Texas SB 1588 (2021): Property Owners' Association Omnibus Reform Law Explained

Quick Answer

Texas Senate Bill 1588 (87th Legislature, 2021) is an omnibus law on "the powers and duties of certain property owners' associations." It amends Property Code Chapters 202, 207 and 209, not Chapter 82 (condominiums). Most of it took effect September 1, 2021, and the management certificate filing with the Texas Real Estate Commission took effect December 1, 2021.

Among other things it caps resale certificate fees, requires management certificates to be filed with TREC, lengthens the collection cure period to 45 days, requires hearings before the board, and lets owners sue associations in justice court. Some of its provisions were later amended, so check current text before relying on a detail.

At a Glance

What the Law Says

The enrolled bill has 27 sections. In plain English, grouped by chapter:

Chapter 202 (restrictive covenants)

• Unrecorded instruments (202.006(c)). An association "may not collect a regular assessment" if the dedicatory instrument authorizing it "is not filed as required by Subsection (a)," the recording rule.
• Religious items (202.018). The bill extends the protection from the entry door to the owner's "property or dwelling," lists exceptions (public health or safety, violation of law, patently offensive for non-religious reasons, association or common property, building lines, setbacks and easements, and traffic or utility fixtures), and repeals the old size and location limits in 202.018(c) and (d).
• Swimming pool enclosures (202.022, new). An association may not prohibit a conforming enclosure (a fence of transparent mesh or clear panels in metal frames, not over six feet, designed not to be climbable), but may regulate appearance, including colors, so long as it does not prohibit a black one of transparent mesh in metal frames.
• Security measures (202.023, new). An association "may not adopt or enforce a restrictive covenant that prevents a property owner from building or installing security measures, including but not limited to a security camera, motion detector, or perimeter fence." It may prohibit cameras off the owner's private property and may regulate fence type. Condominiums and Chapter 215 master mixed-use associations are excluded. This section was amended again in 2025 (see our SB 711 page).

Chapter 207 (resale and subdivision information)

• Management company definition (207.001). Cross-refers to the new Chapter 209 definition.
• Fee caps (207.003(c)). A "reasonable and necessary" fee "not to exceed $375" to assemble, copy and deliver the resale information, and not to exceed $75 for an update.
• Late delivery remedies (207.004(b)). The trigger is failure to deliver before "the fifth business day" (was the seventh day) after the second request. The owner may seek a court order, a judgment of "not more than $5,000" (was $500), court costs and reasonable attorney's fees, and a deduction from future assessments.
• Website (207.006). Applies only to an association of a subdivision "composed of at least 60 lots" or one that has contracted with a management company. It must post its current dedicatory instruments on an Internet website maintained by the association or its management company and "available to association members."

Chapter 209 (Residential Property Owners Protection Act)

• Management certificates (209.004). The certificate must now include the association's website address (where instruments are posted), the person managing the association's telephone number and email, amendments to the declaration, and "the amount and description of a fee or fees charged by the association relating to a property transfer." Within seven days after recording a certificate or amendment, the association must file it electronically with the Texas Real Estate Commission (209.004(b-1), effective December 1, 2021). Subsection (e) adds that an owner is not liable for the association's collection attorney's fees or for interest on delinquent assessments incurred or accruing during the period a certificate is not recorded or filed.
• Architectural review authority (209.00505, new). For associations of more than 40 lots (outside a development period): no current board member, board member's spouse or household member on the authority; written denial notice by certified mail, hand delivery or electronic delivery describing the basis; the owner may request a board hearing within 30 days; the board holds it within 30 days of the request with at least 10 days' notice; one hearing; postponement up to 10 days; audio recording permitted; the board may affirm, modify or reverse. Our SB 711 page covers the 2025 changes to this area.
• Board meeting notice (209.0051(e), (h)). Notice by posting plus email must be given at least 144 hours before a regular board meeting and at least 72 hours before a special meeting. The list of matters that need an open meeting with prior notice now includes approval of "an annual budget or the approval of an amendment of an annual budget" with the old 10 percent threshold removed.
• Contract bids (209.0052(c)). An association that proposes to contract for services costing more than $50,000 "shall solicit bids or proposals using a bid process established by the association." Applies to contracts proposed on or after September 1, 2021.
• Notice before enforcement (209.006(a)). Certified-mail notice is required before reporting any delinquency to a credit reporting service, in addition to the existing triggers.
• Payment priority (209.0063(a)). Adds "reasonable" to attorney's fees, collection costs, fines and other amounts in the priority order.
• Collection agent notice (209.0064(b)). The cure period is "at least 45 days" (was 30).
• Credit reporting (209.0065, new). No reporting of amounts "subject of a pending dispute"; reporting only if at least 30 business days earlier the association sent a detailed report of delinquent charges and the owner was offered a payment plan; no fee to the owner for the reporting. Applies to fines, fees and assessments that become due on or after September 1, 2021.
• Hearings (209.007). The hearing is before the board (not a committee). The association must provide a packet of documents, photographs and communications it intends to use "not later than 10 days before" the hearing; if it does not, the owner gets "an automatic 15-day postponement." The board or its representative presents the association's case first. Subsection (b) is repealed.
• Adjacent lot rule (209.015(c)). Replaces "committee" with the architectural review authority concept.
• Leases (209.016). Associations may request each adult resident's contact information and the lease start date and term. Subsections (a) and (c) are repealed.
• Justice court (209.017, new). An owner "may bring an action for a violation of this chapter against the property owners' association" in justice court of a precinct where any part of the subdivision lies. It applies to actions brought on or after September 1, 2021. The text states no dollar limit.

