Texas is a Non-Disclosure State - What does that mean?

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Real Estate Agent with United Real Estate TX #0552717
https://activerain.com/droplet/4vZX

Earlier this week, I took the mandatory 3-hour Legal Update and the 3-hour Ethics courses to renew my real estate license.  The concept that surprised most of the agents in the class: we are not to disclose the sales price of homes that have sold.  Yes, we can discuss the solds with clients. Yes, we can show the information as part of a comparative market analysis. But we cannot leave the information in print form with anyone who is not a licensee.

Information that is recorded at the court house includes the amount of the loan, if there is one.  The final sales price of the home, however, is not recorded. 

How many agents do you know who disclose the sales prices of homes?  They shouldn't be doing that!

Posted by

Lorrie Semler, e-PRO, GRI, SRES, CPRES, CRS
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United Real Estate
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Rainmaker
516,752
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS

Hi Lorrie,    I'm so glad you brought this up.  Years ago, even the papers filed at the courthouse only said for "Ten dollars and other valuable consideration".  This was a big point years ago.  Now, the tax office sends a form to new buyers asking for the sales price of the home.  It is voluntary!!!!!Not mandatory!!!!!! to send this in.  But our MLS offices require Realtors to send it in or they fine you.  So they can tell the tax office.  HMMMMM

How does that work?  Big brother wants to make sure we all pay more taxes, but that's another story.  I'll be watching to see what else is said about this subject.  Good post!         Ricki Eichler:)

Feb 24, 2008 01:06 AM #14
Rainer
149,393
Judi Morgan
RETIRED - San Antonio, TX
San Antonio, TX Real Estate

Hi Lorrie,  very good point here.  I knew I couldn't include the Sales Price on my neighborhood comps for a mailout or newsletter.  But, I didn't realize that we're not suppose to leave the CMA's we prepare for our prospective Listing Clients with them. 

Ricki,  If I can catch David or Russ, I'll ask them about it to get their "spin" on this subject.

Feb 24, 2008 02:10 AM #15
Rainmaker
1,298,086
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate
Ricki & Judi and everyone interested in this topic:  Wouldn't it be so much easier if Texas were not a non-disclosure state!  I understand, though, why the powers that be at the MLS board want to keep this information from everyone else - it makes the services of Realtors® that much more valuable.
Feb 24, 2008 11:14 PM #16
Rainer
52,580
Linda Box Taylor
Castle Connections Realty - Plano, TX
Your Plano, TX Realtor
Lorrie - I just got a response back from Bob Baker who does all the Ethics and Contracts training for CCAR and he said you can leave CMAs for clients. He said just because Texas is a non-disclosure state that it didn't have anything to do with leaving a CMA behind.   So, we have conflicting answers from 2 different Ethics teachers!
Feb 27, 2008 09:06 AM #17
Rainmaker
1,298,086
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate
Linda: Can we get Bob and Judy to talk to each other?  Judy made such a big deal about this, spending about 30 minutes out of a 3-hour class on the topic.  Did Bob even bring it up as part of the course material?
Feb 27, 2008 09:54 AM #18
Rainer
52,580
Linda Box Taylor
Castle Connections Realty - Plano, TX
Your Plano, TX Realtor
Lorrie - I told Bob that Judy was your teacher and he mentioned he was going to get with her.  
Feb 27, 2008 01:41 PM #19
Rainmaker
1,477,589
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator
Glad to hear we can still do CMA's since I've gotten several requests this week, and I've been putting them off wondering what to say to them.
Feb 28, 2008 01:43 AM #20
Rainmaker
1,267,934
Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

Lorrie:

Good information. Having said that, there are few secrets in communities. People talk to each other and the word gets around. Thanks for reminding us that we should not be part of the source.

Mar 11, 2008 08:11 AM #21
Rainmaker
1,267,934
Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

Lorrie:

Good information. Having said that, there are few secrets in communities. People talk to each other and the word gets around. Thanks for reminding us that we should not be part of the source.

Mar 11, 2008 08:12 AM #22
Ambassador
2,140,265
Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

That would make it very difficult for an appraiser I would think! How do you comp for FSBO's if they don't have to disclose their sales price to the courts? Interesting topic here and I can't wait to see what some of the people have said.

Mar 31, 2008 03:03 AM #23
Rainmaker
1,298,086
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate
Todd: Appraisers use what's available in MLS.  FSBO sales don't show up.  I bought my current home from an unrepresented seller, so the only thing in the public domain is the amount of my loan.
Mar 31, 2008 11:35 AM #24
Anonymous
Sheila M

If it is a non disclosure state, why does the board require you to disclose it?  The board I belong to requires the sales price to be disclosed unless it is written in the contract that it will not be disclosed, then it is just z'd out (listprice with a z on the end)and you have to fax them a copy of the contract that states that.  There is a fine if you do not disclose it, and if you do not send them the contract.  How can the board do that if it is a Texas law and taught in the legal classes?

 

S

Jul 01, 2008 12:24 PM #25
Rainmaker
1,298,086
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

Sheila:  It's non-disclosure to the public.  Of course you must report it in MLS.  Agents need that information and so do appraisers.  Just don't run around telling the neighbors what you sold something for.  It is NOT public knowledge.  They are able to see loan amounts through public records, but not sales amounts.

Jul 01, 2008 01:00 PM #26
Rainmaker
272,170
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Lorrie - Part of the debate over non-disclosure vs. disclosure states revolves around the appraisal districts ability to raise property taxes based on sales price.  In California, a disclosure state, your taxes went up everytime the home was sold (for a higher price).  Here in Texas, you may be able to keep taxes at their former levels even if you paid more for a home than the previous owners.  The San Antonio Board Of Realtors® and Texas Association of Realtors® has launched a campaign to educate the public about non-disclosure and appraisal district reform.  You can check out the San Antonio site at www.sanantoniofairtaxes.org.

Mar 25, 2009 01:11 PM #27
Rainmaker
1,298,086
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

Matt,

Thanks for weighing in.  I posted this article over a year ago and it still is relevant today.

Mar 26, 2009 01:38 AM #28
Anonymous
Adam

hi all, i am from Mississippi and we are a non discluosre status state as well. i think the law should be changed to allow more transperncy into the process. it will make the apperisal proces much easier and accurate.

May 15, 2009 01:25 PM #29
Ambassador
1,378,764
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

Did Bob and Judi ever got together to discuss this as far as you know?

Sep 22, 2009 06:58 AM #30
Rainmaker
1,298,086
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

Loreena:  Who are Bob and Judi?  This post is from February of 2008.

Sep 22, 2009 07:05 AM #31
Ambassador
1,378,764
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

Yes, I read the comments and I meant Bob Baker and Judi (your then ethic's teacher). Check out comment #19.

Sep 22, 2009 01:06 PM #32
Rainmaker
1,298,086
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

Lorena:  That's a question for Linda Box Taylor, the one who posted the response.

Sep 23, 2009 12:55 PM #33
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