A local hotshot bought a piece of property near mine and is planning on flipping it to make a profit. It’s been for sale for a year and he’s asking a pretty high price for an ugly piece of property. So far he’s not budged on his asking price and he’s not gettting any offers. I happen to know he’s pretty green in the real estate flipping business and borrowed money to make this flip.

The property had an ag valuation by a previous owner before the current owner bought it. If the property sits unused and for sale for long enough, I’m guessing the county will eventually pull the exemption. I’m speculating, but if that happens, the seller will suddenly get motivated to lower his price. My question is this: if a piece of land loses the ag valuation due to lack of use, how hard is it to get it back by a new owner?

I believe it’s 5 years, but I’m sure someone who’s more versed will correct me if I’m wrong.

depending on county, it can rest for 18 months (I think) without issue (some counties actually gave much longer rest period during the drought back in '09-'12)... if it does actually loose the tax exemption, 5 years to re-establish.

Yes, and he or the new owner will have to pay 5 years of back taxes as well if I'm not mistaken....

Depends on each county, the state gives them minimum requirements, each county can be more strict but not more lax.


The land must have been devoted to agricultural or timber production for at least five of the past seven years.
Meaning as far is the state is concerned, the land can lay fallow for 2 years out of the past 7.
If you lose 1-D-1, property is subject to roll back taxes.

Google " your county 1-D-1 requirements " or call your CAD.

This^^^^^ Unless the greenhorn did not file for an Ag exemption when he bought the place.

It will only lose its exemption if he fails to maintain his Ag exemption stipulations. It’s really hard to do.

I would not plan on him losing his exemption, before they yank it they will give him ample opportunity to get it compliant

yep, had a friend that was doing a lot of investment properties back in the mid 2000s, one particular property the CAD called him out on his Ag exemption ... to which he called me in a panic asking me to go buy some livestock to dump on it. I picked up 3 cows (wilder than march hares) at the auction and turned them out, called the CAD agent to let him know, he said great, check that off the list.

It really does depend on each individual county CAD on how strict or lax they are about requirements, keeping current & if they allow a little wiggle room to maintain compliance.

It is real easy to lose 1-d-1 valuation in some counties, in others real hard to lose it.

I would guess that the more rural a county was, the more lenient they would be. If I had property in Dallas or Harris county that was ag exempt, I'd dang sure make certain I didn't let it slip.