Is your association in compliance with state law?
Time is running out for community
associations to re-file their management certificates in accordance with a
recent amendment to state law. The 83rd
Legislature of Texas amended Section 209.004 of the Texas Property requiring
county clerks of the county in which the management certificate is filed to
index the document as a “Property Owners’ Association Management Certificate.”
The House Bill containing the amendment to
the Texas Property Code additionally issued a mandate requiring community
associations to file management certificates not later than January 1,
2014. This mandate is in place even if
the community association already had a management certificate on file prior to
the enactment of the amendment.
Those community associations that
do not re-file their management certificate before January 1, 2014 run the risk
of violating state law. Management
certificates should contain the following information:
(1) the name of the subdivision;
(2) the name of the association;
(3) the recording data for the subdivision;
(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 the association considers
appropriate.
In light of the manner in which
county clerks must index management certificates, the best practice is to title
the management certificate, “Property Owners’ Association Management
Certificate for ‘ABC Community Association, Inc.’” There will be no question
for the clerk in terms of indexing.
While it is not necessarily
required under the Texas Property Code, another best practice is to attach a
list of all recorded documents affecting the community to the management
certificate. The statute only requires
the recording information for the subdivision and declaration; however, it is a
good idea to also include the recording data for the certificate of
incorporation, bylaws, policies, rules and regulations, guidelines and any
amendments or supplements thereto.
In
practicing this approach, it provides a great snapshot of the community and the
documents affecting it to current owners, potential owners, title companies,
realtors, board members and management.
Transparency strengthens any community and the immeasurable benefit
obtained from attaching a list of dedicatory instruments to a management certificate
is well worth the extra step.
