Homeowners and Property Owners Associations in Texas for the Exam: HOA/POA Authority, Disclosures, Resale Certificates, and Assessments

Homeowners and property owners associations in Texas are easy to underestimate because the words feel familiar. Most candidates have heard of HOAs. Many have paid dues, received violation letters, or seen neighborhood rules about fences, paint colors, parking, flags, landscaping, or rentals.

The Texas real estate exam does not need your personal HOA story. It wants you to recognize the legal structure.

In Texas, the Property Code commonly uses the term "property owners' association." In everyday speech, people usually say "HOA." For the exam, treat them as the same general subdivision-association concept when the property is in a residential subdivision with mandatory membership and association assessments. Chapter 209 even says it applies regardless of whether the entity is designated as a homeowners' association, community association, or similar designation in the restrictions or dedicatory instrument.

That one sentence is the heart of this article.

This guide is written for Texas sales agent candidates. It is exam prep, not legal advice about a live HOA dispute, resale certificate problem, covenant enforcement action, assessment lien, foreclosure, rental restriction, or subdivision document interpretation.

Table of Contents

• Why Homeowners And Property Owners Associations Matter On The Texas Exam
• Quick Facts To Memorize
• How The Exam Can Test HOA And POA Issues
• HOA Versus POA Terminology In Texas
• What Gives A POA Authority
• Dedicatory Instruments, Restrictions, Bylaws, And Rules
• Seller POA Notice Under Texas Property Code Section 5.012
• Resale Certificates And Subdivision Information Under Chapter 207
• TREC Forms For POA Transactions
• Assessments, Fees, Transfer Fees, And Association Liens
• Enforcement, Fines, Foreclosure, And Owner Protections
• Records, Management Certificates, And Online Information
• Common Owner Rights And Statutory Limits On POA Rules
• The Condominium Trap
• Broker And Sales Agent Traps
• Candidate Situations
• Decision Tables
• Original Learning Examples
• Common Mistakes
• Study Plan
• What To Pair With This
• FAQ
• Sources and methodology

Why Homeowners And Property Owners Associations Matter On The Texas Exam

Snippet answer: Homeowners and property owners associations matter because the exam can test mandatory membership, recorded restrictions, resale certificates, assessments, fees, association liens, foreclosure limits, TREC forms, and what a sales agent should not interpret.

Pearson's current Texas Sales Agent State Law content outline, effective January 1, 2026, lists Home Owners Associations under Special Topics. The same outline lists Special Topics as 6 scored items on the Texas sales agent state-law portion.

HOA and POA issues also connect to several other exam areas:

• promulgated contracts, forms, and addenda
• seller disclosure requirements
• restrictive covenants and private land-use controls
• recording statutes and constructive notice
• title, marketability, and clouds on title
• assessment liens and lien priority
• unauthorized practice of law
• risk management and broker supervision

That is why this topic deserves one strong page. It is not just "neighborhood rules." It is a resale transaction topic.

The exam may ask:

• Is the buyer required to be a member of the association?
• What notice should the seller give?
• What is a resale certificate?
• What information appears in subdivision information?
• Who pays the resale certificate fee if the parties do not agree otherwise?
• Can an association charge assessments?
• Can unpaid assessments become a lien issue?
• Can the association foreclose for fines only?
• Does Chapter 209 apply to condos?
• Should the sales agent interpret the bylaws or tell the client a rule is unenforceable?

The right answer usually starts with the documents and ends with proper referral. Read the recorded restrictions, use the right TREC form, get the resale certificate, and do not give legal opinions.

Quick Facts To Memorize

Snippet answer: Memorize that Texas POA law centers on recorded dedicatory instruments, mandatory membership, assessments, resale certificates, seller POA notices, and association lien risks.

How The Exam Can Test HOA And POA Issues

Snippet answer: The exam usually tests HOA and POA issues through resale facts: mandatory membership, disclosures, resale certificates, assessments, transfer fees, title exceptions, restrictive covenants, and agent conduct.

