You are excited to close, then a surprise HOA balance or rule pops up and everything stalls. If you are buying or selling in a Houston-area community with an HOA, the resale certificate is often where those surprises appear. You want a smooth, on-time close with no last-minute drama. This guide shows you what the certificate includes, who orders it, how long it takes, and the simple steps you can take to avoid closing delays in Houston and Harris County. Let’s dive in.
What is an HOA resale certificate?
An HOA resale certificate is a packet of documents and statements prepared by the homeowners’ association or its management company. It gives you and the title company a clear snapshot of the association’s financial and regulatory status for the specific property you are buying or selling. In Houston and across Harris County, it is a routine part of closing for homes in mandatory associations.
Title companies and lenders use the information to clear title and confirm there are no unpaid assessments, liens, or restrictions that would block funding. For you, it is the best way to see whether there are any outstanding balances, violations, or rules that could affect your plans.
What the certificate usually includes
Every association’s packet is a little different, but most include these items:
Association identity and contacts
- Name and mailing address of the HOA and management company
- Contact person authorized to issue the certificate
Financials for the property
- Current regular assessment and billing frequency
- Any unpaid assessments, late fees, or credits as of a cutoff date
- Special assessments that apply now or are approved for the future
- Transfer fees, resale certificate fee, and any move-related charges
Liens and encumbrances
- Whether the HOA has filed, or plans to file, a lien for unpaid amounts
- Other association-related encumbrances, if any
Covenant compliance and violations
- Known architectural or rule violations tied to the lot
- Outstanding fines or required remedies
Rules and governing documents
- Declaration or CC&Rs, bylaws, rules and regulations
- Architectural guidelines and any leasing restrictions
- Obligations triggered by sale, such as specific disclosures or removals
Insurance and reserves
- Summary of master insurance coverage and owner responsibilities
- Reserve details or summary statements when provided
Litigation and capital projects
- Pending or threatened association litigation
- Approved capital projects or assessments that may impact owners
Use restrictions that affect your plans
- Leasing or rental caps
- Pet, parking, and alteration policies
The most time-sensitive pieces are the account balance, any fines or violations, and whether a lien exists. Those can delay funding if not resolved before closing.
Who orders it, fees, and timing in Houston
Who orders the packet
Most often the seller or listing agent orders the resale certificate shortly after going under contract. Some associations accept requests from the title company or buyer’s agent when the owner authorizes it. If the HOA requires written authorization or upfront payment, that must be provided before the packet is released.
What it costs and how it is paid
Associations charge a fee to prepare the packet. The amount and payment method vary by HOA and management company. There may be extra charges for expedited service, copies of recorded documents, or mailed delivery. Who pays is set by the purchase contract or local custom, and it is common for the seller to pay, but not always.
How long it takes
Turnaround can be a few business days to a few weeks. Professionally managed HOAs often deliver within 3 to 10 business days. Volunteer-run boards may need two to four weeks, especially if records are not centralized. Many management companies offer expedited delivery for an extra fee if timing is tight.
Common problems that delay closing
Even small issues can push a funding date. Watch for these Houston-area pitfalls:
- Missing owner authorization, which prevents the HOA from sharing details with the buyer or title company.
- Unpaid assessments, fines, or violations that the seller disputes.
- Incomplete packets where key documents or current balances are missing.
- A mismatch between what your contract expects and what the HOA provides.
- Overlooked special assessments or restrictions that surface late in the process.
- Confusion about separate local charges. Municipal Utility District (MUD) fees, county taxes, or other public district assessments are not part of the HOA resale certificate and can still surprise buyers if not reviewed separately.
Houston nuance: multiple entities and master plans
Many Houston-area neighborhoods, especially master-planned communities, involve more than one entity. You may have a master HOA and a sub-association, and you might also be in a MUD or other special district. Make sure you identify each relevant association and order the correct documents for all. Title companies look for clear payoffs and no surprises across every governing entity.
Checklists to stay on track
For sellers: pre-list and early steps
- Confirm your property is in a mandatory HOA and verify the HOA’s legal name and management contact information.
