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SB711

Regular Session

Relating to property owners' associations, including condominium unit owners' associations.

Critical
Medium Cost
Effective:2025-09-01
SB711
Critical
Relating to property owners' associations, including condominium unit owners' associations.
Critical Compliance Urgency
Requires immediate attention
Cost Impact
Medium
Effective
2025-09-01
Enforcing Agencies
TREC
Primary Author: Sen. Bryan Hughes
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline:
  • Immediate: New fee caps and website requirements apply September 1, 2025.
  • Transition Period: Existing Condominium Associations with county-recorded certificates have until March 1, 2026, to complete their initial electronic filing with TREC.
  • Agency Rulemaking: TREC must update its online filing portal to accept Chapter 82 (Condo) filings. Monitor TREC announcements between May and August 2025 for portal availability.

Immediate Action Plan

  • 1. Audit Certificates: Gather all data required for the new Management Certificate format (specifically direct URLs and comprehensive fee lists) by July 1, 2025.
  • 2. Update Software: Contact accounting and document delivery vendors to verify the $375 fee cap will be automated by the effective date.
  • 3. Establish Website: If your Condominium Association (60+ units or professionally managed) does not have a dedicated website with accessible legal documents, launch one immediately.
  • 4. Review Insurance: Consult with your insurance broker regarding E&O coverage gaps for "administrative failure to file" that results in financial loss (forfeited attorney's fees).
  • 5. Calendar the "Catch-Up": Set a firm deadline of January 15, 2026, to have all *existing* Condo certificates uploaded to TREC to beat the March 1, 2026 expiration of the grandfather clause.

Operational Changes Required

Contracts

  • Management Agreements: Amend scopes of work to explicitly assign the duty of the "7-day TREC filing" to the management company. Include indemnification clauses protecting the Association from lost revenue (uncollectible attorney's fees) caused by the manager's failure to file.
  • Third-Party Vendors: Review contracts with document processing services (e.g., Condocerts, Homewise). Ensure their systems are hard-coded to cap Condominium Resale Certificate fees at $375 effective September 1, 2025.

Hiring/Training

  • Board Education: Train Boards on the new "Solicitation Requirement" for Architectural Review Authority (ARA) members. You cannot simply appoint a volunteer; you must solicit candidates 10 days prior.
  • Architectural Control Committees: Train staff on the new fencing mandates. Reviewers cannot reject security fencing if the owner provides law enforcement documentation.

Reporting & Record-Keeping

  • Management Certificates: Update the standard form template immediately. It must now include:
  • Management company email and telephone.
  • The specific website address hosting dedicatory instruments.
  • A detailed list of all transfer fees.
  • Filing Workflow: Implement a strict two-step protocol:
  • 1. Record with County Clerk.
  • 2. File electronically with TREC within 7 days of the County recording.
  • ARA Records: Maintain a "Proof of Solicitation" file (copy of the email/letter sent to owners) for every ARA appointment to prevent challenges to the committee's legitimacy.

Fees & Costs

  • Revenue Reduction: Budget for a potential decrease in non-dues revenue due to the $375 cap on Resale Certificates.
  • Collections Risk: If the management certificate is not properly filed with TREC, the Association is statutorily barred from recovering attorney’s fees or interest on delinquent assessments during the period of non-compliance.

Strategic Ambiguities & Considerations

  • "Law Enforcement Documentation": The statute permits security fencing if supported by "documentation from a law enforcement agency" but fails to define this term. Until case law clarifies, businesses should accept *any* official correspondence (police report, restraining order, letter from an officer) to avoid litigation.
  • TREC Portal Readiness: The law assumes TREC’s database will be ready for Condo filings by September 1, 2025. If the portal is delayed, document all attempts to file to establish a good-faith defense against fee forfeiture.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 6, 2025
Passed Senate
Apr 10, 2025
Passed House
Apr 29, 2025
Signed
May 13, 2025
TopicsProperty InterestsProperty Interests--property Owners AssociationInternetTexas Real Estate CommissionRestrictive Covenants
03

Senate Authors

Sen. Bryan HughesRepublican · Primary Author
Coauthors (1)

House Sponsors

Rep. Chris TurnerDemocrat · Primary Sponsor
Joint Sponsors
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Bryan Hughes

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB711

Q

What does Texas SB711 do?

SB711 fundamentally alters the operational risk profile for Condominium Associations (Chapter 82) by mandating electronic filing of management certificates with the Texas Real Estate Commission (TREC) as a prerequisite for collecting attorney’s fees and interest on delinquent accounts. The law also imposes a hard cap on resale certificate fees and establishes strict solicitation protocols for Architectural Review Authorities in single-family HOAs. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: - Immediate: New fee caps and website requirements apply September 1, 2025.

Q

Who authored SB711?

SB711 was authored by Texas Senator Bryan Hughes during the Regular Session.

Q

When was SB711 signed into law?

SB711 was signed into law by Governor Greg Abbott on May 13, 2025.

Q

Which agencies enforce SB711?

SB711 is enforced by Texas Real Estate Commission (TREC).

Q

How urgent is compliance with SB711?

The compliance urgency for SB711 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB711?

The cost impact of SB711 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does SB711 address?

SB711 addresses topics including property interests, property interests--property owners association, internet, texas real estate commission and restrictive covenants.

Legislative data provided by LegiScanLast updated: November 25, 2025

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