Developer Turnover in Texas: How Control of an HOA or Condo Passes to Homeowners

A declaration sets developer control, but Texas law sets limits. In an HOA subdivision, owners must elect at least one-third of the board within 120 days after 75% of lots the declaration provides for go to homeowners (§209.00591(c)). In a Chapter 82 condo, control ends within 120 days after 75% of units that may be created go to owners other than the declarant (§82.103(c)).

This guide is for two readers: developers planning communities in places like Hutto, Kyle, Leander and Georgetown, and homeowners about to join a developer-controlled board. If you live in one of the new communities along the I-35 corridor, this is how control passes from the builder to the homeowners.

Key terms in plain English

The development period concerns building and selling; declarant control concerns who appoints the board. Think of them as two different clocks: in a Texas HOA subdivision, the declaration can stop them on different dates.

• Declarant: The party identified in the declaration with reserved rights to develop the property or appoint association leaders.
• Development period: In a Texas HOA subdivision, this is the declaration’s period for reserved rights to build, market or shape the community (Texas Property Code §209.002(4-a)).
• Period of declarant control: The declaration lets the declarant appoint and remove board members and officers during this period. In an HOA, owner-elected members and officers are excepted (§209.00591(c)). For a condominium created under Chapter 82, the control rule is §82.103(c).
• Turnover: The practical handoff of board control, accounts, records and operating decisions to homeowner-elected leaders.

Developers should identify both periods in the declaration before planning elections. Incoming directors should read those provisions alongside the sales and election records.

When developer control ends under Texas law

In a Texas HOA, the count is 75% of the lots that may be created and made subject to the declaration. Within 120 days after that many are conveyed to homeowners, owners must elect at least one-third of the board (§209.00591(c)). That guarantees one-third, not the whole board; the declaration decides when the rest passes. In a Chapter 82 condo, control ends within 120 days after 75% of units that may be created are conveyed to owners other than the declarant (§82.103(c)).

For an HOA subdivision, the 75% is measured against “the lots that may be created and made subject to the declaration” (§209.00591(c)). Developers should ask their attorney to state that total clearly in the declaration, so everyone can tell when the deadline starts.

A pre-1994 condominium may adopt all of Chapter 82 by amending its declaration (§82.002(a)). Otherwise, the Chapter 82 control, contract and expense rules in this table do not apply to it. Read more about condo versus HOA rules in Texas, and have your attorney check the recorded declaration.

In a condominium created under Chapter 82, a declarant may surrender control early and reserve approval over specified actions for the remaining control period (§82.103(c)). Transferring special declarant rights alone does not end that period. For that condo, each officer and board member, including a declarant appointee, is a fiduciary of unit owners (§82.103(a)).

HOA rules that work differently during the development period

For a Texas HOA subdivision, five Chapter 209 rules work differently during the declaration’s development period. Developers and owner directors should check that period before planning a vote or signing a contract.

• Open meetings: During this period, the open-meeting rule applies to a board meeting only if it is held for one of four purposes (Texas Property Code §209.0051(i)):
  • adopting or amending the governing documents
  • raising regular assessments, or adopting or raising a special assessment
  • electing non-developer board members, or setting how they are elected
  • changing members’ voting rights
• Declaration amendments: The usual 67% owner-vote requirement does not apply to amendments during the development period (Texas Property Code §209.0041(d), (h)).
• Contracts and bids: Conflict rules and the bid requirement for services contracts over $50,000 do not apply to contracts entered during this period (§209.0052(a), (c)).
• Board appointments: The owner-election rule for an expired board term does not apply to appointments during this period (§209.00593(d)).
• Board residency: Bylaws may require some, but not all, directors to live in the subdivision. That requirement does not apply during this period (§209.00591(a-1)).

After the development period, the HOA follows the full open-meeting, election and contract rules. Declaration amendments then need 67% owner approval or a lower percentage stated in the declaration (§209.0041(h), (h-1)). If development rights and board control should end separately, ask the attorney to put them in separate clauses.

Did Texas change the turnover rules in 2025?

These rules reflect Texas law as of November 2026. Bills to tighten the turnover rules were filed in 2025 (HB 2630 and SB 1935), but neither passed. The Legislature meets in odd-numbered years and can change these rules; its next regular session starts in January 2027. Check with your association’s attorney before acting on a deadline.

For developers: setting up an association that turns over cleanly

Give the future board traceable decisions, usable accounts and organized property records. PS Property Management’s developer services support association setup, operations through build-out and homeowner transition, beginning as early as the concept stage.

