Is it possible to put an enforceable clause in a contract that sellers will not report sales price to the CAD?

I recently got screwed in my property tax hearing when the board had my purchase price. I asked why they thought they knew how much I paid and they told me the sellers reported it. I told them point blank their practice of sending out the official looking self reporting document was a scummy move, which it is.

In the future I will want to protect myself and put in a clause that sellers will not report it, but obviously it will be hard to enforce after the fact. Is there any way to make that work without having to take sellers to small claims court if they breach it? Obviously they would have to agree to it in the first place and would be hard to get included in a seller's market, but the sellers definitely cost me a lot of money going forward so definitely want to at least TRY to protect myself.

Is this irrational and/or stupid?

p_bubel said:

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They could just look it up in the local MLS system.

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I was under the impression that the CAD can not do this? Have I been living a lie?

Licensed realtors can, I figure that someone on that board/committee/hellspawn group would have access to it.

Right I would agree but they can't come out and say that they are using that information, correct? That's why they send the self reporting official looking mailers. They can still screw you but can't use that in their arguments unless someone specifically tells them purchase price.

Sea Speed said:

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p_bubel said:

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They could just look it up in the local MLS system.

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I was under the impression that the CAD can not do this? Have I been living a lie?

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Wasn't that the whole reason Austin Board of Realtors sued TCAD and eventually won?

Upon cursory search it would appear so.

https://www.fox7austin.com/news/austin-board-of-realtors-demands-appraisal-district-stop-unauthorized-use-of-mls-data

When I declined my iSettle with HCAD last year and opted to go to appeal, HCAD sent me a report with every MLS sale in my neighborhood. I think the report went back 2 years, but it may have been more (because I remember wondering why they sent me such old comps).

HCAD knows exactly what the MLS sales prices are.

p_bubel said:

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They could just look it up in the local MLS system.

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A significant number of sales aren't put in MLS.

NTREIS - the large North texas MLS states the following:

https://ntreis.net/download/rules-and-regulations/?wpdmdl=7278&masterkey=60184eb30a92f


Note 2: In Texas where the actual sale prices of completed transactions are not publicly accessible, failure to report sale prices can result in disciplinary action due to:

1. NTREIS hereby declares sale price information as confidential; and

2. NTREIS limits use of sale price information to Participants and Subscribers in providing real estate services, including appraisals and other valuations, to customers and clients; and to governmental bodies and third-party entities only as provided below.

NTREIS may provide sale price information to governmental bodies only to be used for statistical purposes (including use of aggregated data for purposes of valuing property) and to confirm the accuracy of information submitted by property owners or their representatives in connection with property valuation challenges; and to third-party entities only to be used for academic research, statistical analysis, or for providing services to Participants and Subscribers. In any instance where a governmental body or third-party entity makes sale price information provided by the MLS available other than as provided for in this provision, a Listing Participant may request the sale price information for a specific property be withheld from dissemination for these purposes with written authorization from the seller, and withholding of sale price information from those entities shall not be construed as a violation of the requirement to report sale prices.


I've always been of the opinion that Texas is non-disclosure state; therefore, CADs shouldn't have the price unless someone gave it to them voluntary or their own employees accessed the MLS (legal or not).

to answer your question - i don't think it is stupid. i think it is smart. the problem is people believe those scummy letters are mandatory when they typically say they are voluntary. then you are asking those same people to connect the dots that the requirement in your purchase agreement says don't fill out this official looking form.

Sea Speed said:

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Upon cursory search it would appear so.

https://www.fox7austin.com/news/austin-board-of-realtors-demands-appraisal-district-stop-unauthorized-use-of-mls-data

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This has been and is a big issue. Why would we want to help those *******s?

Deats99 said:

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Sea Speed said:

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Upon cursory search it would appear so.

https://www.fox7austin.com/news/austin-board-of-realtors-demands-appraisal-district-stop-unauthorized-use-of-mls-data

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This has been and is a big issue. Why would we want to help those *******s?

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Most people don't get it is my guess. It's very frustrating because this is the only area where you can actually try and fight back against our taxing authorities and people just give them the ammunition

Sea Speed said:

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I recently got screwed in my property tax hearing when the board had my purchase price.

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Seems this is the true determinant of "market value". Everything else is someone's guess.

I hate high property taxes. But, basing it on fact instead of opinion, seems reasonable.

Several issues popped up after purchase that were not apparent through the inspection and because they had the purchase price I was not able to effectively argue the value. They used that one data point to almost completely disregard my arguments.

I'm confused. Since when did the CAD need data to refuse your appeal?

Sea Speed said:

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Several issues popped up after purchase that were not apparent through the inspection and because they had the purchase price I was not able to effectively argue the value. They used that one data point to almost completely disregard my arguments.

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Not sure how you got screwed by the CAD here. You bought the house at the price and condition you thought was fair market.

Those items should have been included in the purchase price, but weren't. That's where you got screwed.

TxAG#2011 said:

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Sea Speed said:

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Several issues popped up after purchase that were not apparent through the inspection and because they had the purchase price I was not able to effectively argue the value. They used that one data point to almost completely disregard my arguments.

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Not sure how you got screwed by the CAD here. You bought the house at the price and condition you thought was fair market.

Those items should have been included in the purchase price, but weren't. That's where you got screwed.

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CAD screws everyone

kyledr04 said:

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TxAG#2011 said:

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Sea Speed said:

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Several issues popped up after purchase that were not apparent through the inspection and because they had the purchase price I was not able to effectively argue the value. They used that one data point to almost completely disregard my arguments.

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Not sure how you got screwed by the CAD here. You bought the house at the price and condition you thought was fair market.

Those items should have been included in the purchase price, but weren't. That's where you got screwed.

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CAD screws everyone

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Yea I'm hearing that a lot more now that assessed values have finally caught up with market