Buying a home in McKinney often means joining a homeowners association. HOAs can add real value with amenities and upkeep, but they also come with fees, rules, and paperwork at resale. If you understand how these pieces work ahead of time, you can plan your budget, avoid surprises, and move through closing with confidence.
This guide breaks down how HOAs typically work in McKinney and Collin County: fee types, common rules and enforcement, what to expect during a resale, and practical checklists for buyers and sellers. You will also see local tips that matter in master-planned communities and neighborhoods with third-party management. Let’s dive in.
McKinney HOA basics
Many McKinney neighborhoods are governed by an HOA. Some are single-community HOAs with one set of covenants for a subdivision. Others are master-planned communities with a master association plus sub-associations that handle neighborhood-level items. Condominiums exist too, though single-family HOAs are more common.
Boards elected by owners manage the association, adopt budgets, enforce covenants, and hire vendors or a professional management company. Committees like architectural review, landscaping, and finance often help the board. Whether membership is mandatory depends on the recorded deed restrictions for the subdivision.
What your HOA fees cover
HOA fees fund the operation and maintenance of shared spaces and services. Costs depend on the age of the community, the level of amenities, and whether there is a master association on top of a sub-association.
- Regular assessments: Paid monthly, quarterly, or annually to cover routine maintenance, common-area utilities, landscaping, management, amenity upkeep, insurance, and security where applicable.
- Reserve contributions: Set aside from regular dues to pay for long-term items like pool resurfacing, roof replacement on common buildings, and street or drainage repairs.
- Special assessments: One-time charges for large or unexpected expenses when reserves are not enough, such as major infrastructure repairs or storm damage.
- Transfer and resale administrative fees: Charged to process ownership changes and provide resale certificates or documents needed by buyers and lenders.
- Fines and collection fees: Applied for rule violations or late payments, as allowed by governing documents and state law.
Fees vary widely across McKinney. Neighborhoods with extensive amenities, gates, or master-planned features tend to have higher assessments than smaller subdivisions with minimal common areas.
Budgets, reserves, and financial health
A board typically approves an annual budget that sets assessment levels and outlines line items like maintenance, utilities, insurance, management, and legal services. Well-run associations use a reserve study or analysis to estimate long-term costs and fund reserves appropriately.
Signs of a healthy HOA include a meaningful reserve balance, relatively predictable assessment levels, low frequency of special assessments, and transparent financial reporting. If you see repeated special assessments without a clear plan for reserves, that may indicate underfunding or deferred maintenance.
Rules you can expect
HOAs rely on governing documents such as the declaration of covenants, bylaws, and rules and regulations. These documents set expectations for property use and common areas. Typical restrictions you may see include exterior appearance guidelines, paint colors, fencing and landscaping standards, parking rules, pet limits, and signage policies.
Many associations require Architectural Control Committee approval for exterior changes, additions, or major landscaping projects. If you plan to remodel or add a structure, you will likely need to submit plans and obtain written approval before starting work.
Enforcement and your rights
HOAs use a step-by-step process to enforce rules. You can expect a violation notice with time to cure, then possible fines, and escalation if the matter is not resolved. Associations may suspend voting rights or amenity privileges for delinquent accounts as allowed by their documents.
Associations can also use liens to collect unpaid assessments. Whether an HOA may foreclose for unpaid dues depends on the recorded covenants and applicable law. Owners generally have rights to review records, attend meetings as allowed, and vote in board elections per the governing documents.
Common ways to resolve disputes include talking with the board or manager, using internal appeals, mediation, or filing a claim in court for injunctive relief or monetary issues. Associations cannot impose rules that conflict with federal, state, or local law, and discriminatory rules are prohibited.
Resales: documents and timing
When you sell or buy in an HOA, several documents will be requested early in the transaction. The goal is to identify current dues, any unpaid balances or liens, known violations, pending special assessments, and the rules you will be agreeing to follow.
Key documents include:
- Resale certificate or estoppel: Shows current assessment amounts, unpaid balances, fines or violations, and whether special assessments are approved or pending.
