HOA fees in Texas are only one part of what a homeowners’ association can mean for your purchase. Before you lock in a contract, read the association’s resale certificate and rules, because they can affect your monthly budget, closing costs, what you can build, and the disputes you may inherit as a new owner.
TL;DR
- In Texas, a seller must give you a written notice before the contract binds you if the home comes with mandatory membership in a property owners’ association.
- The resale certificate under Texas Property Code Section 207.003 lists dues, special assessments, reserves, the budget, lawsuits, judgments, known violations, and transfer fees.
- TREC Form 36-11, effective July 1, 2026, sets who gets the certificate, who pays certain association charges, and when you can terminate after you receive it.
- HOA dues and special assessments count in the monthly housing expense used to review a mortgage file.
- Read the restrictions and architectural rules before you count on adding an office, shed, fence, or gate.
Why HOA paperwork matters for Texas buyers right now
A recent Austin-area case shows why the paperwork matters. A November 9, 2026 New York Post report described a six-year fight between a homeowner and the Davis Spring property owners’ association, which represents about 570 homes. The homeowner asked in 2020 to build a 160-square-foot backyard office, and the architectural review committee said no. A Williamson County district court later ruled that the guidelines did not contain a height restriction that barred it. The court awarded the homeowner $100,000 in attorney’s fees, and the Third Court of Appeals upheld that award and added $30,000 in conditional appellate fees. According to figures from the homeowner’s attorney, the association owed about $153,264 in fees, costs, and interest as of November 5.
One case does not predict another neighborhood’s outcome. The buyer lesson is simple: the recorded rules shape what you can build, and lawsuits or unpaid judgments involving the association are exactly the kind of items a Texas resale certificate must disclose.
A mortgage broker does not decide HOA disputes. We help with the financing side, and we review each file based on its facts, including the association documents.
What an HOA is in Texas, and the notice your seller must give
Texas law usually calls an HOA a property owners’ association. It collects assessments and enforces a subdivision’s recorded restrictions, bylaws, and rules. In many neighborhoods, membership is mandatory.
For a single-dwelling home with mandatory membership, Texas Property Code Section 5.012 requires the seller to give you written notice before the contract binds you. The notice says you must be a member and pay assessments, that the amount can change, and that failure to pay could lead to enforcement of the association’s lien and foreclosure.
If you sign a contract without getting that notice, Section 5.012 lets you terminate for any reason until the earlier of seven days after you receive the notice or closing. You can read the notice text, along with the separate public improvement district notice discussed below, in Texas Property Code Chapter 5.
Condominiums follow a different path. Condo resale certificates fall under Texas Property Code Section 82.157, and the HOA addendum below does not apply to condos.
The resale certificate: a snapshot of the association
A resale certificate is the association’s written snapshot of the property and the association. It does not replace reading the restrictions and rules, but it is one of the best tools for spotting problems early.
Under Section 207.003(b), the certificate must include:
- The amount and frequency of regular assessments.
- The amount and purpose of any special assessment approved before, and due after, the certificate is delivered.
- The total amount due and unpaid to the association for that property.
- Capital expenditures approved for the current fiscal year and the amount of reserves for capital expenditures.
- The current operating budget and balance sheet.
- The total of any unsatisfied judgments against the association, and the style and cause number of pending lawsuits it is a party to (other than suits over an individual owner’s unpaid property taxes).
- A certificate of insurance for the common areas, known violations on the property, and governmental health or housing code notices.
- Any right of first refusal or other restraint on transfer, the administrative transfer fee, the managing agent’s contact information, whether the restrictions allow foreclosure of the association’s lien, and a statement of all fees tied to the transfer.
Use that list to drive follow-up questions. What is a special assessment for? What is a pending lawsuit about? Does the home have an open violation? Which charges are due at closing?
The timing and fee rules are set by statute. The association must deliver the documents within 10 business days after receiving a written request and verifying the requester’s authority. The certificate must be prepared no earlier than 60 days before delivery. The fee may not exceed $375, and an update may not exceed $75. An update can be requested within 180 days and is due within seven business days. The association may not charge a fee if it does not deliver the certificate on time.
Section 207.005 gives the certificate real weight. The association may not deny the validity of any statement in it. Its lien for amounts that were due on the preparation date but not disclosed automatically terminates as to those amounts, and the buyer is not liable for debts or claims that existed on that date but were left out. The association can still collect amounts that come due later. If it fails to deliver, Section 207.004 sets out a second-request process and an affidavit the seller can give the buyer.
