Texas Property Code §§ 5.008 and 5.012: Seller HOA Notice and Property Disclosure Rules

Quick Answer

When a Texas home in a property owners' association is sold, two Property Code sections put duties on the seller, not the association. Section 5.012 requires the seller to give the buyer a written notice that membership in the association is mandatory, that assessments are owed and can lead to lien and foreclosure, and that the buyer may request subdivision documents and a resale certificate. Section 5.008 is the general seller's disclosure of property condition notice for homes of not more than one dwelling unit. If the seller does not give the 5.012 notice before the contract binds the buyer, the buyer may terminate within a short window. For associations, the practical link is the resale certificate the buyer may request.

At a Glance

What the Law Says

Section 5.012: the property owners' association notice

A seller of residential real property "that is subject to membership in a property owners' association and that comprises not more than one dwelling unit" must give the purchaser a written notice that "reads substantially similar to" the statutory text. The prescribed notice says, in summary, that:

• the purchaser is "obligated to be a member of a property owners' association";
• restrictive covenants and dedicatory instruments "have been or will be recorded" in the county's real property records, and copies may be obtained from the county clerk;
• the purchaser is obligated to pay assessments, the amount "is subject to change," and failure to pay "could result in enforcement of the association's lien on and the foreclosure of your property"; and
• § 207.003 entitles an owner to copies of governing documents and a resale certificate, which the association or its agent must make available on request.

The second paragraph of the notice, about assessments, "must be in bold print and underlined" (§ 5.012(a-1)).

The seller must deliver the notice "before the date the executory contract binds the purchaser." It may be given separately, as part of the contract during negotiations, or as part of another notice (§ 5.012(b)).

Exceptions

Section 5.012(c) lists transfers it does not cover, including transfers under a court order or foreclosure sale, by a bankruptcy trustee, to or by a mortgagee through foreclosure or deed in lieu, by a fiduciary administering an estate, between co-owners, to a spouse or lineal relative, to or from a governmental entity, of only a mineral, leasehold or security interest, and "of a real property interest in a condominium."

Buyer's termination right

If the contract is signed without the notice, the purchaser may terminate "for any reason within the earlier of" seven days after receiving the notice or the date the transfer occurs under the contract (§ 5.012(d)). That right "is the purchaser's exclusive remedy for the seller's failure to provide the notice" (§ 5.012(e)).

Resale certificate

On the purchaser's request, the association or its agent "shall promptly deliver" the most recent resale certificate issued under Chapter 207, if it was prepared not earlier than the 60th day before delivery and reflects special assessments approved before and due after delivery (§ 5.012(f)). If no qualifying certificate exists, the seller must ask for one and the association "shall promptly prepare and deliver" it.

The purchaser pays the issuing fee unless the parties agree otherwise. The association may require payment before starting but "may not process a payment for a resale certificate until the certificate is available for delivery," and "may not charge a fee if the certificate is not provided in the time prescribed by Section 207.003(a)" (§ 5.012(g)). For the fee cap and timing, see Chapter 207.

Section 5.008: seller's disclosure of property condition

Section 5.008(a) requires a seller of residential property "comprising not more than one dwelling unit" to give the purchaser a written notice in the prescribed form or one substantially similar containing at minimum all its items. The notice is completed "to the best of seller's belief and knowledge" and a seller who does not know an answer complies by saying so (§ 5.008(d)). It must be delivered "on or before the effective date of an executory contract," and if the contract is entered without it, the purchaser "may terminate the contract for any reason within seven days after receiving the notice" (§ 5.008(f)). The section lists transfers it does not cover, such as foreclosure sales, transfers between spouses and a transfer of a new, never-occupied residence (§ 5.008(e)).

The statutory form is long and covers the physical condition of the property. The check-box items of the form did not render in the version we read, so this page does not list them or say whether any item refers to association fees. We do not state that § 5.008 requires disclosure of HOA fees. Confirm the current form with counsel or a Texas real estate professional.

