Are HOA dues, rules, and paperwork leaving you with more questions than answers? If you are shopping in McKinney, you are likely looking at homes inside a homeowners association. That can be a plus for neighborhood upkeep and amenities, but it also adds costs, approvals, and a few extra steps during your option period. This guide breaks down how HOAs work here, what dues typically cover, the rules you should review, and how to handle the Texas resale certificate so you can make a confident decision. Let’s dive in.
How HOAs work in McKinney
McKinney and greater Collin County feature many master-planned neighborhoods, newer subdivisions, and amenity-focused communities. Mandatory HOAs are common. When you buy in these areas, you usually become a member of the association and agree to pay assessments and follow recorded covenants.
Most associations follow a similar governance model. A volunteer board oversees operations using a hierarchy of documents: the recorded declaration of covenants, bylaws, and written rules or policies. Many communities hire a management company to handle daily tasks like collecting dues, issuing resale certificates, and coordinating vendors. Architectural Review Committees are common and review exterior changes.
Official governing documents are recorded in county real property records. In Collin County, you can locate declarations and amendments through the Clerk’s office records. Associations also often share documents on their websites or by request. In some neighborhoods, the developer may still control the board; in others, control has turned over to homeowners. Turnover status can affect reserves, amenities, and enforcement.
What your dues cover and why amounts vary
HOA assessments fund the shared parts of your neighborhood. Regular assessments, billed monthly, quarterly, or annually, usually pay for:
- Common-area maintenance and landscaping
- Amenity upkeep like pools, parks, trails, and clubhouses
- Management and administrative costs
- Insurance for common elements
- Reserve funding for future capital repairs
Dues vary widely. Large amenity packages raise costs. So do private services like gated security or private trash. Smaller associations sometimes have higher per-home costs because fewer owners share fixed expenses. Communities with stronger reserve funding may have higher dues but fewer surprises over time.
Reserves and special assessments
Reserves are set aside for big-ticket repairs and replacements. Some boards commission a formal reserve study to estimate funding needs. Others follow a reserve policy without a study. If reserves fall short and a major project comes up, boards can levy special assessments if authorized by the governing documents.
When you review resale documents, look for reserve balances and any board-approved special assessments, even those not yet billed. If a special assessment is pending, ask for the purpose, total cost, your share, and the payment schedule.
Liens, late fees, and collections
If assessments go unpaid, many Texas declarations allow the association to record a lien and pursue collections under the association documents and Texas law. Remedies can include late fees, interest, attorney fees, and in some cases foreclosure if permitted. Practices vary by association; some take a strict approach while others emphasize payment plans. As a buyer, verify whether any unpaid amounts will be satisfied at closing.
Fees at transfer
Associations commonly charge a fee to prepare resale documents. Some also charge transfer or move-in fees. Amounts vary by association. Confirm fees upfront so you know what to expect and who pays them at closing.
Rules and approvals to expect
Before you fall in love with a home, make sure the HOA rules fit your lifestyle and plans. Common restrictions include:
- Exterior changes and design approvals. Most communities require Architectural Review Committee approval for fences, paint, roofs, additions, and solar panels. Check the application process and timelines.
- Landscaping and maintenance. Expect standards for lawn care, tree trimming, irrigation, and sometimes xeriscaping details.
- Parking and vehicles. Rules may limit street parking, commercial vehicles, RVs, and boats.
- Leasing. Some HOAs set minimum lease terms or caps on the number of rentals. If investing or planning to rent later, verify what is allowed.
- Pets and animals. There may be limits on number, size, and behavior, along with leash rules in common areas.
- Noise, signs, flags, and holiday decor. Look for rules on yard art, political or real estate signs, and display timelines.
- Amenities. Review hours, guest policies, reservation requirements, and fees for pools, clubhouses, and sports courts.
Ask for the full CC&Rs, bylaws, rules and regulations, ARC guidelines, and any pending amendments. Pay attention to how the HOA enforces compliance, including notice periods, hearing procedures, and fine schedules.
The Texas resale certificate, explained
In Texas, a resale certificate is the standard HOA disclosure package for properties in mandatory associations. It summarizes the seller’s obligations and key association information. Title companies and lenders may also request an estoppel certificate to confirm assessment status; in practice, content overlaps with the resale certificate.
You or your agent should request the resale certificate as soon as your contract is executed so it arrives during your option period. Associations and management companies often need several business days to prepare it. There is usually a preparation fee.
