An HOA resale certificate is a document the property owners’ association prepares for a home sale in Texas. Under Texas Property Code Section 207.003, it shows the regular dues, any approved special assessments, what the owner still owes, reserves, lawsuits, known violations, and transfer fees. If you’re buying in a San Antonio-area subdivision with a mandatory HOA, here’s what to read on it and how it affects your contract.
Brock Bremmer | U.S. Air Force Reserves Veteran | Real Estate Agent | eXp Realty | San Antonio Metro Area
New Construction Specialist
Also see: Buying Your First Home in San Antonio | The Texas Option Period | Who Pays for Title Insurance in Texas
What Is an HOA Resale Certificate?
Texas law calls the full package “subdivision information.” Under Property Code Section 207.003, it includes three things:
- A current copy of the subdivision’s restrictions
- The association’s bylaws and rules
- A resale certificate prepared no more than 60 days before it’s delivered
The association must deliver the package within 10 business days after it receives a written request from the owner, the buyer, or the title company, or their agents. If a buyer makes the request, the association can first ask for reasonable proof that the buyer has a contract or other right to buy the home.
This applies to homes in subdivisions with mandatory membership in a property owners’ association. Condominiums follow a separate set of rules and use a different TREC resale certificate form.
What Does a Texas Resale Certificate Show?
Section 207.003 lists what the certificate must contain. TREC’s resale certificate form (TREC 37-5) follows the same list. Here are the items I’d read first:
- Regular assessment: How much the dues are and how often they’re charged
- Special assessments: Any special assessment already approved and due after the certificate is delivered, plus its purpose
- Amounts owed: The total the current owner still owes the association
- Capital expenditures and reserves: Approved capital spending for the current year and the amount set aside in reserves
- Judgments and lawsuits: Unsatisfied judgments against the association and the case number of any pending lawsuit it’s part of
- Known violations: Conditions on the property the board knows break the restrictions or rules
- Government notices: Health or housing code violation notices the association has received about the property or common areas
- Transfer fees: Any administrative transfer fee and an itemized list of every fee tied to the sale
- Foreclosure: Whether the restrictions allow the association to foreclose its lien for unpaid assessments
The certificate also comes with the association’s current operating budget, balance sheet, and a certificate of insurance for the common areas.
How Does the Resale Certificate Fit Into Your Contract?
In a Texas resale, the HOA terms usually go in the TREC Addendum for Property Subject to Mandatory Membership in a Property Owners Association (TREC 36-11). It gives four choices:
- The seller obtains and delivers the subdivision information within a set number of days.
- The buyer obtains it at the buyer’s expense within a set number of days.
- The buyer already received and approved it before signing, with or without an updated certificate.
- The buyer doesn’t require it.
Under the first two choices, you can end the contract within 3 days after you receive the subdivision information, or before closing if that comes first, and get your earnest money back. If the seller was supposed to deliver it and never does, you can end the contract any time before closing and get your earnest money back.
The addendum also lets you end the contract before closing if any of the information wasn’t true, or if a material adverse change happens before closing. It also sets a cap on the transfer-related fees you’ll pay, with the seller covering any excess.
This 3-day right is separate from your option period. See how the option period works, and line up both deadlines on your calendar.
How Much Does a Resale Certificate Cost?
Section 207.003 caps the fee at $375 to assemble, copy, and deliver the subdivision information, and $75 for an update. The association can’t charge a fee if it doesn’t deliver within the required time.
Only the party who ordered the original certificate can ask for an update, and it has to be requested within 180 days after the original was issued. The association then has 7 business days to deliver it. That matters if your closing date gets pushed back.
Who pays depends on which box you check in the addendum. The resale certificate fee isn’t the same as the transfer fees listed on the certificate, so read both.
What Red Flags Should You Look For?
Most certificates are routine. These are the items worth a closer look:
- An approved special assessment that will come due after you close
- Pending lawsuits involving the association
- Known violations on the home, like an unapproved fence or addition
- Low reserves compared with large approved capital projects
- A right of first refusal or other limit on transferring the property
- Rules that affect your plans, such as leasing, parking, or exterior changes
TREC’s addendum also includes a notice that the association may have sole responsibility for certain repairs to the property. If that applies, make sure you’re comfortable the association will handle them before you sign.
On a new build, the builder’s contract usually handles HOA disclosures. Ask the builder for the declaration, rules, and dues schedule, and see my guide on why payments go up after a new build for budgeting.
Frequently Asked Questions: HOA Resale Certificates
How long does an HOA have to provide a resale certificate in Texas?
Under Texas Property Code Section 207.003, the association must deliver the subdivision information, including the resale certificate, within 10 business days after it receives a written request. An updated certificate is due within 7 business days.
Can you back out of a contract after reading the HOA resale certificate?
Usually, yes. Under TREC’s HOA addendum, if the seller delivers it or you get it yourself, you can end the contract within 3 days after receiving it, or before closing if sooner, and get your earnest money back.
Ready to Buy in a San Antonio HOA Community?
Brock Bremmer with eXp Realty is a U.S. Air Force Reserves veteran who has helped buyers and sellers close 120+ homes across the San Antonio metro. He helps buyers read HOA documents, track contract deadlines, and compare total monthly costs in San Antonio, New Braunfels, and Boerne.
- 📞 Call or text: 210-501-5088
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Also see: San Antonio Property Taxes | Do You Need a New Survey? | Selling Your San Antonio Home
Sources: Texas Property Code Chapter 207, Section 207.003; TREC, Contracts and Addenda (Addendum for Property Subject to Mandatory Membership in a Property Owners Association, TREC 36-11); TREC Forms (Subdivision Information, Including Resale Certificate, TREC 37-5).