Texas Condo Buyer Guide: HOAs, Resale Certificates and Special Assessments

Most of my buyers start by looking at houses, and that is where I put the most attention. Condos are a real option for plenty of people in Austin and the surrounding suburbs, and they work differently enough that they deserve their own guide. When you buy a condo, you are buying a unit plus a share of a building and an association. This page covers what to read, what to ask and where your rights come from. I am Ken Jackson, a REALTOR with Spyglass Realty.

This is general information, not legal, tax or lending advice. The contract, the association's documents, your lender and an attorney control the details.

What you own in a condo

In a condo you own your unit and an undivided interest in the common elements. Texas law says a property is a condominium only if some common elements are owned by the unit owners in undivided shares. The declaration decides the boundaries. Unless it says otherwise, Texas law treats the finished surfaces of walls, floors and ceilings as part of your unit and the rest of those structures as common elements. Doors, windows, balconies and patios built for one unit but outside its boundaries are limited common elements for that unit. Read the declaration and plat for who maintains which parts.

Condo or townhome

A townhome community is often set up as a subdivision with a property owners association, which falls under different chapters of the Texas Property Code than a condominium association. Your deed, plat and declaration show which one you have. The TREC condo contract is for condos. Ask me or the title company which contract and which resale certificate apply.

The documents to read before you commit

• The declaration, bylaws and rules. The declaration decides what you can do with your unit, including rentals.
• The resale certificate, which states the regular assessment, unpaid and special assessments, reserves, budget and balance sheet, lawsuits, insurance, transfer fees and the managing agent.
• The association's insurance summary and any reserve study.
• Recent meeting minutes, which show what repairs and costs the board is dealing with.

Condo board meetings are open to unit owners, except for limited executive-session topics. Reading recent minutes before you buy shows you a lot.

The resale certificate

By law the association must furnish the resale certificate within 10 days after a written request from the unit owner. It must be prepared no earlier than three months before delivery to the buyer. If the association does not provide it in time, the seller can give you a sworn affidavit explaining the request and the missed deadline, and the seller and buyer may agree in writing to waive the certificate. The TREC condo contract has a box for this. If you have not received the declaration, bylaws and rules, the contract lets you terminate within 7 days after you receive them, with your earnest money refunded. Ask me which boxes are marked on your contract.

Special assessments and reserves

A special assessment is an extra charge beyond regular dues, often for a repair or capital project. In the TREC condo contract, a special assessment that is due and unpaid at closing is the seller's obligation. A special assessment approved for the future but not yet due is different, and it can fall on you, so read the certificate and ask the association in writing whether any are planned. A reserve is money set aside for big repairs, like roofs and elevators. A thin reserve with large repairs ahead raises the chance of a special assessment. Look at the reserve next to the budget and any reserve study.

Insurance

Texas law requires the association to carry property insurance on insurable common elements, to the extent reasonably available, at no less than 80 percent of replacement cost. Your own policy fills the gaps. A condominium owner's policy, often called HO-6, covers your personal property and the interior of your unit, with liability protection. What counts as your interior depends on the declaration. Most home policies do not cover flood, and a condo is not automatically covered either, so ask your insurance agent to compare your policy with the master policy and the deductible rules before closing.

Loans and condos

The lender reviews the building as well as you. Conventional and FHA programs each have rules about the project, such as the budget, reserves, litigation, owner-occupancy and insurance. Rules change, so ask your lender early which program fits the building, and ask me to share the building's documents with the lender as soon as you are under contract. Delays at the association can slow a closing.

Ken Jackson, REALTOR, TREC license 754679, Spyglass Realty (broker license 588051). General information only, not legal, tax or lending advice.

Last reviewed: October 13, 2026.