If you are shopping for a home in DFW — or anywhere in Texas — there is a good chance the property you want sits inside a homeowners association. Subdivisions, townhomes, planned communities, and many condominiums all operate under HOAs. The monthly fee line on a listing tells you almost nothing. Before you make an offer, you need to see the actual documents and understand what they say.
What HOA Fees Cover (and What They Do Not)
HOA dues typically cover shared amenity maintenance — pools, landscaping in common areas, gates, and sometimes exterior insurance for condos. What they do not always cover is important: roof replacement, exterior paint, or structural repairs on individual units may or may not fall under the association, depending on the community's governing documents.
In DFW subdivisions, dues often range from approximately $300 to $900 per year for single-family homes in planned communities with basic amenities. Master-planned communities with extensive amenities can run $1,500 or more annually. Condominiums and townhome associations frequently charge higher monthly dues — anywhere from roughly $150 to $600 per month — because they cover more shared infrastructure. These figures are illustrative and vary widely by community.
What Documents to Request Before You Offer
In Texas, sellers of properties subject to an HOA are required to provide buyers with a Subdivision Information form — commonly called the T-47 resale certificate package — within a deadline set in the contract. However, you should request as much as possible before submitting an offer so you know what you are committing to.
Ask for:
- Declaration of Covenants, Conditions, and Restrictions (CC&Rs) — the foundational legal document governing the community
- Bylaws — rules governing how the HOA itself operates
- Current budget — shows income, expenses, and whether dues are keeping pace with costs
- Reserve fund study or reserve fund balance — tells you whether the association has money set aside for major future expenses
- Meeting minutes from the past 12–24 months — reveals pending assessments, ongoing disputes, deferred maintenance, or litigation
- Current fee schedule — confirms exactly what you owe and how often
Your REALTOR® can help you request these through the seller's agent. Review timelines and disclosure rules are outlined by the Texas Real Estate Commission (TREC).
How to Read a Reserve Fund
The reserve fund is one of the most important figures in HOA documents, and most buyers skip it entirely. The reserve fund is the association's savings account for large capital expenditures — things that wear out over time and cost serious money to replace.
A well-funded reserve is generally considered to be at or above 70% of its target balance, based on a reserve study that estimates the useful life and replacement cost of major components. An association sitting at 20% or 30% funded has two realistic options: raise dues significantly or levy a special assessment. Both of those costs land on whoever owns the property at the time.
Red Flags in HOA Documents
Not every HOA issue is a dealbreaker, but some patterns are worth taking seriously:
Pending or recent special assessments. Minutes or financial statements that mention upcoming votes on large assessments mean you could inherit that cost shortly after closing. Confirm whether any assessment has been voted on but not yet billed.
Litigation. An association involved in active lawsuits — especially against the developer or a vendor — can face significant legal costs that flow back to owners. Some lenders will not approve loans for condominiums where the HOA is in active litigation.
Dues that have not increased in several years. This sounds like good news but often signals deferred maintenance or a reserve fund that is falling behind. Operating costs rise over time; flat dues usually mean something is being neglected.
High delinquency rates. If a significant percentage of owners are not paying dues, the association's budget is stressed. Ask for the current delinquency percentage — above roughly 15% is considered a concern by many lenders, particularly for FHA and VA loans.
CC&R Restrictions That Affect How You Use the Property
The CC&Rs set the rules for what you can and cannot do on your property. In Texas, these are private contractual obligations that run with the land — meaning they bind every future owner, not just the one who agreed to them.
Common restrictions that affect buyers:
- Rental restrictions — some communities prohibit short-term rentals entirely; others cap the percentage of units that can be leased at any time. If you plan to rent the property, confirm this is permitted.
- Parking and vehicle rules — restrictions on commercial vehicles, recreational vehicles, or the number of cars per unit are common in DFW subdivisions.
- Architectural controls — changes to exterior appearance, fencing, landscaping, or additions typically require association approval.
- Pet restrictions — breed or weight limits are enforceable through the CC&Rs even if local ordinances do not impose them.
Read the CC&Rs for the specific things that matter to your intended use of the property. Your agent can help flag the sections most relevant to your situation.
What Happens If You Skip This Review
Texas law gives buyers a right to terminate during the option period for any reason, which typically costs a few hundred dollars in option fee. Discovering HOA problems after closing is far more expensive — you may face surprise assessments, restrictions that interfere with your plans, or a property that is harder to resell because the association's finances are in poor shape.
Taking the time to review HOA documents before submitting an offer — or at minimum during the option period — is one of the more straightforward ways to protect yourself in the Texas homebuying process. An experienced buyer's agent (TREC #9015220) can help you know what to look for and when to push for more information.