- Order the resale certificate as soon as you list, or within a few days of going under contract.
- Check your owner account before ordering. Pay any obvious delinquencies to avoid delays.
- Sign and submit any authorization form the HOA requires to release information.
- Request an itemized statement with a clear cutoff date and ask for emailed delivery.
- If violations exist, decide whether to cure now or disclose and negotiate a credit.
For buyers: due diligence focus
- Confirm the property is in an HOA and request the resale packet early in your option or due diligence period.
- Review for total payoffs, special assessments, pending capital projects, and any litigation.
- Read leasing rules, rental caps, pet policies, and parking rules to ensure your plans align.
- Note insurance coverage and reserves, since those may impact future dues.
- If the packet changes your decision, follow your contract’s objection or termination timelines.
For agents: coordination that prevents hiccups
- Build a clear deadline into the contract for ordering and delivering the resale certificate.
- Confirm who pays the certificate fee based on contract terms and local custom.
- If the HOA is volunteer-run or known to be slower, order early or request expedited service.
- Keep dated records of requests, payments, and all communications with the management company.
For title, lender, and closing
- Title verifies estoppel details, confirms the association’s lien release process, and balances payoff amounts.
- If there is a dispute, coordinate with the parties on a resolution, which may include a payment, a negotiated credit, or a closing escrow holdback.
- Lenders may require confirmation that there are no undisclosed assessments or liens before funding.
A simple timeline that works
- Day 0 to 1: Offer accepted. Seller or listing agent orders the resale certificate immediately.
- Day 3 to 10: Professionally managed HOA delivers the packet. Volunteer-run HOAs may take longer, up to two to four weeks.
- Day 10 to 15: Buyer reviews and raises any objections within contract timelines.
- Day 15 to 25: Resolve balances, violations, or document gaps. If needed, request expedited updates or arrange title escrow solutions.
- Closing week: Title confirms final figures and lien releases. Lender clears conditions and funds on schedule.
If issues pop up, use these solutions
- Cure violations early. A quick repair, repaint, or landscape fix can remove a roadblock.
- Negotiate credits. If timing is tight, a credit at closing may satisfy the buyer and keep the date intact.
- Set up an escrow holdback. Title can hold funds while a disputed amount or repair is resolved.
- Request an updated statement. If fees changed after the cutoff date, ask for a current balance to avoid a shortfall.
Final thoughts
The HOA resale certificate is a simple packet that carries a lot of weight. When you order it early, check it carefully, and coordinate with your title company, you give yourself the best chance for a smooth, on-time closing in Houston and Harris County. The key is to get ahead of it, especially if the association is volunteer-run or if multiple entities are involved.
If you want a calm path to the finish line, with clear steps and steady communication, reach out. Start the conversation with Unknown Company. Let’s Connect.
FAQs
Who pays the HOA resale certificate fee in Houston?
- It depends on your purchase contract and local custom. It is often paid by the seller, but confirm in your agreement so there are no surprises.
How long does a resale certificate take in Harris County?
- Professionally managed HOAs often deliver within 3 to 10 business days. Volunteer-run associations may need two to four weeks, and many management companies offer expedited options for a fee.
What happens if the packet shows unpaid assessments or fines?
- You can cure the balance before closing, negotiate a credit, or arrange an escrow holdback through the title company. Your contract may also allow termination within certain timelines.
Does the HOA resale certificate include MUD fees or county taxes?
- No. Municipal Utility District charges, county taxes, and other public assessments are separate from the HOA packet and should be reviewed independently.
What if the HOA has a lien on the property?
- The lien needs to be satisfied, released, or addressed through a title-approved escrow arrangement before the lender funds and the title company closes.
Can I back out if I dislike the HOA rules?
- That depends on your contract contingencies. Many contracts allow you to object to association documents within a set period, so watch your deadlines and act promptly.
Why would a resale certificate delay closing?
- Delays often come from missing authorization, unpaid balances, unresolved violations, incomplete documents, or slow turnaround from a volunteer board. Early ordering and clear communication usually prevent these issues.
