In this Cordillera Ranch POA update, I wanted to offer some insight into the resale property process, and how the POA is involved and helps facilitate that process. Resale certificates are required by title companies when selling a property that has required assessments paid to a POA. The resale certificate is a series of documents prepared by the POA that contains certain disclosures, information about the property being sold, status of any balances due to the POA, and information about Cordillera Ranch. In Texas, the seller must provide the buyer with a resale certificate by a specific deadline outlined in the purchase contract. Texas law provides the POA 10 business days to deliver a resale certificate and the corresponding documentation once the request is made and payment is received by the POA.

The resale certificate includes information such as what the current regular assessment is, if there are any special assessments and the purpose of the special assessment, the total amount due and unpaid to the association, and information related to capital expenditures made by the POA. The certificate also states the amount of capital reserves and details information on lawsuits to which the Association is a party.

The resale certificate also is required to state known violations of the Covenants, Conditions and Restrictions along with any other rules of the Association. When Cordillera Ranch POA receives a resale certificate request, an inspection of the property is scheduled. The inspection is performed by an employee of the POA who will walk the property noting any violations observed. We generally start with ensuring the home and any ancillary structures match what was approved to be built. We also ensure that the paint or stain colors and material match what was approved by the ARC. The condition of the landscaping is evaluated to ensure that the landscaping has been maintained in accordance with the approved plans and rules of the POA. Frequently, we observe areas where vegetation that was originally required to screen mechanical equipment (i.e. HVAC condensing units, pool equipment, generators, etc.) is missing. We assess the condition of any improvements that have been built on the property and note any maintenance concerns that need to be corrected such as inoperable gates, fence posts deteriorating, structure damage, etc. The inspection is performed on the exterior of the home, ancillary structures and the lot itself, and does not typically require any interior inspection of the home. If a seller has made improvements or modifications to the property without ARC approval, we highly recommend submitting the items to the ARC as soon as possible to avoid potential review delays when you resell your property. 

If violations are observed, the POA will then detail what was observed and the timeframe given to correct the violation. These details will be included with the resale certificate when it is sent to the requesting party. The inspection and subsequent details are a critical step in the process to make the buyer aware of the expectations of the Association to cure the violations. Once the violations have been cured, it is the responsibility of the property owner to notify the POA office to schedule a re-inspection. Upon re-inspection of the property and confirmation that all violations have been cured, the POA will then issue written documentation showing that the property is now in compliance. 

Overall, resale certificates are important as they give peace of mind to all parties involved in the transaction. The seller is able to prove their good standing with the POA, the buyer knows about the fantastic Cordillera Ranch community, and the POA can ensure their expectations are clearly stated. It’s also very important to understand that the POA’s resale inspection does not take the place of a home inspection by a professional licensed inspector, which should be undertaken by home purchasers to have an assessment of the home and determine any major defects or issues with the home prior to purchasing. We encourage all property owners to engage our office with any questions you may have regarding the resale certificate process.

Kevin Koether is the POA General Manager at Cordillera Ranch. He can be reached at crpoa@cordilleraranch.com and 830.336.3501.