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Click here for the full text of this decision FACTS:Bayview Acres is a residential real estate subdivision in Galveston County. Bayview Acres has had deed restrictions in effect for more than 70 years. In September 1995, the Gillebaards acquired five lots in Bayview Acres that totaled more than 6 acres. In 1999, a petition was circulated to the property owners in Bayview Acres for the purpose of amending Bayview Acres’ deed restrictions pursuant to Texas Property Code Chapter 201. The 1999 modifications were adopted by the property owners of Bayview Acres. In July 2004, the Gillebaards contracted with South Texas Projects Inc., a condominium developer, to sell their property. The contract specifically provided that the Gillebaards’ property was being acquired for the construction of a residential condominium development. The Gillebaards agreed that the condominium developer could conduct a feasibility study to determine whether the Gillebaards’ property could be developed for its intended purpose. On Aug. 20, 2004, Abbott Sprague, Lloyd Thorton, James Flanigan and Charlie Prioleau (the individual appellees) filed written notice of the formation of a property owners’ association petition committee. The Aug. 20 formation-of-a-petition-committee notice stated that a petition committee “was formed for the sole purpose of creating and operating a property owners’ association as set forth in Article II of the proposed Amended and Restated Restrictions for Bayview Acres.” The August 20 formation-of-a-petition-committee notice attached and incorporated by reference the Amended and Restated Restrictions for Bayview Acres. The Amended and Restated Restrictions modified the residential-use restriction to require that all property in Bayview Acres be used for single-family residential purposes. Also on Aug. 20, 2004, the articles of incorporation for Bayview Acres Association Inc. were filed with the Texas secretary of state. On Sept. 27, 2004, the Gillebaards filed a “Statement of Exclusion from Amended and Restated Restrictions for Bayview Acres” pursuant to of the Texas Property Code �201.009 to have their property “deleted and excluded from Amended And Restated Restrictions for Bayview Acres.” On Sept. 27, 2004, the Gillebaards filed suit against the individual appellees and Bayview Association, seeking declaratory judgment and bringing other claims. In three summary-judgment orders, the trial court denied the Gillebaards’ motion for partial summary judgment, granted appellees’ motions for summary judgment and declared, “The Amended And Restated Restrictions for Bayview Acres which were enacted on Aug. 23, 2004, and approved by owners representing approximately 83 percent of property within Bayview Acres are valid and enforceable.” The trial court did not state the grounds for its rulings. Subsequently, the trial court granted their motion to dismiss, dismissing without prejudice any claims for damages that might have survived the summary-judgment rulings. The trial court also denied appellees’ motions for attorney’s fees, rendering the judgment final. HOLDING:Affirmed in part; reversed and remanded in part. The court sustains the Gillebaards’ first issue to the extent that it asserts that the trial court erred by granting appellees’ summary-judgment motions and by denying the Gillebaards’ motion for partial summary judgment based on a violation of �204. The court reverses those portions of the judgment, including the trial court’s declaration that the Amended and Restated Restrictions for Bayview Acres are valid and enforceable. The court affirms those portions of the judgment that 1. dismissed without prejudice any remaining claims of the Gillebaards surviving summary judgment and 2. denied appellees’ requests for attorney’s fees. The court remanded the cause for further proceedings, instructing the trial court to declare that the Amended and Restated Restrictions for Bayview Acres are invalid and unenforceable. There is a due order of action to invoke Texas Property Code Chapter 204: The existing deed restrictions must first be amended, by one petition, to create a property owners’ association and to establish how it will operate, and only after the restrictions are amended to do so may that association then propose, approve and circulate a new petition for the purpose of extending, adding to or modifying the deed restrictions in other ways. The petition that �204.006(a) sanctions is one that seeks to amend or to modify existing deed restrictions for “the sole purpose” of creating and operating a property owners’ association. That means that the only purpose of that petition can be, ultimately, to create and to operate a property owners’ association. Here, the individual appellees proposed, approved and circulated the petition that both created Bayview Association and amended the 1999 express deed restrictions in other ways. Assuming without deciding that Bayview Association was validly created by this petition, it was still the individual appellees, not Bayview Association, who proposed, approved and circulated the petition that amended the 1999 express deed restrictions in ways other than creating the association. That is, the entity seeking to amend the deed restrictions to include the single-family-use restriction could not have been Bayview Association because that corporation had not been given the power to act for the subdivision’s homeowners at the time that the preliminary steps of proposing, approving, and circulating that amendment took place. OPINION:Taft, J.; Taft, Jennings and Alcala, J.J.

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