What This Means in Practice

For boards

Treat SB 1588 as a checklist of policies, not one rule. The items that most often require board action are: recording the management certificate and filing it with TREC within seven days; confirming the website is live and accessible to members if the association has 60 or more lots or a management company; setting the 45-day cure period in collection letters; providing hearing packets 10 days ahead; and checking that all dedicatory instruments are recorded, since 202.006(c) bars collecting regular assessments under an unrecorded instrument.

For associations of more than 40 lots, an architectural review authority with no sitting board members is a structural change that may need new appointments. Our reading is that an association already compliant with the 2021 text should still review the 2025 amendments before relying on this summary.

For owners

The hearing rights, the 45-day cure period and the credit reporting limits are the most visible changes. The $5,000 ceiling on late resale certificate judgments (up from $500) is available when the association fails to deliver by the fifth business day after the owner's second request. The new justice court section is a forum choice, not a guarantee of any result.

What the bill does NOT do

• It does not amend Chapter 82. Condominium records rules came separately in S.B. 318 (2021) and condominium website and certificate rules in S.B. 711 (2025).
• It does not add a dollar cap to justice court suits.
• It does not require a collections policy or an itemized statement before suit. We found neither in the enrolled text.
• It does not prohibit foreclosure for fines. That limit in § 209.009 predates the bill.
• It does not create a fining committee requirement.

Timeline

The governor's signing date was not available on the enrolled copy we read, so we do not state one.

Related Texas Law

• § 209.006 and § 209.007: notice and hearing.
• § 209.0063 and §§ 209.0064 and 209.0065: payments, collections and credit reporting.
• § 209.0051: open board meetings.
• § 209.017: justice court suits.
• Chapter 207: resale certificates and disclosure.
• Management certificate filing.
• SB 581 and HB 3571: companion bills with the same religious-item and security text.
• 2025 SB 711: later amendments.
• Chapter 209 overview, the Texas HOA laws complete guide and Texas HOA law changes 2021 to 2025.

Board Checklist

• Confirm every dedicatory instrument authorizing assessments is filed in the county records.
• Record the management certificate with the required contents and file it with TREC within seven days.
• Post current dedicatory instruments on a member-accessible website if the association has 60 or more lots or a management company.
• Update collection letters to give at least 45 days to cure and to describe payment plan options.
• Send hearing packets at least 10 days before every hearing, and have the board hear the matter.
• Check credit reporting practice against § 209.0065 before any report.
• If the association has more than 40 lots, review architectural review authority membership and denial and hearing procedures.
• Run a bid process for any services contract over $50,000.

Frequently Asked Questions

What does Texas SB 1588 do?

It amends Property Code Chapters 202, 207 and 209 in many places: resale certificate fees, management certificate content and TREC filing, hearings, collections cure period, credit reporting, architectural review, lease information and justice court suits.

Did SB 1588 change the condominium chapter?

No. The enrolled bill amends only Chapters 202, 207 and 209. Condominium records rules came from S.B. 318 in 2021.

When did SB 1588 take effect?

September 1, 2021, except the electronic filing requirement in § 209.004(b-1), which took effect December 1, 2021.

What is the resale certificate fee cap?

A reasonable and necessary fee not to exceed $375 to assemble, copy and deliver the information, and not to exceed $75 for an update, under § 207.003(c).

Which associations must post documents online?

Under § 207.006, an association of a subdivision with at least 60 lots, or one that has contracted with a management company.

Does SB 1588 cap justice court claims at a dollar amount?

The enrolled text of § 209.017 states no dollar limit. Confirm any jurisdictional limit that applies in justice court with a Texas attorney.

How long must owners get to cure before a collection agent charge?

At least 45 days under § 209.0064(b)(3), up from 30 days.

Is SB 1588 still current law?

Its text was enacted in 2021, and later legislation amended some of the sections it touched. Check the current statute text for each section before relying on it.

Where This Comes From

We read the enrolled version of S.B. 1588 (87th Legislature, Regular Session) on the Texas Legislature's bill text site, S.B. 1588 enrolled text, including its vote certifications and effective-date section, and compared it with the current statute text where cited. The governor's approval line is blank on that copy. Interpretations labeled "our reading" are ours.

How APM Helps

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Texas attorney before acting.