Many people are familiar with the term "homeowners' association" or an "HOA." In Texas statutes, these organizations are known as "property owners' associations" or "POAs." Section 202.001 of the Texas Property Code defines a POA as:
[A]n incorporated or unincorporated association owned by or whose members consist primarily of the owners of the property covered by the dedicatory instrument and through which the owners, or the board of directors or similar governing body, manage or regulate the residential subdivision, planned unit development, condominium or townhouse regime, or similar planned development.
The following articles describe the purpose and functions of a property owners' association.
A brief overview of the functions and workings of property owners' associations in Texas. A closer look at the function and purpose of the HOA.The following Texas statutes are the ones we reference most frequently, but other laws may also apply. If you need legal advice or help with a specific situation, consider talking to an attorney.
Chapters 201-215 govern property owners' associations in Texas.This chapter discusses restrictive covenants, their construction, and enforcement. It lists certain restrictions that are prohibited by law and contains a provision related to an association's duty to file dedicatory instruments with the county.
The Texas Residential Property Owners Protection Act is the state law that covers various issues such as board governance, elections and voting, record-keeping and an owner's right to access records, protections regarding third-party collections, required notices, foreclosures for assessment liens, and regulations on leases.
This chapter of Texas law discusses the formation of nonprofit corporations. Because many property owners' associations incorporate as nonprofits, this chapter will provide guidance on how these associations must be formed and operated.
Note Condominium owners' associations are legally distinct from other types of property owners' associations. This guide's main focus is on property owners' associations in residential subdivisions. Most laws discussed in this guide will not apply to condominiums.
Most condominium associations are governed by the Texas Uniform Condominium Act (Chapter 82 of the Texas Property Code). Provisions in the Texas Condominium Act (Chapter 81) may apply to older condominium associations established before 1994.
This chapter governs the creation, alteration, and termination of condominiums, condominium management, and purchase protections.
Provisions that may apply to condominium entities created before 1994.This chapter discusses restrictive covenants, their construction, and enforcement. It lists certain restrictions that are prohibited by law and contains a provision related to an association's duty to file dedicatory instruments with the county.
This chapter of Texas law discusses the formation of nonprofit corporations. Because many property owners' associations incorporate as nonprofits, this chapter will provide guidance on how these associations must be formed and operated.
Many property owners' associations in Texas are formed as nonprofit corporations. This means that they are business entities formally created under Texas law and registered with the Secretary of State. For this reason, when asked questions about the functions of an HOA, our librarians often refer people to the Texas law on nonprofit corporations.
Some property owners' associations are not formally incorporated. If your association has not been incorporated as a nonprofit corporation, many of the laws cited in this guide will not apply.
Some associations choose to incorporate as a nonprofit. Others operate as an unincorporated nonprofit. This guide from Texas C-BAR explains the difference between the two types of organizations.
The Secretary of State's website will allow you to search to see if your property owners' association is a nonprofit corporation. If so, this website will allow you to see its articles of incorporation and other documents related to its formation. Please note: registration is required and there is a $1 fee per search.
This chapter of Texas law discusses the formation of nonprofit corporations. Because many property owners' associations incorporate as nonprofits, this chapter will provide guidance on how these associations must be formed and operated.
You will usually know if you are part of a property owners' association. You'll typically have to pay dues and abide by various neighborhood rules.
However, there are several other ways to find out if a property belongs to an association:
A property owners' association must record a management certificate with the county and electronically file it with the Texas Real Estate Commission (TREC).
Texas Property Code, Section 5.008 requires sellers to disclose if they are aware of a "Homeowners' Association or maintenance fees or assessments." Examples of the notice forms are available through the Texas Real Estate Commission (TREC) and the Texas REALTORS.
In addition, Sect. 5.012 states that the seller must provide the buyer with a "Notice of Obligations Related to Membership in a Homeowners' Association." Both notices must be provided before the contract is signed or as part of the contract.
Not all property sales are subject to these mandatory disclosures. Talk to your real estate agent or consult an attorney for more information.
If the property is part of an association, the buyer may request a document called "resale certificate" and any governing documents of the association. The certificate summarizes the association's financial status, fee structures, and any unpaid debts owed by the property in question, among other information. Preparation of these records can cost up to $375.
Seller of residential property must provide notice of obligations related to membership in a property owner's association.
A property owners' association must provide certain documents to the owner or prospective buyer upon request.