Under Section 207.006, an association with at least 60 lots, or one that uses a management company, must also post its recorded governing documents on a website available to members. You can read these rules in Texas Property Code Chapter 207.
The TREC HOA addendum (Form 36-11)
Texas resale contracts for a home with mandatory association membership use the Texas Real Estate Commission’s HOA addendum. The current version, TREC Form 36-11, took effect July 1, 2026, and replaced Form 36-10. It is not for condominiums.
Paragraph A gives four options, and only one box can be checked:
- The seller obtains, pays for, and delivers the Subdivision Information (the restrictions, bylaws, rules, and resale certificate) within the number of days written in the blank.
- The buyer obtains the Subdivision Information at the buyer’s expense within the number of days written in the blank.
- The buyer has already received and approved the Subdivision Information before signing, and states whether an updated resale certificate is required.
- The buyer does not require delivery of the Subdivision Information.
Under the first two options, you may terminate within 3 days after you receive the Subdivision Information or before closing, whichever comes first, and the earnest money is refunded. If the seller never delivers under the first option, you may terminate at any time before closing. Under the third option, you can require an updated certificate at your expense. The fourth option gives up that review window.
Under Paragraph B, the seller must tell you about material changes, and you may terminate before closing if the information was untrue or a material adverse change occurs. Paragraph C sets a dollar cap on association transfer fees, deposits, reserves, and other transfer charges you will pay. The seller pays any amount above the cap. Regular dues that are prorated at closing are handled separately. Two 2026 changes are worth knowing: if Paragraph C conflicts with the charges listed in the Subdivision Information, Paragraph C controls, and under the second option, the buyer no longer has to deliver a copy of the documents to the seller.
The form also notes that the association may be solely responsible for certain repairs. These elections and blanks affect your rights and your costs. Ask your agent to walk you through them, and consult a Texas real estate attorney with legal questions.
How HOA fees affect your mortgage file
HOA dues are not a side detail in a purchase file. For conventional loans that follow Fannie Mae’s monthly housing expense guidance, the housing expense (often called PITIA) includes special assessments and owners’ association dues, along with principal and interest, insurance, and real estate taxes. That means dues and assessments are part of the debt-to-income review.
Tell your broker the HOA amount as soon as you pick a property. Include how often it is billed (monthly, quarterly, or yearly) and any special assessment you know about. A late HOA number can change the math on a file near closing.
Your Loan Estimate is another place to check. The Consumer Financial Protection Bureau’s Loan Estimate explainer points buyers to the Estimated Taxes, Insurance & Assessments section and explains that items not held in escrow are paid directly, often in larger lump sums. HOA dues are often billed by the association and paid by the owner directly instead of through an escrow account, so plan for each due date.
Dues that do not run through escrow still belong in your household budget. Add them to taxes, insurance, utilities, and normal upkeep when you work through how much house you can afford in Texas.
Association charges can also show up at closing. The resale certificate fee, the transfer fee, a reserve or working-capital contribution, and prorated dues may all appear on the settlement figures, depending on what the contract says. For the bigger picture, see our guide to Texas closing costs. Ask for an itemized list instead of a single estimate.
Other assessments buyers confuse with HOA fees
Not every neighborhood charge is an HOA fee. Two common Texas examples are public improvement districts (PIDs) and municipal utility districts (MUDs). A PID can levy assessments on property to pay for public improvements or services in the district. Under Property Code Section 5.014, the seller must first give you a written PID notice. The standard notice says an assessment has been levied, that it may be paid in full at any time, and that if it is not, it is due in annual installments that can vary from year to year.
A MUD is a special district that often provides water, sewer, and drainage service and may be financed with bonds paid from district taxes. Texas Water Code Section 49.452 requires the seller to give you notice about the district before a binding contract. MUD taxes generally appear on your property tax bill, not your HOA statement.
A newer subdivision can have an HOA, a PID, a MUD, all three, or none. If you are looking at a recently built home, our article on new construction homes and builder incentives in Texas covers more questions to ask.
Rules, architectural review, and what you plan to build
Don’t rely on a verbal summary of the rules. Before you buy, read the declaration or restrictions, bylaws, current rules, and architectural guidelines. Look for anything that affects sheds, offices, fences, gates, parking, rentals, and signs.
Ask whether the property has an open violation, whether the seller has a pending architectural request, and whether the work you plan will need approval. If a project is a main reason you want the house, review the documents and the approval path with a Texas real estate attorney before you are bound.
