When you buy a condo in Texas, two parties review the homeowners association, and they use different paperwork. You get the condominium resale certificate. Your lender sends the association its own project questionnaire. The two documents overlap but they don't match. Since Aug. 3, 2026, the lender's review has more to check.
This matters across North Austin, from the condo buildings near The Domain to the complexes along Parmer Lane, in Wells Branch and around Tech Ridge. The certificate can look clean to you during your termination window. The building can still hit a problem in underwriting later, after most of your easy exits have closed.
What Changed on Aug. 3
In March 2026, Fannie Mae published Lender Letter LL-2026-03. It set out a group of changes to how lenders review condo projects. The letter says why: Fannie Mae has seen a link between condo projects with underfunded reserves and projects that need critical repairs. It also says owners in those projects can face "unexpected special assessments or higher regular assessments or dues, leading to mortgage default or foreclosure."
Three changes matter most for a resale condo purchase:
- Limited Review is gone. Established projects that used to qualify for the lighter Limited Review must now go through a Full Review, or a Waiver of Project Review where one applies. Lenders must follow this for all loan applications dated on or after Aug. 3, 2026.
- Reserve studies are held to a higher bar. Some associations don't budget enough for replacement reserves. A lender can use a reserve study to show that reserves are still sufficient. When it does, the lender must now confirm that the budget funds the study's highest recommended reserve amount. The "baseline funding" method, which lets the reserve balance approach zero without going below it, is no longer accepted. This also applies to applications dated on or after Aug. 3, 2026.
- Small projects can get a waiver. Projects with ten or fewer units now qualify for a Waiver of Project Review. Projects with five to ten units qualify only if they are not part of a master association or a larger development.
For most condo buildings bigger than ten units, the first change is the one that counts. The project is now reviewed against the fuller standard.
The Same Association, Two Sets of Questions
The buyer's document is set by Texas Property Code Section 82.157. It requires a resale certificate that covers 14 categories. The association fills it out on TREC Form 32-5, which TREC lists as effective Nov. 25, 2024.
The lender's document is a project questionnaire. Fannie Mae's version is Form 1076. Its instructions say it goes to the HOA or management company on behalf of the mortgage applicant, and the association fills it out and returns it to the lender.
Here's how the two compare on the topics that most affect financing:
| Topic | Texas resale certificate (TREC 32-5, §82.157) | Lender questionnaire (Fannie Mae Form 1076) |
|---|---|---|
| Reserves | The reserve amount and any reserves set aside for specific projects | Whether reserves are allocated for all capital improvements, and whether they're enough to pay for them |
| Upcoming spending | Capital expenditures the association has approved for the next 12 months | Current and planned special assessments, with their terms and purpose |
| Lawsuits | The "nature" of any pending suits | Whether the HOA is in active or pending litigation, with documentation and the attorney's contact information |
| Other owners' payments | Amounts the seller owes | How many unit owners are 60 or more days behind on assessments |
| Building condition | Government health or building-code notices on the unit or the condominium | Whether an engineer's report finds the project structurally sound, and whether safety repairs are finished |
| Insurance | Coverage for unit owners, with a summary from the insurance agent attached | Reviewed against Fannie Mae's insurance requirements |
The gaps sit in the rows that matter most for financing. The Texas certificate lists the seller's own unpaid balances. It doesn't say how many of the seller's neighbors are behind on their dues. The certificate also doesn't expressly require associations to disclose special assessments that are planned but not yet due. It does require approved capital expenditures for the next 12 months and anything the seller currently owes. Form 1076 asks for both.
For lawsuits, the statute only requires the "nature" of pending suits. The questionnaire asks for documents from the association's attorney.
So a buyer can read every page of the resale certificate and miss information the lender will get. That information is exactly what a Full Review looks at.
Where the Deadlines Fall
The Texas deadlines all follow the resale certificate. The questionnaire follows whenever the lender orders it. The order of events goes like this:
- The seller requests the certificate. The association must provide it no later than the 10th day after it receives the owner's written request. The statute says "day," not "business day." The certificate must be current, which means prepared no more than three months before it's delivered to the buyer.
