Homeowners in a neighborhood in Dripping Springs are engaged a controversy over deed restrictions. In 2016, Greg George began building his dream home in a neighborhood that was protected by deed restrictions that prohibited business operations in the neighborhood. A short time later, a neighbor began operating a wedding venue. George filed a lawsuit to enforce the deed restrictions.
A judge then ruled that the deed restrictions were defective because they read “SGL, LTD,” when they should read “SGL Development LTD.” George told KHOU television
We bought with a set of deed restrictions to protect our private property rights and when that ruling went in, we’ve been stripped. Everybody in here has been stripped of their private property rights.
While I certainly empathize with George, I disagree with his conclusion. He bought his property with the expectation that it would be protected by deed restrictions. However, he entered into a faulty contract, and that isn’t a violation of property rights.
A contract is an agreement between two or more parties stipulating their respective obligations and responsibilities. A contract protects the property rights of the parties entering into the agreement. But if that contract is defective, then it can have an impact on the parties involved. And sometimes that impact can be significant.
In the case of these deed restrictions, it appears that one of the parties to the contract does not exist. Thus, the contract isn’t valid.
Property rights protect our freedom to create, use, keep, trade, and dispose of material values. They protect our freedom to attain and use the things that we think will make our life better. Sometimes we choose poorly. Sometimes we make mistakes. Sometimes innocent errors cost us dearly.
Property rights protect our freedom to act on our own choices. But our choices have consequences. If we want the freedom to choose, then we must accept the consequences of our choices. And that is true if when the consequences are the result of an innocent error.