Texas guide

Condominium Resale Disclosure Requirements in Texas

When you buy a condo in Texas, the seller must hand you a resale certificate with the HOA's dues, finances, reserves, rules, and any lawsuits.

Reading as buyer.

TL;DR

When you buy a condo in Texas, the seller must hand you a resale certificate with the HOA's dues, finances, reserves, rules, and any lawsuits. You then get 5 days after receiving all the condo documents to cancel the contract for any reason and get your earnest money back. The deal should be written on the Condominium Resale Contract, not the regular home contract, because condos have shared walls, common areas, and HOA obligations the standard form does not cover.

Before you start — 8 things to know

  • The seller must give you a resale certificate showing the HOA's current dues, special assessments, reserve fund balance, pending lawsuits, and the rules you'll have to follow after closing.

  • You have 5 days after receiving all required condo documents to cancel the contract for any reason and get your earnest money returned in full.

  • Your 5-day condo review window is a Texas statutory right and is separate from any option period you negotiated in the contract — you get both.

  • Read the HOA's financial statements carefully — a low reserve fund or pending special assessment usually means future bills that you, the new owner, will have to pay.

  • Pending lawsuits against the HOA can spook your lender or raise your insurance cost, so check the litigation section of the resale certificate before you commit.

  • The right contract for an attached condo unit in Texas is the Condominium Resale Contract, which spells out unit boundaries and common element rights the One to Four Family form does not handle.

  • The HOA's rules and restrictions become binding on you the day you close, so check the parts that matter most to you — pets, short-term rentals, parking, paint colors, and renovations.

  • If the seller never delivers the required condo documents, your 5-day cancellation window never starts, so you usually keep the right to walk away with your earnest money.

The timeline — step by step

  1. Sign the Condominium Resale Contract and deposit your earnest money with the title company.

  2. Wait for the seller to request the resale certificate from the HOA — this can take 1 to 4 weeks depending on the association.

  3. Receive the full document packet — resale certificate, financial statements, rules, declarations, and any pending litigation list.

  4. Your 5-day review clock starts the calendar day you receive all required condo documents — track the delivery date in writing.

  5. Within 5 days, decide whether to keep the contract or cancel in writing and get your earnest money back from the title company.

  6. If you stay in the deal, finish your inspection, financing, and appraisal under the normal contract terms.

  7. Close on the unit and start following the HOA's rules and paying its dues from day one of ownership.

Common questions

What is a Texas condo resale certificate?
It is a packet the HOA prepares for the buyer that shows the unit's dues, the HOA's finances, the reserve fund balance, any pending lawsuits, and the rules and restrictions you'll have to follow after closing.
How long do I have to back out after I receive the condo documents?
You have 5 days from the date you receive all the required condo documents — you can cancel for any reason in writing and your earnest money comes back to you.
Does the 5-day condo cancellation right replace my option period?
No — Texas law gives you both. The 5-day condo review window is on top of any option period you negotiated in the contract, so you get two separate chances to back out.
Who pays for the condo resale certificate?
In most Texas condo deals the seller orders and pays the HOA for the resale certificate, but the contract should say who's on the hook, so check the cost section before you sign.
What happens if the seller never delivers the condo documents?
Your 5-day review window never starts, so you typically keep the right to cancel and get your earnest money back until you actually receive every required document.
Should I use the regular Texas home contract for a condo?
No — for an attached condo unit you should be on the Condominium Resale Contract because it covers common areas, unit boundaries, and HOA-specific clauses the One to Four Family form does not.

Glossary

1 term
TREC — Texas Real Estate Commission
The state agency that licenses real-estate agents in Texas and writes the standard forms agents have to use.

Sources

  1. [1]
  2. [2]

Last updated