Texas title companies: TREC resale certificate requirements under Section 207

What Texas Property Code Section 207 Requires

Texas Property Code Chapter 207 governs disclosure by property owners' associations in residential subdivisions. It does not apply to condominium associations, which are regulated under Chapter 82 of the Texas Property Code. For title companies, this distinction is the first gate in the compliance checklist.

Section 207.003(a) requires a POA to deliver three categories of documents upon written request from an owner, owner's agent, purchaser, purchaser's agent, or a title insurance company acting on behalf of the owner or purchaser:

• A current copy of the restrictions applying to the subdivision
• A current copy of the bylaws and rules of the POA
• A resale certificate prepared no earlier than the 60th day before delivery

The resale certificate is the centerpiece of the disclosure. It must be a written statement issued, signed, and dated by an officer or authorized agent of the association. If the certificate is older than 60 days, it is stale and must be re-issued.

Title teams should also note that the POA may require a purchaser or purchaser's agent to provide reasonable evidence that the purchaser has a contractual right to acquire the property before the association begins preparing the certificate. This verification step is authorized under Section 207.003(a-1) and can add a day or two to the front of the timeline if not handled immediately.

TREC Requirements for Resale Certificates

The Texas Real Estate Commission (TREC) promulgates the contract forms that most residential transactions use. While TREC does not issue a mandatory resale certificate form for single-family POA transactions, it does require the Addendum for Property Subject to Mandatory Membership in a Property Owners Association(s) to be attached to the One to Four Family Residential Contract.

This addendum gives the buyer a negotiated review period to examine the subdivision information and terminate the contract without penalty if the disclosures are unacceptable. Title companies must verify that the addendum is fully executed, that the review period is calendarized correctly, and that the buyer's termination notice deadline has passed before funding.

For condominium transactions, TREC promulgates the Condominium Resale Certificate (TREC No. 32-4, updated as 32-5 effective January 3, 2025). The 2025 update amended Paragraphs K and L to conform with Section 82.157 of the Texas Property Code regarding condominium HOA resale certificates. Title teams closing condo sales after January 2025 should confirm that the association is using the updated form.

Additionally, Texas Property Code Section 5.012 requires sellers to provide a written notice of membership obligations to the purchaser. The notice must be in bold print and underlined, and it must inform the buyer that restrictive covenants and dedicatory instruments are recorded, that assessments are subject to change, and that failure to pay assessments could result in foreclosure. The buyer's signature on this notice should be in the closing file.

Mandatory Contents of the Resale Certificate

Section 207.003(b) lists sixteen mandatory items that must appear in every POA resale certificate. Title companies should verify each item during pre-closing review:

1. Right of first refusal or restraints on transfer – Any restriction on the owner's right to sell, other than restraints prohibited by statute.
2. Frequency and amount of regular assessments – How often and how much the owner pays.
3. Amount and purpose of any special assessment – Only assessments approved before delivery and due after delivery.
4. Total amounts due and unpaid – All unpaid dues, fees, fines, and charges attributable to the property.
5. Capital expenditures approved for the current fiscal year – Major projects already approved by the board.
6. Amount of reserves for capital expenditures – The association's reserve balance, if any.
7. Current operating budget and balance sheet – The association's financial snapshot.
8. Unsatisfied judgments against the POA – Total of any judgments that remain unpaid.
9. Pending lawsuits – Style and cause number of any suit to which the POA is a party, excluding individual tax collection suits.
10. Certificate of insurance – Property and liability insurance covering common areas and facilities.
11. Known violations on the property – Conditions the board knows are in violation of restrictions, bylaws, or rules.
12. Governmental health or housing code violations – Notices received from any governmental authority.
13. Administrative transfer fee – The fee charged for a change of ownership.
14. Managing agent contact information – Name, mailing address, and telephone number.
15. Foreclosure statement – Whether the restrictions allow foreclosure for unpaid assessments.
16. All transfer-related fees – A description of each fee, to whom it is paid, and the amount.

Missing any of these items renders the certificate non-compliant. Title teams should not accept a certificate that omits litigation, reserves, or the budget. If the association claims an item is "not applicable," that assertion should be documented in writing and reviewed by counsel before closing.

Delivery Timeline and Fee Caps

Texas law establishes a firm production window. Under Section 207.003(a), the POA must deliver the requested information not later than the 10th business day after receiving a written request and verifying the requestor's authority.

For updates, Section 207.003(f) requires delivery within 7 business days. Update requests must be made within 180 days of the original certificate and must come from the party who ordered the original. This is particularly relevant in transactions that experience closing delays or financing hiccups.

The fee structure is now capped by statute:

• $375 maximum to assemble, copy, and deliver the resale certificate and accompanying documents (Section 207.003(c)).
• $75 maximum to prepare and deliver an update (Section 207.003(c)).

