Instructions for TREC 37-1 Resale Cert

Started by KevinH • 6 replies • 5152 views

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KevinH
Posts: 52

Posted:

What can anyone tell me about the Resale Certificate TREC 37-1?
Any self-managed HOAs out there that have completed this form?

Are there any concerns we should be aware of (liabilities, etc)?

Should the document be notarized?

Many management companies charge around $150 for this form (complete package with Bylaws, etc). Does this usually cover charges other than research/time/office supplies used?

Any information you can provide will be helpful.

Thanks.

hoatalk (Other)
Posts: 506

Posted:

Looks like TREC 37-1 is going away and 37-2 is taking it's place. Have a look here: www.trec.state.tx.us/formslawspubs/forms/forms-contracts.asp

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RogerB
Posts: 4,986

Posted:

I don't think Texas Real Estate Commission (TREC) form 37-2 has to be notarized. The concern is it be filled out accurately or else the HOA can be held liable by the Buyer. We prepare a similar document in Colorado which is referred to as a Status Letter or Certificate of Status of Assessment. One concern is delinquent assessments must be stated so the title company collects this amount for the HOA. If none is stated upon transfer of deed the delinquent amount may be forgiven.

I also looked at TREC 36-4 and note that the Colorado Real Estate Commission on 10/1/04 initiated similar requirements for the option for providing HOA documents. On 1/1/06 the Colorado Common Interest Ownership Act (CCIOA) required providing these documents prior to the Buyer being committed to the Contract.

My point is all states are moving towards requiring more information and protection of the Buyer in manditory HOA's.

RogerB

RogerB
Posts: 4,986

Posted:

KevinH, yes the charge of $150 in your example is for many things. Most important is the RESPONSIBILITY for doing everything properly and accurately.

Duties normally includes coordination with the Seller and/or their real estate agent, coordination with the title company, providing required HOA documents (~100 pages) and other necessary information and documents, receiving and HOA filing of a copy of the new deed and a copy of the Disclosure Statement which has been signed by Buyer, changing the accounting software to effectively remove the previous owner (while retaining their information) and adding the new owner's information.

Plus we personally welcome the new owner to the community, give them a new owner's packet, and answer any questions they may have.

RogerB

SheliaR
Posts: 2

Posted:

Does anyone out there know if there is such a law in NC???

KevinH
Posts: 52

Posted:

SheliaR, you may want to research the NC Real Estate Commission (NCREC) website:

http://www.ncrec.state.nc.us

HOA information on their website:
http://www.ncrec.state.nc.us/publications-bulletins/subdivisions.html

I do not see any mention of a resale certificate, though that doesn't mean there isn't one.

KevinH
Posts: 52

Posted:

RogerB, thanks for the information.

My main concern for the $150 was whether there were any legal filing requirements, etc that the cost may be covering, in case anything is happening behind the scenes that we would not be aware of. When performing these duties ourselves, while self-managed, it would be important to know this. We are looking at other management options, but still should create a process for completing the TREC 37-2 correctly and within the time-frame allotted even if we did not have a management company. I find it funny how they have been self-managed in the past, yet no one obtained or passed this information on.

I did find quite a bit of information online as well.

I looked up Texas Property Code Chapter 207:
http://www.capitol.state.tx.us/statutes/pr.toc.htm

It appears to cover the responsibilities pretty well.

Thanks for the help and information.
Kevin

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