Watch for these words:

• "mandatory membership"
• "homeowners association"
• "property owners' association"
• "community association"
• "residential subdivision"
• "restrictive covenants"
• "deed restrictions"
• "declaration"
• "dedicatory instruments"
• "bylaws"
• "rules and regulations"
• "resale certificate"
• "subdivision information"
• "assessments"
• "special assessment"
• "transfer fee"
• "management certificate"
• "association lien"
• "foreclosure"
• "right of first refusal"
• "architectural review"
• "violation notice"
• "common area"

A simple fact pattern may say:

• A seller lists a home in a subdivision.
• The subdivision requires mandatory membership in an association.
• The buyer asks for association documents.
• The title company requests a resale certificate.
• The seller wants the buyer to waive everything to close quickly.

That is a POA transaction question. The exam wants you to recognize the forms, notices, and risk points.

Another fact pattern may say:

• The association fined an owner for a rule violation.
• The owner did not pay the fine.
• The association wants to foreclose.

That is not the same as unpaid assessments. Chapter 209 says a property owners' association may not foreclose an assessment lien if the debt securing the lien consists solely of fines, attorney's fees solely associated with fines, or certain added amounts listed in the statute.

The exam loves that kind of distinction.

HOA Versus POA Terminology In Texas

Snippet answer: In Texas exam language, "HOA" is the everyday term, while "property owners' association" is the Property Code term for the residential subdivision association covered by Chapter 209.

This topic can become confusing because people use different labels:

Texas Property Code Section 209.003 says Chapter 209 applies to a residential property owners' association regardless of whether the entity is designated as a "homeowners' association," "community association," or similar designation in the restrictions or dedicatory instrument.

So the user's brief is exactly right for exam prep: one post can cover HOA and POA together because the Texas Property Code treats the residential subdivision association as a property owners' association even when the market calls it an HOA.

The simple memory line

HOA is the street name. POA is the Property Code name.

That memory line is not a full legal definition, but it will help on test day.

What Gives A POA Authority

Snippet answer: A POA's authority usually comes from recorded restrictions, declarations, bylaws, rules, and other dedicatory instruments that require membership, allow assessments, and regulate the subdivision.

A property owners' association does not get to make up powers out of thin air. Its power comes from:

• recorded declarations
• restrictive covenants
• subdivision restrictions
• bylaws
• rules and regulations
• lawful amendments
• statutes that govern association conduct

Texas Property Code Section 209.002 defines a "dedicatory instrument" broadly. It includes governing instruments covering the establishment, maintenance, and operation of a residential subdivision, including restrictions, bylaws, rules, regulations, and lawful amendments.

That matters because an exam question may ask whether a buyer is bound by rules they never personally signed. If the property is in a subdivision subject to recorded restrictions and mandatory membership, the buyer may take subject to those recorded restrictions.

This is where recording statutes and constructive notice connect. Recorded restrictions can show up in title work, subdivision information, resale certificates, and public records.

POA authority is not unlimited

The association has authority only within the governing documents and applicable law. Texas statutes limit or regulate certain association actions, including:

• access to association records
• open board meetings
• notice before some enforcement actions
• payment plans for delinquent assessments
• foreclosure procedures
• management certificates
• resale certificates
• certain owner rights such as flags, solar energy devices, religious items, security measures, drought-resistant landscaping, and rental payment-method protections

For the exam, the phrase "the HOA can do anything it wants" should feel wrong.

Dedicatory Instruments, Restrictions, Bylaws, And Rules

Snippet answer: Dedicatory instruments are the association's governing documents. They include recorded restrictions and other rules that govern subdivision use, maintenance, operation, and assessments.

Candidates often mix these words together. Here is the cleaner version:

Texas Property Code Chapter 202 is also useful here. Section 202.006 says a property owners' association must file all dedicatory instruments in the real property records of each county where the affected property is located, and a dedicatory instrument has no effect until filed.

For exam purposes, that means recorded documents matter. If an association rule, assessment authority, or restriction is not properly tied to filed dedicatory instruments, the legal issue becomes more complicated. A sales agent should not decide that issue, but should recognize why it matters.

Private controls versus public controls

HOA and POA rules are private land-use controls. They are different from zoning, building codes, health ordinances, and other public controls.

