Texas HOA Resale Certificate: A Buyer's Checklist

In Texas, Section 207.003 of the Property Code defines the items an HOA resale certificate must disclose to a buyer. The list is broad — but execution varies. Here's how to read one critically.

What §207.003 requires

A Texas HOA resale certificate must include (among other items):

• Current annual assessment and any other charges.
• Any unpaid amounts owed on the property.
• Capital expenditures planned by the association.
• Reserve fund balances and any designated purposes.
• Pending or actual special assessments.
• Lawsuits to which the association is a party.
• Rules and restrictions affecting the property.
• Insurance maintained by the association.

What we cross-reference

The certificate is a starting point. We verify:

• Assessment amount against the latest budget — they should match.
• Special assessments against recent meeting minutes — minutes often reveal pending votes before they hit the certificate.
• Restrictions against the CC&Rs and any recorded amendments — certificates summarize, but the original recorded documents control.
• Litigation disclosure against any public docket searches the buyer may run independently.

Common gaps

• Stale dates (more than 90 days old).
• Missing audit findings.
• Inconsistent assessment amounts between the certificate and the budget.
• Restrictions summarized without referencing the underlying amendment number.

Pre-closing questions

• "Was the certificate issued within the last 30 days?"
• "Are there any amendments to the CC&Rs adopted in the last 24 months not yet reflected on the certificate?"
• "Are there any board votes scheduled in the next 90 days that could affect dues, assessments, or rules?"

Why this isn't legal advice

CondoSignal surfaces what the certificate and underlying documents say. Your real estate attorney is the right person to advise on whether any disclosure changes your contractual position.