JBrice Holdings, LLC v. Wilcrest Walk Townhomes Ass'n (Opinion)
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In this dispute between a homeowners' association and a townhome owner the Supreme Court reversed the opinion of the court of appeals affirming the judgment of the trial court enjoining the owner from renting its townhomes for terms of fewer than seven days, holding that the association had no authority to impose a short-term rental restriction.
After the association demanded that the owner stop leasing its townhomes for short-term rentals the owner sued to enforce a covenant in the neighborhood's deed restrictions granting it the right to lease without restriction. The trial court ruled that the short-term rentals breached a provision in the neighborhood's deed restrictions. The court of appeals affirmed, concluding that the association possessed independent authority under Tex. Prop. Code 204.010(a)(6) to restrict short-term rentals. The Supreme Court reversed, holding that neither the deed covenants nor the Property Code authorized the association to impose a short-term rental restriction.
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