Texas HOA Resale Certificate Fees: The $375/$30 Caps Explained
A homeowner is selling their house. The title company sends your board a request for the resale certificate. Somewhere in your files, you've seen a management company charge $400 for this document. Your neighbor's HOA charges $200. A board member suggests $500 because the treasurer spent four hours compiling the numbers. Under §207.003, none of those amounts matter — the cap is $375, the update cap is $30, and the clock is five business days.
Texas Property Code §207.003 governs HOA resale certificates — the disclosure document a property owners association must provide when a homeowner sells their property. The statute sets fee caps, delivery deadlines, and content requirements. SB 1588 did not change the fee caps directly, but it added §209.017 (justice court jurisdiction), which gives buyers and sellers a low-cost enforcement path when an association mishandles the resale certificate process.
This article covers what you can charge, what you must include, how fast you must deliver, and the specific mistakes that expose your board to a justice court claim.
What is a resale certificate?
A resale certificate is the disclosure document that tells a prospective buyer what they are walking into when they purchase a property in your HOA. It discloses the association's financial health, any outstanding assessments or violations against the property, the governing documents, and the current assessment amounts.
Title companies require it before closing. Buyers rely on it to understand their financial obligations. The seller needs it delivered on time to avoid delaying the sale.
For self-managed boards, the resale certificate is often the single most time-sensitive document your association produces. A management company handles this routinely — when the board self-manages, someone needs to compile the information, apply the correct fee, and deliver the certificate within the statutory window.
The two lanes on resale certificates
Lane 1: "A title company just requested a resale certificate and we've never done one." Common for newly self-managed boards. The request arrives, the board does not have a template, and the five-business-day clock is already running. This article gives you the structure.
Lane 2: "We've been charging whatever our management company charged, and we're not sure the fee is right." Also common. Many boards inherited fee schedules from a prior management company that exceed the statutory cap. If your association has been charging $400 or $500 per resale certificate, every fee above $375 is a potential refund obligation.
The fee caps: $375 original, $30 update
§207.003 sets two fee caps:
| Document | Maximum fee | When it applies |
|---|---|---|
| Resale certificate (original) | $375 | First request for the certificate in connection with a property sale |
| Resale certificate update | $30 | Updated certificate requested after the original was delivered — typically when the closing date moves and the title company needs current figures |
These caps are statutory maximums, not suggested prices. Your association can charge less than $375. Many self-managed boards charge $100–$200 because the actual work is modest — pulling the homeowner's ledger, confirming assessment amounts, and compiling the document. But charging more than $375 violates §207.003 regardless of how much work went into it.
The update fee cap of $30 is the one boards most often exceed without realizing it. When a closing is rescheduled and the title company requests a refreshed certificate, some associations charge the full original fee again. Under §207.003, the update is capped at $30.
What the fee covers: The fee compensates the association for the labor of compiling the certificate. It does not include charges for copying governing documents, which the association may charge separately at reasonable copy costs. However, bundling a $375 certificate fee with a $200 "document package" fee is a practice that invites challenge — the total charge must not function as an end-run around the $375 cap.
The five-business-day delivery deadline
§207.003 requires the association to deliver the resale certificate within five business days of receiving the second written request from the property owner or the owner's agent (typically the title company or listing agent).
The two-request structure works like this:
- First request — The title company or owner sends a written request for the resale certificate. This starts the process but does not start the five-day clock.
- Second written request — If the certificate has not been delivered, a second written request triggers the five-business-day deadline.
In practice, most title companies send both requests simultaneously (or the first request states it also serves as the second). When the requests arrive together, the five-business-day clock starts immediately.
What "business days" means: Monday through Friday, excluding state and federal holidays. If the second request arrives on Wednesday, the five-business-day deadline is the following Wednesday (assuming no holidays).
What happens if you miss the deadline: The statute provides consequences for late delivery. Under §207.003, the property owner is entitled to damages if the association fails to deliver the resale certificate within the statutory window. With §209.017 in play, a justice court filing costs the buyer or seller under $75 — and the association shows up needing to explain why a routine document was late.
What the resale certificate must contain
§207.003 specifies the required contents. The certificate must include:
| # | Required content | What it looks like in practice |
|---|---|---|
| 1 | Regular and special assessments — current amounts, frequency, due dates | Annual/quarterly assessment amount, any active special assessment with remaining balance |
| 2 | Unpaid assessments against the property | Current balance owed by the selling homeowner, including any late fees or interest |
| 3 | Capital expenditures approved or planned for the current fiscal year | Board-approved capital projects, amounts, and whether a special assessment funds them |
| 4 | Reserve fund balance and any known funding deficiency | Current reserve account balance, last reserve study date if available |
| 5 | Insurance coverage — types and carrier information | D&O, fidelity, property, umbrella — policy types and carriers |
| 6 | Pending litigation involving the association | Any active lawsuits, claims, or known pending legal actions |
| 7 | Outstanding violations against the property | Any open violations, notices, or fines against the property being sold |
| 8 | Governing documents — or a statement of where they can be obtained | CC&Rs, bylaws, rules, and amendments — or a URL where they are posted (per §209.005) |
The certificate must be accurate as of the date it is issued. Providing outdated assessment amounts or failing to disclose a pending special assessment creates liability — the buyer relies on this document, and inaccuracies can lead to claims after closing.
Where boards fail on resale certificates
Four failure patterns that create justice court exposure:
Overcharging. Charging more than $375 for the original certificate or more than $30 for an update. Some management companies historically charged $400–$600 by bundling additional fees. If your association is self-managed and inherited that fee schedule, update it. The statutory cap is the ceiling.
