Texas Property Code Chapter 81: Condominiums Created Before 1994 and the Annual Audit

Quick Answer

Texas Property Code Chapter 81 governs condominium regimes created before January 1, 1994. Regimes created on or after that date fall under Chapter 82, and older regimes are also governed by Chapter 82 as provided by § 82.002. Chapter 81 requires the board to keep detailed accounts and have the books audited each year.

At a Glance

What the Law Says

Applicability (§ 81.0011)

"This chapter applies only to a condominium regime created before January 1, 1994. A condominium regime created on or after January 1, 1994, is governed by Chapter 82." A pre-1994 regime "is also governed by Chapter 82 as provided by Section 82.002."

Condominium records (§ 81.209)

• The administrator or board "shall keep a detailed written account of the receipts and expenditures related to the building and its administration."
• Accounts and supporting vouchers "shall be made available to the apartment owners for examination on working days at convenient, established, and publicly announced hours."
• Books and records "must comply with good accounting procedures and must be audited at least once each year by an auditor who is not associated with the condominium regime."

What else the chapter covers

The chapter index lists sections on creation (81.101 to 81.112), including declarations, apartment boundaries, termination and amendment, and on the council of owners (81.201 to 81.210), including bylaws, voting, maintenance, insurance and assessments due on conveyance. We read only the index for these. Confirm their text with counsel.

What This Means in Practice

For boards

First confirm the creation date of the regime in the recorded declaration. For a pre-1994 regime, plan for both chapters. The annual audit in § 81.209(c) is a specific, checkable duty. Our reading: it is separate from the records rules for newer regimes discussed on the Chapter 82 page.

For owners

Section 81.209(b) gives apartment owners the right to examine accounts and vouchers at publicly announced hours. See also SB 318 for condominium records changes.

Open questions

• We did not read § 82.002, so we do not say which Chapter 82 provisions apply to older regimes.
• We did not read the other Chapter 81 sections. Insurance, termination and amendment rules should be checked directly.
• Whether the audit duty is affected by later records laws is a question for counsel.

Timeline

Related Texas Law

• Chapter 82, Uniform Condominium Act
• SB 318, condominium records
• Chapter 207
• Chapter 209 (not condominiums)

Board Checklist

• Confirm the date the regime was created.
• Read the declaration against both Chapter 81 and Chapter 82.
• Keep a detailed written account of receipts and expenditures.
• Publish owner examination hours.
• Engage an unaffiliated auditor each year.
• Ask counsel which Chapter 82 provisions apply under § 82.002.

Frequently Asked Questions

Which condominiums does Chapter 81 cover?

Regimes created before January 1, 1994.

Are older condominiums also under Chapter 82?

Yes, as provided by § 82.002, per § 81.0011(b).

Must the books be audited?

Section 81.209(c) says they must be audited at least once each year by an auditor not associated with the regime.

Can owners inspect accounts?

Section 81.209(b) says accounts and vouchers must be available on working days at convenient, publicly announced hours.

Does Chapter 209 apply?

Chapter 209 does not cover condominiums under § 209.003, per our reading; confirm with counsel.

Where This Comes From

We read § 81.0011 and § 81.209 and the chapter section index on the Texas.Public.Law mirror, which states it was verified against the official site on May 26, 2025. The official statute site is at statutes.capitol.texas.gov. We did not read the other sections of the chapter or any court decisions.

Where We Stand

Our position: we are neutral on Chapter 81. It is a legacy framework that managers work within, and its practical value depends on how current a regime's documents are. Tip: confirm the regime's creation date first, and put the annual audit on the board calendar if the regime falls under this chapter. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.

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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.