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TREC 32-5 — Condominium Resale Certificate

Required disclosure document for resale of condominium units under Section 82.157 of the Texas Property Code. Prepared by the condominium owners' association to disclose the financial health, legal status, insurance coverage, assessments, transfer restrictions, and governance details of the condomin

Source: TREC
Form Number: 32-5
Category: Other
Revised: November 4, 2024

Used For

Residential Sales

Form Outline

The TREC 32-5 form is organized into the following sections:

  1. Header and Property Identification
    Identifies the condominium unit, building, project, and address. Establishes the association and its board as the issuing authority under Section 82.157 of the Texas Property Code.
  2. Right of First Refusal
    Indicates whether the declaration contains transfer restrictions. If a right of first refusal exists, the association may purchase the unit on the same terms as the buyer's offer.
  3. Periodic Common Expense Assessment
    Discloses the recurring assessment amount and frequency. This tells the buyer their regular association dues.
  4. Unpaid Common Expenses or Special Assessments
    Reveals any past-due assessments owed by the seller. Unpaid amounts may become a lien on the unit.
  5. Other Amounts Payable by Seller
    Covers additional charges the seller owes (fines, fees, legal costs) beyond regular and special assessments.
  6. Capital Expenditures
    Discloses approved capital spending for the upcoming year. Large expenditures relative to reserves may signal future special assessments.
  7. Capital Reserves
    Reports the association's reserve fund balance and designated allocations. Healthy reserves reduce the risk of special assessments.
  8. Operating Budget and Balance Sheet
    States that the operating budget and balance sheet are attached. These provide the most detailed view of the association's financial condition.
  9. Unsatisfied Judgments
    Reports any outstanding court judgments against the association. These are existing debts that may require special assessments to satisfy.
  10. Pending Suits
    Reveals any current litigation against the association. Pending suits represent potential future financial liabilities that could result in special assessments.
  11. Insurance Coverage
    States whether the association carries a master insurance policy for unit owners' benefit. The insurance summary attachment provides coverage details. Buyers need this to determine what individual HO-6 policy coverage they need.
  12. Known Alteration/Improvement Violations
    Reports unauthorized modifications to the unit or its limited common elements. Known violations may need to be cured by the buyer after purchase.
  13. Government Code Violation Notices
    Reports government notices regarding health or building code violations. Code violations may require expensive remediation and could affect financing or insurance.
  14. Leasehold Estate
    Reports whether the condo sits on leased land, the remaining lease term, and renewal provisions. Leasehold condos are uncommon in Texas but significantly affect value and financing.
  15. Managing Agent Information
    Identifies the property management company and provides full contact details. This is the buyer's primary contact for association matters after closing.
  16. Association Transfer Fees
    Itemizes all fees the association charges for the unit transfer. Common fees include transfer fees, move-in/move-out fees, document preparation fees, and resale certificate fees.
  17. Capital Reserve Contribution
    Discloses any one-time capital reserve contribution required at transfer. This is separate from ongoing assessments and transfer fees in Section O.
  18. Required Attachments
    Lists the three mandatory attachments that provide detailed financial and insurance information supporting the certificate disclosures.
  19. Freshness Notice and Signature Block
    Contains the three-month freshness requirement and the signature block. An expired certificate is invalid. The signer must be authorized by the board.

How RaiderX Agents Use This Form

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