Texas HOA Resale Certificate: Ordering It, Deadlines, and What It Must Disclose

Almost every Texas closing on a property inside a mandatory homeowners association needs a resale certificate — a signed, dated statement from the association disclosing assessments, violations, litigation, and insurance on the property. The TREC 36-11 HOA Addendum references it, but the addendum only handles who pays for it and when a buyer can terminate over it. The actual ordering process — who can request it, how long the HOA has to respond, what it must contain, and what it costs — comes from a separate statute: Property Code Chapter 207, Disclosure of Information by Property Owners' Associations.

Who Chapter 207 applies to

The chapter applies to any subdivision with a property owners' association entitled to levy regular or special assessments. It does not apply to a condominium council of owners or condominium unit owners' association — those are governed separately under Property Code Chapters 81 and 82, not Chapter 207.

Who can request a resale certificate

Three types of requestors are authorized under Section 207.003(a): the owner or the owner's agent, a purchaser of the property or the purchaser's agent, and a title insurance company or its agent acting on behalf of either the owner or the purchaser. For a purchaser-side request, the association may require reasonable evidence that the purchaser has a contractual or other right to acquire the property before it begins the process.

The deadline: 10 business days

What must be delivered by that deadline, under Section 207.003(a):

1. A current copy of the restrictions applying to the subdivision.
2. A current copy of the bylaws and rules of the property owners' association.
3. A resale certificate prepared no earlier than the 60th day before the date it's delivered.

What a resale certificate must disclose

Section 207.003(b) lists sixteen required items. The resale certificate must contain:

1. Any right of first refusal (other than one prohibited by statute) or other restraint on the owner's right to transfer the property.
2. The frequency and amount of any regular assessments.
3. The amount and purpose of any special assessment already approved and due after the certificate is delivered.
4. The total of all amounts due and unpaid to the association attributable to the owner's property.
5. Any capital expenditures approved by the association for its current fiscal year.
6. The amount of reserves, if any, for capital expenditures.
7. The association's current operating budget and balance sheet.
8. The total of any unsatisfied judgments against the association.
9. The style and cause number of any pending lawsuit in which the association is a party (other than a lawsuit over an individual member's unpaid ad valorem taxes).
10. A copy of the association's certificate of insurance for the common areas and common facilities.
11. A description of any conditions on the property the board has actual knowledge violate the restrictions, bylaws, or rules.
12. A summary or copy of any government health or housing code violation notices affecting the property or common areas/facilities.
13. The amount of any administrative transfer fee the association charges for a change of ownership.
14. The name, mailing address, and phone number of the association's managing agent, if any.
15. A statement of whether the restrictions allow the association to foreclose its lien on the property for unpaid assessments.
16. A statement of all fees associated with the transfer of ownership — what each fee is, who it's paid to, and the amount.

The fee cap

Section 207.003(c) caps what the association can charge: $375 to assemble, copy, and deliver the restrictions, bylaws, and resale certificate under Subsection (a); a separate, lower cap of $75 to prepare and deliver an update to an existing resale certificate under Subsection (f). The association may require payment up front, but it cannot process that payment until the certificate is actually available for delivery — and it cannot charge a fee at all if it misses the 10-business-day deadline.

Requesting an update instead of a new certificate

If a resale certificate has already been issued but time has passed, Section 207.003(f) lets the original requestor ask for an update rather than starting over. The association then has 7 business days — a shorter window than the original 10 — to deliver an updated certificate covering: whether the association waives any right of first refusal or other sale restraint, the status of unpaid special assessments/dues/other payments, and any changes since the original certificate. The update request has its own limits: it must be made within 180 days of the original certificate's issuance, and only the party who requested the original certificate can request the update.

Delivery mechanics

The association delivers to the name and location specified in the written request — a request that doesn't specify who and where the information should go isn't effective under the statute. Delivery can be by mail, hand delivery, or an alternative method the request itself specifies. The association isn't required to inspect the property before issuing a certificate or update unless a dedicatory instrument specifically requires it.

If the HOA misses the deadline

Section 207.004 gives the owner — not the buyer or the TC directly — a remedy path if the association doesn't deliver on time: the owner sends a second request, and if the association still hasn't delivered by the 5th business day after that second request (sent certified mail, return receipt requested, or hand-delivered with a receipt), the owner may pursue a court order compelling delivery, a judgment of up to $5,000, court costs and attorney's fees, or authorization to deduct those amounts from future assessments owed to the association.

There's also a faster practical workaround: once the owner has made the two written requests required above and the association still hasn't delivered, the owner can give the buyer a sworn affidavit reciting that fact. Once that affidavit is delivered, the buyer, the buyer's lender, and the title company are protected from liability for any money or claim that was due to the association as of the affidavit's date — and the association's lien for those undisclosed amounts automatically terminates.

What the certificate protects once delivered

Section 207.005 makes the certificate binding on the association: it can't later deny the validity of anything the certificate states. Its lien for any amount that was due but not disclosed in the certificate automatically terminates as to that undisclosed amount, and the buyer, buyer's agent, owner, owner's agent, lender, and title company are all protected from liability for any debt or claim that existed as of the certificate's preparation date but wasn't disclosed in it. That protection doesn't extend to debts or claims that arise after the certificate is prepared, or to the association's lien securing future assessments — those still apply normally.

Online posting requirement

Separately, Section 207.006 requires certain associations — those governing a subdivision of at least 60 lots, or any association that has contracted with a management company — to post their current dedicatory instruments (as filed in the county deed records) on a website maintained by the association or its management company, accessible to members. This doesn't replace the resale-certificate request process; it's a standing member-access requirement.