(a) Not later than the 10th business day after the date a written request for subdivision information is received from an owner or the owner's agent, a purchaser of property in a subdivision or the purchaser's agent, or a title insurance company or its agent acting on behalf of the owner or purchaser and the evidence of the requestor's authority to order a resale certificate under Subsection (a-1) is received and verified, the property owners' association shall deliver to the owner or the owner's agent, the purchaser or the purchaser's agent, or the title insurance company or its agent:
(1) a current copy of the restrictions applying to the subdivision;
(2) a current copy of the bylaws and rules of the property owners' association; and
(3) a resale certificate prepared not earlier than the 60th day before the date the certificate is delivered that complies with Subsection (b).
(a-1) For a request from a purchaser of property in a subdivision or the purchaser's agent, the property owners' association may require the purchaser or purchaser's agent to provide to the association, before the association begins the process of preparing or delivers the items listed in Subsection (a), reasonable evidence that the purchaser has a contractual or other right to acquire property in the subdivision.
(b) A resale certificate under Subsection (a) must contain:
(1) a statement of any right of first refusal, other than a right of first refusal that is prohibited by statute, and any other restraint contained in the restrictions or restrictive covenants that restricts the owner's right to transfer the owner's property;
(2) the frequency and amount of any regular assessments;
(3) the amount and purpose of any special assessment that has been approved before and is due after the resale certificate is delivered;
(4) the total of all amounts due and unpaid to the property owners' association that are attributable to the owner's property;
(5) capital expenditures, if any, approved by the property owners' association for the property owners' association's current fiscal year;
(6) the amount of reserves, if any, for capital expenditures;
(7) the property owners' association's current operating budget and balance sheet;
(8) the total of any unsatisfied judgments against the property owners' association;
(9) the style and cause number of any pending lawsuit in which the property owners' association is a party, other than a lawsuit relating to unpaid ad valorem taxes of an individual member of the association;
(10) a copy of a certificate of insurance showing the property owners' association's property and liability insurance relating to the common areas and common facilities;
(11) a description of any conditions on the owner's property that the property owners' association board has actual knowledge are in violation of the restrictions applying to the subdivision or the bylaws or rules of the property owners' association;
(12) a summary or copy of notices received by the property owners' association from any governmental authority regarding health or housing code violations existing on the preparation date of the certificate relating to the owner's property or any common areas or common facilities owned or leased by the property owners' association;
(13) the amount of any administrative transfer fee charged by the property owners' association for a change of ownership of property in the subdivision;
(14) the name, mailing address, and telephone number of the property owners' association's managing agent, if any;
(15) a statement indicating whether the restrictions allow foreclosure of a property owners' association's lien on the owner's property for failure to pay assessments; and
(16) a statement of all fees associated with the transfer of ownership, including a description of each fee, to whom each fee is paid, and the amount of each fee.
(c) A property owners' association may charge a reasonable and necessary fee, not to exceed $375, to assemble, copy, and deliver the information required by this section and may charge a reasonable and necessary fee, not to exceed $75, to prepare and deliver an update of a resale certificate under Subsection (f).
(c-1) The property owners' association may require payment before beginning the process of providing a resale certificate but may not process a payment for a resale certificate until the certificate is available for delivery. The association may not charge a fee if the certificate is not provided in the time prescribed by Subsection (a).
(d) The property owners' association shall deliver the information required by Subsection (a) or (f) to the person specified in the written request. A written request that does not specify the name and location to which the information is to be sent is not effective. The property owners' association may deliver the information required by Subsection (a) and any update to the resale certificate required by Subsection (f) by mail, hand delivery, or alternative delivery means specified in the written request.
(e) Unless required by a dedicatory instrument, neither a property owners' association or its agent is required to inspect a property before issuing a resale certificate or an update to a resale certificate.
(f) Not later than the seventh business day after the date a written request for an update of a resale certificate delivered under Subsection (a) is received from an owner, owner's agent, or title insurance company or its agent acting on behalf of the owner, the property owners' association shall deliver to the owner, owner's agent, or title insurance company or its agent an updated resale certificate that contains the following information:
(1) if a right of first refusal or other restraint on sale is contained in the restrictions, a statement of whether the property owners' association waives the restraint on sale;
(2) the status of any unpaid special assessments, dues, or other payments attributable to the owner's property; and
(3) any changes to the information provided in the resale certificate issued under Subsection (a).
(g) Requests for an updated resale certificate pursuant to Subsection (f) must be made within 180 days of the date a resale certificate is issued under Subsection (a). The update request may be made only by the party requesting the original resale certificate.
Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1, 1999.
Acts 2009, 81st Leg., R.S., Ch. 147 (S.B. 1918 ), Sec. 1, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 1142 (H.B. 1821 ), Sec. 4, eff. January 1, 2012.