Texas law does not require a turnover inspection or a reserve study for an HOA or condo. Both are still good practice, and both give the first owner board a starting point.

1. Before homes close: Have your attorney draft the declaration and explain its development and control provisions. Ask the attorney to state the total lots that may be created and made subject to it. Build an association budget, estimate reserve contributions and identify required registrations. Plan the reserve study early; our guide to HOA budgets and reserves shows how a future board will read it. Check vendor references, licenses and insurance before signing contracts.
2. While the developer controls the board: Hold board and membership meetings, keep minutes, and document elections under the rules that apply at the time. Send notices and keep minutes even when the open-meeting rule doesn’t fully apply yet. The owners who join the board later will read them. Keep the association’s money and records separate from the developer’s. Open bank accounts in the association’s name, and book assessments and bills to the association. Track capital assessments, subsidy allocations and Architectural Review Committee decisions. Explain association rules and services to homeowners from first occupancy.
3. As turnover approaches: Compare lot or unit conveyances with the declaration’s control terms and election records. Gather common-area documents, warranties and maintenance manuals. Arrange a third-party inspection and record open items for the incoming board. Give owners a clear contact for requests and explain how pending matters will be handled.

Keep a list showing who holds each file, account and property document. Share it with incoming directors so they can identify missing items and pending decisions. A documented handoff also shows which work the association has completed.

For new owner boards: what to ask for before the developer leaves

Ask for a written inventory of records, property and account access before accepting operating responsibility. Name who holds each item and which matters remain open.

For any condominium, the declarant furnishes the association specified records when the first unit is sold (§82.114(d)). Section 82.114 also applies to condos created before 1994. The §82.114(a) list starts with financial records kept under generally accepted accounting principles, detailed enough to prepare a resale certificate.

The list also covers the plans and specifications used to build the condo, except for buildings originally built before January 1, 1994. It includes the condominium information statement and its amendments, each owner’s name and mailing address, voting records, proxies, amendment correspondence, and association and board minutes. The independent audit required by §82.114(c) is an annual association duty, not a special turnover audit.

For an HOA subdivision, what the developer hands over usually comes from the declaration, any turnover agreement and each contract’s own terms. The same documents decide how the association can end contracts the developer signed. Put requests in writing early, including files and access held by a manager or vendor.

If the manager or other certificate details change, an HOA records an amended management certificate within 30 days after it has notice of the change. It then e-files the certificate with the Texas Real Estate Commission (TREC) within seven days after filing it for recording (Texas Property Code §209.004). Condos follow the same timing under §82.116. Agree on who will prepare, sign, record and file it.

Contracts and money at turnover

For a condominium created under Chapter 82, §82.105 allows some declarant agreements to end without penalty, and §82.112 sets expense duties. For an HOA subdivision, review the declaration, any subsidy agreement and each contract.

In a residential or recreational condo created under Chapter 82, the association may end a declarant or affiliate contract or lease without penalty (§82.105). The association must have entered it during declarant control. It must give at least 90 days’ notice and end it before the first anniversary of the date the owner-elected board takes office. This rule does not cover every vendor contract.

For a condominium created under Chapter 82, Texas Property Code §82.112 sets these expense stages:

1. Until the association makes a common expense assessment, the declarant pays condominium expenses as they accrue.
2. Association reserves and owners’ working capital contributions cannot pay operating expenses until declarant control ends. This limit applies throughout that period.
3. The next stage starts with the first assessment. It lasts until control ends or three years after the declarant’s first conveyance of a unit, whichever is earlier. During it, the declarant periodically pays one of two amounts. One is operating expenses minus the operating portion of assessments other owners paid. The other is the common expense liability allocated to the declarant’s units.
4. After that earlier date, declarant-owned units are assessed like other units.

For an HOA subdivision, review any subsidy agreement to understand who agreed to fund operating costs. Ask your attorney to review the declaration, turnover agreement and contracts before the handoff. Ask about warranty and construction-defect deadlines before they run.

This is general information, not legal advice. Your governing documents and your association’s attorney have the final word.

A turnover checklist by milestone

Walk the handoff by event: sales start, the statutory seat deadline, the meeting before transition, the transition meeting, and actions after turnover. Assign each task to a person and record what remains open.

