” I’ll wager FSBO sellers are sued a lot more frequently.”
Which is why the seller puts “as is” in the contract.
And insist the buyer hire a whole house inspection.
That and a good Sales Agreement prepped by a (good) RE atty—they aren’t that expensive for these matters—should insulate you, unless you are a veracity-challenged democrat seller or the buyer hires Saul Goodman.
Then you recover your fees.
The disclosure is mandatory in Texas, for residential property, except for a sale:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest;
(4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure;
(5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust;
(6) of only a mineral interest, leasehold interest, or security interest; or
(7) to or from a governmental entity.
A good real estate lawyer can dissect a FSBO transaction in about five minutes and they take cases on a contingency basis. The goal is NOT to get sued in the first place and FSBO transactions are lawsuit magnets.