If a question asks who enforces deed restrictions, think private parties and associations. If it asks who enforces zoning, think government.

Seller POA Notice Under Texas Property Code Section 5.012

Snippet answer: Section 5.012 requires a seller of certain Texas residential property subject to POA membership to give a written notice about mandatory membership, recorded restrictions, assessments, resale certificates, and possible association lien foreclosure.

This is one of the highest-yield parts of the topic.

Texas Property Code Section 5.012 applies to a seller of residential real property that:

• is subject to membership in a property owners' association
• comprises not more than one dwelling unit
• is located in Texas

The seller must give the purchaser a written notice about membership in the property owners' association. The statutory notice tells the buyer, in substance, that:

• the buyer will be obligated to be a member of a property owners' association
• restrictive covenants and dedicatory instruments have been or will be recorded in county real property records
• copies can be obtained from the county clerk
• the buyer is obligated to pay assessments
• assessment amounts can change
• failure to pay assessments could result in enforcement of the association's lien and foreclosure of the property
• Chapter 207 entitles an owner to receive subdivision documents and a resale certificate

The notice is not the same thing as the general Seller's Disclosure Notice under Property Code Section 5.008. The Section 5.012 notice is specifically about mandatory membership in a property owners' association.

Plain English: this notice tells the buyer that the neighborhood association is not optional. The buyer is not just buying a house. The buyer is also buying into a recorded rule-and-assessment system.

Timing and termination right

Section 5.012 says the seller must deliver the notice before the date the executory contract binds the purchaser to purchase the property. The notice may be separate, part of the contract during negotiations, or part of another notice delivered to the purchaser.

If the contract is entered without the required notice, the purchaser may terminate for any reason within the earlier of:

• seven days after the date the purchaser receives the notice
• the date the transfer occurs under the contract

The statute also says that termination right is the purchaser's exclusive remedy for the seller's failure to provide the required notice.

For exam purposes, the exact wording is less important than the pattern: seller POA notice, before binding contract, buyer termination right if missing, and exclusive remedy under the statute.

If the question feels like a timing question, slow down. The exam is usually asking whether the buyer received the association warning early enough to make an informed purchase decision.

Common Section 5.012 exemptions

Section 5.012 lists transfers where the notice does not apply, including certain court orders, foreclosure sales, bankruptcy trustee transfers, deed of trust beneficiary or mortgagee transfers after foreclosure or deed in lieu, fiduciary transfers, co-owner transfers, family-line transfers, governmental transfers, mineral or security interests, and condominium real property interests.

For exam prep, remember the two most likely traps:

• A condominium is not handled under this POA notice framework.
• Foreclosure and fiduciary transfers may have special exceptions.

Resale Certificates And Subdivision Information Under Chapter 207

Snippet answer: Chapter 207 requires a POA to deliver subdivision information and a resale certificate after a proper request, and the resale certificate gives buyers key facts about assessments, unpaid amounts, transfer fees, violations, insurance, lawsuits, and foreclosure authority.

The resale certificate is not fluff. It is the buyer's snapshot of the association's financial and rule-related facts for that property.

Think of it as the association's transaction report card for that lot. It tells the buyer what rules apply, what money is owed, what fees may hit closing, and whether there are known problems attached to the property.

Texas Property Code Chapter 207 applies to a subdivision with a property owners' association that is entitled to levy regular or special assessments. It does not apply to condominium councils of owners under Chapter 81 or condominium unit owners' associations under Chapter 82.

Under Section 207.003, after the proper written request and authority evidence are received and verified, the association must deliver:

• a current copy of the restrictions applying to the subdivision
• a current copy of the bylaws and rules of the property owners' association
• a resale certificate prepared not earlier than the 60th day before delivery

The timing is currently not later than the 10th business day after the proper request and authority evidence are received and verified.

What a resale certificate includes

A resale certificate under Chapter 207 must contain many items. For exam purposes, know the categories:

That is why the TREC form title uses "Subdivision Information, Including Resale Certificate." It is not only a dues statement.

On the exam, a resale certificate usually answers this practical question: what does the buyer need to know before buying into this association?

