Many Dallas–Fort Worth homes are in neighborhoods with a property owners’ association (HOA). Before you buy, you’ll want to understand the rules, dues, and the HOA’s financial health. In Texas, the key document is the resale certificate.
What the law requires
Under Texas Property Code §207.003, a property owners’ association must deliver, after a written request from the owner, buyer, their agents, or the title company:
- A current copy of the subdivision’s restrictions
- Current bylaws and rules
- A resale certificate prepared no earlier than 60 days before delivery
Timing: no later than the 10th business day after the request. An updated certificate must be delivered within seven business days of a request.
Fees: the statute caps the fee at $375 for the resale certificate and $75 for an update.
What the resale certificate covers
- Restrictions on transfer, including any right of first refusal
- Regular assessments and how often they’re due
- Special assessments that have been approved
- Unpaid amounts owed on the property
- Approved capital expenditures and reserve amounts
- The current operating budget and balance sheet
- Judgments and pending lawsuits against the association
- Insurance coverage
- Known violations on the property and governmental notices
- Transfer-related fees and the managing agent’s contact information
Read beyond the dues. Low reserves, pending lawsuits, or approved special assessments can mean higher costs later. Ask questions before your contract deadlines pass.
Red flags to look for
- Special assessments approved or under discussion
- Reserves that seem low compared with the budget
- Pending litigation involving the association
- Existing violations on the home you’re buying
- Rules that conflict with your plans, such as leasing limits, parking, or pets
How it fits into your contract
Texas residential contracts commonly use an addendum for property subject to mandatory HOA membership, which sets how and when the buyer receives the subdivision information. Your agent will help you track those deadlines. Learn more in how to make an offer in Texas and the option period.
Considering an HOA neighborhood? Talk with a Clever Realtors agent, or explore our community guides.
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