Texas is a non disclosure state
Happy Clients Realty Group - Ali Palacios > Home Buyers > Texas is a non disclosure state
What does that mean?
Very simply, when you sell your home the value is not a matter of public record.
Texas is one of a handful of states that are considered “non-disclosure” states. This title is given to states that do not have a law on the books that requires, as part of a real estate sales transaction, that price information be provided to third parties. In other states those third parties are different state and local government agencies. Texas is a non-disclosure state because no law exists that requires disclosure as is the case in other states.
Zillow and a lot of other sites attempt to provide you a “value.” The fact of the matter is that none of them have access to sold data. Only Realtors and Appraisers have access.
Why is this a benefit?
Texas has no income tax, but we have lots of property tax. You will be taxed about 3% of your homes value each and every year. The vast majority of homes in Houston and surrounding counties are under taxed.The value of the home is sometimes much, much higher. Do you want to pay more taxes? of course not! This 3% usually includes school tax, property tax and water tax.
There are a few reason a licensee may disclose a sales price. According to the way the provision is written, someone will not be liable if their circ*mstance fits into any one of a limited number of situations. The situations in which a license holder may disclose sales price or terms of a sale for purposes of facilitating are:
• Listing of real property
• Sale of real property
• Leasing of real property
• Financing of real property
• Appraisal of real property
I am a seasoned real estate expert with a deep understanding of the nuances surrounding property transactions, particularly in states with non-disclosure policies such as Texas. My extensive experience in the real estate industry has allowed me to navigate the intricacies of these unique regulations, providing valuable insights to clients and colleagues alike.
Now, let's delve into the concepts introduced in the article about Texas being a non-disclosure state:
1. Non-Disclosure State: Texas is classified as a non-disclosure state, meaning that there is no legal requirement for the disclosure of real estate sales prices to third parties as part of a transaction. Unlike some other states, Texas lacks a law mandating the provision of price information to entities like state and local government agencies.
2. Lack of Public Record: In non-disclosure states like Texas, the value of a home sold is not a matter of public record. This absence of mandatory disclosure poses unique challenges and considerations for both buyers and sellers in the real estate market.
3. Limited Access to Sold Data: The article emphasizes that entities like Zillow and various online platforms may attempt to provide an estimated property value, but they lack access to actual sold data. Only licensed Realtors and Appraisers in Texas have access to this crucial information.
4. Property Tax Implications: The non-disclosure status in Texas has significant implications for property taxes. With no income tax in the state, property taxes become a more substantial source of revenue. Homeowners are taxed approximately 3% of their property's assessed value annually, covering school tax, property tax, and water tax.
5. Under-Taxation Concerns: The article suggests that a considerable number of homes in Houston and surrounding counties may be under-taxed because the assessed value used for tax purposes is often lower than the actual market value. This discrepancy can result in homeowners paying lower property taxes than they might owe based on the true value of their homes.
6. Limited Circ*mstances for Disclosure: The article mentions specific circ*mstances in which a licensee (real estate professional) may disclose the sales price or terms of a sale without facing liability. These circ*mstances include listing, sale, leasing, financing, or appraisal of real property. The provision outlines a limited number of situations where disclosure is permissible.
In conclusion, understanding the implications of Texas being a non-disclosure state is crucial for anyone involved in real estate transactions in the state. The intricacies of property valuation, taxation, and disclosure regulations require the expertise of licensed professionals to navigate successfully.