Important procedural note: the association may require payment before beginning the process, but it may not process payment until the certificate is available for delivery. If the POA fails to deliver within the statutory timeframe, it may not charge a fee at all (Section 207.003(c-1)). Title companies should verify that the fee on the closing disclosure does not exceed these caps and that the POA has not charged for a late certificate.

Seller vs. Buyer Responsibility

Statutorily, the seller is responsible for providing the resale certificate and subdivision information to the buyer. In practice, the seller delegates the request to the listing agent, escrow officer, or a document retrieval service. The title company often facilitates the request but must ensure the chain of custody is clear.

The party who pays the fee is a matter of contract. Most Texas purchase contracts place the cost on the seller, but this is negotiable. Title companies must ensure the fee appears on the closing disclosure and that it does not exceed the statutory cap. If a POA attempts to charge more than $375, the excess must be disputed before closing. Title teams should also confirm that any rush or expedite fees are legitimate and disclosed in writing.

Late or Incomplete Certificates: What Happens Next

When a POA misses the 10-business-day window, several consequences follow:

• No fee may be charged for the late certificate.
• The buyer's contractual review period is delayed, which can push back closing.
• The title company may need to issue a gap coverage endorsement or delay closing until the certificate is received.
• If litigation or unpaid assessments are discovered post-closing and were not disclosed, the title insurer may face a claim.

If the certificate is incomplete, title teams should immediately request a supplemental certificate. Do not close with a certificate that omits pending litigation, special assessments, or insurance verification. In master-planned communities, a missing sub-association certificate can leave the buyer unaware of secondary assessments that transfer with the property.

How Texas Title Companies Verify Compliance

Title teams should build a standardized verification checklist for every POA transaction:

• Confirm the property is in a POA-governed subdivision, not a condominium (Chapter 82).
• Confirm the association's legal name matches the recorded restrictions.
• Verify the resale certificate is dated within 60 days of delivery.
• Cross-check all 16 statutory items for presence and accuracy.
• Verify the fee does not exceed $375.
• Confirm Section 5.012 notice has been provided to the buyer and signed.
• Verify the TREC Addendum for Mandatory POA Membership is in the file.
• Check for sub-associations or master associations that require separate certificates.
• Confirm the certificate is signed by an officer or authorized agent.
• Review the insurance certificate for adequacy and expiration dates.

Common Texas-Specific Mistakes

HOA vs. POA confusion. Texas law distinguishes between a "homeowners association" (a colloquial term) and a "property owners' association" (the statutory entity). More importantly, Chapter 207 does not apply to condominiums. Ordering a Chapter 207 certificate for a condo will yield the wrong document set and may miss critical condo-specific disclosures required under Chapter 82.

Mixed-use developments. If a subdivision contains commercial property or multifamily rentals, the POA may not be subject to Chapter 207 at all. Verify applicability before placing the order. Title teams should review the dedicatory instruments to confirm the property is within a residential subdivision as defined by Section 207.001.

Master-planned communities. Many Texas properties sit under both a master association and a sub-association. Each may issue its own resale certificate with separate fees and separate assessments. Title teams must request certificates from every association with assessment authority. A closing file that contains only the master association certificate is incomplete.

Stale certificates. A certificate prepared 90 days before closing is invalid under Section 207.003(a)(3). Track the 60-day freshness rule carefully, especially in transactions with extended option periods or construction delays.

Self-managed associations. Self-managed POAs often lack standardized forms and may issue informal letters that omit required items. Title teams should not accept informal summaries. If the association refuses to provide a compliant certificate, escalate to the seller's agent or legal counsel.

Recent Legislative Updates (2024-2025)

The 89th Texas Legislature made significant changes to HOA and condominium law through Senate Bill 711, effective September 1, 2025. While SB 711 primarily targets condominium associations, title companies should understand the full landscape because the boundaries between condo and POA classification are not always obvious from the street address.

Condominium resale fee cap. Section 82.157 now caps condominium resale certificates at $375, matching the POA cap under Section 207.003. This eliminates the wide fee variance that previously plagued condo transactions.

Dual-filing requirement. Condominium associations must file management certificates with both the county clerk and TREC within 7 days of recordation. If an association has not filed a current management certificate with TREC, it cannot hold unit owners liable for attorney's fees or interest on delinquent assessments during the non-compliance period. Title teams can verify TREC filings through the commission's online database.

Website requirement. Condominium associations with 60 or more units, or those managed by a management company, must maintain a website with dedicatory instruments accessible to members. This does not apply to single-family POAs under Chapter 207, but it signals a broader legislative push toward digital transparency.

