Does §207.003 apply to voluntary HOAs or only mandatory ones?

Section 207.003 applies to POAs that are entitled to levy regular or special assessments — which almost always means mandatory-membership POAs. Voluntary HOAs (association members join by choice rather than by property ownership) generally do not have assessment authority over non-members and typically do not fall under §207.003. The practical majority of Texas subdivisions with any HOA structure have mandatory membership and are covered.

What if the POA is dissolved or dormant?

A dissolved POA cannot issue a resale certificate because it no longer exists as a legal entity. In that case, the seller and title company must document the dissolution and confirm no assessments or liens remain outstanding. A dormant POA (existing but not currently functioning) presents a harder problem — the statute requires delivery, and dormancy is not a statutory excuse. Sellers and buyers in dormant-POA situations typically need to activate the POA or negotiate a title-insurance workaround.

Can the buyer close without the §207.003 package?

Practically, yes, but doing so waives significant statutory protection. The buyer proceeds without the reliance-based protection of §207.003(e) and takes the property subject to whatever undisclosed assessments, restrictions, or POA obligations may exist. Buyer's agents should advise against closing without the certificate absent a compelling reason and, if the buyer insists on proceeding, document the buyer's knowing waiver in writing.

Is the 60-day certificate age window a hard limit?

Yes for a fresh certificate. A resale certificate more than 60 days old at delivery does not satisfy §207.003(a). However, §207.003(f) allows an updated certificate to be requested within 180 days of the original — an update reflects any changes since the original preparation date and can be delivered in 7 business days. Sellers with slow-moving listings should build in periodic update requests to keep the certificate current through closing.

What is the TREC fee cap for a resale certificate?

Under §207.003(c), the fee to assemble, copy, and deliver the original resale certificate is capped by statute at $375. A separate $75 statutory cap applies to preparation and delivery of an updated resale certificate under §207.003(f). Under §207.003(c-1), no fee may be charged if the certificate is not provided within the 10-business-day statutory window. Fees exceeding the statutory caps or charged for a non-timely certificate can be challenged directly.

Which TREC form is the current 1-4 family residential contract?

The TREC One to Four Family Residential Contract (Resale) is TREC Form 20-18 in current usage. Paragraph 6 of TREC 20-18 addresses POA membership, incorporates the §5.012 notice through the mandatory POA addendum, and provides the framework under which the §207.003 resale package flows to the buyer during the option period. Licensees should verify they are using the current version of TREC 20-18 for any new listing in a POA subdivision.

Texas POA Resale Certificate: §207.003 Chapter 207 Framework

TL;DR

Texas subdivisions with mandatory-membership property owners' associations trigger three coordinated disclosure statutes. Property Code §207.003 (in Chapter 207) requires the POA to deliver, within 10 business days of a written request, the subdivision restrictions, POA bylaws and rules, and a resale certificate prepared no earlier than 60 days before delivery, covering 16 statutory items. Property Code §5.008 requires the seller to complete a Seller's Disclosure Notice on or before the effective date of the contract; §5.008(f) gives the buyer a 7-day termination right if delivery is late. Property Code §5.012 requires a separate written notice of mandatory HOA membership before contract execution. TREC's Subdivision Information Form (TREC 37-5) is the standard delivery vehicle for the §207.003 package in TREC-form transactions, and Paragraph 6 of the current One to Four Family Residential Contract (TREC 20-18) triggers the POA notice and review requirements. Failure to comply with these disclosure obligations exposes both seller and licensee to statutory remedies, buyer termination rights, and TREC disciplinary action.

The three overlapping disclosure regimes

Buying property in a Texas subdivision with mandatory POA membership triggers three distinct statutory disclosure obligations that overlap but do not duplicate each other. Understanding which statute produces which document — and which triggers termination rights when — is essential for licensees handling any transaction in a subdivision with a POA.

Statute	What It Requires	Delivered By	Timing
Property Code §5.008	Seller's Disclosure Notice covering property condition, including known HOA fees and assessments	Seller	On or before the effective date of an executory contract; under §5.008(f), if delivered late, buyer may terminate for any reason within 7 days after receipt
Property Code §5.012	Written notice of mandatory HOA membership, in the statutory form set out in the section	Seller	Before contract execution
Property Code §207.003	Current subdivision restrictions, POA bylaws and rules, and resale certificate	POA (upon written request routed through seller or buyer's agent)	Within 10 business days of written request; certificate must be prepared within 60 days of delivery

The §5.008 seller disclosure and §5.012 HOA notice are the seller's direct responsibilities. The §207.003 package is the POA's responsibility to prepare but is usually requested through the seller or seller's agent as part of preparing the property for sale. All three sets of documents typically arrive at the buyer within the first few days of the option period and support the buyer's due diligence review.

Section 207.003 — the POA's resale package

Section 207.003(a) requires the POA to deliver, within 10 business days of receiving a written request from an owner, purchaser, or title insurance company (or their agents), the following: (1) a current copy of the restrictions applying to the subdivision, (2) a current copy of the POA's bylaws and rules, and (3) a resale certificate prepared no earlier than the 60th day before the date the certificate is delivered.