Late delivery. The five-business-day window is missed because the board member responsible for compiling the certificate was unavailable, or the request sat in a PO box for three days before anyone retrieved it. For self-managed boards, the single biggest operational risk on resale certificates is that no one is assigned to monitor for incoming requests.
Incomplete content. The certificate omits required fields — most commonly pending litigation, reserve fund balance, or outstanding violations against the property. A certificate that discloses the assessment amount but not the $15,000 special assessment the board approved last month is materially incomplete.
Refusing to issue. Some boards refuse to provide a resale certificate until the selling homeowner pays their delinquent balance. Under §207.003, the association must provide the certificate regardless of the homeowner's account status. The certificate discloses the delinquency — it does not require the delinquency to be cured before issuance.
The resale certificate discloses the problem. It does not fix the problem. Your association must issue the certificate regardless of what the homeowner owes.
The Resale Certificate Compliance Checklist
| # | Requirement | Statute | What proof looks like |
|---|---|---|---|
| 1 | Fee for original certificate does not exceed $375 | §207.003 | Fee schedule on file showing $375 or less |
| 2 | Fee for certificate update does not exceed $30 | §207.003 | Fee schedule with update fee listed separately |
| 3 | Certificate delivered within 5 business days of second written request | §207.003 | Request log with date received, certificate delivery date, and delivery confirmation |
| 4 | Certificate contains all required disclosures (assessments, unpaid balances, capital expenditures, reserves, insurance, litigation, violations, governing documents) | §207.003 | Completed certificate template with all fields addressed |
| 5 | Certificate issued regardless of homeowner's account status | §207.003 | Certificates issued to delinquent accounts with delinquency disclosed |
| 6 | Management certificate on file with county and TREC (required for lien enforcement referenced in the resale certificate) | §209.004 | Current management certificate filing — see management certificate article |
If your fee schedule shows anything above $375, row 1 is broken. If nobody monitors incoming requests, row 3 is at risk.
How resale certificates connect to the management certificate
The resale certificate and the management certificate are different documents that interact during a property closing:
- The management certificate (§209.004) identifies the association, its officers, and its contact information. It is filed with the county clerk and TREC. Title companies use it to verify who to contact.
- The resale certificate (§207.003) discloses the property-specific financial and compliance status. It is delivered to the requesting party (title company, buyer, or seller's agent).
If your management certificate is missing or outdated, the title company may not know who to contact for the resale certificate. If the management certificate lists a former president who no longer responds, the resale certificate request sits unanswered and the five-business-day window expires with no one aware.
The two filings work together. The management certificate tells the world who your association is. The resale certificate tells the buyer what the association's financial obligations look like for the specific property they are purchasing.
Setting up a resale certificate process for a self-managed board
If your board handles resale certificates directly:
Designate a single point of contact for resale certificate requests. This person monitors the association's mailing address and email for incoming requests from title companies. If the contact is unavailable (vacation, term ends), there must be a backup.
Create a standard template that includes all eight required content fields. Fill in the static fields (association name, assessment amounts, governing document URLs) in advance. The property-specific fields (unpaid balance, outstanding violations) get populated per request.
Log every request. Date received, requesting party, property address, date certificate delivered, fee charged. This log is your Layer 3 proof if delivery timing is challenged.
Set the fee at or below $375. Post the fee on your community website and in the template itself, so no one on the board freelances a higher amount.
Track the five-business-day deadline. When a request arrives, calculate the deadline and put it on the calendar. Treat it like a filing deadline — because it is one.
HOADirect automates the resale certificate workflow — incoming requests are logged with timestamps, the certificate template pre-populates from the homeowner's account data, the five-business-day countdown is tracked in the compliance dashboard, and the fee is locked to the statutory cap. See features →
A quick word on what's not in this article
- Subdivision information forms. Some counties and title companies request a "subdivision information" questionnaire in addition to the resale certificate. That is a separate document with different (often voluntary) content requirements.
- HOA estoppel letters. In some states, the equivalent document is called an estoppel letter or estoppel certificate. Texas uses the term "resale certificate" under §207.003. The legal requirements differ by state.
- Lien enforcement after closing. What happens to unpaid assessments when a property changes hands — lien priority, buyer liability, and assessment collection from the new owner — is a separate topic.
FAQ
Can a Texas HOA charge more than $375 for a resale certificate?
No. §207.003 caps the fee at $375 for the original certificate. Any fee above that amount violates the statute. The association can charge less — many self-managed boards charge $100–$200.
What is the $30 update fee for?
When a closing date moves and the title company requests an updated resale certificate with current figures, the association can charge up to $30 for the update. This applies when an original certificate was already issued for the same transaction.
Can the HOA refuse to issue a resale certificate if the homeowner owes money?
No. The association must issue the certificate regardless of the homeowner's account status. The certificate discloses the delinquent balance — that disclosure protects the buyer, which is the purpose of the document. Withholding the certificate because of an unpaid balance delays the closing and exposes the association to a justice court claim.
What happens if the resale certificate is delivered late?
The property owner may be entitled to damages under §207.003. With §209.017 providing justice court access, the enforcement cost for the buyer or seller is under $75. Late delivery also delays the closing, which creates practical friction with the seller (your homeowner) and their buyer.
Does a self-managed HOA need to provide a resale certificate?
Yes. §207.003 applies to all property owners associations subject to Chapter 209. Whether the association uses a management company or is self-managed does not affect the obligation to provide the certificate within five business days at or below the $375 fee cap.
Deliver resale certificates on time, every time.
Or email [email protected] and tell us how your board currently handles resale certificate requests. We can identify where the process breaks.
This article is part of The Complete Texas HOA Board Compliance Guide. Companion pieces cover SB 1588 compliance, management certificate filing, and fine procedures under Chapter 209.