- The buyer receives it. Under paragraph 2C(2) of the TREC Residential Condominium Contract (Resale), Form 30-18, a buyer who gets the certificate after signing has seven days after receipt to terminate by written notice, and the earnest money is refunded. TREC lists the current 30-18 as effective July 1, 2026.
- The statute adds its own right. Under Section 82.156, a buyer who didn't receive the certificate before signing can cancel "before the sixth day" after receiving it or after signing a waiver, whichever comes first. The TREC contract keeps that right in place.
- The lender's questionnaire goes out and comes back. No Texas statute sets a deadline for it. It moves at the pace of the lender's file and the association's management company.
That's where things get tight. The buyer's certificate-based termination window is measured in days, and it starts when the certificate arrives. The lender's project review can finish after that window has closed. If the Full Review raises a problem then, such as a reserve shortfall, a high number of delinquent owners or a lawsuit, the buyer is dealing with it under the contract's financing terms, not the certificate window.
Here's one practical step that fits inside the rules. Ask your lender at application whether the project has already been reviewed, and when the questionnaire will be ordered. Then line up the answer with the date you expect the certificate. Fannie Mae calls its standard questionnaires optional tools that it recommends lenders use, so ask your lender which form it will send.
Jan. 4, 2027 Is the Next Date to Watch
The March lender letter included one more change that hasn't taken effect yet. For Full Review projects, the minimum reserve allocation for capital expenditures and deferred maintenance goes up from 10% to 15% of annual budgeted assessment income. Lenders must apply it to loan applications dated on or after Jan. 4, 2027.
The trigger is the application date, not the closing date. Say a North Austin buyer goes under contract in December, and the loan application is dated Jan. 4, 2027 or later. That buyer's condo will be measured against the 15% line, even though the contract was signed in 2026. Most associations set their budgets on a yearly cycle, so the budget and balance sheet attached to a resale certificate this winter may have been written for the old 10% standard.
This is a math question you can answer from the certificate. The current operating budget is one of the 14 required items. Find the line for replacement reserves, divide it by total budgeted assessment income, and compare the result with the percentage your loan will be held to.
If You're Selling a North Austin Condo This Fall
The same paperwork affects how a listing performs. A seller who requests the resale certificate before going on the market can review the budget, the reserve figure and any disclosures about pending lawsuits before a buyer sees them. That's also when there's still time to ask the management company questions.
Under Senate Bill 711, effective Sept. 1, 2025, the association can charge a "reasonable and necessary fee, not to exceed $375" for the certificate. The certificate also has a shelf life. It must be prepared within three months of delivery to the buyer, so a seller listing in October shouldn't count on a certificate ordered in early summer.
Small buildings are the exception. If a North Austin project has ten or fewer units and meets the conditions, a lender can waive project review altogether. That's worth confirming with the association and putting in the listing materials.
A Few Questions People Ask
Is the condo resale certificate the same document as the HOA resale certificate for a single-family home? No. Single-family HOA certificates fall under Property Code Chapter 207, which sets its own $375 limit for a certificate and $75 for an update. Section 207.002(b) excludes condominium associations under Chapters 81 and 82. Condos follow Section 82.157.
What if the association doesn't deliver the certificate on time? Section 82.157(b) lets the seller provide a sworn affidavit instead, and the buyer and seller can agree in writing to waive the certificate. If you waive it, you lose the main document the buyer gets for reviewing the association. Weigh that against what your lender's review will cover.
Does the certificate include the full master insurance policy? The TREC 32-5 form asks for coverage for unit owners, with a summary from the insurance agent attached. It doesn't expressly require the full master policy. If you need more detail, ask the association and your lender.
None of this is legal or lending advice. Your lender and the association are the ones who can answer for a specific building. If you're thinking about a North Austin condo this fall or winter and want help lining up the resale certificate and your lender's project review before your deadlines start, Denise Arndt can help you put that schedule together from the first showing. Contact Denise for a personalized consultation.
