Tex. Prop. Code Ann. §§ 223.001–223.007 § 223.007
ENFORCEMENT.
Operative Text
Sec. 223.007. ENFORCEMENT. (a) A violation of this chapter is a deceptive trade practice actionable under Subchapter E, Chapter 17, Business & Commerce Code.(b) A court that finds a violation of this chapter may enjoin a managing entity or a person affiliated with the managing entity from taking action in furtherance of development of or construction on residential property used in a residential arrangement subject to an action under this section, including:(1) filing a petition with the Texas Commission on Environmental Quality for the creation of a municipal utility district under Chapter 49, Water Code;(2) taking action in connection with a petition for the creation of a district described by Subdivision (1) filed with the Texas Commission on Environmental Quality before the issuance of the injunction; or(3) receiving, directly or indirectly, any public money or benefit. Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.
Under Tex. Prop. Code § 223.007, any violation of Chapter 223 is treated as a deceptive trade practice under Texas law, opening the door to the remedies available under the Texas Deceptive Trade Practices Act. Beyond that, a court can issue an injunction blocking a managing entity—or anyone affiliated with it—from advancing residential development or construction tied to the arrangement at issue. That injunction can extend to halting utility district petitions before the Texas Commission on Environmental Quality and cutting off the receipt of any public funds or benefits, whether direct or indirect.
Plain English — not legal advice.
Managing entities and their affiliates operating residential arrangements covered by Chapter 223 should be aware that Tex. Prop. Code § 223.007 exposes them to deceptive-trade-practice liability if any provision of the chapter is violated. Compliant operators generally ensure that all disclosures, representations, and practices required by Chapter 223 are accurate and complete before marketing or entering into residential arrangements. Because a court finding a violation can freeze development activity—including pending utility district proceedings and access to public money—operators typically maintain thorough compliance documentation throughout the lifecycle of a project.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tex. Prop. Code § 223.007 gives tenants and residents in covered residential arrangements a meaningful enforcement path: a violation of Chapter 223 can be pursued as a deceptive trade practice under the Texas DTPA, which carries its own set of consumer remedies. Courts handling such cases also have the power to enjoin the managing entity from continuing development activity or receiving public benefits, which can be a significant check on ongoing harm. Residents who believe a violation has occurred may consider consulting a tenant-rights organization or a private attorney familiar with the Texas DTPA to understand what remedies may be available under this provision.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 28, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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