Binding Arbitration

Binding arbitration is an alternative dispute resolution option for Texas property owners who disagree with an Appraisal Review Board (ARB) decision. Instead of going to district court, you can request arbitration for a faster, less expensive resolution.

Arbitration is available for properties with values under $5 million. A single arbitrator (rather than a judge) reviews your case and makes a binding decision. The process is typically faster and less formal than court proceedings.

You must request arbitration within 60 days of receiving your ARB order and pay a $500 deposit (refunded if you win).

Binding arbitration fills an important gap in Texas property tax appeals. District court is expensive and time-consuming—often not worth it for residential properties. Arbitration gives you another shot at a fair value without hiring a lawyer.

When to consider arbitration:

• You have strong evidence the ARB ignored

• Your property value is under $5 million

• You want resolution without court costs

• You're willing to pay $500 deposit (refunded if you win)

Arbitration decisions are final—there's no further appeal. Make sure your evidence is solid before proceeding.

→ See how we handle appeals

Lisa's ARB hearing resulted in an assessed value of $420,000. She believed the correct value was $380,000 based on her evidence.

Instead of hiring a lawyer for district court, she filed for binding arbitration:

• Filed within 60 days of ARB order

• Paid $500 deposit

• Submitted evidence in writing

• Attended a brief arbitration hearing

The arbitrator set her value at $395,000—saving her approximately $625 per year. Her $500 deposit was returned since she achieved a reduction.