The Proposed Deed Restrictions Increase Our Risk of Litigation

Since the Texas Supreme Court in Tarr made it clear that HOAs could not use the Residential Purpose Clause to prohibit short term rentals (STRs) less than a year ago, there has been a flurry of activity across the state by cities and HOAs alike to pass regulations and restrictions specifically prohibiting STRs. Many have been hauled into court over hastily-written or ill-conceived STR prohibitions. Alienability (the right to convey part or all of your property as you wish) is a FUNDAMENTAL PROPERTY RIGHT, and the courts have yet to decide how far is too far when it comes to restricting STRs. The Texas Legislature is expected to address STRs this session. Carrollton is rewriting its zoning laws and may well enact their own regulations. Passing STR restrictions now before the dust has settled after Tarr increases the risk that our Country Place HOA will be among those sued.

It should be noted that the increase risk of litigation is not only by homeowners against the HOA board, but also by homeowners against homeowners.