What This Means in Practice

For boards and managers

The 5.012 notice is the seller's duty, but the association is the source of what the buyer asks for next. Expect resale certificate requests soon after a contract is signed. Section 5.012(g) means a late certificate costs the association its fee, so build the request into a tracked workflow with a due date. The hard timing rules live in Chapter 207.

Accurate management certificate information helps here, since the certificate lists transfer-related fees. See management certificate filing.

For owners selling

Give the 5.012 notice before the buyer is bound, and put it in the contract package. Do not wait for the association to do it. Because the buyer's termination window can run seven days from receipt, late delivery can reopen the deal.

For buyers

The notice tells you assessments can lead to lien and foreclosure. Ask for the resale certificate and governing documents early.

What the sections do not say, and open questions

• Section 5.012 does not make the association liable for the seller's missed notice.
• It excludes condominium interests (§ 5.012(c)(10)). Condominium resale rules are in Chapter 82. See Chapter 82.
• The compilation we read is dated May 2025, before the 2025 session amendments elsewhere in the Code. Whether the 2025 Legislature amended these two sections is not shown in what we read. Confirm the current text.
• Our reading: since § 5.012 requires the notice only for property "subject to membership in a property owners' association," a home in a community with no such membership is outside it. The point is the seller's to confirm.

Timeline

Related Texas Law

• Chapter 207: resale certificates and subdivision information
• Management certificate filing: recording and TREC filing
• SB 711: 2025 certificate and condominium resale changes
• Chapter 82: condominiums
• Chapter 209 overview
• Texas HOA laws complete guide

Board Checklist

• Log every resale certificate request with its received date and a delivery deadline.
• Check Chapter 207 for the delivery period and fee cap before charging.
• Do not process payment for a certificate until it is available for delivery.
• Do not charge a fee if the certificate is late under § 207.003(a).
• Keep the management certificate current so buyers can find the association's information.
• Post governing documents where the law requires them online so owners can reach copies.
• Give sellers and agents a standard response that points to the § 5.012 notice duty without giving legal advice.

Frequently Asked Questions

Who must give the Texas property owners' association notice to a buyer?

The seller. Section 5.012 puts the duty on the seller of residential property of not more than one dwelling unit that is subject to membership in a property owners' association.

When must the notice be delivered?

Before the date the contract binds the purchaser (§ 5.012(b)).

What happens if the seller does not give it?

The purchaser may terminate within the earlier of seven days after receiving the notice or the transfer date, and that is the purchaser's exclusive remedy for the missing notice (§ 5.012(d), (e)).

Who pays for the resale certificate?

The purchaser, unless the purchaser and seller agree otherwise (§ 5.012(g)).

Can the association charge for a late certificate?

No. Section 5.012(g) says it may not charge a fee if the certificate is not provided in the time prescribed by § 207.003(a).

Does § 5.012 apply to condominium sales?

No. Section 5.012(c)(10) excludes a transfer of a real property interest in a condominium.

Is § 5.008 a form that lists HOA fees?

We could not confirm that from the text we read, because the form's check-box items did not render. See the note above and confirm the current form.

Where This Comes From

We read §§ 5.008 and 5.012 as compiled by Texas.Public.Law (a primary-law mirror verified May 26, 2025, which cites the Texas Legislature's statute site as its source), including the session-law history notes. The official statute site is at statutes.capitol.texas.gov. The check-box items of the § 5.008 form did not appear in our copy, so we describe the section's duties and not the form's contents.

How APM Helps

Association Property Managers provides remote HOA and condo management for associations in Texas, starting at a flat $99/month per community with no per-door fees or long-term contracts. See remote management in Texas, browse every Texas state-law guide, or request a free proposal, delivered within three business days. Laws and licensing rules differ by state, and we confirm the requirements for Texas when we build your proposal.

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.