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ConchoP (Texas)
Posts: 208
Posted:
When buying or selling a property in Texas, the seller is required to provide the buyer with a resale certificate before the deadline specified in the purchase contract. The cost of this certificate is capped at $375

I understand that certain mortgage companies require a resale certificate and I've read that some HOAs charge for both resale certificates and statements of account. Does this imply that a seller or buyer can opt to pay for either a resale certificate or a statement of account? And is this charged each time there is a new buyer?

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Conco

Not sure about Texas, but in general the mortgage lender wants a "letter" from the HOA Stating there are no unpaid dues, no existing violations, and no legal action against the owner from the association. Typically this letter is done by the PM at a nominal charge ($200.00 or so). In some states this is called a Estoppel Letter.
SheliaH (Indiana)
Posts: 6,964
Posted:
Ask the property manager or your realtor.

You might also want to check if your home has any outstanding exterior change requests that haven't been processed or were denied. Once the paperwork is cleared up, you should be able to sell the home without worrying about the new owner being hit with a violation you should have been aware of (thus risking the new owner coming after you).

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JackS20 (North Carolina)
Posts: 271
Posted:
Our HOA"s management company was handling the closing statements and illegally charging double what NC law allows which is $200. They charged $200 to the seller for the estoppel letter and $200 to the buyer for our free governing documents, which anyone can download off our website.

From what I've read, this practice of milking the cash cow is common. Management companies charge the most they can get away with then some more.

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