The 60-day preparation window under §207.003 is longer than the 90-day/three-month window under §82.157 for condominium resale certificates, giving POA administrators slightly more room to reuse a recently prepared certificate. If the 60-day window is missed and a fresh certificate is required, §207.003(f) allows an "update" request that the POA must fulfill within 7 business days for a smaller scope of information reflecting changes since the original certificate.

What the §207.003 resale certificate must contain

Section 207.003(b) specifies the required content of the resale certificate, enumerating 16 items covering finances, transfer restrictions, legal exposure, insurance, and administrative details. The list is broadly parallel to the condominium §82.157 certificate but tailored to subdivision-POA governance. Required items include:

Any right of first refusal or other restraint on transfer contained in the restrictions, other than restraints prohibited by statute
Frequency and amount of any regular assessments
Amount and purpose of any approved special assessments due after the certificate is prepared
Total of all amounts due and unpaid to the POA attributable to the property
Any capital expenditures approved by the POA for the current fiscal year
Amount of any capital reserves and portions designated for specified projects
POA's current operating budget and balance sheet
Total of any unsatisfied judgments against the POA
Nature of any pending suits against the POA
Copy of the POA's property and liability insurance certificate for common areas and facilities
Whether the board has knowledge of restriction violations on the property
Whether the board has received notice from a governmental authority concerning health or housing-code violations affecting common areas or the property
Remaining term of any leasehold estate affecting the property
Name, mailing address, and phone number of the POA's managing agent, if any
Any administrative transfer fee and any fee for a foreclosure of a POA lien on the property
All other fees payable to the POA or its agent associated with the transfer of ownership, itemized with description, recipient, and amount

Under §207.003(e), a purchaser, lender, or title insurance company relying on a properly executed resale certificate is not liable for any debt or claim not disclosed in the certificate. An incomplete or erroneous certificate creates the same reliance-based protection for the buyer as §82.157 provides for condominium resales — the POA cannot deny statements in the certificate, and the buyer, lender, or title insurer relying on the certificate is not liable for undisclosed debts or claims.

Timing enforcement and the second-request escalation

If the POA does not deliver the §207.003 package within the 10 business day statutory period, the requestor can make a second written request. Under §207.004 (as amended by SB 1588, effective September 1, 2021), if that second request is delivered by certified mail (return receipt requested) or hand delivery evidenced by receipt, and the POA still fails to deliver before the fifth business day after the second request, the owner may seek one or any combination of four statutory remedies: (A) a court order directing the POA to furnish the required information; (B) a judgment against the POA for not more than $5,000 in damages; (C) a judgment for court costs and reasonable attorney's fees; or (D) authorization to deduct amounts awarded under (B) and (C) from future regular or special assessments payable to the POA. In parallel, the owner may deliver an affidavit to the buyer stating the POA failed to deliver the information — a §82.157-style workaround borrowed into the subdivision-POA context.

Under §207.003(c), the POA may charge a reasonable and necessary fee to assemble, copy, and deliver the subdivision information, not to exceed $375 by statute. Under the same subsection, the POA may charge a separate reasonable and necessary fee not to exceed $75 to prepare and deliver an updated resale certificate under §207.003(f). Under §207.003(c-1), the POA may not charge any fee if the certificate is not provided within the 10-business-day window under §207.003(a). Overcharging beyond the statutory caps or charging for a non-timely certificate can be challenged directly.

Section 5.012 — the standalone HOA membership notice

Section 5.012 of the Property Code requires the seller of a property subject to mandatory HOA membership to give the buyer a specific written notice before contract execution. The statute sets out the exact form of the notice, which discloses that the property is subject to a mandatory HOA and identifies (with cross-reference) the primary governance documents the buyer should review. The notice is distinct from the §207.003 resale package — §5.012 is a threshold notice of HOA existence; §207.003 is the substantive disclosure of the POA's financial and legal condition.

Section 5.012 delivery is the seller's responsibility, not the POA's. The TREC One to Four Family Residential Contract (TREC 20-18) addresses POA membership in Paragraph 6, incorporating the §5.012 notice through the mandatory Addendum for Property Subject to Mandatory Membership in a Property Owners' Association (currently TREC Form 36-11 following recent updates). A seller using non-TREC forms must independently comply with the §5.012 statutory language.

How this connects to §5.008 Seller's Disclosure

Property Code §5.008 requires the seller of most single-family residences to complete and deliver a Seller's Disclosure Notice to the buyer before contract execution. The notice discloses the seller's knowledge of property condition, defects, and (relevant here) known HOA fees and assessments. TREC promulgates the Seller's Disclosure Notice as Form 55-1 (formerly known as OP-H), and it interacts with §5.012 notice and the §207.003 resale package as parallel disclosures the buyer receives simultaneously.

