Texas Property Code Chapter 207: Resale Certificates and Association Disclosure

Quick Answer

Texas Property Code Chapter 207 governs the information a subdivision property owners' association must deliver when a lot is sold. Within 10 business days of a written request, the association must deliver the restrictions, bylaws and rules and a resale certificate, and it may charge no more than $375 (plus up to $75 for an update). If the association is late, the owner can send a second request and, after five more business days, seek a court order, up to $5,000 and attorney's fees. Chapter 207 does not apply to condominiums, which have their own resale rule in § 82.157.

At a Glance

What the Law Says

What must be delivered, and when (§ 207.003)

Not later than the 10th business day after a written request for subdivision information from an owner or the owner's agent, a purchaser or the purchaser's agent, or a title insurance company or its agent, and after the requestor's authority is received and verified, the association "shall deliver":

• a current copy of the restrictions applying to the subdivision;
• a current copy of the bylaws and rules; and
• a resale certificate prepared not earlier than the 60th day before the date the certificate is delivered.

For a request from a purchaser or purchaser's agent, the association may require reasonable evidence that the purchaser has a contractual or other right to acquire property in the subdivision before it begins preparing the documents (§ 207.003(a-1)).

Contents of a resale certificate (§ 207.003(b))

The statute lists 16 items. In short, the certificate must state:

• any right of first refusal or other restraint on transfer, and the frequency and amount of regular assessments;
• the amount and purpose of any approved special assessment due after delivery;
• the total of all amounts due and unpaid that are attributable to the owner's property;
• capital expenditures approved for the current fiscal year, and the amount of reserves for capital expenditures;
• the current operating budget and balance sheet;
• unsatisfied judgments against the association, and the style and cause number of pending lawsuits (other than a suit over an individual member's unpaid property taxes);
• a certificate of insurance for property and liability coverage of common areas and facilities;
• conditions on the owner's property that the board has actual knowledge violate the restrictions, bylaws or rules;
• a summary or copy of government notices of health or housing code violations;
• any administrative transfer fee, a statement of all transfer-related fees (description, payee and amount), and the managing agent's name, address and telephone number; and
• whether the restrictions allow foreclosure of the association's lien for unpaid assessments.

Fees (§ 207.003(c), (c-1))

The association "may charge a reasonable and necessary fee, not to exceed $375, to assemble, copy, and deliver the information," and a fee "not to exceed $75" to prepare and deliver an update. It may require payment before it begins, 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."

Delivery, inspection and updates

• A written request that does not specify the name and location to which the information is to be sent "is not effective" (§ 207.003(d)). Delivery may be by mail, hand delivery or an alternative means specified in the request.
• Unless a dedicatory instrument requires it, neither the association nor its agent has to inspect the property before issuing a certificate or update (§ 207.003(e)).
• An updated certificate is due not later than the seventh business day after a written request, and must state whether the association waives any right of first refusal or restraint on sale, the status of unpaid special assessments, dues or other payments, and any changes (§ 207.003(f)).
• An update must be requested within 180 days of the original certificate, and only by the party that requested the original (§ 207.003(g)).

Owner remedies for late delivery (§ 207.004)

If the association does not timely deliver, the owner, the owner's agent, or a title insurance company or its agent may submit a second request. If the association then fails to deliver "before the fifth business day after the second request for the information was mailed by certified mail, return receipt requested, or hand delivered, evidenced by receipt," the owner may seek any combination of: a court order to furnish the information; a judgment of not more than $5,000; a judgment for court costs and reasonable attorney's fees; and a judgment authorizing deduction of those awards from future assessments. The owner may also give a buyer under contract an affidavit that two written requests were made and not honored. If the buyer receives that affidavit, the buyer, lender and title insurer are not liable to the association for money due and unpaid on the affidavit date or for earlier claims, and the association's lien for amounts due on that date "shall automatically terminate."

Effect of a certificate (§ 207.005)

An association "may not deny the validity of any statement in the resale certificate." Its lien for undisclosed amounts due on the preparation date terminates as a lien for those amounts, and buyers, owners, lenders and title companies are not liable for undisclosed debts existing on that date. A certificate does not affect debts or claims that arise after the preparation date, or the lien securing future assessments. The association is not liable to a selling owner for delay or failure to deliver, except as § 207.004 provides, and an officer or agent is not liable for a delay or failure to furnish a certificate.

