Texas Real Estate Sales Agent ExamProperty DisclosuresEasy
A buyer is interested in a property that is part of a homeowner's association (HOA). Which of the following documents is the seller legally required to provide to the buyer regarding the HOA?
- AA copy of all meeting minutes from the HOA's inception.
- BA Resale Certificate (or HOA Addendum) containing current HOA fees, special assessments, and restrictive covenants.
- CA verbal summary of the HOA's rules and regulations during the property showing.
- DA personal letter from the seller detailing their experience with the HOA.
Show answer & explanationAnswer & explanation
Correct answer: B. A Resale Certificate (or HOA Addendum) containing current HOA fees, special assessments, and restrictive covenants.
Texas law requires sellers of properties subject to a homeowner's association to provide a Resale Certificate or HOA Addendum to the buyer. This document outlines critical information about the HOA, including financial obligations and rules, allowing the buyer to make an informed decision.
Why the other options are wrong
- A. Providing all meeting minutes from inception is not a legal requirement and would be an excessive amount of documentation.
- C. Verbal summaries are insufficient and do not meet the legal requirement for written disclosure of HOA information.
- D. Personal letters are not legally required and do not provide official HOA information.
Resale Certificate (HOA)
A document provided by a homeowner's association (HOA) to a prospective buyer, detailing the HOA's financial status, current fees, special assessments, covenants, conditions, and restrictions.
- Mandated by Texas law (Property Code § 207.003).
- Includes financial obligations and restrictive covenants.
- Allows buyers to understand HOA commitments before purchase.
Memory trick: HOA's Certificate: Your Key to Community Clarity.