Prop. Code- Section 207 Flashcards
Define “Owner”
A person who holds record title to property within a subdivision or their personal representative.
Define “Resale Certificate”
Written statement, issued, signed and dated by an officer or manager of an Association, that contains information required by TPC 207.003.
Define “Subdivision”
Land that:
1) Divided into two or more parts;
2) Burdened by restrictions on the majority of the land area (excluding streets and public areas)
3) To residential use only
4) Instruments creating restrictions are recorded in county deed records.
To what does Chapter 207 apply?
1) It applies to a subdivision with a Property Owners Association that is entitled to collect regular or special assessments.
2) it does not apply to a condominium association that is governed by Chapter 81 or 82 of the Texas Property Code.
What is the time limit for delivery of a resale certificate?
What is the timeline for delivery of an update request for a resale certificate?
Not later than 10 business days after receipt of the written request.
POA must deliver an updated resale certificate not later than 7 business days after receipt of the written request.
Who may request a resale certificate?
1) Owner or Owners agent;
2) Purchaser or Purchasers agent; or
3) Title Insurance Company.
What is the timeline for delivery of an update to to the resale certificate?
Must be provided within 7 business days of the update request.
What are the laws and rules regarding payment for resale requests?
1) Reasonable Fee- Association may charge a reasonable fee for the preparation of a resale and updated resale.
2) Must provide within time- In order to charge a reasonable fee, the resale must be provided within the timelimit for reply.
3) Prepayment- Association may require prepayment, however they may not cash check prior to resale being prepared.
If a purchaser or their agent requests a resale, may the POA require verification?
Yes. They may require that the purchaser or their agent provide reasonable evidence that they have a contractual or other right to acquire property in the subdivision.
What must a resale certificate contain? (16)
1) Dedicatory Instruments of Association;
2) Statement of Right of First Refusal or any other restriction on owner’s right to transfer property (other than restriction prohibited by statute);
3) Special Assessments approved before and due after resale is delivered.
4) Total amount of dues that are due and unpaid on property.
5) Capital Expenditures approved by Association
6) Reserves of Association
7) Operating Budget and Balance Sheet
8) Unsatisfied Judgments against Association.
9) Pending lawsuits in which Association is a party (Must include style and cause no.)
10) Certificate of Insurance showing property & liability insurance;
11) Violations currently existing on owner’s property
12) Housing or health code violations existing in the Association
13) Transfer fee charged by Association
14) Contact info for Management Company
15) Whether Association may foreclose for unpaid assessments.
16) Description of each fee associated with the transfer of ownership, including amount of each fee.
What if a request for a resale does not specify the name and location to where the resale is to be delivered?
Then the resale request is not effective.
How may a POA deliver a resale certificate
By mail, hand delivery, or any alternative delivery means specified in the resale certificate.
Is a POA required to inspect a property before issuing a Resale?
No. Not unless required by the dedicatory instruments.
What is the latest date by which a party may request an updated resale certificate?
180 days after the resale certificate is issued.
Who may request an update resale certificate?
Only the party who requested the original resale.