Online posting (§ 207.006)

The section applies to an association of a subdivision "composed of at least 60 lots," or one that has contracted with a management company. It must make the current dedicatory instruments filed in the county deed records available on a website maintained by the association or a management company and available to members. The condominium version is in § 82.1142.

What This Means in Practice

For boards and managers

Build a calendar from the date a written request is received: 10 business days for the first delivery, seven business days for an update, and five business days after a second certified-mail request before the owner's court remedies open. Fee collection is tied to timing: no fee if the certificate is late, and no processing of payment until the certificate is ready.

Our reading: because § 207.005(a) ends the association's lien for undisclosed amounts and bars it from denying the certificate's statements, the accuracy of the "amounts due" line is the most consequential item. Check it against the ledger before signing.

For owners and buyers

Send requests in writing and say where the documents should go. A request without a name and location is not effective. Keep proof of delivery of a second request, because the five-business-day clock runs from when it was mailed by certified mail or hand delivered. A buyer under contract can receive the owner's affidavit if two requests were ignored.

What the chapter does not say

• Chapter 207 does not define "business day." Confirm with counsel how business days are counted for a given request.
• The definition of "resale certificate" requires it to be "issued, signed, and dated by an officer or authorized agent" of the association (§ 207.001(5)). The chapter does not say more about who the authorized agent may be.
• It does not apply to condominiums. The condominium rule is shorter: a resale certificate within 10 days of the owner's written request, a $375 cap and a three-month currency period (§ 82.157).
• Open question: § 207.003(c) says "a reasonable and necessary fee, not to exceed $375." The statute does not say how much of the $375 an association may keep when a management company or title company prepares the certificate. Confirm with counsel.

Timeline

Related Texas Law

• SB 1588 (2021): the omnibus bill that last amended Chapter 207
• Chapter 209: management certificates (§ 209.004) and the rest of the subdivision statute
• Chapter 82: condominium resale certificates (§ 82.157)
• Texas HOA laws complete guide

Board Checklist

• Log the date every written request is received and the deadline 10 business days later.
• Verify the requestor's authority, and ask a purchaser for evidence of a right to acquire property before preparing documents.
• Prepare the certificate within the 60-day currency window and check each of the 16 required items.
• Reconcile "amounts due" to the ledger before signing; the association cannot later deny the certificate's statements.
• Cap fees at $375 for the certificate and $75 for an update, and do not charge if the certificate is late.
• Calendar the seven-business-day deadline for update requests and the 180-day window.
• Post dedicatory instruments online if the subdivision has 60 or more lots or the association uses a management company.

Frequently Asked Questions

How long does an HOA have to deliver a resale certificate in Texas?

Not later than the 10th business day after it receives a written request (and verifies the requestor's authority), under § 207.003(a). An update is due not later than the seventh business day after an update request (§ 207.003(f)).

How much can a Texas HOA charge for a resale certificate?

No more than $375 to assemble, copy and deliver the information, and no more than $75 for an update, under § 207.003(c). The association may not charge a fee if the certificate is not provided on time (§ 207.003(c-1)).

What can I do if the HOA does not deliver the certificate?

Send a second request. If the association still has not delivered before the fifth business day after the second request was mailed by certified mail or hand delivered, § 207.004(b) lets the owner seek a court order, a judgment of not more than $5,000, costs and attorney's fees, and deduction of the award from future assessments.

What happens to the HOA's lien if the certificate is late or wrong?

If the owner gives a buyer the affidavit described in § 207.004, the association's lien for amounts due on the affidavit date terminates. Separately, under § 207.005(a), the association's lien for undisclosed amounts due on the certificate's preparation date terminates as a lien for those amounts.

Does Chapter 207 apply to condominiums?

No. Section 207.002(b) excludes condominiums governed by Chapter 81 or Chapter 82. Condominium resale certificates are governed by § 82.157.

Does my HOA have to post its documents online?

If the subdivision has at least 60 lots, or the association has contracted with a management company, § 207.006 requires the current recorded dedicatory instruments to be available on a website maintained by the association or the management company and available to members.

Can the HOA require payment before it prepares the certificate?

Yes, it may require payment before beginning, but may not process the payment until the certificate is available for delivery (§ 207.003(c-1)).

Where This Comes From

We read the full text of §§ 207.001 through 207.006 as compiled in the 2025 Texas Statutes (Justia mirror of the Texas Property Code), including the session-law history lines, and § 82.157 from the same compilation. The official statute site is at statutes.capitol.texas.gov.

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.