Has Your HOA Filed Its Management Certificate?

What Is A Management Certificate?

In simple terms, a management certificate is an official document that must be recorded with the county where any portion of the HOA’s residential subdivision is located. This document, signed by an officer or managing agent of the association, is like a “snapshot” of key HOA information.

The certificate needs to include:

• The names of the subdivision and association.
• Legal references for the subdivision’s documents and any amendments.
• Contact information for the association and its manager or designated representative.
• A website link where HOA rules and documents are accessible.
• Information on any fees related to property transfers within the subdivision.
• Any other relevant details the association considers necessary.

Amending A Management Certificate

Section 209.004 of the Texas Property Code requires that when there is a change to any information on the management certificate, an amended certificate is to be filed not later than the 30th day after the date the association has notice of a change in that information. For example, an association would need to amend its management certificate every time there is a change or addition to the HOA declaration.

Why Is Filing a Management Certificate So Important?

Clear Communication and Transparency – Filing the certificate ensures that all relevant parties—including potential buyers, lenders, and title companies—have easy access to vital information about the HOA. It communicates key details upfront, reducing misunderstandings and providing clarity about the HOA’s role, rules, and associated costs.

Legal Protection for the HOA – An accurate, up-to-date management certificate acts as a shield for the HOA, allowing it to enforce dues and obligations that may arise before or during property transfers. Without this certificate, the HOA’s claims against a buyer or their lender may become unenforceable.

Avoiding Financial Losses – If an HOA fails to record or update its management certificate, Texas law limits its ability to collect past dues or debts from new owners. Specifically, if the certificate isn’t on file, the new buyer, lender, or title insurance company in a property transaction is not responsible for any amounts the previous owner may have owed at the time of sale. This could lead to significant financial losses for the association.

Efficient Property Transfers – Property transactions often move quickly, and the absence of a management certificate can create delays and potential conflicts. Keeping this document current and filed ensures that property transfers are smooth, eliminating unnecessary roadblocks for sellers and buyers within the HOA.

How HOA Members Can Ensure Compliance

Regular Reviews: Associations should periodically review and update their management certificate, especially if there are changes to fees, contact details, or other key data.

Designate a Responsible Party: Assigning a specific officer or managing agent to oversee compliance with filing requirements helps ensure the certificate stays up-to-date.

How Is The Texas Real Estate Commission Involved?

HOAs that filed a management certificate or amended management certificate with the county clerk as required by Section 209.004 on or before December 1, 2021, were required to electronically file their management certificate (or an amended management certificate) with the Texas Real Estate Commission (TREC) no later than June 1, 2022. For any management certificate or amended management certificate filed with the county clerk after December 1, 2021, HOAs are required to file that certificate with TREC within 7 days of that filing.

Search HOA management certificates to see if your HOA has filed the certificate in compliance with Texas law. Note that while TREC is responsible for maintaining a centralized database and website dedicated to HOA management certificates, TREC does not have regulatory authority over HOAs. This means that TREC does not license or register HOAs and TREC does not have enforcement jurisdiction over HOAs.