Texas Property Owners Gain More Power to Exit Municipalities That Breach Agreements
False Promises and Broken Agreements Texas is providing more ways for property owners to remove themselves from municipalities that fail to uphold their agreements and obligations.
Until recently, municipalities in Texas could expand their borders through a process known as forced annexation to extend their extra-territorial jurisdictions (ETJs). In 2023, the legislature introduced Senate Bill 2038, which established a mechanism for neighbors to be removed from the ETJ. Additionally, in 2019, House Bill 347 restricted the use of forced annexation within the state to very limited circumstances.
On May 28, 2025, the Governor signed Senate Bill 1844, which further amended Texas annexation laws. Effective September 1, 2025, the new law allows a majority of property owners to petition a municipal government for removal from the ETJ if the municipality has failed or refused to provide services to the property.
Removal from the ETJ may be available if the municipality has not provided a service plan, a written agreement detailing the services to be provided on the effective date of annexation and a schedule for subsequent services, or a resolution indicating the municipality’s intent to annex a property, including the services to be provided. The municipality must fail to deliver these services not only to the affected property but to the majority of properties in the area.
If the requirements are met, the city fails or refuses to remove the property from the ETJ , a property owner may have legal recourse. The removal from the ETJ process is highly specific, with precise requirements that must be met for a property owner to exercise these rights. The attorneys at Hayes, Berry, White & Vanzant, LLP can assist you in navigating this process and determine if you qualify under this law. Please contact us if you would like to discuss any Texas land use issues or other commercial real estate investment matter.
