HOA Disclosure Requirements

Under the Texas Property Code, sellers in an HOA must provide the buyer with the HOA's governing documents, including the declaration of covenants, conditions, and restrictions (CC&Rs), bylaws, rules and regulations, and the most recent financial statement. These documents give the buyer full transparency about what they are agreeing to live under.

You must also disclose the current HOA fee amount, any pending or recent special assessments, and any violations or fines on your property. Buyers have a right to know about upcoming assessments that could affect their monthly costs. Be upfront. An HOA with a low fee but a large upcoming special assessment can be a deal breaker if discovered late in the process.

Many HOAs charge a resale certificate fee to prepare these documents. Factor this into your closing cost estimate. The turnaround time for HOA documents varies, so request them early. A delay in receiving HOA documents can push your closing date.

Documents Buyers Will Want

Beyond the required disclosures, prepare a package with: contact information for the HOA management company, a copy of the insurance certificate for common areas, the budget and reserve study, meeting minutes from the last annual meeting, and any recent newsletters. Buyers appreciate seeing how the HOA is managed financially. A well-funded reserve fund is a green flag. An underfunded reserve is a risk worth flagging.

If your HOA has rental restrictions, pet policies, or architectural guidelines, highlight those for the buyer. A buyer with a rental property or a specific pet breed needs to know these details before committing. Full disclosure upfront builds trust and keeps the deal on track.