS. IF YOU USE A LENDER, YOUR LENDER IS REQUIRED TO PROVIDE YOU WITH A PERIODIC STATEMENT SHOWING THE MONEY DISBURSED BY THE LENDER FROM THE PROCEEDS OF YOUR LOAN. EACH TIME YOUR CONTRACTOR REQUESTS PAYMENT FROM YOU OR YOUR LENDER FOR WORK PERFORMED, YOUR CONTRACTOR IS ALSO REQUIRED TO FURNISH YOU WITH A DISBURSEMENT STATEMENT THAT LISTS THE NAME AND ADDRESS OF EACH SUBCONTRACTOR OR SUPPLIER THAT THE CONTRACTOR INTENDS TO PAY FROM THE REQUESTED FUNDS. REVIEW THESE STATEMENTS AND MAKE SURE THAT THE MONEY IS BEING PROPERLY DISBURSED.

CLAIMS BY SUBCONTRACTORS AND SUPPLIERS. UNDER TEXAS LAW, IF A SUBCONTRACTOR OR SUPPLIER WHO FURNISHES LABOR OR MATERIALS FOR THE CONSTRUCTION OF IMPROVEMENTS ON YOUR PROPERTY IS NOT PAID, YOU MAY BECOME LIABLE AND YOUR PROPERTY MAY BE SUBJECT TO A LIEN FOR THE UNPAID AMOUNT, EVEN IF YOU HAVE NOT CONTRACTED DIRECTLY WITH THE SUBCONTRACTOR OR SUPPLIER. TO AVOID LIABILITY, YOU SHOULD TAKE THE FOLLOWING ACTIONS:

(1) IF YOU RECEIVE A WRITTEN NOTICE FROM A SUBCONTRACTOR OR SUPPLIER, YOU SHOULD WITHHOLD PAYMENT FROM YOUR CONTRACTOR FOR THE AMOUNT OF THE CLAIM STATED IN THE NOTICE UNTIL THE DISPUTE BETWEEN YOUR CONTRACTOR AND THE SUBCONTRACTOR OR SUPPLIER IS RESOLVED. IF YOUR LENDER IS DISBURSING MONEY DIRECTLY TO YOUR CONTRACTOR, YOU SHOULD IMMEDIATELY PROVIDE A COPY OF THE NOTICE TO YOUR LENDER AND INSTRUCT THE LENDER TO WITHHOLD PAYMENT IN THE AMOUNT OF THE CLAIM STATED IN THE NOTICE. IF YOU CONTINUE TO PAY THE CONTRACTOR AFTER RECEIVING THE WRITTEN NOTICE WITHOUT WITHHOLDING THE AMOUNT OF THE CLAIM, YOU MAY BE LIABLE AND YOUR PROPERTY MAY BE SUBJECT TO A LIEN FOR THE AMOUNT YOU FAILED TO WITHHOLD.

(2) DURING CONSTRUCTION AND FOR 30 DAYS AFTER FINAL COMPLETION, TERMINATION, OR ABANDONMENT OF THE CONTRACT BY THE CONTRACTOR, YOU SHOULD WITHHOLD OR CAUSE YOUR LENDER TO WITHHOLD 10 PERCENT OF THE AMOUNT OF PAYMENTS MADE FOR THE WORK PERFORMED BY YOUR CONTRACTOR. THIS IS SOMETIMES REFERRED TO AS 'STATUTORY RETAINAGE.'

IF YOU CHOOSE NOT TO WITHHOLD THE 10 PERCENT FOR AT LEAST 30 DAYS AFTER FINAL COMPLETION, TERMINATION, OR ABANDONMENT OF THE CONTRACT BY THE CONTRACTOR AND IF A VALID CLAIM IS TIMELY MADE BY A CLAIMANT AND YOUR CONTRACTOR FAILS TO PAY THE CLAIM, YOU MAY BE PERSONALLY LIABLE AND YOUR PROPERTY MAY BE SUBJECT TO A LIEN UP TO THE AMOUNT THAT YOU FAILED TO WITHHOLD.

