Dallas-Fort Worth

Dallas, TX

Dallas keeps conventional zoning (Chapter 51A) where backyard units are not allowed by right in most single-family districts, so lot upside depends on overlays and hearings. Texas-wide 2025 laws (SB 840, SB 15, HB 24) mainly open commercial land and new subdivisions, not existing infill lots.

💡 Upside tip

Treat ADU potential as speculative unless the lot is already in an ADU overlay or a PD that allows it; otherwise it takes a Board of Adjustment special exception, and SB 15 does not let you split an existing infill lot.

Offers & competition

Offers use the TREC resale contract with a paid option period (commonly 5 to 10 days) for an unrestricted right to terminate. Book foundation inspections early inside that window, since clay-soil repairs are a common negotiating point.

Closing & who pays

A title company closes as escrow agent, attorneys are optional, and title premiums are set by the state. Texas SB 17 (effective Sept 1, 2025) bars people domiciled in China, Iran, North Korea and Russia from acquiring Texas real property, with exceptions.

Transfer taxes

Texas has no state or local real estate transfer tax.

Seller disclosures

Sellers of most resales must deliver the Seller's Disclosure Notice (TREC OP-H), including flood history and floodplain status, before the contract; late delivery gives the buyer a 7-day termination right. Suburban purchases often add MUD or PID tax notices.

What you can build

Under Dallas Code 51A-4.510 an additional dwelling unit needs an ADU overlay rezoning or a Board of Adjustment special exception (fee about $600), sized up to the greater of 700 sq ft or 25% of the main house. ForwardDallas 2.0 (Sept 2024) points toward more missing-middle housing, but a plan does not change zoning; SB 840 allows multifamily by right on commercial land, and HB 24 makes neighbor protests of up-zonings much harder (60% needed).

Permits & records

Dallas moved permits to the DallasNow system in 2025, replacing POSSE; zoning is on the city GIS map and values are at Dallas CAD. Compare permit history with appraisal-district square footage, and check the city portal for current timelines.

Property tax

Effective rates are roughly 1.6% to 2.5% including MUDs in the suburbs. The $140,000 school homestead exemption ($200,000 for 65+ or disabled) and the 10% annual cap apply only after you file, and the cap resets on sale; protests at the Appraisal Review Board are routine.

Rent rules

Our research found no rent-cap program in Dallas. A 2023 ordinance banning short-term rentals in single-family districts was enjoined in court and its current status is unverified; Dallas's historic ADU owner-occupancy rule may be preempted by Texas SB 1567.

Key risks

Dallas sits on Blackland Prairie clay, so slab foundation movement is extremely common and repairs are often quoted at $5,000 to $25,000 or more; get a structural engineer's report when cracks show. Pier-and-beam homes need a crawlspace check, and every address should be checked against FEMA flood maps.

⚠ Still verifying

Not re-verified: Dallas ADU rules (from a secondary source), any 2025 to 2026 ADU code changes after ForwardDallas, whether SB 1567 voids the ADU owner-occupancy deed restriction, the STR ordinance litigation status, the DallasNow portal URL, foundation repair cost ranges, and SB 15 / SB 840 population thresholds.

Official sources

Updated: 2026-10 · Summaries of public rules as of the date shown. Not legal or tax advice. Always confirm with the official source.