1. When sales start: Set up association accounts and books. Keep governing documents, contracts and owner communications together. For a condo, confirm that first-sale records reach the association (§82.114(d)). From the first conveyance to someone other than the declarant, review the association’s insurance duty (§82.111(a)). It includes reasonably available property coverage on insurable common elements and commercial general liability coverage. The property amount is at least 80% of replacement cost or actual cash value.
2. When owner-elected seats are required: For an HOA subdivision, track the 75% threshold and 120-day deadline for one-third owner-elected seats (§209.00591(c)). If the declaration states no lot count, that election is due by the 10th anniversary of the date the declaration was recorded. For a condo created under Chapter 82, track the separate 50% threshold and 120-day deadline (§82.103(d)). Its control period ends within 120 days after the 75% unit threshold (§82.103(c)). Tell owners how candidates, ballots and notices will work.
3. Before the transition meeting: Request the records inventory, reconcile accounts and review contracts. Arrange a common-area inspection and an insurance review with a licensed agent. Ask the attorney to compare the declaration with sales and election records. List missing documents and pending decisions.
4. At the transition meeting: Record who takes office and each decision in the minutes. Transfer bank, system and property access. Assign open claims, repairs and owner requests. Confirm how the new board will receive financial reports.
5. After turnover: Update bank signers and any changed management certificate information. Revisit the budget and maintenance plans, then tell homeowners where to send requests. For a condo created under Chapter 82, owners elect a board of at least three by control’s end. That board elects officers before the 31st day afterward (§82.103(e)). Your board can use PS Property Management’s free board training; its nine modules require no sign-up.

How PS Property Management helps developers and new boards

PS Property Management’s Developer Services Division helps set up associations, support them through build-out and prepare the homeowner transition. That work can begin at the concept stage. The developer’s attorney drafts and amends the declaration and answers legal questions about declarant rights.

PS has served Central Texas communities since 1987, with offices in Round Rock and South Austin. Board dashboards show live bank balances, work orders and architectural requests; homeowners have a portal for payments and requests. Our HOA accounting includes monthly financial statements, and we process vendor invoices in 1.8 days on average. Our staff is bilingual in English and Spanish.

Frequently asked questions

Can homeowners force a developer to turn over a Texas HOA early?

In a Texas HOA subdivision, owners must elect at least one-third of the board by the statutory deadline (§209.00591(c)). Chapter 209 sets no date for the entire board to pass to homeowners. Check the declaration and any turnover agreement with your association’s attorney.

Do lots sold to a homebuilder count toward the 75% HOA threshold?

In a Texas HOA subdivision, lots held by the declarant do not count (§209.00591(c)). Neither do lots held by a builder in the business of constructing homes who bought the lots from the declarant to sell completed homes. Compare eligible conveyances with the lots that may be created and made subject to the declaration.

Does the developer have to pay dues on unsold lots or units?

For an HOA subdivision, the declaration and any subsidy agreement decide what the developer pays on unsold lots. For a condominium created under Chapter 82, the declarant pays expenses until the first common expense assessment (§82.112). It then pays a calculated share until control ends or three years after its first unit conveyance, whichever is earlier. After that earlier date, declarant-owned units are assessed like other units.

Does PS Property Management draft the declaration?

No. The developer’s attorney drafts and amends it and answers legal questions about declarant rights. PS handles budgets, registrations, meetings, elections, the ARC process, vendors, inspections, manuals and turnover records.

What happens to the management company at turnover?

The new board decides under its governing documents and the agreement’s terms; see our guide to choosing or switching a management company. For any condo, the board may hire or terminate managing agents unless the declaration says otherwise (§82.102(a)(3)); this includes pre-1994 condos. In a residential or recreational condo created under Chapter 82, a declarant or affiliate contract may end without penalty only under §82.105. The association must have signed it during declarant control and give at least 90 days’ notice. It must also end it before the first anniversary of the date the owner-elected board takes office.

Is a turnover inspection required by Texas law?

Texas law does not require a turnover inspection for an HOA or condo. A third-party inspection can document shared-property conditions before responsibility changes. Ask for its report and a written list of items needing follow-up.

When should a developer bring in a management company?

PS can begin developer services at the concept stage. That lets the developer plan budgets, registrations and vendor selection before homeowners arrive. The developer’s attorney handles the declaration; PS supports association operations and turnover preparation.

How much does developer HOA management cost?

Pricing is custom to your community — request a proposal. Your proposal reflects your community’s size, amenities and the services your board selects. We meet with your board to walk through the proposal and answer questions before you sign.

Talk to PS Property Management

Whether you’re planning a Central Texas community or joining a board at turnover, we can help you start with clean records and clear operations. Request a proposal or call (512) 251-6122.