HOA Resale Certificate ~ A Buyer's Representation Tale

Here in the Dallas Ft Worth area most of our newer subdivisions have been built with a HOA, Homeowners Association in place to manage the upkeep of community areas and other aspects. Most folks really never give much thought to the HOA until the bill comes in for assessment dues or it's time to resale.
One of the requirements of the Texas Property Code is that when resaling the buyer receives "Subdivision Information". Subdivision information, according to TAR, Texas Association of Realtors and found on the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, means (1) the restrictions applying to the subdivison, (2) the bylaws and rules of the Property Owners' Association and (3) the resale certificate.

On a recent transaction the Title Company was very quick and responsive to send over the subdivison information. Only they did not include number 3 above namely the resale certificate. As the buyer's representative it is an important aspect of protecting the buyer's rights to make sure that the buyer receives the resale certificate.

The information contained in the resale certificate helps the buyer to make an informed decision about the property and the Homeowners Association that manages it. Information that may be found on the certificate includes the right to transfer property, the frequency and amount of assessments, whether there are any outstanding dues, existing violations, unsatisfied judgements or pending lawsuits in regards to the property or the HOA. The current operating budget and balance sheet of the propety association should be made available as well. Other pertinent information is usually provided in addition to that wihich was mentioned so you can see how important this document is to the buyer when making a decision to buy a property within a Homeowners Association.

Buyers as well as their agents should be aware of their rights to recieve all of the information pertaining to the subdivision located within a property association. I hope that you found this information useful. If I can be of further assistance in your buying needs please contact me directly.