Who Pays for the HOA Resale Certificate in Texas?

Texas law caps the HOA resale certificate fee at $375 (or $75 for an updated certificate), but it doesn't say who has to pay it. In most Flower Mound transactions the seller orders and pays for it since they're the one requesting the HOA's records, but who actually covers the cost gets negotiated in the contract through TREC Form 36-10, not set by statute. Buyers also get a seven day right to terminate the contract after receiving the certificate if it reveals unpaid assessments, pending litigation, or other red flags.

By Brian White | August 8, 2026

If you're selling a home in Bridlewood, Wellington, Canyon Falls, Wichita Chase, or any of the newer communities like Whyburn, Lakeside, or Furst Ranch, you're going to run into this fee. Nearly every neighborhood in Flower Mound built in the last twenty years carries mandatory HOA membership, and every one of those sales requires an HOA resale certificate before closing.

Most sellers have never heard of it until it shows up as a line item. Most buyers don't know they have a real right built into the process because of it. Here's how it actually works.

What's Actually in an HOA Resale Certificate

The resale certificate is a snapshot of your property's standing with the association at the moment of sale. Under Texas Property Code Chapter 207, it has to include:

• Whether HOA dues are current or past due, and by how much
• Any pending special assessments or planned dues increases
• Whether the property has any open violations (fence height, paint color, an unapproved shed, anything the HOA has flagged)
• Whether there's pending or threatened litigation involving the HOA
• A copy of the current HOA restrictions and bylaws
• Insurance information for the association's common areas

This isn't optional paperwork. If your buyer's contract requires it (and the standard TREC contract does when a property is subject to mandatory HOA membership), the association is required by law to produce it once it's ordered and paid for. It's the same idea behind Texas's MUD/PID disclosure form: a statutory document that exists specifically to protect a buyer's right to know what they're taking on before they're locked in.

The timeline matters too. The HOA or its management company has 10 business days to deliver the certificate after receiving the order and payment. It also has to have been prepared no more than three months before it's handed to the buyer, so an outdated copy sitting in someone's file doesn't count.

Who Pays: Law vs. Local Custom

Here's the part that catches people off guard. Texas Property Code Chapter 207 sets the maximum fee an HOA can charge, $375 for the original certificate and $75 for an updated one, but it never says whether the buyer or seller pays it.

That negotiation happens in TREC Form 36-10, the Addendum for Property Subject to Mandatory Membership in a Property Owners Association. Paragraph A of that form is where the buyer and seller agree on who orders it and who pays. In practice:

• In most Flower Mound deals, the seller pays, since they're the one who has to produce HOA information for the buyer under the contract anyway
• Some buyers negotiate to cover it themselves, especially in a competitive offer where every concession helps
• Either way, it should be spelled out in writing before you're two weeks from closing and someone assumes the other side has it handled

There's also a second, separate cost most people don't expect: a transfer fee, typically $100 to $500, that some HOAs charge when the deed changes hands. That's a different line item from the resale certificate fee, and it's worth asking about both up front rather than finding out at the closing table.

What This Means If You're Selling

If you're listing a home in an HOA community, order the resale certificate early. A ten business day turnaround sounds fast until you're trying to close on a tight timeline with a buyer who's also trying to time their own sale. This is exactly the kind of detail that gets missed when a family is coordinating a synchronized sell and buy, and it's one more reason that timeline planning matters as much as pricing, right alongside knowing how much of your sale proceeds taxes will take before you count on that number for your next purchase.

If you're buying, read the certificate the moment it arrives. That seven day termination right only protects you if you actually use the window, the same way you'd want to use every day of your option period if your appraisal comes in low. An open code violation, a special assessment your seller never mentioned, or an HOA in the middle of a lawsuit are all things you'd rather know before closing than after.

Every situation is different, and the only way to know exactly what your HOA will charge, how fast it typically turns documents around, and how to structure this in your offer is to walk through it with someone who's done it before.

Frequently Asked Questions

How much does an HOA resale certificate cost in Texas?

Texas law caps the fee at $375 for the original certificate and $75 for an updated one. The HOA or its management company cannot charge more than that, though some also charge a separate transfer fee of $100 to $500 when the deed changes hands.

Who orders the HOA resale certificate, the buyer or the seller?

Either party can order it, but the seller typically does since they're the one required to provide HOA information under the standard TREC contract. Who pays for it is a separate, negotiable question addressed in TREC Form 36-10.

How long does it take to get an HOA resale certificate in Texas?

The HOA or management company has 10 business days to deliver it once it's ordered and paid for. Build that into your closing timeline, especially if you're coordinating a sale and a purchase at the same time.

Can a buyer back out after seeing the HOA resale certificate?

Yes. Texas buyers have a seven day right to terminate the contract after receiving the resale certificate if something in it, like unpaid assessments, an open violation, or pending litigation, gives them a reason to walk away.

Do all Flower Mound neighborhoods require an HOA resale certificate?

Any home in a community with mandatory HOA membership requires one, which covers most of Flower Mound's newer neighborhoods including Bridlewood, Wellington, Canyon Falls, Whyburn, Lakeside, and Furst Ranch. Older, non-HOA streets in Flower Mound won't trigger this requirement.

If you're planning a move in the next few months and want to know exactly what this will look like for your specific HOA, schedule a free Move-Up Strategy Call ... thirty minutes, no pitch, just a clear-headed look at where you are and what your best next move looks like.

About Brian White

Brian White helps families in Northwest DFW make their move-up cleanly, selling and buying in one synchronized step. He built BlueFuse Group on a simple standard: other-first service, proactive at every turn, faith and excellence in equal measure. Brian has been married to Tisha for 27 years and is dad to three adult sons. When he's not protecting a family's equity or untangling a tight closing timeline, you'll find him chasing a round of golf or at Valley Creek Church.

Schedule a Move-Up Strategy Call ... no pitch, just a clear-headed look at your next move.