Current fee caps and updates

As of the June 16, 2026 verification, Chapter 207 says a property owners' association may charge a reasonable and necessary fee not to exceed $375 to assemble, copy, and deliver the main information package. The statute also allows a reasonable and necessary fee not to exceed $75 for an update of a resale certificate.

The association may require payment before beginning the process but may not process payment 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 Section 207.003(a).

Updates are due not later than the seventh business day after the written update request is received, and update requests must be made within 180 days of the original resale certificate.

These numbers can change. Use them for current exam-prep context, then verify the current statute for real transactions.

If a question gives a fee number, treat it like a statutory detail instead of a negotiation preference. The issue is whether the association is staying inside the Chapter 207 framework.

Effect of the resale certificate

Chapter 207 also gives the resale certificate real consequences. Section 207.005 says the association may not deny the validity of any statement in the resale certificate. The association's lien securing undisclosed amounts due on the preparation date automatically terminates as a lien securing that undisclosed amount. Buyers, agents, lenders, and title insurance companies are not liable for debts or claims existing on the certificate preparation date that are not disclosed in the resale certificate.

For exam purposes, remember: the resale certificate protects the transaction by forcing disclosure of key association claims.

TREC Forms For POA Transactions

Snippet answer: TREC publishes an addendum for property subject to mandatory POA membership and a subdivision information form that includes the resale certificate. Recognizing which form fits the fact pattern is a major exam skill.

Two TREC forms matter most:

The TREC Addendum is practical because the One to Four Family Residential Contract does not magically answer every association question. The addendum helps handle whether the buyer wants subdivision information, who obtains it, who pays for it, and what happens if the buyer does not receive it as agreed.

Do not draft your own POA addendum language on the exam. Use the promulgated or approved form when required and follow broker guidance.

POA addendum is not for condominiums

TREC's page for the POA addendum says it is not for use with condominiums. That matches the statutory trap: condominiums are governed separately under Texas Property Code Chapters 81 or 82.

If the question says condo, look for condominium resale certificate and condominium contract issues, not the Chapter 209 subdivision POA framework.

Assessments, Fees, Transfer Fees, And Association Liens

Snippet answer: POAs can require regular assessments, special assessments, and transfer-related fees if authorized by governing documents and law, and unpaid assessments can become lien and foreclosure issues.

A buyer needs to understand that mandatory membership usually means mandatory payment obligations.

Texas Property Code Section 209.002 defines "assessment" broadly. It includes a regular assessment, special assessment, or other amount a property owner is required to pay a property owners' association under the dedicatory instrument or by law.

The same section defines:

• regular assessment as a recurring charge, fee, dues, or assessment paid on a regular basis for the benefit of the residential subdivision
• special assessment as an assessment or charge, other than a regular assessment, for capital improvements, maintenance and improvement of common areas, or other association purposes stated in the governing documents

Plain English: regular assessments are the normal dues. Special assessments are the extra charges that may show up when the association needs money for a particular project, repair, improvement, or association purpose.

In a transaction, the buyer cares about:

• current regular assessment amount
• payment frequency
• approved special assessments
• unpaid amounts on the seller's property
• transfer fees
• administrative fees
• possible right of first refusal or resale restraint
• association lien and foreclosure authority

That is why the resale certificate matters.

Transfer fees versus private transfer fees

Do not confuse an association's administrative transfer fee disclosed in a resale certificate with every kind of private transfer fee obligation.

For exam purposes, use the labels in the fact pattern. If the association charges an administrative transfer fee for a change of ownership, Chapter 207 says the resale certificate must state the amount. If the question mentions private transfer fee obligations, that points to a different Property Code topic.

Assessments can affect title and closing

Unpaid assessments can create closing issues because association liens can attach under the governing documents and law. A title company may require payoff, release, or other curative steps before closing.

A sales agent should not decide whether the lien is enforceable or superior to another lien. That is a legal and title question.

Enforcement, Fines, Foreclosure, And Owner Protections

Snippet answer: Texas POAs can enforce restrictions, but Chapter 209 requires notices and procedures for many enforcement actions and limits foreclosure for fine-only debts.