A licensee representing a seller in a POA subdivision should treat the three disclosures — §5.008 Seller's Disclosure Notice, §5.012 HOA membership notice, and §207.003 POA resale package — as a coordinated pre-contract disclosure package. Preparing the §207.003 request early (10 business days plus buyer review time can easily consume two weeks) and coordinating the delivery timing of all three documents avoids last-minute closing delays. For the substantive §5.008 seller-disclosure framework, see our Texas Seller's Disclosure Notice guide. For the parallel condominium §82.157 regime that operates alongside §207.003 for condominium-form ownership, our Texas condominium §82.157 guide.

Frequently Asked Questions

Does §207.003 apply to voluntary HOAs or only mandatory ones?: Section 207.003 applies to POAs that are entitled to levy regular or special assessments — which almost always means mandatory-membership POAs. Voluntary HOAs (association members join by choice rather than by property ownership) generally do not have assessment authority over non-members and typically do not fall under §207.003. The practical majority of Texas subdivisions with any HOA structure have mandatory membership and are covered.
What if the POA is dissolved or dormant?: A dissolved POA cannot issue a resale certificate because it no longer exists as a legal entity. In that case, the seller and title company must document the dissolution and confirm no assessments or liens remain outstanding. A dormant POA (existing but not currently functioning) presents a harder problem — the statute requires delivery, and dormancy is not a statutory excuse. Sellers and buyers in dormant-POA situations typically need to activate the POA or negotiate a title-insurance workaround.
Can the buyer close without the §207.003 package?: Practically, yes, but doing so waives significant statutory protection. The buyer proceeds without the reliance-based protection of §207.003(e) and takes the property subject to whatever undisclosed assessments, restrictions, or POA obligations may exist. Buyer's agents should advise against closing without the certificate absent a compelling reason and, if the buyer insists on proceeding, document the buyer's knowing waiver in writing.
Is the 60-day certificate age window a hard limit?: Yes for a fresh certificate. A resale certificate more than 60 days old at delivery does not satisfy §207.003(a). However, §207.003(f) allows an updated certificate to be requested within 180 days of the original — an update reflects any changes since the original preparation date and can be delivered in 7 business days. Sellers with slow-moving listings should build in periodic update requests to keep the certificate current through closing.
What is the TREC fee cap for a resale certificate?: Under §207.003(c), the fee to assemble, copy, and deliver the original resale certificate is capped by statute at $375. A separate $75 statutory cap applies to preparation and delivery of an updated resale certificate under §207.003(f). Under §207.003(c-1), no fee may be charged if the certificate is not provided within the 10-business-day statutory window. Fees exceeding the statutory caps or charged for a non-timely certificate can be challenged directly.
Which TREC form is the current 1-4 family residential contract?: The TREC One to Four Family Residential Contract (Resale) is TREC Form 20-18 in current usage. Paragraph 6 of TREC 20-18 addresses POA membership, incorporates the §5.012 notice through the mandatory POA addendum, and provides the framework under which the §207.003 resale package flows to the buyer during the option period. Licensees should verify they are using the current version of TREC 20-18 for any new listing in a POA subdivision.

Bottom Line

Texas subdivisions with mandatory-membership POAs trigger three coordinated disclosure obligations. Property Code §5.008 requires the seller's own condition disclosure on or before the contract effective date (TREC Form 55-1), with a §5.008(f) 7-day buyer termination right if delivered late. Property Code §5.012 requires a standalone written notice of mandatory HOA membership before contract execution. Property Code §207.003 requires the POA to deliver, within 10 business days of a written request, the current subdivision restrictions, POA bylaws and rules, and a resale certificate prepared within 60 days of delivery — covering 16 statutory items on POA finances, seller obligations, legal exposure, insurance, transfer fees, and governmental violation notices. TREC 20-18 is the current 1-4 family residential contract, Paragraph 6 addresses POA membership through the current TREC Form 36-11 addendum, and TREC 37-5 is the standard Subdivision Information delivery form. Under §207.003(c), the fee for assembling and delivering the original certificate is capped by statute at $375; the same subsection sets a $75 statutory cap on the update fee under §207.003(f). Under §207.003(c-1), no fee may be charged if the certificate is not provided in the 10-business-day window. Owner remedies for late delivery are enumerated separately in §207.004 as amended by SB 1588 in 2021: up to $5,000 in damages, court order, court costs and reasonable attorney's fees, or future-assessment offset — available after the fifth business day following a second certified-mail request. For the parallel condominium regime under Chapter 82, see our Texas condominium §82.157 guide. For the substantive Seller's Disclosure Notice framework, our Texas Seller's Disclosure Notice guide. For the closing-related option-period termination mechanics, our Texas option period and earnest money guide.

Source: Texas Property Code Chapter 207 — Disclosure of Information by Property Owners' Associations · Texas Property Code Chapter 5 — Conveyances (including §§5.008 and 5.012) · TREC Promulgated Contract Forms