Texas HOA resale certificate: What it is and how to use it

What is an HOA resale certificate?

A Texas HOA resale certificate is a disclosure document that gives a buyer important information about the association and the specific property, including assessments, unpaid amounts, certain known violations, insurance, certain pending lawsuits, reserves, budgets, and transfer restrictions (Tex. Prop. Code § 207.003).
 

Is it required in Texas?

For covered Texas properties in subdivision property owners’ associations, Chapter 207 of the Texas Property Code requires the association to provide subdivision information, including a resale certificate, after a proper written request is received and verified.

The certificate must be prepared not earlier than the 60th day before delivery (Tex. Prop. Code § 207.003(a)).
 

How to get an HOA resale certificate in Texas

A Texas HOA resale certificate is typically requested by the owner, the owner’s agent, the buyer, the buyer’s agent, or a title insurance company or agent acting on behalf of the owner or buyer. The written request must identify the name and location where the information should be sent, and the association must deliver it within the statutory timeline once the request is received and any required authority is verified (Tex. Prop. Code § 207.003(a), (d)).
 

What information is included?

For communities governed by Chapter 207, a Texas HOA resale certificate must include:

1. A statement of any right of first refusal, other than a right of first refusal that is prohibited by statute, and any other restraint contained in the restrictions or restrictive covenants that restricts the owner's right to transfer the owner's property
    
2. The frequency and amount of any regular assessments
    
3. The amount and purpose of any special assessment that has been approved before and is due after the resale certificate is delivered
    
4. The total of all amounts due and unpaid to the property owners' association that are attributable to the owner's property
    
5. Capital expenditures, if any, approved by the property owners' association for the property owners' association's current fiscal year
    
6. The amount of reserves, if any, for capital expenditures
    
7. The property owners' association's current operating budget and balance sheet
    
8. The total of any unsatisfied judgments against the property owners' association
    
9. The style and cause number of any pending lawsuit in which the property owners' association is a party, other than a lawsuit relating to unpaid ad valorem taxes of an individual member of the association
    
10. A copy of a certificate of insurance showing the property owners' association's property and liability insurance relating to the common areas and common facilities
     
11. A description of any conditions on the owner's property that the property owners' association board has actual knowledge are in violation of the restrictions applying to the subdivision or the bylaws or rules of the property owners' association
     
12. A summary or copy of notices received by the property owners' association from any governmental authority regarding health or housing code violations existing on the preparation date of the certificate relating to the owner's property or any common areas or common facilities owned or leased by the property owners' association
     
13. The amount of any administrative transfer fee charged by the property owners' association for a change of ownership of property in the subdivision
     
14. The name, mailing address, and telephone number of the property owners' association's managing agent, if any
     
15. A statement indicating whether the restrictions allow foreclosure of a property owners' association's lien on the owner's property for failure to pay assessments
     
16. A statement of all fees associated with the transfer of ownership, including a description of each fee, to whom each fee is paid, and the amount of each fee.

Boards should confirm that their resale certificates contain all the information required under state law (Tex. Prop. Code § 207.003(b)).
 

How long does the association have to provide the certificate?

After receiving a proper written request and verifying any required authority, the property owners’ association must deliver the required subdivision information and resale certificate by the 10th business day.

If the original requester was the owner, the owner’s agent, or a title insurance company or agent acting for the owner, that same requester can ask for an updated certificate within 180 days of the date the original resale certificate was issued. The association must deliver that update by the seventh business day after receiving the written request (Tex. Prop. Code § 207.003(a), (f), (g)).
 

How much does a Texas HOA resale certificate cost?

Texas law caps the amount a property owners’ association may charge to assemble, copy, and deliver the required subdivision information and resale certificate at $375. An updated Texas HOA resale certificate is capped at $75.

The association may require payment before beginning the process but may not process payment until the certificate is available for delivery (Tex. Prop. Code § 207.003(c), (c-1)).
 

Who pays for the resale certificate?

The sales contract typically addresses who pays for the Texas HOA resale certificate. In many transactions, the seller orders it because the seller may be responsible under the sales contract for delivering association information the buyer elects to receive, but the buyer and seller may agree otherwise.

Boards and managers should avoid giving contract advice and should direct owners to their real estate agent, title company, or attorney.
 

What if the certificate is late or missing?

If the association misses the deadline, it generally cannot charge a fee for the late certificate. Owners should work with the title company, real estate agent, management company, or attorney if a closing is delayed (Tex. Prop. Code §§ 207.003(c-1), 207.004).
 

How a property management company can help

A property management company like FirstService Residential can help keep resale requests organized, accurate, and timely. That may include maintaining owner ledgers, tracking violations, storing governing documents, coordinating with title companies, preparing resale packages, and helping boards meet statutory timelines.

A well-managed Texas HOA resale certificate process can reduce closing delays and give buyers clearer information.
 

About FirstService Residential

FirstService Residential is North America’s leading property management company and a trusted partner to communities across Texas. For more than two decades, we’ve provided comprehensive property management services that help boards and residents protect their investments and enhance daily life.

Our Texas team offers tailored support that includes financial management, maintenance coordination, architectural review administration, and professional guidance for board operations. With industry-leading technology, local expertise, and 24/7 customer care, we simplify community management so board members can focus on what matters most.

Contact us today to learn more.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.