Texas guide
Texas HOA and condo governance risk
Texas has substantially updated its condo and HOA governance rules through legislation passed between 2023 and 2025. Senate Bill 711 (effective September 2025) introduced transparency mandates for larger condo associations, tightened management certificate rules, and capped resale certificate fees.
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Three 2023 bills updated Chapter 209 HOA law. For buyers, these reforms are most useful as a lens: an association that was not complying before the laws passed is unlikely to have suddenly transformed its practices, and the red flags are often visible in the documents.
SB 711 (2025) — what changed and what it signals
Senate Bill 711, which took effect September 2025, revived transparency measures that had been vetoed in a prior session. Condominium associations with 60 or more units must now maintain a website and post their governing documents — declarations, bylaws, rules, budgets — publicly. The management certificate must be filed with the county clerk on time; if it is not, the association loses the ability to recover attorney fees in any collection or enforcement action against a unit owner. This attorney-fee penalty is meaningful: it removes a significant financial deterrent from owner disputes, and it signals that a late or missing certificate is not a mere administrative oversight but a compliance failure with real consequences.
The 2023 Chapter 209 reforms — HB 614, HB 886, HB 1193
Three bills from the 88th Legislature (2023) addressed the single-family HOA space under Chapter 209. HB 614 imposed financial-control and security-of-funds requirements on HOA management, targeting misappropriation risk. HB 886 added mandatory three-notice procedures before an association can proceed with lien foreclosure. HB 1193 prohibited discriminatory rental approval policies that deny tenants based on their source of funds, including housing assistance. Collectively, these bills raised the minimum governance standard for Texas HOAs. An association whose practices have not been reviewed by counsel since 2022 may be operating in ways that no longer comply with current law.
Board dysfunction — what the documents reveal
Well-run associations produce regular, properly noticed board meetings with coherent minutes, financial statements that are reviewed at least quarterly, and a clear process for member communication. Poorly run associations show the opposite: irregular meetings, minutes that are sparse or missing for multiple months, financial reports never presented, and a pattern of decisions made outside of properly noticed sessions. Texas courts have historically upheld broad board authority under Chapter 82, but that deference cuts both ways — a board with broad authority and poor governance can accumulate significant problems before owners have recourse.
Management company red flags
Most larger Texas condo and HOA communities are managed by third-party property management companies. A management company is responsible for filing the management certificate, maintaining financial records, and administering the governing document requirements introduced by SB 711. If the management certificate on file with the county clerk is outdated, if the association lacks a public website when one is required, or if the financial statements provided are inconsistent or incomplete, those failures may originate with the management company. Ask who manages the association, how long the current company has been in place, and whether the management contract has been reviewed recently.
Litigation and legal dispute history
Texas condo associations have generally seen fewer catastrophic governance failures than Florida counterparts — there has been no major condo collapse or high-profile association bankruptcy in recent Texas history. However, board disputes, developer warranty lawsuits, and owner lien foreclosure cases do occur. The resale certificate must disclose pending litigation. Cross-reference that disclosure against the meeting minutes, which may reveal legal disputes that are in early stages or that the board has handled informally. An association currently in active litigation with its developer — a common situation in newly constructed communities — can face years of uncertainty about who bears responsibility for construction defects.
Governance health as a financial signal
Governance quality and financial health are correlated. Associations that hold regular open meetings, maintain accurate records, file documents on time, and communicate transparently with members tend to be the ones that also manage reserves adequately, purchase appropriate insurance, and avoid surprise assessments. Conversely, an association with irregular meetings, missing financial statements, and an outdated management certificate is often also one with thin reserves and deferred maintenance. Treat governance quality not as a bureaucratic checklist but as a leading indicator of the financial condition you will inherit.
Texas legal references
- SB 711 (89th Legislature, 2025) — Condo transparency and management certificate reforms
- HB 1193 (88th Legislature, 2023) — HOA anti-discrimination in tenant policies
- Texas Property Code Chapter 82 — Uniform Condominium Act
- Texas Property Code Chapter 209 — Residential Property Owners Protection Act
Informational only. Not legal advice. Always confirm against current statute and counsel.
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Find a Texas specialist →Reviewer's checklist
- If the association has 60+ units, confirm it maintains a public website with current governing documents (SB 711 requirement)
- Verify the management certificate is filed and current with the county clerk
- Check whether the association's governing documents have been reviewed or updated since 2023
- Review the last 12 months of board meeting minutes for regularity, completeness, and open-meeting compliance
- Confirm the board followed proper notice procedures for any special assessments or major expenditures
- Ask whether the association's financial controls comply with HB 614 requirements
- Review the resale certificate for disclosed pending litigation
- Cross-reference litigation disclosures against meeting minutes for early-stage disputes
- Ask how long the current management company has been in place and whether the contract has been reviewed recently
- Confirm the association carries D&O (directors and officers) insurance to protect against board governance claims
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