POA enforcement questions can sound dramatic, but the exam usually wants one of three ideas:

1. The association has some enforcement authority through recorded restrictions and statutes.
2. The association must follow statutory procedures.
3. The sales agent should not decide legal enforceability.

That makes POA enforcement a procedure topic, not a drama topic. Look for notice, cure rights, hearing rights, fines, assessment liens, and foreclosure limits before choosing an answer.

Under Chapter 209, before certain enforcement actions, the association or its agent must give written notice to the owner. Section 209.006 applies before actions such as suspending common-area rights, filing certain suits, charging for property damage, levying a fine for a violation, or reporting delinquency to a credit reporting service.

The notice must describe the violation or property damage, state amounts due, and in many cases inform the owner about cure rights, the right to request a hearing by a deadline, and possible rights under federal law for active military duty.

Curable and uncurable violations

Chapter 209 gives examples of curable and uncurable violations.

Examples of curable violations include:

• a parking violation
• a maintenance violation
• failure to construct improvements or modifications according to approved plans
• ongoing noise such as a barking dog

Examples of uncurable violations include:

• shooting fireworks
• an act that threatens health or safety
• a noise violation that is not ongoing
• property damage
• holding a prohibited garage sale or event

For exam purposes, the idea is more important than the list. If the violation can be fixed, notice and an opportunity to cure may matter.

Translate the fact pattern into one simple question: can this problem still be fixed? If yes, cure rights are more likely to matter.

Fines alone and foreclosure

Section 209.009 says a property owners' association may not foreclose an assessment lien if the debt securing the lien consists solely of:

• fines assessed by the association
• attorney's fees incurred solely associated with fines
• certain amounts added to the owner's account under listed sections

That is a strong exam trap. The association's lien and foreclosure power are not unlimited.

Judicial or expedited foreclosure

Section 209.0092 says, subject to statutory limits, a property owners' association may not foreclose an assessment lien unless the association first obtains a court order in an expedited foreclosure application under rules adopted by the Texas Supreme Court, unless a statutory exception applies. The association may also elect judicial foreclosure under court judgment.

Plain English: POA foreclosure is a legal process with statutory prerequisites. It is not something a sales agent casually explains away.

Records, Management Certificates, And Online Information

Snippet answer: Texas POAs must maintain certain records, record management certificates, file management certificates electronically with TREC, and make certain dedicatory instruments available online if Chapter 207 applies.

Chapter 209 requires property owners' associations to record management certificates in each county where any part of the residential subdivision is located. A management certificate includes information such as:

• subdivision name
• association name
• recording data for the subdivision
• recording data for the declaration and amendments
• association mailing address
• managing person or representative contact information
• website address for dedicatory instruments if applicable
• transfer-related fee descriptions

The association must record amended management certificates when required information changes. Chapter 209 also says the association must electronically file the management certificate or amended management certificate with TREC not later than the seventh day after filing it for recording.

TREC collects the management-certificate data to make it accessible to the public through an Internet website.

For exam purposes, this means TREC has a limited filing and public-data role here. TREC is not the HOA's regulator for every neighborhood dispute.

That distinction matters. TREC may collect or publish certain association information, but it does not become the referee for every fence, parking, dues, or rule-enforcement fight.

Association records

Chapter 209 also gives owners access rights to association books and records, including financial records, subject to statutory procedures and exceptions.

A sales agent does not need to know every records-request detail. Just remember that Texas law gives owners certain access rights, and the association documents are part of the transaction due-diligence process.

Online subdivision information

Chapter 207 says certain associations must make current versions of filed dedicatory instruments available on an Internet website. This applies to a property owners' association of a subdivision composed of at least 60 lots or an association that has contracted with a management company.

Again, do not over-memorize. The exam point is that buyers and owners may be entitled to obtain association documents, and the documents may be available online or through a formal resale-certificate request.

Common Owner Rights And Statutory Limits On POA Rules

Snippet answer: Texas POAs can enforce restrictions, but state law limits certain restrictions involving flags, solar devices, religious items, security measures, drought-resistant landscaping, rentals, and other owner rights.

