Do Not Overlook the Importance of the HOA Addendum

Real Estate Agent with RE/MAX Compass 540867

Be aware of the provisions of the Addendum for Property Subject to Mandatory Membership in a Property Owner’s Association!   In Texas, if the addendum states that the buyer will obtain/pay for the HOA docs/resale certificate (A.2 is checked), it is important to note that the docs must be produced to the sellers in order to be in compliance with the contract and the docs must include the resale certificate.   The cost for production of these documents varies from $150 to upwards of $600 (rush order).  In the past, the statement of account has been a “work around” the expensive resale certificate.   Until recently, the HOA management companies produced this statement without requiring advance payment.   It was produced as part of the Tax Certificate.  Now, however, most of the HOA management companies are requiring advance payment for production of the statement of account.   A title company may not know about the advance payment requirement until it receives the Tax Certificate.   When the title company receives the Tax Certificate, the page of the Tax Certificate where the statement of account is usually located instead has a notation stating that advance payment must be made to the HOA management company in order to obtain the information.  The title company will refer to the HOA addendum at Paragraph E to determine from whom to obtain this payment.  The title company will then contact either the seller or the buyer to collect the advance payment. 

The moral of this story is to be very careful how you complete this addendum . . . know what to expect, adhere to the production deadline and advise your clients so there will not be any costly surprises.


Posted by

Kris Hoch, ABR, ePro®

RE/MAX Compass

7825 Hwy 6 N, #112

Houston, TX  77095

832.928.5070 - Cell

832.476.8644 - Fax

Referrals are the lifeline of my business.  If you or someone you know are in the market to buy or sell, please consider me for your real estate needs.

For more information about the Spring-Cypress TX area, please visit my website at

If you are planning to buy in Spring or Cypress, TX, you can reach Kris at or via cell phone at 832.928.5070.


Comments (0)