IF A CLAIM IS NOT PAID WITHIN A CERTAIN TIME PERIOD, THE CLAIMANT IS REQUIRED TO FILE A MECHANIC'S LIEN AFFIDAVIT IN THE REAL PROPERTY RECORDS IN THE COUNTY WHERE THE PROPERTY IS LOCATED. A MECHANIC'S LIEN AFFIDAVIT IS NOT A LIEN ON YOUR PROPERTY, BUT THE FILING OF THE AFFIDAVIT COULD RESULT IN A COURT IMPOSING A LIEN ON YOUR PROPERTY IF THE CLAIMANT IS SUCCESSFUL IN LITIGATION TO ENFORCE THE LIEN CLAIM.

SOME CLAIMS MAY NOT BE VALID. WHEN YOU RECEIVE A WRITTEN NOTICE OF A CLAIM OR WHEN A MECHANIC'S LIEN AFFIDAVIT IS FILED ON YOUR PROPERTY, YOU SHOULD KNOW YOUR LEGAL RIGHTS AND RESPONSIBILITIES REGARDING THE CLAIM. NOT ALL CLAIMS ARE VALID. A NOTICE OF A CLAIM BY A SUBCONTRACTOR OR SUPPLIER IS REQUIRED TO BE SENT, AND THE MECHANIC'S LIEN AFFIDAVIT IS REQUIRED TO BE FILED, WITHIN STRICT TIME PERIODS. THE NOTICE AND THE AFFIDAVIT MUST CONTAIN CERTAIN INFORMATION. ALL CLAIMANTS MAY NOT FULLY COMPLY WITH THE LEGAL REQUIREMENTS TO COLLECT ON A CLAIM. IF YOU HAVE PAID THE CONTRACTOR IN FULL BEFORE RECEIVING A NOTICE OF A CLAIM AND HAVE FULLY COMPLIED WITH THE LAW REGARDING STATUTORY RETAINAGE, YOU MAY NOT BE LIABLE FOR THAT CLAIM. ACCORDINGLY, YOU SHOULD CONSULT YOUR ATTORNEY WHEN YOU RECEIVE A WRITTEN NOTICE OF A CLAIM TO DETERMINE THE TRUE EXTENT OF YOUR LIABILITY OR POTENTIAL LIABILITY FOR THAT CLAIM.

OBTAIN A LIEN RELEASE AND A BILLS-PAID AFFIDAVIT. WHEN YOU RECEIVE A NOTICE OF CLAIM, DO NOT RELEASE WITHHELD FUNDS WITHOUT OBTAINING A SIGNED AND NOTARIZED RELEASE OF LIEN AND CLAIM FROM THE CLAIMANT. YOU CAN ALSO REDUCE THE RISK OF HAVING A CLAIM FILED BY A SUBCONTRACTOR OR SUPPLIER BY REQUIRING AS A CONDITION OF EACH PAYMENT MADE BY YOU OR YOUR LENDER THAT YOUR CONTRACTOR FURNISH YOU WITH AN AFFIDAVIT STATING THAT ALL BILLS HAVE BEEN PAID. UNDER TEXAS LAW, ON FINAL COMPLETION OF THE WORK AND BEFORE FINAL PAYMENT, THE CONTRACTOR IS REQUIRED TO FURNISH YOU WITH AN AFFIDAVIT STATING THAT ALL BILLS HAVE BEEN PAID. IF THE CONTRACTOR DISCLOSES ANY UNPAID BILL IN THE AFFIDAVIT, YOU SHOULD WITHHOLD PAYMENT IN THE AMOUNT OF THE UNPAID BILL UNTIL YOU RECEIVE A WAIVER OF LIEN OR RELEASE FROM THAT SUBCONTRACTOR OR SUPPLIER.

