Texas management certificate

Frank,

Several years ago AZ passed the very same law; the purpose of which was to set up a tracking system for HOAs mainly because title agents had no way of knowing where HOAs were located. The only problem was that the recorder's office was not notified of this new law so the tracking was never set up. There was a bill in the last session that would have required this info to be provided to the Sec of State who, in turn, would be required to post the info on their website; however the bill didn't get anywhere. Sure hope the TX legislature was more thorough with their legislation!!!

I have just heard of this law here in Texas. 2009.004. So, I have been told our Association never filed this Management Certificate until the first of this year. Is this cut and dry? All back maintenace fees are NOT now collectable?

Thanks for help.

This was sent to me highlighting (d) 1 and 2

Any comments very welcomed. That is why I they made me think now the state overides our deed restrictions which say the fees etc pass with the title. It sounds like we cannot collect now.

Sec. 209.004. MANAGEMENT CERTIFICATES. (a) A property owners' association shall record in each county in which any portion of the residential subdivision is located a management certificate, signed and acknowledged by an officer or the managing agent of the association, stating:
(1) the name of the subdivision;
(2) the name of the association;
(3) the recording data for the subdivision;
(4) the recording data for the declaration;
(5) the name and mailing address of the association;
(6) the name and mailing address of the person managing the association or the association's designated representative; and
(7) other information the association considers appropriate.
(b) The property owners' association shall record an amended management certificate not later than the 30th day after the date the association has notice of a change in any information in the recorded certificate required by Subsection (a).
(c) Except as provided under Subsections (d) and (e), the property owners' association and its officers, directors, employees, and agents are not subject to liability to any person for a delay in recording or failure to record a management certificate, unless the delay or failure is wilful or caused by gross negligence.
(d) If a property owners' association fails to record a management certificate or an amended management certificate under this section, the purchaser, lender, or title insurance company or its agent in a transaction involving property in the property owners' association is not liable to the property owners' association for:
(1) any amount due to the association on the date of a transfer to a bona fide purchaser; and
(2) any debt to or claim of the association that accrued before the date of a transfer to a bona fide purchaser.
(e) A lien of a property owners' association that fails to file a management certificate or an amended management certificate under this section to secure an amount due on the effective date of a transfer to a bona fide purchaser is enforceable only for an amount incurred after the effective date of sale.

OK, sorry I have to ask more. But does this apply to maintenance fees. Or other things such as fines you mentioned. Like if someone sells owing a thousand dollars in back maintenace fees? Our Deed Restrictions say these covenents etc (as with taxes) go with the land. Now, I am being told anyone owing back dues do not have to pay. If the owner has been living there for 20 years and not paid, does this law now negate that?

Thank you Larry for explaining these things.

You say once you record.........etc......
then can you resume collection even for lots of back years when not recorded? (not leins, just maintenance fees never paid)

It just seems these laws hinder POA's from being able to be financialy secure and sound.

Once again I appreciate you taking your time to help.