The Texas Property Code includes provisions related to the management of property owners’ associations in residential subdivisions.
Under Section 209.004, these associations are required to record a management certificate in each county where the subdivision is located. This certificate must include information such as the name of the subdivision, the name and contact information of the association and its managing agent, and any fees related to property transfers in the subdivision. The association is also required to file an amended management certificate within 30 days of any changes to the recorded information. The management certificate must be filed with the county clerk’s office and electronically with the Texas Real Estate Commission, which makes the data available to the public on its website.
In addition, the Property Code provides protections for purchasers, lenders, and title insurance companies in transactions involving property in a property owners’ association that has failed to file a required management certificate. These parties are not liable to the association for any debts or amounts due on the date of transfer to a bona fide purchaser, and a lien of the association to secure an amount due on the effective date of transfer is only enforceable for amounts incurred after the sale. Furthermore, an owner is not liable for attorney’s fees or interest on delinquent assessments if they are incurred or accrue during the period when a management certificate is not properly filed.
Get Help Updating your Management Certificates with Manning & Meyers
The process of updating your Management Certificates should be taken with care. Your lawyer should review old and new copies of any changes you want and provide feedback on the best way to accomplish changes.
If you wish to update your management certificate, contact an experienced Dallas HOA lawyer at Manning & Meyers for a complimentary consultation.