Texas HOA resale certificate: what the accounting has to show.

This page is not a substitute for an attorney. Texas HOA law is detailed, and your association's declaration, bylaws, and management certificate may add requirements the statute does not cover. The accounting takeaway is narrower: Section 207.003 tells you what dollar figures the resale certificate has to state, and by when.

1. The 10-business-day deadline

The association (or the person managing the association's subdivision information) must deliver the required resale information "not later than the 10th business day after the date a written request for subdivision information is received." An update to a previously delivered certificate is a separate, faster request most associations should be ready to turn around quickly — the accounting side of that is having current figures on hand rather than reconstructing them per request.

2. The fee caps

• $375 maximum to assemble, copy, and deliver the required subdivision information.
• $75 maximum to prepare and deliver an update to a certificate already issued.

These are statutory ceilings, not suggested prices — billing above them, or billing an update as a fresh certificate, is a compliance question for the board and counsel, not an accounting judgment call.

3. What the certificate has to disclose financially

Section 207.003 lists specific financial items the certificate must state. From an accounting standpoint, this is the pull-list:

• The frequency and amount of any regular assessments.
• The amount and purpose of any special assessment that has been approved.
• The total of all amounts due and unpaid to the association for the subject property.
• Capital expenditures approved by the association for the current fiscal year.
• The amount of reserves, if any, set aside for capital expenditures.
• The association's current operating budget and balance sheet.
• The total of any unsatisfied judgments against the association.
• A current certificate of insurance showing the association's property and liability coverage.

The statute also requires disclosure of transfer restrictions, pending lawsuits the association is a party to, known code violations affecting the property, and any administrative transfer fee — those are governing-document and legal questions, not accounting ones, and are outside what this page covers.

4. Why this depends on monthly close discipline

Every dollar figure Section 207.003 requires — assessment amounts, unpaid balances, approved capital expenditures, reserve balances, the operating budget and balance sheet — comes directly out of the books the association keeps every month. A resale certificate is easy to turn around inside the 10-business-day window when those figures are already current; it becomes a scramble when they are not.