Have you filed your HOA Management Certificate? This document needs to be filed regularly, as it contains key information about your homeowners association. This information is important for homeowners, buyers, lenders, and even real estate professionals. Boards that fail to keep this document current may expose the association to unnecessary administrative and financial problems
What is an HOA Management Certificate?
A HOA Management Certificate is a document that contains the official public information of a homeowners association. While some may casually refer to it as an HOA certificate, Texas law specifically addresses the management certificate required for property owners’ associations.
Every HOA in Texas is legally obliged to file and update this document under the Texas Property Code Section 209.004. It says that HOAs should record this certificate in the county where the subdivision is located.
This certificate is not to be confused with HOA governing documents, such as the HOA bylaws, HOA CC&Rs, or the HOA Rules, which are for internal use. But it will be helpful to people interested in buying, selling, or managing properties within the HOA community. If the information is outdated, it can create confusion and issues during home sales and transfers.
What Information is Included in an HOA Management Certificate?
Texas Property Code Section 209.004 specifies the details that must be included in this certificate. These details are to be carefully reviewed by the HOA Board and the HOA attorney to make sure all information to be made public is accurate and true.
A HOA Management Certificate includes:
- Name of the subdivision
- Name of the association
- Recording data of the subdivision
- Recording information of the Declaration of CC&Rs (and any amendments to it)
- Association’s mailing
- Association’s phone number
- Association Manager’s or designated representative’s email address.
- Association’s website (where the governing documents and association records can be found)
- Amount and description of association fees (in terms of property transfer)
It is important to note that any changes in the information above will require you to update your association’s certificate.
Where to File the HOA Management Certificate in Texas?
Here is the 2-step procedure to follow:
Step 1: Filed with the County Clerk
The certificate must be filed with the county clerk in the county where the subdivision is located. Now, if the subdivision is located between two counties, the certificate will then be filed in both counties.
Step 2: File Electronically
After the county recording, the association must also file the certificate electronically with the Texas Real Estate Commission’s HOA Management Certificate Database. According to TREC, certificates and amended certificates filed with the county after December 1, 2021, must be filed with TREC within seven days after being filed with the county.
Filing with the county does not automatically mean the TREC filing is complete. Boards should keep proof of both filings in the association’s records.
When Should You Update the Certificate?
It is very important that the HOA Board updates the certificate whenever there is a change in information. Here is a guideline to follow.
- When hiring a new management company,
- Change in the association’s mailing address
- Change in the HOA manager’s phone number or email address
- Changes in transfer-related fees
- Moving governing documents to a new website or portal
Texas law requires that an amended management certificate be recorded no later than the 30th day after the association receives notice of a change in the required information.
Is There a Penalty for Not Filing or Updating the Certificate?
If you’re wondering whether there are penalties or charges for failing to update the certificate, the short answer is no. However, there may still be consequences if an HOA Management Certificate is not filed or updated.
Under Texas law, if an association fails to properly record the required certificate or amended certificate, certain parties may not be liable for certain amounts owed to the association before a property transfer. The association may also be limited in its ability to enforce liens, attorney’s fees, accrued interest, and charges for wrongful transfer while the certificate was not properly filed.
Common Mistakes to Avoid
Despite the need to file and update, some associations still fail to do so. There are common mistakes or lapses that may lead to this.
For one, the HOA board may assume that its management company has already handled it. While it’s true that an HOA manager will assist in the filing process, the HOA Board should still confirm and verify it with the county and TREC.
Another is when the HOA board hires a new management company and forgets to update the details, including the new HOA manager. Important requests from homeowners and title companies may be sent to the old company.
Boards should also avoid leaving outdated transfer fees on the certificate. If the association changes resale, transfer, statement, or administrative fees, the certificate should be reviewed.
Website links are another frequent issue. If governing documents are moved to a new page or portal, the certificate should not continue to point people to an old or inactive link.
FAQs
Who is responsible for filing the HOA Management Certificate?
It is the HOA board’s responsibility to make sure the certificate is filed and updated. The board must also verify with the county and TREC if the certificate has been recorded.
Does the HOA need an attorney to prepare the certificate?
Not always, but it is a good idea to have the HOA attorney review it if the board is unsure about the required information, recording details, transfer fees, or references to the governing documents.
Is a management certificate the same as a resale certificate?
No. A resale certificate is usually requested when selling a specific property and includes property-specific account information.
How often should the board review the management certificate?
Boards should review it at least once a year and any time there is a change. This helps prevent outdated information from staying on the public record.
Can homeowners access the HOA Management Certificate?
Yes. Since the certificate is recorded with the county and filed with TREC, it is meant to be accessible to all interested parties.
Does this requirement apply to condo associations?
Condominium associations in Texas have a separate management certificate requirement under Section 82.116 of the Texas Property Code. HOA boards and condo boards should confirm which law applies to their community before filing.
Final Thoughts
Keeping your Texas HOA Management Certificate current is one of the simplest ways to protect your association from avoidable confusion and financial issues. For boards, it is part of responsible HOA management and proper recordkeeping.
Do you need help staying on top of HOA filings and compliance requirements? Landmark Community Management can help your board keep important records up to date and manage association responsibilities. Contact us at (512) 569-5527.
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