Can You Sell Property with an Abandoned or Unused Water Well in Texas?
Quick Answer
Yes, but disclose all abandoned wells on TREC Form 61-0. Plugging may be required — the obligation transfers to the buyer if left unaddressed at closing.
Properties throughout North Texas sometimes have old unused wells — a former domestic well replaced by a new drilled well, an irrigation well from a prior agricultural use, or a test well from a failed project. These wells must be handled correctly in a property sale.
Texas Law on Abandoned Wells
Texas Water Code § 32 and TDLR regulations require that abandoned wells be properly plugged to prevent:
- Contamination of groundwater by surface water draining into the well
- Cross-contamination between aquifer layers
- Physical safety hazards from open wellbores
An “abandoned” well is generally one that is no longer used, no longer monitored, and not maintained to prevent contamination. A capped but functional well on standby is not the same as a corroded, open-bore wellbore that’s been ignored for 30 years.
Disclosure Requirements
Under TREC Form 61-0, sellers must disclose the existence of all wells on the property — active, unused, and abandoned. This includes:
- Old domestic wells replaced by newer wells
- Irrigation wells no longer in use
- Test wells or dry holes from prior drilling attempts
- Hand-dug or bored wells from historical use
- Any well whose status is unknown but whose physical evidence (casing, wellhead, depression) exists on the property
Failure to disclose a known abandoned well is a material non-disclosure that can expose the seller to post-closing liability.
Does the Seller Have to Plug the Well Before Selling?
Texas law does not automatically require a seller to plug an abandoned well before closing. The typical options are:
Option 1: Seller Plugs Before Closing
The cleanest outcome. The seller hires a TDLR-licensed well plugger, obtains a plugging permit, completes the work, and receives a plugging certificate from TDLR. This eliminates the issue from the transaction and transfers a clean property to the buyer.
Option 2: Seller Provides a Closing Credit
The seller discloses the abandoned well and agrees to provide a credit at closing to cover the buyer’s cost of plugging. Plugging costs in North Texas typically run $1,500–$5,000 depending on depth and accessibility. The buyer takes on the obligation but has funds to address it.
Option 3: Buyer Accepts the Obligation As-Is
If the buyer is aware of the abandoned well and accepts the property with the well unplugged, the plugging obligation transfers to the buyer at closing. This should be explicitly addressed in the contract to avoid disputes.
Plugging Cost Factors
| Factor | Impact on Cost |
|---|---|
| Well depth | $10–$30 per foot of casing to fill |
| Accessibility for equipment | Remote or obstructed wells cost more to mobilize to |
| Casing material | Steel vs. PVC affects fill methods |
| Age and condition | Caved or corroded casing may require additional work |
| TDLR permit fee | Typically $50–$150 |
A typical 200–400 ft domestic well in North Texas costs $1,500–$3,500 to properly plug. Deeper wells or those with complications can run higher.
TDLR’s State Assistance Program
Texas has a State Well Plugging Program that plugs orphan wells at state expense in some circumstances, primarily for wells that pose imminent contamination risk and where the owner cannot be identified or is financially unable to comply. Most residential property transactions don’t qualify, but it’s worth being aware that TDLR does have an active plugging program.
Practical Advice for Sellers
If you know or suspect there are old wells on your property:
- Walk the property and identify all wellheads before listing
- Search TDLR’s database for recorded well completions at your address
- Get a plugging quote from a licensed contractor — knowing the cost helps you plan for negotiations
- Disclose all findings on TREC Form 61-0, even if you’re not sure of a well’s exact status
- Decide early whether to plug before closing or offer a credit — surprises during the option period slow transactions