FINALLY! A win for the homeowner! Relief for the homeowner with HOA regulation in TEXAS is here! Finally the voice of the homeowner has been heard. As of August the 8th 2021, Senate Bill 1588 has passed. They took effect September 1-2021. Many REALTOR-supported homeowners association reform laws were passed by the Texas legislature. The goal was to support the rights of our homeowners to balance their rights.
So I was representing the buyer in a transaction in Cedar Park. I reviewed upfront with my buyers, all the HOA fees. I explained to my buyers the HOA addendum that was attached to the contract to protect my buyers from outrageous HOA fees. In this subdivision the resale certification fees were very high at $500. The transfer fee was $400. We capped the fees at $250 and the rest would be paid by the seller and the seller signed and agreed. When the seller realized that she would be paying about $750 she was upset. She called me directly to see if we would be willing to change the contract and split the fees. She wanted to renegotiate our contract. By law I could not advise her and could lose my license by interfering with an agent/client relationship. Her agent failed to proactively get those fees researched and help the seller proactively disclose them with no surprises. Many times as a Real Estate agent I have had to research HOA fees ahead of time. When I list a home, that is one of my first questions and to encourage the seller to get their HOA ducks in a row. The more proactive we are providing all the HOA information the more accurate the NET proceeds sheet is to the bottom line.
Here is the complete list of changes in effect:
Capped Fees!
Filing requirements with TREC.
Websites with more communication.
Filing with the county.
Protections from negative credit reporting
Prevents HOA architectural conflict of interest.
Barred from requiring access to lease agreements.
Solicit bids for services over $50,000.
Barred from prohibiting items displayed on your property.
Timely notice about meetings.
Improved due process in dispute.