Why Texas Is a Non-Disclosure State and How Values Are Estimated
Why Texas Is a Non-Disclosure State and How Values Are Estimated
Information, not legal advice. Laws change; check the current statute or rule and talk to a Texas attorney before you act.
In many states, the price paid for a house is on the recorded deed or on a transfer-tax form anyone can look up. Texas is different. A Texas deed normally says the property was conveyed "for ten dollars and other good and valuable consideration," and the real price stays private. People call Texas a "non-disclosure state" for this reason.
That matters to tax lenders, investors and anyone who prices property from public data. You can't pull a list of what every house sold for. You have to estimate.
Why sale prices aren't public
Three things work together.
- No law requires the price to be filed. Texas has no real estate transfer tax, so there is no form at the county clerk that states the price. Deeds generally recite nominal consideration.
- What the appraisal district learns privately stays private. Sale-price information the comptroller or a chief appraiser receives from a private source is excepted from the Public Information Act (Gov't Code §552.149(a)). Information an owner gives the appraisal district, including sale prices given under a promise of confidentiality, is confidential under Tax Code §22.27(a).
- Owners in a protest get comparable sales, but only for the protest. An owner or agent may get the comparable sales the appraisal district relied on. That information stays confidential in their hands and may be used only as evidence in the protest or a binding arbitration appeal (§552.149(b)). It can't be republished.
There have been repeated proposals in the Legislature to require sale-price disclosure. None has passed as of this writing.
Where appraisal values come from
Each county's appraisal district must appraise property at market value as of January 1 each year (Tax Code §23.01). Without public prices, appraisal districts gather sales from sources such as:
- sale questionnaires that buyers and sellers may return voluntarily;
- fee appraisals and closing statements owners submit in protests;
- purchased or licensed market data;
- the appraisers' own field work and mass-appraisal models.
The result is the market value on the appraisal roll. It is a mass-appraisal estimate, not a sale price. Two more numbers on the roll can mislead you:
- Appraised value can be lower than market value on a homestead, because the taxable value of a homestead can't rise more than 10% a year (the homestead cap, Tax Code §23.23).
- Taxable value is after exemptions, such as the homestead exemption and the over-65 exemption.
For pricing, start with market value, not taxable value.
How to estimate value in a non-disclosure state
No single source is right. Use several and take the most careful number.
| Source | What it gives you | Watch out for |
|---|---|---|
| Appraisal roll market value | A free, uniform starting point for every parcel | Set as of January 1; lags a fast market; condition is rarely known |
| MLS sold data (through a licensed agent) | Actual closed prices for listed sales | Not public; use is governed by the MLS's rules; misses off-market sales |
| Automated valuation models on consumer sites | Fast estimates | In Texas they are built without public price data, so the error can be wide |
| Tax-sale records | Adjudged value and minimum bid in a tax suit | Court-set figures, not market prices |
| Foreclosure sale results | What a property brought at a trustee or sheriff sale | Distressed sales; not market value |
| Your own comps | Recent nearby closed sales, adjusted for size, age and condition | Need a source of closed prices |
| Rents | Value from income for rentals | Depends on accurate rent and expense numbers |
Practical habits that help:
- Use recent, nearby sales. Prices from six months ago in a moving market can be far off.
- Lean low on distressed property. Condition, repairs and title problems pull real value below a model's number.
- Check the date of every value. An appraisal value set on January 1 may be ten months old by the time you use it.
- Don't rely on deed consideration. "Ten dollars and other good and valuable consideration" tells you nothing about price.
- Remember mortgage size isn't price. A recorded deed of trust shows a loan amount, which can hint at the price but doesn't equal it.
For tax lenders
Lenders use value mostly to check that a loan is well covered by the property. Appraisal market value is the common screen. Comparing the total taxes owed to market value gives a quick loan-to-value check before a closer look.
For investors
Investors need a buying number, not an appraisal. Market value is a filter ("is this a $200,000 house or a $600,000 house?"), and the offer comes from your own comps, repair estimate and exit plan.
How this shows up in Agentix Data
Agentix Data carries the appraisal-district market value, year built, square footage and deed date for parcels in the counties we cover, plus minimum bid and adjudged value where a posted tax-sale list shows them. We do not carry sale prices, MLS data or automated valuations, so treat our value field as the appraisal district's January 1 estimate and price each deal from your own comps.
Sources
- Gov't Code §552.149 (sale price information excepted from the PIA): https://texas.public.law/statutes/tex._gov't_code_section_552.149
- Tax Code §22.27 (confidential information given to the appraisal office): https://texas.public.law/statutes/tex._tax_code_section_22.27
- Tax Code §23.01 (appraisal at market value): https://texas.public.law/statutes/tex._tax_code_section_23.01
- Tax Code §23.23 (homestead appraisal cap): https://texas.public.law/statutes/tex._tax_code_section_23.23
- Tax Code chapter 23 (official text): https://statutes.capitol.texas.gov/Docs/TX/htm/TX.23.htm
- Texas Comptroller, property tax basics: https://comptroller.texas.gov/taxes/property-tax/
General information, not legal or financial advice.