The Supreme Court of Texas sided with a developer over neighboring landowners who opposed a single-family subdivision.
The Buena Vista Area Association sued an entity of George Salvador, founder of Lillian Custom Homes, for exceeding density restrictions in a proposed single-family development in Ellis County, south of Dallas. The deed restriction forbids more than two homes on any 5-acre tract. The court found that this condition doesn’t require lots to be at least 5 acres and remanded the case for a new trial.
“The restriction’s text does not prohibit subdivision and says nothing about minimum tract size,” the court stated in an opinion released Friday.
Salvador acquired the land in 2019 from an owner who had bought it from the state. The General Land Office attached the deed restrictions to the land, including the one in question.
Salvador platted a subdivision of 73 homes on 100 acres near Waxahachie, with almost every lot being smaller than 2 acres.
His company had begun grading the land when the homeowners sued in December 2020. They claimed the deed restriction required tracts of at least 5 acres. Consequently, Salvador could build no more than 40 residences, they claimed.
“Members of the Buena Vista Area Association bought their homes and property rightfully expecting that deed restrictions on neighboring property preventing dense, suburban-style development would be honored,” the association stated in their original petition. “These recorded restrictions, which run with the land, protect the lifestyle cherished by the Association’s members.”
However, the deed restriction didn’t specify how small the lots can be, the court ruled in a split decision. As a result, Salvador is able to subdivide the 100 acres into tracts smaller than 5 acres, it ruled.
Three of the eight justices dissented in part. Writing for the minority, Justice Debra Lerhmann interpreted the deed restriction as an obvious measure to prevent density.
“These property owners relied on recorded restrictions indicating their neighborhood would not become jam-packed with homes,” the dissent reads.
Lerhmann further argued that the ruling might “give free rein” to other developers planning dense subdivisions on restricted land.
Read more
Texas lawmakers pushed YIMBY policies in addressing housing shortage
