When selling a home in an HOA, you must disclose all HOA fees, rules, restrictions, and pending special assessments. Provide the buyer with copies of the HOA's governing documents, financial statements, meeting minutes, and any pending violations. The buyer's lender will also need HOA documents to process the loan, so having them ready speeds up the closing.
HOA Disclosure Requirements in Texas
Texas sellers must disclose all material facts about the HOA including: monthly or annual assessment amounts, any pending or planned special assessments, HOA rules and restrictions (CC&Rs), any outstanding violations or fines, and pending litigation involving the HOA. This is typically done through the Seller's Disclosure Notice and by providing the HOA resale certificate.
Documents Buyers and Lenders Need
Buyers will want to review: the HOA's Declaration of Covenants, Conditions, and Restrictions (CC&Rs), bylaws, rules and regulations, most recent financial statements, meeting minutes from the past year, and the HOA's insurance certificate. Lenders require the HOA questionnaire or resale certificate to verify the association's financial health before approving the loan.