Quick Answer
Texas Property Code § 202.003 says a restrictive covenant "shall be liberally construed to give effect to its purposes and intent." Since 2023 the section also says a dedicatory instrument or restrictive covenant may not be construed to prevent use of property as a "family home" under Human Resources Code Chapter 123.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | Texas Property Code § 202.003, Construction of Restrictive Covenants (Chapter 202) |
| Effective date | June 18, 1987; subsection (b) added by SB 1768, effective May 29, 2023 |
| Applies to | Restrictive covenants and dedicatory instruments governed by Chapter 202; see § 202.002 for applicability (not read) |
| Key sections | (a) liberal construction; (b) family homes |
| Remedy or penalty | None stated in the section |
What the Law Says
Subsection (a)
"A restrictive covenant shall be liberally construed to give effect to its purposes and intent."
Subsection (b)
"Family home" means a residential home that meets the definition and requirements for a family home under Chapter 123 of the Human Resources Code. The subsection says "a dedicatory instrument or restrictive covenant may not be construed to prevent the use of property as a family home." Any covenant that applies to property used as a family home is still to be liberally construed to give effect to its purposes and intent, "except to the extent that the construction would restrict the use as a family home."
What This Means in Practice
For boards
Subsection (a) is a rule for courts reading a covenant. Our reading: it does not by itself give a board power the declaration does not grant, and it does not override statutory limits such as those in Chapter 202 generally.
Subsection (b) means an enforcement action against a group home that qualifies as a family home needs counsel before it starts.
For owners
Expect covenant language to be read for its purpose, not only its most literal sense. A family home operator should confirm that the home meets Chapter 123 requirements.
What we did not verify
- We did not read case law applying subsection (a). Texas courts have decided many covenant disputes, and we have not summarized them here.
- We did not read Human Resources Code Chapter 123, so we do not describe what qualifies as a family home.
Timeline
| Date | Event |
|---|---|
| June 18, 1987 | Section added |
| May 29, 2023 | Subsection (b) added by SB 1768 (88th Leg.) |
Related Texas Law
Board Checklist
- Pull the covenant text a rule relies on and read its stated purpose.
- Screen any enforcement against a group home for family-home status.
- Ask counsel before relying on a narrow literal reading.
- Keep a file of the recorded instruments each rule rests on.
- Re-check Chapter 202 limits before adopting a new rule.
Frequently Asked Questions
What does liberal construction mean here?
The text says a covenant "shall be liberally construed to give effect to its purposes and intent."
What is a family home?
A residential home meeting the definition and requirements under Human Resources Code Chapter 123, per subsection (b).
Can a covenant stop a family home?
Subsection (b) says a dedicatory instrument or restrictive covenant may not be construed to prevent that use.
When did subsection (b) take effect?
May 29, 2023, per the history note.
Does this section limit what rules a board can adopt?
It addresses how covenants are construed. Other Chapter 202 sections set specific limits.
Where This Comes From
We read the current text of § 202.003 and its history note on the Texas.Public.Law mirror, which states it was verified against the official site on May 26, 2025. The official statute site is at statutes.capitol.texas.gov. We did not read court decisions on this section, and the mirror may lag later amendments.
Where We Stand
Our position: we are neutral on § 202.003. Reading covenants by their purpose helps courts but also makes outcomes harder to predict for a volunteer board. Tip: write rules with a stated purpose so the intent is visible in the record if a dispute arises. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.
How APM Helps
Association Property Managers provides remote HOA and condo management for associations in Texas, starting at a flat $99/month per community with no per-door fees or long-term contracts. See remote management in Texas, browse every Texas state-law guide, or request a free proposal, delivered within three business days. Laws and licensing rules differ by state, and we confirm the requirements for Texas when we build your proposal.
Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Texas attorney before acting.
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