Texas statute reference · Tex. Prop. Code § 82.112
§ 82.112 - Assessments for Common Expenses
Section 82.112 sets the assessment mechanics for Texas condominiums: who pays before the first assessment, the annual-budget basis for assessments, what the declarant owes during control, and how assessments are recomputed when liabilities shift.
Statute text reproduced from the Texas Property Code; editorial summaries by the Common Elements editorial team. Not legal advice; not a substitute for Texas counsel.
Current as of 2026-05-29.
What boards need to know
Assessments rest on an annual budget. Section 82.112(a) requires assessments, once the association begins assessing, to be made at least annually and based on a budget adopted at least annually. Before the first assessment, the declarant pays expenses as they accrue, and reserves and working-capital contributions may not fund operations until declarant control ends.
The declarant carries a defined load during control. Under § 82.112(b) and (c), the declarant either covers the operational-expense gap or pays the allocated liability on its units, and declarant-owned units are assessed once control ends or three years after the first conveyance, whichever is earlier.
Reallocation flows through automatically. Section 82.112(e) recomputes assessments and not-yet-due installments when common-expense liabilities are reallocated, and § 82.112(f) permits open-ended reserve accumulation if the declaration allows it. Texas imposes no SIRS-style structural reserve study mandate; reserve practice here is set by the declaration.
Key requirements
Assessment basis
Tex. Prop. Code § 82.112(a)- Declarant pays expenses until the first assessment
- Assessments made at least annually
- Assessments based on a budget adopted at least annually
- Reserves and working capital not used for operations during declarant control
Declarant obligations during control
Tex. Prop. Code § 82.112(b), (c)- Pay operational-expense gap, or allocated liability on declarant units
- Runs until control ends or three years from first conveyance
- Declarant units assessed once that period ends
Reallocation and reserves
Tex. Prop. Code § 82.112(e), (f)- Assessments recomputed when liabilities are reallocated
- Not-yet-due installments recomputed too
- Declaration may allow open-ended reserve accumulation
Key statutory text
The core subsection, reproduced verbatim from the Texas Property Code. Full text at statutes.capitol.texas.gov.
§ 82.112(a) - assessment basis
Until an association makes a common expense assessment, a declarant shall pay all the expenses of the condominium as the expenses accrue. After an initial assessment by an association, assessments must be made at least annually and must be based on a budget adopted at least annually by the association. The association’s reserves and the unit owners’ working capital contributions may not be used to pay operational expenses until the declarant control terminates.
Common questions about § 82.112
- How does a Texas condominium levy assessments under § 82.112?
- Section 82.112(a) provides that, until the association makes a common-expense assessment, the declarant pays all condominium expenses as they accrue. After the initial assessment, assessments must be made at least annually and must be based on a budget adopted at least annually. The association's reserves and unit owners' working-capital contributions may not be used to pay operational expenses until declarant control terminates.
- What does the declarant owe during the control period?
- Section 82.112(b) provides that from the date of the initial assessment until declarant control terminates, or three years from the declarant's first unit conveyance (whichever is earlier), the declarant periodically pays the association either an amount equal to all operational expenses less the operational-expense portion of assessments paid by other owners, or the common-expense liability allocated to each unit the declarant owns.
- Are declarant-owned units assessed in a Texas condominium?
- Section 82.112(c) provides that common expenses are assessed against all units conveyed, rented, or used as models or offices by the declarant, and against all units the declarant owns after declarant control terminates or three years from the first conveyance (whichever is earlier), in accordance with each unit's allocated common-expense liability. A past-due assessment or installment may bear interest at a lawful rate the association establishes.
- What happens to assessments if common-expense liabilities are reallocated?
- Section 82.112(e) provides that if common-expense liabilities are reallocated, common-expense assessments and any installment not yet due are recomputed in accordance with the reallocated liabilities.
- Can a Texas condominium accumulate reserves under § 82.112?
- Section 82.112(f) provides that a declaration may allow the accumulation of reserve funds for an unspecified period to provide for any anticipated condominium expense. Texas does not impose a structural reserve study requirement comparable to Florida's SIRS; reserve accumulation under TUCA is declaration-driven.
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This is not legal advice. Consult Texas condominium counsel for your specific situation.