File New Management Certificates September 1, 2013 through January 1, 2014

Recent amendments to the Texas Property Code require all property owners associations to file a new management certificate between September 1, 2013 and January 1, 2014.  A signed and acknowledged certificate must be filed in the real property records of every county in which the property is located.

There are three notable distinctions between condominium and subdivision property owner association management certificates:

1.  Only an officer of the condominium association may sign its management certificate, not the manager.  For property owners associations, either the manager or an officer of the association may sign the certificate.

2.  Both Section 209.004 (applicable to property owners associations) and Section 82.116 (condominiums), provide the association and its agents “are not subject to liability to any person for delay or failure to record a management certificate unless the delay or failure is willful or caused by gross negligence.”  However, only Section 209.004 goes further to provide in subsections (d) and (e) that a property owners association may forfeit its right to recover delinquent assessments on the resale of a home if it does not have a proper management certificate on file.

3.  As to the contents of the certificate, subdivision associations must include both the name and mailing address of the association as well as the name and mailing address of the person managing the association, whereas condominium associations may include either of the two addresses.  Subdivision associations include the recording data for the subdivision, whereas condominium associations  include the location of the condominium.

Here are the specific requirements of Section 82.116 for condominium associations. The management certificate should be entitled “Condominium Association Management Certificate,” and must include:

1. the name of the condominium, as stated in the Declaration and listed on the deed to each unit;

2. the name of the association as stated in the Declaration;

3. the location of the condominium (street address and city);

4. the Declaration’s recording data, which includes the document or instrument number and volume and page number where the Declaration is recorded in the real property records of the county;

5. the association’s mailing address, or the manager’s name and mailing address; and

6. other information the association considers appropriate (a phone number or email address  will aid title companies in contacting the association)

Section 209.004 applies to subdivision associations. The management certificate should be entitled “Property Owners’ Association Management Certificate,” and must include:

1. the name of the subdivision, which is the name on the recorded subdivision plat on file in the county map or plat records;

2. the name of the association;

3. the recording data for the subdivision, which is the cabinet and slide number, or volume and page number, and the document number or instrument number that is stamped on the plat;

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 it considers appropriate (such as phone number or email address)

Whenever the information changes, a new certificate must be filed within 30 days.