Texas • Thinking of selling
Worried your Texas building's problems will trap you — should you sell now?
When a Texas owner senses their building is in decline — rising assessments, an insurance scramble, a lawsuit — the instinct to get out is rational. But selling a troubled condo has its own traps, and the first step is seeing the building the way a buyer's lender will.
The short answer
Special assessments, insurance trouble, litigation, or lender 'ineligible' status can make a Texas condo hard to sell — often to cash buyers and investors only. The § 82.157 resale certificate must disclose unpaid and approved special assessments. HOAs under Ch. 209 have no statutory resale certificate. CondoSignal reads your building's documents to show what a buyer will see and whether selling now is the right move. Free.Texas at a glance
Resale disclosure
Buyer cancellation
6 days after receiving the resale certificate, if it wasn't delivered before signing (§ 82.156)
Super-lien
None
None — the association lien is junior to a first mortgage recorded before delinquency
Insurance market
Backstop exists
Stressed — hail and wind drive a hard market
Top climate risk
Hail
Hurricane / wind / storm surge (Gulf coast), Flooding
What makes a condo hard to sell
Four things scare buyers and their lenders: a pending or recent special assessment, a master-insurance problem, active litigation, and a building on Fannie Mae's or Freddie Mac's 'ineligible' list. In Texas, hail struck 235,000+ Texas homes with 2-inch+ stones in 2025; the average wind/hail deductible is about $7,761 (~2.2% of value) and is often percentage-based adds to the pressure. Any one of these can shrink your buyer pool to cash and investors.
What you'll have to disclose in Texas
The § 82.157 resale certificate must disclose unpaid and approved special assessments. HOAs under Ch. 209 have no statutory resale certificate. Buyers here also get a cancellation window (6 days after receiving the resale certificate, if it wasn't delivered before signing (§ 82.156)), so a hidden problem tends to surface and unwind the deal. Trying to sell around a known assessment or lawsuit usually backfires.
How the lien and insurance picture affects your sale
Texas is not a super-lien state (§ 82.113); the first mortgage and property-tax liens prime the association. Coastal counties depend on TWIA for wind/hail and must first be denied by a private carrier; flood and storm surge are excluded and need separate coverage. If the building is genuinely distressed, a realtor experienced with these sales — or an investor/cash buyer — may be the faster path.
Your rights in Texas
As a Texas seller you generally must disclose assessments and known problems, typically through the association's resale documents, and buyers get a cancellation window. None of this is legal advice — confirm against the current statute and a licensed professional in your state.
What to check
- Identify any pending or recent special assessment.
- Check the master policy — in Texas, hail struck 235,000+ Texas homes with 2-inch+ stones in 2025; the average wind/hail deductible is about $7,761 (~2.2% of value) and is often percentage-based is a common deal-killer.
- Find out whether the building is on a lender 'ineligible' list.
- Check for active litigation involving the association.
- Get the resale documents early — Texas buyers get a cancellation window (6 days after receiving the resale certificate, if it wasn't delivered before signing (§ 82.156)), so problems surface.
- Decide whether to sell before the next assessment or renewal.
Sources
- Tex. Prop. Code § 82.102 — powers; borrowing; 67% vote(High)
- Tex. Prop. Code § 82.113 — association's lien (no super-lien)(High)
- Tex. Prop. Code § 82.157 — resale certificate disclosures(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Texas-licensed professional.
Related guide
Texas condo resale certificate review — the full guide →This page answers what to do right now. For how condo resale certificate review works in Texas — the law, the process, and what to check before you buy or sell — read the full state guide.
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