2009 Texas Code
PROPERTY CODE
TITLE 11. RESTRICTIVE COVENANTS
CHAPTER 207. DISCLOSURE OF INFORMATION BY PROPERTY OWNERS' ASSOCIATIONS  

PROPERTY CODE

TITLE 11. RESTRICTIVE COVENANTS

CHAPTER 207. DISCLOSURE OF INFORMATION BY PROPERTY OWNERS'

ASSOCIATIONS

Sec. 207.001. DEFINITIONS. In this chapter:

(1) "Restrictions" has the meaning assigned by Section 201.003.

(2) "Dedicatory instrument," "property owners' association," and

"restrictive covenant" have the meanings assigned by Section

202.001.

(3) "Owner" means a person who owns record title to property in

a subdivision or the personal representative of an individual who

owns record title to property in a subdivision.

(4) "Regular assessment" and "special assessment" have the

meanings assigned by Section 204.001.

(5) "Resale certificate" means a written statement issued,

signed, and dated by an officer or authorized agent of a property

owners' association that contains the information specified by

Section 207.003(b).

(6) "Subdivision" means all land that has been divided into two

or more parts and that is or was burdened by restrictions

limiting at least the majority of the land area burdened by

restrictions, excluding streets and public areas, to residential

use only, if the instrument or instruments creating the

restrictions are recorded in the deed or real property records of

a county.

Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1,

1999.

Sec. 207.002. APPLICABILITY. This chapter applies to a

subdivision with a property owners' association that is entitled

to levy regular or special assessments.

Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1,

1999.

Sec. 207.003. DELIVERY OF SUBDIVISION INFORMATION TO OWNER. (a)

Not later than the 10th day after the date a written request for

subdivision information is received from an owner, owner's agent,

or title insurance company or its agent acting on behalf of the

owner, the property owners' association shall deliver to the

owner, owner's agent, or title insurance company or its agent:

(1) a current copy of the restrictions applying to the

subdivision;

(2) a current copy of the bylaws and rules of the property

owners' association; and

(3) a resale certificate that complies with Subsection (b).

(b) A resale certificate under Subsection (a) must contain:

(1) a statement of any right of first refusal or other restraint

contained in the restrictions or restrictive covenants that

restricts the owner's right to transfer the owner's property;

(2) the frequency and amount of any regular assessments;

(3) the amount of any special assessment that is due after the

date the resale certificate is prepared;

(4) the total of all amounts due and unpaid to the property

owners' association that are attributable to the owner's

property;

(5) capital expenditures, if any, approved by the property

owners' association for the property owners' association's

current fiscal year;

(6) the amount of reserves, if any, for capital expenditures;

(7) the property owners' association's current operating budget

and balance sheet;

(8) the total of any unsatisfied judgments against the property

owners' association;

(9) the style and cause number of any pending lawsuit in which

the property owners' association is a defendant;

(10) a copy of a certificate of insurance showing the property

owners' association's property and liability insurance relating

to the common areas and common facilities;

(11) a description of any conditions on the owner's property

that the property owners' association board has actual knowledge

are in violation of the restrictions applying to the subdivision

or the bylaws or rules of the property owners' association;

(12) a summary or copy of notices received by the property

owners' association from any governmental authority regarding

health or housing code violations existing on the preparation

date of the certificate relating to the owner's property or any

common areas or common facilities owned or leased by the property

owners' association;

(13) the amount of any administrative transfer fee charged by

the property owners' association for a change of ownership of

property in the subdivision;

(14) the name, mailing address, and telephone number of the

property owners' association's managing agent, if any; and

(15) a statement indicating whether the restrictions allow

foreclosure of a property owners' association's lien on the

owner's property for failure to pay assessments.

(c) A property owners' association may charge a reasonable fee

to assemble, copy, and deliver the information required by this

section and may charge a reasonable fee to prepare and deliver an

update of a resale certificate under Subsection (f).

(d) The property owners' association shall deliver the

information required by Subsection (a) or (f) to the person

specified in the written request. A written request that does

not specify the name and location to which the information is to

be sent is not effective. The property owners' association may

deliver the information required by Subsection (a) and any update

to the resale certificate required by Subsection (f) by mail,

hand delivery, or alternative delivery means specified in the

written request.