OBTAIN TITLE INSURANCE PROTECTION. YOU MAY BE ABLE TO OBTAIN A TITLE INSURANCE POLICY TO INSURE THAT THE TITLE TO YOUR PROPERTY AND THE EXISTING IMPROVEMENTS ON YOUR PROPERTY ARE FREE FROM LIENS CLAIMED BY SUBCONTRACTORS AND SUPPLIERS. IF YOUR POLICY IS ISSUED BEFORE THE IMPROVEMENTS ARE COMPLETED AND COVERS THE VALUE OF THE IMPROVEMENTS TO BE COMPLETED, YOU SHOULD OBTAIN, ON THE COMPLETION OF THE IMPROVEMENTS AND AS A CONDITION OF YOUR FINAL PAYMENT, A 'COMPLETION OF IMPROVEMENTS' POLICY ENDORSEMENT. THIS ENDORSEMENT WILL PROTECT YOUR PROPERTY FROM LIENS CLAIMED BY SUBCONTRACTORS AND SUPPLIERS THAT MAY ARISE FROM THE DATE THE ORIGINAL TITLE POLICY IS ISSUED TO THE DATE OF THE ENDORSEMENT.

Texas Code 53.255.

I acknowledge that I have read and understand this Disclosure Statement Required for Residential Construction Contract.

Printed Name:

Signature:

Date:

What the Disclosure Statement for Residential Construction Contract Is

The Disclosure Statement for Residential Construction Contract is a standardized document provided to homeowners and contractors that summarizes key terms, material disclosures, and statutory notices required under state construction and consumer protection laws. It typically outlines scope of work, estimated price, change-order procedures, payment schedule, dispute resolution, licensing and insurance details, and any statutory consumer rights such as cancellation windows or lien notices. The statement is intended to improve transparency, ensure regulatory compliance, and provide a clear record of what was disclosed before contract execution.

Why a Clear Disclosure Statement Matters

A Disclosure Statement clarifies obligations, protects parties against undisclosed costs or timeline changes, and reduces disputes by documenting key contract terms before signing. It helps contractors meet statutory notice requirements and gives homeowners clear expectations about scope, costs, and remedies.

Who Typically Prepares and Receives This Statement

Common users of the Disclosure Statement include parties responsible for contract terms, notifications, and regulatory compliance.

General contractors and subcontractors managing project scope, licenses, insurance, and change orders during residential builds.
Homeowners or property owners who must receive disclosures and understand contract price, schedule, and cancellation rights.
Lenders, title companies, and municipal permit authorities reviewing financial terms, lien waivers, or statutory notices.

Key Elements to Include in the Disclosure Statement

Core elements of a professional Disclosure Statement for Residential Construction Contract ensure clear, enforceable disclosure of contractual risks, costs, and procedural rights.

Project Scope

Describe work, deliverables, materials, and exclusions. Include plans, specifications, any allowances, anticipated milestones, and the change-order process to avoid disputes over omitted tasks or differing site conditions.

Price Estimate

State contract sum, unit pricing, contingencies, allowances, and whether the estimate is fixed, guaranteed maximum price, or an approximation. Disclose timing and method for cost adjustments and approvals.

Payment Terms

Specify schedule: deposits, progress payments, retainage, final payment, and accepted payment methods. Include late fee policy, mechanic's lien notice, and conditions for withholding payments or set-off.

Change Orders

Define process for proposed changes, required authorizations, pricing methods, and time impacts. Require written approval before work proceeds and state how disputes over changes are handled.

Licensing & Insurance

List contractor license numbers, insurance types and limits (general liability, workers' compensation), and verify certificates on file. Note responsibility for subcontractor compliance and bonds if applicable.

Dispute Resolution

State governing law, venue, and agreed dispute process such as mediation, arbitration, or litigation. Include timeline for claims and whether attorney fees or expert costs are recoverable.

Required Information and Data Points

Contractor License: Include license number and classification.

Owner Full Name: Exactly as on government ID.

Property Address: Street, city, state, ZIP.

Project Value: Total contract price or estimate.

Start/Completion Dates: Use MM/DD/YYYY format.

Insurance Certificates: Policy types and limits listed.

Step-by-Step: Filling Out the Disclosure Statement

Complete the Disclosure Statement in sequence to ensure all statutory notices, pricing, and signatures are captured before contract execution.

01

Prepare Documents: Collect plans, estimates, license, and insurance.
02

Fill Core Fields: Enter names, addresses, and price details.
03

Attach Exhibits: Upload plans, specifications, and permits.
04

Sign & Distribute: Obtain signatures, dates, and provide copies.

Configuring an Online Workflow for the Disclosure Statement

Configure an online workflow to place fields, set authentication, and automate distribution to parties and regulators as required.