Texas law also sets some limits on associations. Property Code Section 209.00505 applies to associations with more than 40 lots once the developer no longer controls architectural review. If the architectural review authority denies an owner’s project, the owner must get written notice that explains the reason in reasonable detail, and the owner can appeal to the board and request a hearing within 30 days. Senate Bill 711, effective September 1, 2025, added a rule that these associations ask owners to volunteer before seating architectural review members. It also changed which fencing and driveway-gate rules an association may enforce. Treat an online summary as a reason to ask, not as permission to build.
HOA fees and documents: do’s and don’ts
Do
- Ask for the seller’s HOA notice and the resale certificate early in the deal.
- Compare the certificate with the listing, the seller’s disclosure, the restrictions, and how you plan to use the home.
- Ask about dues, special assessments, reserves, capital projects, lawsuits, judgments, insurance, and violations.
- Give your broker the HOA dues and any known assessments as soon as you have them.
- Ask your agent and a Texas real estate attorney about contract deadlines and termination rights.
Avoid
- Checking the box that says you do not need the Subdivision Information without understanding what you give up.
- Assuming low regular dues mean there are no other association charges or district assessments.
- Assuming an office, shed, fence, gate, or rental plan is allowed before you read the rules.
- Confusing an HOA with a PID or a MUD.
- Waiting until closing week to read a certificate that may show a lawsuit, a violation, or a special assessment.
FAQ: HOA fees in Texas
Q: What do HOA fees in Texas usually cover?
A: It depends on the community. Dues can pay for common-area upkeep, amenities, management, insurance on common areas, and reserves. Read the budget instead of comparing dollar amounts alone.
Q: Are HOA dues counted when my mortgage file is reviewed?
A: Yes. Under the Fannie Mae guidance cited above, owners’ association dues and special assessments are part of the monthly housing expense, and other loan programs also count association dues. Share the amount, how often it is billed, and the association documents early. We review each file based on its facts, and reviewing the dues is part of that work. It is not a promise of any outcome.
Q: What should I look for first in a resale certificate?
A: Start with regular and special assessments, any unpaid amounts on the property, reserves, approved capital projects, the budget and balance sheet, lawsuits, judgments, and known violations. Then check transfer fees and any restraints on transfer.
Q: Who pays HOA transfer fees and the resale certificate fee?
A: The contract decides. Under Section 5.012, the buyer pays the association’s fee for the resale certificate unless the buyer and seller agree otherwise. In TREC Form 36-11, Paragraph A says who obtains and pays for the Subdivision Information, and Paragraph C sets the cap on transfer charges the buyer pays, with the seller paying any excess. Read the completed form, not a rule of thumb.
Q: Can I cancel a Texas contract after I receive the HOA resale certificate?
A: If your contract uses option 1 or option 2 in Paragraph A of Form 36-11, you may terminate within 3 days after you receive the Subdivision Information or before closing, whichever comes first, and get your earnest money back. Confirm your exact dates with your real estate agent and, if needed, a Texas real estate attorney.
Plan your Texas purchase with a mortgage broker
Buying in an HOA neighborhood involves more than the home’s price. The Texas Mortgage Pros is a mortgage broker. We can help you compare home purchase loan options from the wholesale mortgage companies we work with, subject to qualification and program availability, and keep HOA dues, assessments, and closing charges aligned with your financing. Buying for the first time? Start with our first-time homebuyer loans page.
Questions about HOA fees in Texas and your home loan? Call (877) 280-4833, apply online, or contact us.
Official sources
- New York Post: Texas homeowner wins $100K after nightmare 6-year battle with HOA over tiny backyard office (November 9, 2026) (linked above)
- Texas Property Code Chapter 5, including Sections 5.012 (property owners’ association notice) and 5.014 (public improvement district notice) (linked above)
- Texas Property Code Chapter 207, including Sections 207.003, 207.004, 207.005, and 207.006 (linked above)
- Texas Real Estate Commission: Addendum for Property Subject to Mandatory Membership in a Property Owners Association, TREC Form 36-11, effective July 1, 2026 (linked above)
- Fannie Mae Selling Guide B3-6-03, Monthly Housing Expense for the Subject Property (linked above)
- Consumer Financial Protection Bureau: Loan Estimate explainer (linked above)
- Texas Property Code Section 82.157 (condominium resale certificates) and Section 209.00505 (architectural review authority)
- Texas Water Code Section 49.452 (notice to purchasers in certain districts)
- Texas Legislature: Senate Bill 711, 89th Legislature, Regular Session (effective September 1, 2025)
Wikipedy is not affiliated with or endorsed by the Texas Real Estate Commission, Fannie Mae, the Consumer Financial Protection Bureau, the Texas Legislature, any property owners’ association, or the New York Post, and this is not a government document.
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