Legal analysis: The consequence of underreporting the sale and transfer of real estate is: 1, and the transaction risk is greater. The part of the actual transaction price higher than the tax declaration price is not within the scope of the contract, thus increasing the burden on the buyer. Once the transaction is not reached, the higher part is not in the contract, which increases the trading risk of the buyer. 2. The risk of punishment. Once the tax authorities know the truth, they not only need the seller to pay the tax, but also face the risk of being punished.

Legal basis: People's Republic of China (PRC) City Real Estate Management Law.

Article 33 The State practices a real estate price appraisal system. The evaluation of real estate price should follow the principles of justice, fairness and openness, and be based on the benchmark land price and the replacement price of various houses in accordance with the technical standards and evaluation procedures stipulated by the state, and with reference to the local market price.

Article 34 The State implements the system of real estate transaction price declaration. When transferring real estate, the real estate owner shall truthfully declare the transaction price to the department designated by the local people's government at or above the county level, and shall not conceal or falsely declare it.