HOA Documents in Texas: What Dallas Buyers Must Review Before Closing

What do Dallas buyers need to know about HOA documents in Texas?

In Texas, when you buy a home in a mandatory homeowners association, the seller must deliver the Subdivision Information — including the resale certificate and CC&Rs — within 10 business days of your written request. Once you receive it, you have just 3 days to review it and terminate the contract if needed, with your earnest money returned in full. In the Dallas-Fort Worth area, roughly 70% of homes have a mandatory property owners's association, and virtually every new construction community in Frisco, Prosper, Celina, and McKinney requires HOA membership. Knowing what to look for in those documents before your termination window closes can save you from thousands of dollars in unexpected fees, hidden violations, or restrictive rules you didn't plan on.

By Paul Blair | June 16, 2026

If you're under contract on a home in DFW, there's a good chance it comes with a mandatory property owners' association (POA) — what most people call an HOA. In some parts of the metroplex, it's essentially unavoidable. Communities in Frisco, Plano, McKinney, Prosper, Celina, The Colony, and Allen are almost entirely HOA-governed, and new master-planned developments along the northern and eastern corridors add thousands of HOA-governed homes to the market every year.

That means HOA documents are one of the most important things you'll review during your option period — and most buyers don't know what they're looking for.

Here's how this works in Texas, and what to check before your review window closes.

What the TREC Addendum Means for You

When you make an offer on a property with mandatory HOA membership, your contract will include TREC Addendum 36 (formally: Addendum for Property Subject to Mandatory Membership in a Property Owners Association). This form governs how and when the seller delivers the HOA information, and what rights you have as a buyer.

Under the addendum, the seller is required to provide what Texas calls the Subdivision Information: the current restrictions and bylaws, and a current resale certificate from the HOA. The seller typically orders this from the HOA or their management company, and the HOA has up to 10 business days to deliver it. The fee is capped by law at $375 for the initial certificate — the seller pays it.

Here's the critical part: once you receive the Subdivision Information, you have 3 days to review it and terminate the contract if you find something you don't like — and your earnest money comes back to you in full. If the seller never delivers it at all, you can terminate at any time before closing.

Three days is not a lot of time if you're not prepared. This is why I tell every buyer I work with in DFW to ask their agent to request the HOA documents the same day we go under contract — not to wait until closing approaches.

For context on how termination rights work within the broader timeline, see The Texas Option Period: What Every Dallas Home Buyer Needs to Know.

What's in the Package

The resale certificate is a snapshot of the property's current standing with the HOA. Under Texas Property Code Chapter 207, it must include:

• The amount of current monthly dues and when they're due
• Any outstanding assessments against the property
• Whether the current owner has any violations or unpaid fines
• The HOA's current account balance and financial statements
• A summary of the reserve fund and any planned capital improvements

The CC&Rs (Covenants, Conditions, and Restrictions) are the rulebook — what you can and can't do with the property. These vary enormously. Some HOAs are minimal: lawn maintenance standards, no junked vehicles. Others are detailed down to approved exterior paint colors, fence materials, holiday decoration timing, and whether you can park a truck in your own driveway.

Together, these documents tell you what you're actually buying into — not just the home, but the community.

10 Things to Check Before Your 3-Day Window Closes

This is what I walk buyers through when I sit down with HOA documents:

1. Current monthly dues — What are they, what do they cover, and when did they last increase? Look at the last 3-5 years of increases to understand the trend.
2. Reserve fund balance — A healthy HOA holds 25-40% of annual assessments in reserve. If reserves are below 15%, the association may not have the money to cover major repairs without a special assessment.
3. Pending or recently approved special assessments — A special assessment is a one-time charge to all owners for a major project or emergency repair. These can run $1,000-$10,000 or more per homeowner. If one is planned or already voted on, it will be disclosed in the resale certificate.
4. Outstanding violations on this specific property — If the current owner has unpaid fines or open violations, those obligations transfer with the property. You'll want them resolved at closing, not handed to you.
5. Delinquency rate — If more than 10% of homeowners in the community are behind on dues, the HOA may struggle to fund maintenance. Lenders also scrutinize delinquency rates, particularly for condos.
6. Active litigation — HOAs involved in lawsuits may face significant legal costs that lead to higher dues or special assessments. The resale certificate will note any active litigation.
7. Transfer fee and capital contribution — Beyond monthly dues, many DFW communities charge a one-time transfer fee ($150-$500) and a capital contribution — a one-time buy-in to the reserve fund that can run $500-$2,000 or more — at closing. These costs belong in your closing cost estimate from day one.
8. CC&R restrictions that affect your plans — If you plan to rent the property short-term, run a home-based business, park an RV or boat, or make exterior modifications, read the CC&Rs carefully. Rental caps and use restrictions vary significantly by community.
9. Board meeting minutes — Recent minutes can reveal ongoing disputes, deferred maintenance, or planned projects that haven't been formally assessed yet. They tell you what the board is actually dealing with.
10. Reserve study date — When was the last professional reserve study completed? A community that hasn't had one in 5+ years may be underestimating its future repair needs.

