Relating to fees charged by certain property owners' associations for resale certificates and updates of resale certificates.
Impact
The implementation of HB2504 is expected to bring significant changes to the real estate transaction process in Texas. By capping the fees that property owners' associations can impose, the bill aims to reduce the financial burden on buyers and sellers alike, contributing to a fairer housing market. This change may encourage more individuals to engage in property transactions by alleviating concerns over excessive fees, thus potentially stimulating local economies and housing sales.
Summary
House Bill 2504 aims to regulate the fees that property owners' associations can charge for resale certificates and their updates in Texas. Specifically, the bill amends the Property Code to set a maximum fee of $375 for assembling, copying, and delivering the required information for a resale certificate. Additionally, it allows a maximum charge of $75 for updates to these resale certificates. This legislative measure intends to create transparency and ensure that homeowners are not overcharged for these necessary documents during real estate transactions.
Contention
While the bill is poised to be beneficial for homeowners, it is likely to face scrutiny from property owners' associations, which may view the fee caps as limiting their ability to operate sustainably. There may be arguments surrounding the justification of costs associated with delivering essential documents, and whether the set fees are sufficient to cover operational expenses. Stakeholders will need to balance the need for fee regulation with the operational needs of these associations.
Last_action
The bill was filed on February 5, 2025, and is set to take effect on September 1, 2025, pending legislative approval.
Texas Constitutional Statutes Affected
Property Code
Chapter 207. Disclosure Of Information By Property Owners' Associations
Relating to the violation of certain laws and provisions of governing instruments by, and the recall by property owners of, a property owners' association board member.