This is where candidates sometimes overcorrect.

Wrong extreme one: "HOAs can ban anything."

Wrong extreme two: "Texas law makes HOA rules unenforceable."

The better answer is: POAs have authority under recorded governing documents, but Texas statutes limit some restrictions.

This is the middle lane the exam likes. Respect the recorded documents, then remember that state law can carve out owner protections.

Chapter 202 includes several examples:

You do not need every statutory subpart for the sales agent exam. You do need the broad idea: POA rules are real, but not absolute.

The Condominium Trap

Snippet answer: Chapter 209 and Chapter 207 POA rules do not apply to condominium associations governed by Texas condominium statutes, so do not use the POA addendum or POA resale-certificate framework for a condo fact pattern.

This is one of the easiest points to lose.

Texas Property Code Section 209.003 says Chapter 209 does not apply to a condominium as defined by Chapter 81 or Chapter 82. Chapter 207 also says it does not apply to a condominium council of owners governed by Chapter 81 or a condominium unit owners' association governed by Chapter 82.

TREC's page for the Addendum for Property Subject to Mandatory Membership in a Property Owners Association says the addendum is not for use with condominiums.

So:

The exam may use "HOA" casually, but if the property is a condominium, slow down.

Broker And Sales Agent Traps

Snippet answer: A Texas sales agent can identify that a property is subject to mandatory POA membership, use proper forms, and help obtain documents, but should not interpret association rules, decide enforceability, promise approvals, or draft custom legal terms.

POA questions often test what a license holder should do.

Clients may ask:

• "Can the HOA really enforce this rule?"
• "Will the HOA approve my fence?"
• "Can I ignore this violation notice?"
• "Can they foreclose for this?"
• "Is this transfer fee legal?"
• "Does this restriction ban my planned rental?"
• "Can you rewrite the addendum so we do not need the documents?"

The best exam answer usually involves:

• use the proper TREC form
• recommend review of recorded restrictions and subdivision information
• follow broker policy
• coordinate with the title company
• tell the client to consult the association, lender, title company, or attorney when needed
• avoid legal conclusions

When in doubt, make the answer boring in the best way: documents, forms, deadlines, broker guidance, title company, association, attorney. The risky answer is the one where the agent becomes the judge.

What an agent can safely say

A sales agent can say:

"This property appears to be subject to mandatory membership in a property owners' association. The buyer should review the restrictions, rules, resale certificate, assessments, and transfer fees before the deadline in the contract."

That is different from:

"The association cannot enforce that rental rule."

The second statement is a legal conclusion.

Do not promise association approvals

Architectural approval is a classic trap. A buyer wants to install a pool, change paint color, build a fence, add solar panels, rent the property, or park an RV.

The agent should not promise the association will approve the plan. The agent can direct the buyer to the governing documents, resale certificate, association, and legal counsel if needed.

Candidate Situations

Snippet answer: Most exam situations ask you to spot mandatory membership, choose the correct POA form, identify the resale certificate purpose, recognize assessment risk, or avoid legal interpretation.

Decision Tables

Snippet answer: Use decision tables to separate HOA/POA questions by property type, required documents, association authority, fees, assessments, and agent conduct.

First decision table: is this Chapter 209 POA territory?

Second decision table: which document matters?

Third decision table: what should the agent do?

Original Learning Examples

Snippet answer: Original POA scenarios help you practice the exam habit: identify mandatory membership, get the right documents, spot assessment and lien risk, and avoid legal opinions.

These are original learning examples. They are not copied exam questions and they are not official Pearson VUE questions.

Example 1: The buyer who does not want HOA documents

A buyer is purchasing a home in a subdivision with mandatory membership in a property owners' association. The buyer says, "I do not care about HOA rules. Let's skip the documents."

What is the exam issue?

The issue is mandatory membership and subdivision information. The property may be subject to recorded restrictions, assessments, transfer fees, and association rules. The buyer's personal indifference does not erase the documents.

Exam takeaway: use the appropriate POA addendum and review process. Do not treat HOA documents as optional background reading.