The Financial Reality of HOA Fees in DFW

Monthly HOA dues in Dallas-area communities typically range from $100 to $500 per month. Older neighborhoods with basic amenities tend to be on the lower end. Master-planned communities with clubhouses, fitness centers, trails, and multiple pools — like many in Frisco, McKinney, and The Colony — can run $300 to $500 per month or more.

These fees matter for your financing. Lenders include HOA dues in your debt-to-income ratio calculation, which affects how much house you qualify for. A $300/month HOA fee is the equivalent of roughly $50,000 in purchasing power, depending on your rate and other debts. If you're comparing two homes at the same price — one with a $300/month HOA and one with none — factor that into your real monthly cost before you decide.

Also be aware: in new construction communities in north and east DFW, HOA fees often layer on top of MUD and PID taxes. Both can apply to the same property, and both add to your monthly payment in ways that aren't always obvious at the start.

If you're terminating based on what you find in the HOA documents, it's worth understanding how your earnest money is protected under the TREC contract before you act.

The 3-Day Rule Works — But Only If You're Ready

Texas gives buyers meaningful protection around HOA review. The 3-day termination window after receiving Subdivision Information is one of the most buyer-friendly features of the Texas purchase contract. But it only works if you actually review the documents while you still have time.

The most common mistake I see: buyers receive the resale certificate three days before closing, skim it, and assume everything looks fine. Then they close — and later discover the HOA has $12,000 per household in deferred maintenance coming, or that their short-term rental plan violates the CC&Rs.

Review the documents early. Ask your agent to flag anything unusual. If the reserve fund is thin or a special assessment is looming, use that information to negotiate a price adjustment or credit before your termination window expires.

Your specific situation — what community you're buying into, how the HOA is run, and what the financials look like — will determine how much weight to give any of this. That's exactly the kind of analysis I walk my buyers through before we proceed.

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Frequently Asked Questions

Who pays for the HOA resale certificate in Texas?

In most DFW transactions, the seller pays for the resale certificate. Texas law caps the fee at $375 for the initial certificate and $75 for an update. The seller typically orders it as soon as the property goes under contract, since the HOA has up to 10 business days to produce it.

What happens if I don't receive the HOA documents before closing?

Under TREC Addendum 36, if the seller never delivers the Subdivision Information, you can terminate the contract at any time before closing and receive your earnest money back. This is actually a stronger protection than the standard 3-day window — don't sign any documents without understanding this distinction first.

Can unpaid HOA fees from the previous owner transfer to me as the buyer?

Yes — in Texas, unpaid HOA dues, fines, and violations generally stay with the property, not the seller. If they're not addressed at closing, they become your obligation. A title company should catch outstanding balances during the title search, but verify it directly in the resale certificate as well.

What is a special assessment and how do I know if one is coming?

A special assessment is a one-time charge levied on all HOA members to fund a major repair or project that the reserve fund can't cover — things like replacing a community pool, repaving roads, or repairing a shared roof. The resale certificate must disclose any pending or recently approved special assessments. You can also gauge the risk by reviewing the reserve fund balance and the date of the most recent reserve study.

Is the HOA the same thing as a Property Owners' Association in Texas?

Yes — Texas law uses the term "Property Owners' Association" (POA) rather than "Homeowners Association" (HOA). The terms are used interchangeably in conversation, but the governing statutes and TREC forms use POA. The addendum you'll sign is the Addendum for Property Subject to Mandatory Membership in a Property Owners Association.

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Reviewing HOA documents carefully before your termination window closes is one of the most valuable things you can do as a DFW buyer. The 3-day right is real protection — but only if you use it.

If you're under contract and want a second set of eyes on your HOA documents, or if you're evaluating communities and want to understand what you're comparing, reach out at greysq.com/contact.

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About Paul Blair

Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 - CA DRE #01792671.