This past legislative session in Texas saw the enactment of a few bills that can affect real estate transactions. This is part 4 in our 4-part series.
Senate Bill 1588: Resale Certificate Fees
This bill does many things for HOA Resale Certificate Reform:
- Places a cap of $375 on what a homeowner's association can charge for a Resale Certificate
- Limits the fee for an update to $75
- Shortens the turn-around time for a resale certificate from 7 days to 5 days
- Increases the damages for failure to timely deliver from $500 to $5,000
- Requires any subdivision of 60 lots or more to publish their subdivision information online (including fees) in a publicly accessible database
- Requires the management certificates to be recorded starting December 1, 2021.
We do anticipate that we may continue to see fees that are in excess of the permitted amount until all HOAs catch up to speed on this issue. Please keep in mind that a title company is required to collect the fees as shown on the resale certificate. The
seller of the property can push back on these fees with their homeowner's association if the issue arises before closing.
Also, we have already seen many notices from management companies that fee structures are being adjusted. Some are lowering the resale certificate fee but increasing other fees or adding fees that have not previously been charged. Some management companies
are discontinuing rush or expedited turn times.
Please remember I am not an attorney so please consult an attorney for further clarification. For any other questions, please feel free to call me 817-952-9000.