We are frequently asked by our clients about resale certificates.
Section 207 of The Texas Property Code governs resale certificates provided to purchasers of townhomes and residential subdivisions. Per Section 207.003 of the Texas Property Code, a resale certificate must contain the following information:
1) Dedicatory Instruments of Association.
2) Statement of Right of First Refusal or any other restriction on owner’s right to transfer property (other than restriction prohibited by statute).
3) Special Assessments approved before and due after resale is delivered.
4) Total amount of dues that are due and unpaid on property.
5) Capital Expenditures approved by Association.
6) Reserves of Association.
7) Operating Budget and Balance Sheet.
8) Unsatisfied Judgments against Association.
9) Pending lawsuits in which Association is a party (must include style and cause number).
10) Certificate of Insurance showing property and liability insurance.
11) Violations currently existing on owner’s property.
12) Housing or health code violations existing in the Association.
13) Transfer fee charged by Association.
14) Contact info for Management Company.
15) Whether Association may foreclose for unpaid assessments.
16) Description of each fee associated with the transfer of ownership, including amount of each fee.