(e) Unless required by a dedicatory instrument, neither a

property owners' association or its agent is required to inspect

a property before issuing a resale certificate or an update to a

resale certificate.

(f) Not later than the seventh day after the date a written

request for an update to a resale certificate delivered under

Subsection (a) is received from an owner, owner's agent, or title

insurance company or its agent acting on behalf of the owner, the

property owners' association shall deliver to the owner, owner's

agent, or title insurance company or its agent an updated resale

certificate that contains the following information:

(1) if a right of first refusal or other restraint on sale is

contained in the restrictions, a statement of whether the

property owners' association waives the restraint on sale;

(2) the status of any unpaid special assessments, dues, or other

payments attributable to the owner's property; and

(3) any changes to the information provided in the resale

certificate issued under Subsection (a).

(g) Requests for an updated resale certificate pursuant to

Subsection (f) must be made within 180 days of the date a resale

certificate is issued under Subsection (a). The update request

may be made only by the party requesting the original resale

certificate.

Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

147, Sec. 1, eff. September 1, 2009.

Sec. 207.004. OWNER'S REMEDIES FOR FAILURE BY PROPERTY OWNERS'

ASSOCIATION TO TIMELY DELIVER INFORMATION. (a) If a property

owners' association does not timely deliver information in

accordance with Section 207.003, the owner, owner's agent, or

title insurance company or its agent acting on behalf of the

owner may submit a second request for the information.

(b) If a property owners' association fails to deliver the

information required under Section 207.003 before the seventh day

after the second request for the information was mailed by

certified mail, return receipt requested, or hand delivered,

evidenced by receipt, the owner:

(1) may seek one or any combination of the following:

(A) a court order directing the property owners' association to

furnish the required information;

(B) a judgment against the property owners' association for not

more than $500;

(C) a judgment against the property owners' association for

court costs and attorney's fees; or

(D) a judgment authorizing the owner or the owner's assignee to

deduct the amounts awarded under Paragraphs (B) and (C) from any

future regular or special assessments payable to the property

owners' association; and

(2) may provide a buyer under contract to purchase the owner's

property an affidavit that states that the owner, owner's agent,

or title insurance company or its agent acting on behalf of the

owner made, in accordance with this chapter, two written requests

to the property owners' association for the information described

in Section 207.003 and that the association did not timely

provide the information.

(c) If the owner provides a buyer under contract to purchase the

owner's property an affidavit in accordance with Subsection

(b)(2):

(1) the buyer, lender, or title insurance company or its agent

is not liable to the property owners' association for:

(A) any money that is due and unpaid to the property owners'

association on the date the affidavit was prepared; and

(B) any debt to the property owners' association or claim by the

property owners' association that accrued before the date the

affidavit was prepared; and

(2) the property owners' association's lien to secure the

amounts due the property owners' association on the owner's

property on the date the affidavit was prepared shall

automatically terminate.

Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1,

1999.

Sec. 207.005. EFFECT OF RESALE CERTIFICATE; LIABILITY. (a) A

property owners' association may not deny the validity of any

statement in the resale certificate. The property owners'

association's lien to secure undisclosed amounts due the property

owners' association on the date the resale certificate is

prepared shall automatically terminate as a lien securing the

undisclosed amount. A buyer, buyer's agent, owner, owner's agent,

lender, and title insurance company and its agent are not liable

for any debt or claim existing on the preparation date of the

resale certificate that is not disclosed in the resale

certificate.

(b) A resale certificate does not affect:

(1) the right of a property owners' association to recover debts

or claims that arise or become due after the date the resale

certificate is prepared; or

(2) a lien on a property securing payment of future assessments

held by the property owners' association.

(c) The owner's agent and the title insurance company and its

agent are not liable to a buyer for any delay or failure by the

property owners' association in delivering the information

required by Section 207.003.

(d) Except as provided by Section 207.004, the property owners'

association is not liable to an owner selling property in the

subdivision for delay or failure to deliver the information

required by Section 207.003. An officer or agent of the property

owners' association is not liable for a delay or failure to

furnish a resale certificate.

Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1,

1999.