Example 2: The seller who owes assessments

A resale certificate shows unpaid assessments attributable to the seller's property. The buyer asks whether those amounts become the buyer's problem after closing.

What is the exam issue?

The issue is closing, title, and association-lien risk. The title company and contract documents need to address payoff and closing responsibility. The sales agent should not give a legal lien opinion.

Exam takeaway: unpaid assessments are not just a neighborhood billing issue. They can become a closing issue.

Example 3: The condo listing

The property is a condominium unit. The agent reaches for the TREC Addendum for Property Subject to Mandatory Membership in a Property Owners Association.

What is the exam issue?

The issue is the condominium trap. TREC says the POA addendum is not for use with condominiums, and Chapters 207 and 209 do not apply to condominium associations governed by Chapters 81 or 82.

Exam takeaway: condo association does not equal Chapter 209 subdivision POA.

Example 4: The fine-only foreclosure

An owner owes only fines for a rule violation and attorney's fees tied only to those fines. The association wants to foreclose.

What is the exam issue?

The issue is Chapter 209's foreclosure limit. Section 209.009 prohibits foreclosure when the debt securing the lien consists solely of the specified fine-related amounts.

Exam takeaway: association lien power is real, but not unlimited.

Example 5: The solar panel promise

A buyer asks whether the HOA can prohibit solar panels. The agent says, "Texas law means they cannot regulate solar at all."

What is the exam issue?

The issue is overstatement. Texas law limits POA prohibitions on solar energy devices, but associations may still regulate some placement and conditions under statutory exceptions.

Exam takeaway: avoid absolute promises. Direct the client to the documents and legal counsel when needed.

Common Mistakes

Snippet answer: The most common mistakes are treating HOA and POA as unrelated, confusing POA resale certificates with seller condition disclosures, forgetting condo exceptions, and letting the agent interpret enforceability.

Study Plan

Snippet answer: Study HOA and POA issues by learning the terminology first, then mandatory membership, recorded documents, Section 5.012 notice, Chapter 207 resale certificates, TREC forms, assessments, foreclosure limits, condo traps, and agent conduct.

Use this quick drill:

1. Is membership mandatory?
2. Is the property in a residential subdivision or a condominium?
3. Are restrictions and dedicatory instruments recorded?
4. Has the seller given POA notice?
5. Has the buyer requested subdivision information and a resale certificate?
6. Are there unpaid assessments, transfer fees, lawsuits, or violations?
7. Is the client asking for a legal interpretation?

That checklist catches most exam traps.

What To Pair With This

Snippet answer: Pair HOA and POA topics with recording, title, forms, seller disclosures, unauthorized practice of law, and foreclosure so association questions stay connected to transaction risk.

FAQ

Are homeowners associations on the Texas real estate exam?

Yes. Pearson's current Texas Sales Agent State Law content outline lists Home Owners Associations under Special Topics. The topic can also connect to contract forms, seller disclosures, recording, title, restrictive covenants, assessments, and unauthorized practice of law.

Is a property owners' association the same as an HOA in Texas?

For exam purposes, yes in the common residential subdivision setting. Texas Property Code Chapter 209 uses the term property owners' association and says the chapter applies regardless of whether the entity is called a homeowners' association, community association, or similar designation in the documents.

What is a property owners' association in Texas?

Under Chapter 209, a property owners' association is an incorporated or unincorporated association designated as the representative of owners in a residential subdivision, with membership primarily consisting of owners covered by the subdivision documents, and that manages or regulates the subdivision for the owners' benefit.

Does Chapter 209 apply to condominiums?

No. Chapter 209 says it does not apply to a condominium as defined by Property Code Chapter 81 or Chapter 82. TREC also says the POA addendum is not for use with condominiums.

What is the Texas POA notice under Section 5.012?

Section 5.012 requires a seller of certain residential property subject to POA membership to give a written notice to the purchaser. The notice tells the buyer about mandatory membership, recorded restrictions, assessments, resale certificates, and possible association lien foreclosure for unpaid assessments.

What is a resale certificate for a Texas POA?

