Texas Court Says HOA Has No Duty to Disclose Latent Defects to Prospective Home Buyer

Texas Appellate Court decision (July 31, 2014).

Plaintiffs in this action purchased property located in a common interest development that had an “equalizer channel” underneath the improvements on the property that was not disclosed. Prior to closing the sale, the homeowners association provided the buyer with a “Resale Certificate for Property Subject to Mandatory Membership in an Owners’ Association” (resale certificate) in accordance with Texas law. In the resale certificate, the association indicated that it had no actual knowledge of conditions on the Property that were in violation of the association’s governing documents.