What Do HOAs Need to Disclose to Buyers in Texas?

Hi Janice,

According to the Texas Property Code Section 207.003(a), not later than the 10th business day after the date a written request for subdivision information is received from buyers of property, their agent, the owner, the owner’s agent, or a title insurance company or its agent acting on behalf of the purchaser or owner, the association must deliver the following information:

1. A current copy of the restrictions applying to the subdivision
2. A current copy of the bylaws and rules of the property owners’ association; and
3. A resale certificate prepared not earlier than the 60th day before the date the certificate is delivered that complies with Subsection (b).

Section 207.003(f) also states that:

“Not later than the seventh business day after the date a written request for an update of a resale certificate delivered under Subsection (a) is received from an owner, owner’s agent, or title insurance company or its agent acting on behalf of the owner, the property owners’ association shall deliver to the owner, owner’s agent, or title insurance company or its agent an updated resale certificate that contains the following information:

1. If a right of first refusal or other restraint on sale is contained in the restrictions, a statement of whether the property owners’ association waives the restraint on sale;
2. The status of any unpaid special assessments, dues, or other payments attributable to the owner’s property; and
3. Any changes to the information provided in the resale certificate issued under Subsection (a).”

For further guidance, kindly consult a lawyer.