Titles & Deeds

Resale Certificate (POA)

The statutory disclosure a Texas property owners association issues on resale, reporting assessments, restrictions, and known violations.

A resale certificate is the document a property owners association delivers when a lot subject to mandatory membership is resold. Texas Property Code Chapter 207 lists what it must state, including the amount of regular and special assessments, sums due to the association, capital or reserve amounts held, any known violation of the dedicatory instruments, and whether the association has given notice of a required repair.

In a resale transaction the buyer usually receives the certificate along with the dedicatory instruments through the TREC addendum for property subject to mandatory membership in a property owners association. The addendum sets who pays, who orders it, the delivery deadline, and the buyer's right to terminate if the certificate is not delivered on time.

The certificate is a snapshot of the association's records. It reports what the association knows, and a person is generally entitled to rely on it, but it does not substitute for the seller's own disclosure duties.

On the exam

Tie the certificate to three things: Chapter 207 sets the contents, the POA addendum sets the delivery and termination mechanics, and the buyer relies on the association's stated figures.

Exam trap

A POA resale certificate is not the sales-tax resale certificate, and it does not replace the seller's disclosure notice. The two documents answer different questions.

Tested in

Special Topics (Texas) (4% of the exam)

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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.