Texas Supreme Court denies review of amendments to restrictive covenants which take away existing property rights
October 21, 2022 12:36 Filed in: hoa | short-term rentals
Today, the Texas Supreme Court declined to review the decisions of the Austin, Beaumont, and Houston 14th Court of Appeals which hold that an amendment to restrictive covenants which takes away pre-existing property rights (in those cases, the right to rent for short terms, among other things) is immediately enforceable against all owners.
The denial of review means that three very harsh decisions stand. Anyone who owns or buys real property in a subdivision thinking they have specific property rights needs to consult an attorney about whether those rights will continue. I don't see how anyone can now price real property since a majority of neighborhood owners can vote to take away preexisting rights. I am at a loss to understand how Texas, historically a property-rights state, can join the small minority of states which all rights to be taken away after closing. It is now up to the Legislature to act.
The denial of review means that three very harsh decisions stand. Anyone who owns or buys real property in a subdivision thinking they have specific property rights needs to consult an attorney about whether those rights will continue. I don't see how anyone can now price real property since a majority of neighborhood owners can vote to take away preexisting rights. I am at a loss to understand how Texas, historically a property-rights state, can join the small minority of states which all rights to be taken away after closing. It is now up to the Legislature to act.