Arrears: what happens when owners do not pay in Texas
A payment received by a Texas property owners' association is applied in this order: delinquent assessments, current assessments, attorney's fees or third-party collection costs tied to assessments or other charges that can support foreclosure, other attorney's fees, fines, and any other reasonable amount. Fines come last.
What the law says
Except as provided by Subsection (b), a payment received by a property owners' association from the owner shall be applied to the owner's debt in the following order of priority: (1) any delinquent assessment; (2) any current assessment; (3) any reasonable attorney's fees or reasonable third party collection costs incurred by the association associated solely with assessments or any other charge that could provide the basis for foreclosure; (4) any reasonable attorney's fees incurred by the association that are not subject to Subdivision (3); (5) any reasonable fines assessed by the association; and (6) any other reasonable amount owed to the association.Last verified:
Also relevant
A property owners' association composed of more than 14 lots shall adopt reasonable guidelines to establish an alternative payment schedule by which an owner may make partial payments to the property owners' association for delinquent regular or special assessments or any other amount owed to the association without accruing additional monetary penalties.A property owners' association may not hold an owner liable for fees of a collection agent retained by the association unless the association first provides written notice to the owner by certified mail that: (1) specifies each delinquent amount and the total amount of the payment required to make the account current; (2) if the association is subject to Section 209.0062 or the association's dedicatory instruments contain a requirement to offer a payment plan, describes the options the owner has to avoid having the account turned over to a collection agent, including information regarding availability of a payment plan through the association; and (3) provides a period of at least 45 days for the owner to cure the delinquency before further collection action is taken.What this means in practice
An association of more than 14 lots must adopt guidelines for a payment plan with a minimum term of three months. Before an owner can be held liable for a collection agent's fees, the association must send written notice by certified mail that itemises the delinquency, describes the payment-plan option and gives at least 45 days to cure. If an owner is in default under a payment plan, the order of priority need not be followed, and a fine may not be given priority over any other amount owed.
Where Unitify fits
Unitify records the debt per unit, records payments and sends reminders. Interest, voting limits, liens and enforcement come from the law above and your own rules and are applied by people; Unitify records the debt and the payments.
How this works in UnitifyQuestions and answers
- What are the consequences of unpaid contributions in Texas?
- A payment received by a Texas property owners' association is applied in this order: delinquent assessments, current assessments, attorney's fees or third-party collection costs tied to assessments or other charges that can support foreclosure, other attorney's fees, fines, and any other reasonable amount. Fines come last.
- Where does this come from, and when was it checked?
- The quotation is from Tex. Prop. Code § 209.0063(a), at the official source linked on this page. It was last checked against that source on September 16, 2026.