A resale certificate is a written statement issued, signed, and dated by a POA officer or authorized agent. It includes key information about regular assessments, special assessments, unpaid amounts, transfer fees, right of first refusal, lawsuits, insurance, violations, and foreclosure authority.

How fast must a Texas POA deliver subdivision information?

As of the June 16, 2026 verification, Chapter 207 requires delivery not later than the 10th business day after a proper written request and required authority evidence are received and verified.

How much can a Texas POA charge for a resale certificate?

As of the June 16, 2026 verification, Chapter 207 allows a reasonable and necessary fee not to exceed $375 for the main subdivision information and resale certificate package, and not to exceed $75 for an update. Verify current law before using those numbers in a live transaction.

Can a Texas POA foreclose for unpaid fines only?

No. Chapter 209 says a property owners' association may not foreclose an assessment lien if the debt securing the lien consists solely of fines, attorney's fees solely associated with fines, or certain other listed amounts.

Can a Texas POA enforce deed restrictions?

Generally yes, if the restrictions and dedicatory instruments are valid, recorded, and enforceable. But POA authority is limited by governing documents and Texas law. A sales agent should not decide whether a particular restriction is enforceable.

Can a Texas sales agent tell a buyer whether an HOA rule is legal?

No. A sales agent can point the buyer to the recorded restrictions, resale certificate, association, title company, broker guidance, and legal counsel. The agent should not give a legal opinion about enforceability, priority, foreclosure rights, or approval requirements.

Is the Texas real estate exam prep app useful for HOA and POA questions?

Yes. The Texas real estate exam prep app can help you practice original Texas-specific scenarios involving homeowners and property owners associations in Texas, resale certificates, mandatory membership, assessments, TREC forms, condo traps, and license-holder conduct. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.

Is this article legal advice about an HOA dispute?

No. This article is exam prep for Texas sales agent candidates. For a real association dispute, resale-certificate issue, unpaid assessment, fine, lien, foreclosure, rental restriction, architectural approval, or covenant interpretation, use current law, broker guidance, the association, the title company, and legal counsel when appropriate.

Primary-source verification (2026-06-16): This article was checked against Pearson VUE's Texas Real Estate exam page, Pearson VUE's 2026 Texas Real Estate Content Outlines, TREC's rules and laws page, TREC POA and disclosure form pages, and current Texas Property Code Chapters 5, 202, 207, and 209. Requirements, forms, statutes, fees, exam outlines, and procedures can change. Verify current details with TREC, Pearson VUE, the Texas statutes, the association, the title company, and legal counsel before making licensing, scheduling, brokerage, title, or legal decisions.

Sources And Methodology

This article uses official sources first. The exam scope was checked against Pearson VUE's Texas Real Estate Content Outlines. TREC form references were checked against TREC's pages for the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, Seller's Disclosure Notice, and Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners' Association. Statutory rules were checked against Texas Property Code Chapters 5, 202, 207, and 209.

The article intentionally avoids copied exam wording and uses original learning examples. It is designed for sales agent candidates, so it emphasizes recognition, documents, disclosures, forms, fees, assessments, resale certificates, title risk, and license-holder limits rather than HOA litigation strategy.

Official Source Links

• Pearson VUE: Texas Real Estate exam page
• Pearson VUE: Texas Real Estate Content Outlines PDF
• TREC: Rules and Laws
• TREC: Addendum for Property Subject to Mandatory Membership in a Property Owners Association
• TREC: Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners' Association
• TREC: Seller's Disclosure Notice
• Texas Property Code Chapter 5: Conveyances
• Texas Property Code Section 5.012: Notice of Obligations Related to Membership in Property Owners' Association
• Texas Property Code Chapter 202: Construction and Enforcement of Restrictive Covenants
• Texas Property Code Chapter 207: Disclosure of Information by Property Owners' Associations
• Texas Property Code Chapter 209: Texas Residential Property Owners Protection Act
• Texas Property Code Section 209.003: Applicability of Chapter
• Texas Property Code Section 209.009: Foreclosure Sale Prohibited in Certain Circumstances
• Texas Property Code Section 209.0092: Judicial Foreclosure Required