Home Owner Association Subdivision Information
The emotional rollercoaster of purchasing a home is both thrilling and meticulous. Many buyers and sellers are caught in the overall process when trying to sell their own homes and potentially overlook items that may be of great importance. An agent’s true value is assessed by being the real estate resource and providing as much information to their client during their representation. Resale Certificates are such items that many people forget to give due attention to. Many people forget that it is also a negotiating item during the sale and purchase of a property. It may also protect the future buyer from inheriting additional costs associated with deed restrictions violations and much more.
Subdivision Information
The Texas Property Code describes “Subdivision Information” as:
1. The restrictions applying to the subdivision that you must comply with.
2. The bylaws and rules of the Owner’s Association
3. A Resale Certificate (TAR 1923)
The subdivision information is provided by the Home Owner’s Association.
Who Pays for the Subdivision Information?
The questions ‘who pays for the Subdivision Information’ is commonly asked. In Texas, it is customary that the seller’s agent has advised the seller during the listing that they will need to provide the Subdivision Information for the future buyer. Even so, the payment of the fees to transfer the property is negotiable between the parties.
Important Notice of Material Changes
If the seller becomes aware of any material changes in the Subdivision Information, they MUST immediately give notice to the buyer. The buyer may elect to terminate the contract prior to closing by giving written notice (always have a paper trail) and earnest money returned to buyer:
1. Incorrect Subdivision Information
2. Any material change in the Subdivision Information occurs prior to closing
When is the Subdivision Information Provided?
Timing is important with this delicate issue and usually concurs with the Option Period, the typical due diligence period for the buyer. If the buyer does not receive the Subdivision Information, they can terminate the contract at any time prior to closing and the earnest money is refunded to the buyer. If the seller does provide the Seller Information, the buyer may terminate the contract one calendar week after the buyer receives the information or prior to closing. A buyer can choose to terminate the contract due to anything relating to the Resale Certificate.
What is contained in the Resale Certificate?
1. Is the property subject to a right of first refusal or other restraints that restrict the owner’s right to transfer the owner’s property?
2. What are the regular assessments or fees for the property? How often? Monthly? Yearly?
3. What is the special assessment to prepare the resale certificate?
4. What amount is due and unpaid to the Owner’s Association for the current year?
5. Amount of reserves for capital expenditures.
6. Unsatisfied judgments against the Owner’s Association.
7. Any pending suits against the Owner’s Association.
8. Known violations of conditions on the property applying to the subdivision.
9. Health or building code violations with respect to the property or common areas/facilities owned or leased by the Owner’s Association.
10. Owners’ Association fees resulting from the transfer of the property.
Repairs by Owner’s Association
The Owner’s Association may have the sole responsibility to make certain repairs to the property. If the buyer is concerned about the condition of any part of the property which the Owner’s Association is required to repair, BUYER SHOULD NOT SIGN THE CONTRACT unless you are satisfied that the Owner’s Association will make the desired repairs.
Let me show you the way...
I understand that selling your home is a lengthy and delicate process. I can assist you in the home selling process which includes establishing market value, marketing, offer negotiations, assisting in the inspection and negotiations process after inspections. Fell free to request a Complimentary Market Analysis and I will send you a price range for your property via email. We can then discuss and potentially preview your property to establish a market value for your home. Receive up-to-date market activity emails regarding your neighborhood with my Market Activity Notifications via email. You can also request our bi-weekly MLS Market Snapshot to get a glimpse of market conditions around your home. You'll receive updates via email to the properties that are active/pending/sold in your neighborhood.
Sincerely,
Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
Cell: 832-282-2069
Online at www.houstonheritage.com
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