- Governing documents: The declaration of covenants, bylaws, rules and regulations, and amendments.
- Financials: Current budget, recent financial statements, and any available reserve study.
- Insurance information: Policy declarations for master or common-area coverage.
- Recent meeting minutes: Often from the last 1–2 years to reveal pending projects, budget discussions, or litigation.
Practice varies on who orders the resale certificate. Sellers, listing agents, buyers, or title companies may request it, and management companies typically charge a fee. Turnaround can take days to a few weeks, with expedited options sometimes available for an extra charge. In master-planned settings, you may need separate resale documents from the master association and the sub-association.
Unpaid dues and recorded HOA liens are encumbrances that title companies and lenders will address before closing. Common outcomes include the seller paying balances before closing, negotiating credits or escrow holdbacks, or clearing liens so a lender can make the loan.
Buyer due diligence checklist
Use this list before you commit to a purchase in a McKinney HOA:
- Review the declaration, bylaws, rules, resale certificate, recent minutes, current budget, and any reserve study.
- Confirm the assessment amount, payment frequency, and the date of the most recent increase.
- Ask about reserve levels, upcoming capital projects, and any history of special assessments.
- Understand architectural approval steps for exterior changes or additions you plan to make.
- Check rental or occupancy rules if you intend to rent long term or short term.
- Confirm whether a master association exists and whether there are additional fees or overlapping restrictions.
- Review pet, parking, and signage policies to ensure the rules fit your lifestyle.
- Visit amenities to confirm condition and access policies, including any suspension rules for nonpayment.
Seller preparation checklist
Get ahead of HOA items before listing so you can move smoothly to closing:
- Order the resale certificate early to surface unpaid balances, violations, or pending assessments.
- Resolve recorded violations and keep documentation for completed repairs or approvals.
- Disclose mandatory HOA membership and provide estimated fees to buyers upfront.
- Prepare to negotiate credits or escrow holdbacks if an HOA issue arises near closing.
Red flags to watch
Not all associations operate the same way. Watch for warning signs that may affect costs or timing:
- Frequent or large special assessments without a clear reserve plan.
- Pending or active litigation that could increase expenses.
- Delays in providing resale documents or a lack of recent financial statements.
- High owner delinquencies, which can pressure budgets and increase enforcement actions.
Local logistics in McKinney
Many McKinney communities use third-party management companies. Processing times for resale documents depend on each manager’s workload and policies, especially during busy seasons. Plan ahead so you receive documents early in your option period or contract timeline.
In master-planned communities, you may need separate documents from both the master and the sub-association. Coordinate requests so lenders and the title company have everything needed on time. Local title companies and experienced agents in Collin County follow standard processes for HOA items, and early coordination helps you avoid closing delays.
Get guidance tailored to you
Every HOA has its own rules, fees, and timelines. The right approach is to start early, get the documents, and make decisions with clear information. Whether you are buying, selling, or investing, you benefit from a local team that understands how McKinney HOAs handle budgets, approvals, and resale logistics.
If you want a step-by-step plan and help coordinating documents, fees, and negotiation points, connect with the boutique team at Seek Real Estate. We will walk you through due diligence, prepare your listing or offer strategy, and keep your transaction moving.
FAQs
What do HOA fees usually cover in McKinney?
- Regular assessments typically fund common-area maintenance, utilities, landscaping, management, insurance, security where applicable, and reserves for long-term repairs.
Who pays the resale certificate fee in a McKinney sale?
- It is commonly paid by the seller, but it is negotiable in the contract and may vary by association and transaction.
How long do HOA resale documents take in McKinney?
- Turnaround can range from several days to a few weeks depending on the management company, with expedited processing sometimes available for an extra fee.
Can a Texas HOA foreclose for unpaid dues?
- It depends on the association’s recorded covenants and applicable law; owners should review governing documents and address delinquencies early to avoid escalation.
What is a master and sub-association structure?
- A master association maintains shared community features, while sub-associations handle neighborhood-level items; owners may pay separate assessments to each and follow overlapping rules.
