If a property owner is dissatisfied with an order issued by the Appraisal Review Board, the property owner may want to consider Binding Arbitration. Binding Arbitration is a new remedy available to property owners whose property is valued at $1 million or less and when the basis of the dispute is the market value of the property. Equity, the relationship of your property’s value compared to that of neighboring property values, cannot be addressed at a Binding Arbitration hearing.

To begin the Binding Arbitration process, the property owner must complete and submit a Request for Binding Arbitration form along with a cashiers check or money order in the amount of $500.00 made payable to the Texas Comptroller of Public Accounts. This form must be submitted to the Appraisal District within 45 days after the property owner has received the order from the Appraisal Review Board. The Appraisal District will then forward the request to the Texas Comptrollers office for processing.

The property owner and the Appraisal District will then agree on an arbitrator. In the case that no agreement can be reached, the Comptrollers office will randomly appoint an arbitrator.

Once an arbitrator has been selected, the arbitrator will arrange a date and time for the arbitration meeting. After hearing both sides of the argument, the arbitrator will render a final decision. If the arbitrator’s opinion of value is closer to the property owner’s, the Appraisal District will pay the arbitrator’s fee and the Comptroller’s office will return $500.00 less a $50.00 handling fee to the property owner. If the arbitrator’s opinion of value is closer to that of the appraisal district’s, the property owner will pay the arbitrator’s fee and lose the entire $500.00 arbitration deposit.

For a fee, Novotny & Company will represent your case at a Binding Arbitration hearing at your request. For more information on Binding Arbitration or to discuss the specifics of your case, please contact our office.