Tex. Prop. Code §207.005
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Effect of Resale Certificate; Liability — Texas POA Act
What a delivered certificate binds. The association may not deny the validity of any statement in it, and its lien for an amount the certificate did not disclose terminates automatically as to that amount. A buyer, buyer's agent, owner, owner's agent, lender, and title insurance company and its agent are not liable for an undisclosed debt or claim existing on the preparation date. The certificate does not reach debts arising afterward or a lien for future assessments.
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Statutory Text
Verified Sep 5, 2026 · TX_LEG_CAPITOL
Sec. 207.005. EFFECT OF RESALE CERTIFICATE; LIABILITY. (a) A property owners' association may not deny the validity of any statement in the resale certificate. The property owners' association's lien to secure undisclosed amounts due the property owners' association on the date the resale certificate is prepared shall automatically terminate as a lien securing the undisclosed amount. A buyer, buyer's agent, owner, owner's agent, lender, and title insurance company and its agent are not liable for any debt or claim existing on the preparation date of the resale certificate that is not disclosed in the resale certificate. (b) A resale certificate does not affect: (1) the right of a property owners' association to recover debts or claims that arise or become due after the date the resale certificate is prepared; or (2) a lien on a property securing payment of future assessments held by the property owners' association. (c) The owner's agent and the title insurance company and its agent are not liable to a buyer for any delay or failure by the property owners' association in delivering the information required by Section 207.003 . (d) Except as provided by Section 207.004 , the property owners' association is not liable to an owner selling property in the subdivision for delay or failure to deliver the information required by Section 207.003 . An officer or agent of the property owners' association is not liable for a delay or failure to furnish a resale certificate. Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1, 1999.
Compliance
| Ref | Requirement |
|---|---|
| (c) | When the association is late, the listing agent and the title company are not the ones on the hook. |
| (d) | Section 207.004 is the whole of the seller's remedy against the association, and the officers who run it are not personally exposed. |
Enforcement
| Ref | Requirement |
|---|---|
| (a) | Whatever the certificate leaves out, the association cannot later collect from the parties to the sale, and its lien for that amount ends. |
| (b) | The certificate settles the past, not the future: assessments that come due after it was prepared are still owed and still secured. |
Other sections in this chapter
- Tex. Prop. Code §207 — Texas Property Owners' Association Act — Resale Certificate Chapter
- Tex. Prop. Code §207.001 — Definitions — Texas Property Owners' Association Act
- Tex. Prop. Code §207.002 — Applicability — Texas Property Owners' Association Act
- Tex. Prop. Code §207.003 — Delivery of Subdivision Information to Owner — Texas POA Act
- Tex. Prop. Code §207.004 — Owner's Remedies for Failure to Timely Deliver — Texas POA Act
Legal Topics
Legal references last verified September 5, 2026.
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