At its regular meeting May 7, the Texas Real Estate Commission (TREC) approved a revised HOA Addendum to the TREC One-to-Four Family Residential Contract. The revised form may currently be used on a voluntary basis, but its usage will become mandatory on July 1, 2012. The revised HOA Addendum addresses the common failure to reimburse title agents ordering subdivision information in transactions that do not close. TLTA supported the inclusion of language in the Addendum stating that the title agent is only authorized to order a Resale Certificate on behalf of a party after they have received the payment for the certificate. The new language also allows for the parties to identify who should pay for a Resale Certificate and any necessary Resale Certificate updates. The form also now reflects the recent statutory change TLTA was instrumental in passing that permits a buyer to obtain a resale certificate directly from a property owners association. At its regular meeting May 7, the Texas Real Estate Commission (TREC) approved a revised HOA Addendum to the TREC One-to-Four Family Residential Contract. The revised form may currently be used on a voluntary basis, but its usage will become mandatory on July 1, 2012. The revised HOA Addendum addresses the common failure to reimburse title agents ordering subdivision information in transactions that do not close. TLTA supported the inclusion of language in the Addendum stating that the title agent is only authorized to order a Resale Certificate on behalf of a party after they have received the payment for the certificate. The new language also allows for the parties to identify who should pay for a Resale Certificate and any necessary Resale Certificate updates. The form also now reflects the recent statutory change TLTA was instrumental in passing that permits a buyer to obtain a resale certificate directly from a property owners association.

To download the form, click here

Courtesy of Texas Land Title Association – Dateline Austin Newsletter