Buyer needs competent legal help before buying land
Q: I have a client interested in buying a tract of land. The tax rolls list the owner’s interest as 100 percent Life Estate. Any suggestions about how to buy it? The owner who has the life estate said he can sell it, but I’m not sure how that works.
A: It’s not quite that simple. If there’s a life estate, there is also a provision for who the property goes to when the life estate owner dies. They all do, you know. You will need to acquire the life estate owner’s interest and the interest of the future interest holder(s). Get some competent legal help, you will need it. Q: My husband and I married later in life. He lives and works in another county in Texas. We live apart, have two households, and are financially independent from each other. Can we each claim a homestead exemption? A: No. A married couple can only claim one homestead exemption.
Q: We purchased 1 acre of land 20 years ago, recorded land, paid taxes and property owners association fees. Fifteen years ago we purchased the 1 acre next to ours, recorded land, paid taxes and POA fees. We wish to sell the 2 acres. The title company informs us the wife of the seller of acre no. 2 did not sign the closing papers. We are unable to locate either seller. How can we legally sell these 2 acres? Thank you for any assistance you can provide.
A: If you have a recorded deed and have paid the taxes for 15 years, you have a defense to the spouse’s claim of ownership by adverse possession under the five- and 10-year statutes. That is, no one has challenged your ownership for that period of time, so they lose their right to do so. Convincing the title company to insure title is a different issue. They don’t like to take risks, so may refuse to insure. If this title company won’t insure, call other title companies. They may be willing to do so. They will want to know what efforts you have made to contact the prior owner, so have your notes ready.
Q: I’m buying a residential home in Texas for the first time. We moved here from Chicago. Everybody keeps talking about mineral rights. I understand that’s a big issue in Texas, but why? Is there something I should be negotiating in my purchase?
A: It depends on where you are. Texas discovered a big shale deposit in the Dallas-Fort Worth area, which made every homeowner an oil baron. A 50-by-100-foot lot had oil rights that could be valuable. We’ve had similar issues in south and west Texas. The Texas Real Estate Commission published a very simplified form to try to deal with this issue, but they are very complex rights. If you have an issue with this, call a board-certified oil and gas lawyer.
If you live in Houston or most other populated areas of the state, your oil and gas rights have long since been sold, so should not be an issue. Similarly, some cities prohibit drilling within city limits, so is not an issue there either.
However, check with you city’s ordinances on this matter. Welcome to Texas. Go buy a big hat and enjoy your new home.