A typical resale certificate includes:
- The current regular assessment amount and billing schedule
- Any unpaid assessments or amounts owed by the seller
- Any pending or approved special assessments
- Transfer or move-in fees and who customarily pays
- Reserve balances or statements about reserve studies
- Insurance coverage for common areas
- Pending litigation involving the association
- Governing documents or references to where they can be obtained
- Management company contact information
- Any violations or fines tied to the property, if available
For forms and consumer guidance, review the TREC resources on forms. You can find the current promulgated forms on the TREC forms page. For statutory context on property owners’ associations and restrictive covenants, consult the Texas Property Code.
What to do if resale docs raise flags
If the resale certificate reveals surprises, act quickly within your option period:
- Special assessments. Ask for the purpose, cost breakdown, payment schedule, and whether the seller will pay at closing. Negotiate credits if appropriate.
- Litigation. Understand the nature of the case and potential impact on reserves or insurance.
- Unpaid assessments. Confirm payoff amounts and require settlement at closing.
- Restrictive rules. If rental caps or ARC restrictions conflict with your plans, consider your termination rights during the option period.
Buyer checklist for the option period
Use this simple plan as soon as you go under contract in McKinney:
- Order the resale certificate immediately and confirm the expected delivery date.
- Request and review: CC&Rs and amendments, bylaws, rules and regulations, ARC guidelines, the current budget, reserve balances or reserve study, and recent meeting minutes.
- Verify the regular assessment amount, due dates, and any scheduled increases.
- Check for unpaid assessments tied to the property and confirm seller payoff at closing.
- Ask about any pending or planned special assessments or major capital projects.
- Identify transfer or administrative fees and who customarily pays them.
- Review any pending litigation involving the association.
- Confirm rental and leasing rules and how they apply to you.
- Review the ARC process, required documents, and typical approval timelines.
- If needed, have a real estate attorney familiar with Texas HOAs review the documents before your option deadline.
Seller prep checklist
A little prep helps your sale run smoothly:
- Order the resale certificate early to avoid delays once you go under contract.
- Gather your CC&Rs, bylaws, rules, ARC guidelines, and any recent notices to share with buyers.
- Be ready to explain assessment amounts, any approved special assessments, and whether there are violations or fines tied to your property.
- Coordinate with your agent and the management company to confirm transfer and payoff procedures.
Red flags to watch in McKinney HOAs
Not every issue is a deal-breaker, but these are worth deeper review:
- Large, unexpected special assessments without clear budgets or schedules
- Material pending litigation that could impact HOA finances
- Low or nonexistent reserves with no plan for capital needs
- Strict rental caps or use restrictions that conflict with your plans
- Frequent collection actions or foreclosure activity by the association
Where to find official documents
- County records. Declarations and amendments are recorded with the Collin County Clerk. Use official records to confirm what governs the property.
- Association sources. Management companies and association websites typically provide governing documents, rules, and contact information.
- State references. For promulgated forms and consumer guidance, visit the TREC forms page. For statutes governing property owners’ associations and restrictive covenants, review the Texas Property Code.
Make your McKinney move with confidence
HOAs are part of everyday life in many McKinney neighborhoods. When you understand what your dues cover, how rules work, and what to examine in the resale certificate during your option period, you reduce surprises and protect your investment. If you want help coordinating documents, interpreting what matters for your plans, and negotiating with clarity, connect with Stefany Nau. Your Next Move Starts Nau.
FAQs
What does a Texas HOA resale certificate include for a McKinney home?
- It summarizes assessments, unpaid balances, special assessments, transfer fees, reserve information, insurance coverage for common areas, pending litigation, governing documents, and management contacts.
How long does it take to get HOA resale documents in Collin County?
- Many associations need several business days to prepare the resale certificate, so order it immediately after your contract is executed to allow review during the option period.
Who pays HOA transfer and resale certificate fees at closing in Texas?
- Associations set the fees, and payment is negotiable between buyer and seller; confirm amounts early and document who will pay them in your contract.
Can a Texas HOA foreclose for unpaid dues?
- In some cases, if permitted by the governing documents and Texas law, HOAs can pursue collection remedies that may include foreclosure; verify any unpaid amounts and payoff procedures before closing.
What should I check if I plan to rent my McKinney home later?
- Review leasing rules for minimum terms, caps, and approval processes, and confirm how they apply to your property before the option period ends.
