What to request, what to look for, and your legal rights as a buyer — the document review that protects any 55+ community purchase in Texas
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Talk to a Specialist →Texas Property Code Section 207 requires sellers in HOA communities to provide a disclosure package to buyers within a specified period after ratification of the contract. Buyers have the right to cancel the contract within the contractual review period if they find unacceptable conditions in the HOA documents. Unlike some states where the seller does not have to actively provide documents unless asked, Texas law makes this a required part of the transaction — though in practice the specific timing varies depending on how the purchase contract is written.
The key: know the review period in your contract, request all documents immediately upon ratification, and use the cancellation right if anything unacceptable is found. This is not a theoretical protection — it is a real legal tool.
| Document | Why It Matters | Red Flags |
|---|---|---|
| Reserve Study (most recent, within 3 years) | Shows funded percentage for all major capital components — pools, roofs, roads, equipment | Below 70% funded on any major component; study older than 3 years; no study ever conducted |
| Current Year Operating Budget | Shows HOA revenues vs expenses; whether dues cover costs or draw from reserves | Operating deficits; reserve draws for operating expenses; significant year-over-year dues increases |
| HOA Financial Statements (2 years) | Actual income and expense history vs budgeted | Patterns of budget overruns; unexplained large expenditures; reserve balance declining |
| Board Meeting Minutes (12 months) | Reveals issues in discussion before they become formal notices | Discussions of special assessments, major deferred maintenance, governance disputes, developer litigation |
| CC&Rs, Bylaws, and Rules | Rental restrictions, pet rules, architectural approval, age verification, guest policies | Any restriction that conflicts with your intended use |
| Pending or Approved Special Assessments | Any approved but uncollected assessment transfers to buyer at closing | Any pending assessment — budget for it separately regardless of amount |
We connect buyers with agents who know this market from the inside — real cost math, honest comparisons, and what's actually happening right now. Every agent is personally vetted by the Nova55Living founder. No scripts, no pressure.
Request specifically: golf course operating financials for the past 2 years. Three championship courses represent enormous ongoing capital obligations. If the courses are operating at losses subsidized by HOA funds, all homeowners — not just golfers — bear those losses. Ask directly whether golf operations require HOA subsidy.
Request specifically: the developer control transition timeline. When does the HOA board control shift from Brookfield Residential to elected homeowners? Reserve fund documents for a new community may be preliminary projections rather than funded actuals. Understand what the reserve fund funded percentage represents for a community still under construction.
Request: MUD district tax rate confirmation and MUD board meeting minutes. The MUD is a separate governmental entity from the HOA — it has its own budget and rate-setting authority. Understanding how the MUD is funded and what projects remain on its capital plan is important for projecting future costs.
A Texas real estate attorney reviewing CC&Rs costs $300–$500 and provides protection that no real estate agent review can match. An attorney will: identify use restrictions that could affect your plans; flag unusual governance structures; review the reserve study for financial adequacy; and explain your cancellation rights if anything is unacceptable. For any purchase over $300,000 in an HOA community, the attorney review is the most cost-efficient protection available.
We can help you understand what to request and what the documents mean before you commit.
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