Legacy deadline. Associations that had a compliant management certificate on file before September 1, 2025, have until March 1, 2026, to file with TREC. Title teams working condo files through early 2026 should verify whether the association has met this deadline.

For a broader overview of Texas HOA law, see our complete guide to Texas HOA document laws.

Texas Resale Certificate Requirements Checklist

Requirement	Statute	What Title Teams Must Verify
Restrictions (CC&Rs)	§ 207.003(a)(1)	Current copy delivered
Bylaws and rules	§ 207.003(a)(2)	Current copy delivered
Resale certificate freshness	§ 207.003(a)(3)	Prepared within last 60 days
Right of first refusal / restraints	§ 207.003(b)(1)	Disclosed or waived
Regular assessments	§ 207.003(b)(2)	Frequency and amount stated
Special assessments	§ 207.003(b)(3)	Approved and due after delivery
Unpaid amounts attributable to property	§ 207.003(b)(4)	Total due and unpaid
Capital expenditures	§ 207.003(b)(5)	Approved for current fiscal year
Reserves	§ 207.003(b)(6)	Amount on hand
Operating budget and balance sheet	§ 207.003(b)(7)	Current financials included
Unsatisfied judgments	§ 207.003(b)(8)	Total disclosed
Pending litigation	§ 207.003(b)(9)	Style and cause number listed
Insurance certificate	§ 207.003(b)(10)	Property and liability coverage
Known violations	§ 207.003(b)(11)	Board's actual knowledge
Government code violations	§ 207.003(b)(12)	Health/housing notices received
Administrative transfer fee	§ 207.003(b)(13)	Amount stated
Managing agent contact	§ 207.003(b)(14)	Name, address, phone
Foreclosure for unpaid assessments	§ 207.003(b)(15)	Statement included
All transfer-related fees	§ 207.003(b)(16)	Description, payee, amount
Delivery timeline	§ 207.003(a)	10 business days from request
Fee cap	§ 207.003(c)	Max $375
Update timeline	§ 207.003(f)	7 business days; within 180 days
Section 5.012 notice	§ 5.012	Bold, underlined, buyer signature

Frequently Asked Questions

Does Texas Property Code Section 207 apply to all HOAs?

No. Section 207 applies specifically to property owners' associations in residential subdivisions. Condominium associations are governed by Chapter 82 of the Texas Property Code, which has separate resale certificate rules and fee caps. Title teams must confirm whether the property is a subdivision or a condominium before placing the order.

How long does a Texas POA have to deliver a resale certificate?

Under Section 207.003(a), a property owners' association must deliver the resale certificate and subdivision information not later than the 10th business day after receiving a written request and verifying the requestor's authority. For updates, Section 207.003(f) requires delivery within 7 business days.

What is the maximum fee for a Texas resale certificate?

Section 207.003(c) caps the fee at $375 to assemble, copy, and deliver the resale certificate and subdivision documents. An update fee is capped at $75. If the association fails to deliver within the statutory timeframe, it may not charge any fee.

What happens if the resale certificate is delivered late?

If the POA misses the 10-business-day deadline, it forfeits the right to charge a fee. The buyer's contractual review period is also delayed, which can push back closing. Title companies should not close with a gap in HOA disclosure unless gap coverage has been expressly underwritten.

Who is responsible for ordering the resale certificate?

The seller is statutorily responsible for providing the certificate to the buyer. In practice, the listing agent, escrow officer, or a document retrieval service places the order on the seller's behalf. The title company must ensure the request is directed to the correct association and that payment is handled before closing.

What is the TREC management certificate filing requirement?

Senate Bill 711, effective September 1, 2025, requires condominium associations to file management certificates with the Texas Real Estate Commission within 7 days of county recordation. Associations with a pre-existing certificate have until March 1, 2026, to comply. During non-compliance, the association cannot recover attorney's fees or interest on delinquent assessments from unit owners.

Key Takeaways

Texas title companies that build a Section 207 compliance workflow protect their closings from delay, fee disputes, and post-closing title claims. Here is what to remember:

• Chapter 207 applies to POAs, not condos. Confirm the property type before ordering documents.
• The resale certificate must contain 16 mandatory items. Do not close with an incomplete certificate.
• Delivery is due in 10 business days. Late delivery means no fee and a delayed closing.
• The fee cap is $375. Dispute any excess before funding.
• The certificate must be fresh. It cannot be prepared more than 60 days before delivery.
• Master-planned communities often have sub-associations. Request certificates from every association with assessment authority.
• SB 711 changed condo rules in 2025. Condominium associations now face TREC filing requirements and a $375 resale fee cap.

If your team is juggling multiple Texas HOA files and needs predictable turnaround, consider routing orders through a dedicated retrieval service that tracks statutory deadlines and verifies completeness before the package reaches your desk.