Field	Configuration
Signature Field	Set as required; capture timestamp and IP.
Initials Field	Optional for change orders; track placement.
Date Field	Use MM/DD/YYYY; auto-fill option.
Conditional Fields	Reveal pricing fields when checkbox selected.
Authentication	Email link default; SMS or KBA for high-risk.

Typical Routing and Submission Flow

Typical routing for the Disclosure Statement ensures reviewers see required disclosures before contract acceptance and captures an audit trail.

Upload Doc: Upload the disclosure PDF or template.
Place Fields: Add signature, date, and checkbox fields.
Set Signers: Assign signing order and authentication level.
Finalize: Send, record audit trail, and distribute copies.

Distribution Channels and Integration Considerations

Select distribution channels and integrations that match your document retention, authentication, and audit requirements for compliance.

Email Delivery: Standard secure email with audit trail.
Secure Link: Expiring links and access controls.
Platform Integrations: Connectors for CRM, ERP, and storage.

Timing, Deadlines, and Expectations

Key deadlines and timing expectations relate to disclosure delivery, contract acceptance, lien rights, and statutory cancellation periods.

Disclosure Delivery:

Provide prior to signing or within state-specific notice period.

Right to Cancel:

Homeowner cancellation window varies by state; typically 3 business days.

Change-Order Response:

Specify timeframe for approvals or pricing adjustments.

Payment Milestones:

Dates for deposits, progress, retainage, and final payment.

Record Retention:

Retain signed copies per federal and state requirements.

Common Preparation Mistakes to Avoid

Filing incomplete or vague scopes causes disputes and changes, often leading to cost overruns and contractor-homeowner conflicts that require mediation or litigation to resolve.
Not providing license numbers, insurance details, or lien waiver expectations can delay payments, trigger regulatory inquiry, or invalidate certain remedies under state law.
Using inconsistent names or failing to record effective dates can complicate enforcement, tax reporting, and mechanic's lien priority calculations.
Relying on oral change orders without written confirmation often defeats contractual protections and increases exposure to delay claims and cost disputes.

Risks and Penalties for Incorrect or Missing Disclosures

Contract Voidance: Material omission can void clauses.

Lien Vulnerability: Incorrect notice weakens lien rights.

Penalty Fines: State consumer penalties may apply.

Delayed Payments: Payment withholding and interest charges.

Regulatory Enforcement: Licensing fines or stop-work orders.

Higher Litigation Costs: Attorney fees and expert expenses.

Pricing and Feature Comparison: signNow and Competitors

Compare signNow and common eSignature vendors on pricing and key features relevant to signing residential construction disclosures.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day trial	Trial available	Trial available	Trial available	Trial available
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions about the Disclosure Statement

Answers to frequent questions about completing, signing, and validating a Disclosure Statement for Residential Construction Contract.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and state UETA laws. Exceptions include wills, court orders, and certain family-law or real-estate foreclosure notices where e-signature rules may not apply.
Does this require notarization?
Not typically required for a disclosure itself, but certain states may require notarization or witness acknowledgment for attachments or related documents. Remote online notarization (RON) is permitted in most states with identity proofing and audio-video recording requirements; verify with the state notary commission.
How should I store the signed statement?
Store signed records in encrypted systems with audit trails and backups. Retain construction disclosure records for the contract term plus at least three years; tax-related records per IRC §6501(a) and healthcare records per 45 CFR §164.530(j).
Who must sign the document?
An authorized representative for each party should sign: an individual homeowner, the licensed contractor (by a person with signatory authority), and any co-owners or lenders named in the contract. Include printed name, title, and date beside each signature for verification.
Can I use digital notarization (RON)?
Yes in jurisdictions that permit RON. Remote notarization typically requires multi-factor identity proofing, real-time audio-video interaction, and retention of the notarization session for prescribed years. Check the state notary rules for specific retention and technology requirements before relying on RON.
Can I revise the statement after signing?
Yes, but amendments should be in writing, signed by all original parties, and reference the original Disclosure Statement. Record change orders or amendments as exhibits, obtain fresh signatures and dates, and circulate updated copies to all stakeholders and regulators as needed.

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