# Texas Title Examination Standards > **Source**: Vernon's Texas Statutes and Codes Annotated, Title 2—Appendix (March 2024) > > This reference file summarizes the Texas Title Examination Standards adopted by the Real Estate, Probate and Trust Law Section of the State Bar of Texas. These standards represent the authoritative guidance for Texas title examination practice. ## Table of Contents 1. [Chapter I: Title Examiner](#chapter-i-title-examiner) 2. [Chapter II: Marketable Title](#chapter-ii-marketable-title) 3. [Chapter III: Name Variances](#chapter-iii-name-variances) 4. [Chapter IV: Execution, Acknowledgment, Recordation](#chapter-iv-execution-acknowledgment-recordation) 5. [Chapter V: Land Descriptions](#chapter-v-land-descriptions) 6. [Chapter VI: Corporate Conveyances](#chapter-vi-corporate-conveyances) 7. [Chapter VII: Partnerships, JVs, LLCs](#chapter-vii-partnerships-jvs-llcs) 8. [Chapter VIII: Powers of Attorney](#chapter-viii-powers-of-attorney) 9. [Chapter IX: Trustees](#chapter-ix-trustees) 10. [Chapter X: Capacity to Convey](#chapter-x-capacity-to-convey) 11. [Chapter XI: Decedents' Estates](#chapter-xi-decedents-estates) 12. [Chapter XII: Bankruptcies](#chapter-xii-bankruptcies) 13. [Chapter XIII: Affidavits and Recitals](#chapter-xiii-affidavits-and-recitals) 14. [Chapter XIV: Marital Interests](#chapter-xiv-marital-interests) 15. [Chapter XV: Liens and Lis Pendens](#chapter-xv-liens-and-lis-pendens) 16. [Chapter XVI: Foreclosures](#chapter-xvi-foreclosures) 17. [Chapter XVII: Title from the Sovereign](#chapter-xvii-title-from-the-sovereign) 18. [Chapter XVIII: Adverse Possession](#chapter-xviii-adverse-possession) 19. [Chapter XIX: Cotenancy](#chapter-xix-cotenancy) 20. [Chapter XX: Zoning and Land Use](#chapter-xx-zoning-and-land-use) 21. [Chapter XXI: Rule Against Perpetuities](#chapter-xxi-rule-against-perpetuities) --- ## Chapter I: Title Examiner ### Standard 1.10. Title Examiner Defined A title examiner is any person who, as a regular part of employment, examines title to real property. ### Standard 1.20. Purpose of Examination The purpose of title examination is to evaluate those matters of record and in a title insurance commitment or guarantee of title affecting the use and insurability of the title under examination. ### Standard 1.30. Duty of Examiner The duty of the examiner is to the client. An examiner must disclose to the client any matter that raises a question as to the marketability or insurability of the title under examination. An examiner need not further research, analyze, or determine the legal import of matters disclosed. ### Standard 1.40. "Should" and "May" In the Standards, "should" indicates a procedure generally to be followed, subject to the circumstances of the particular transaction. "May" indicates a permissive procedure. ### Standard 1.50. Cautionary Statements Cautionary statements, while general information, are not standards. --- ## Chapter II: Marketable Title ### Standard 2.10. Marketable Title Defined **Marketable title** is title free from reasonable doubt; that is, title that a prudent person, with knowledge of all the facts and their legal significance, would be willing to accept. Title that exposes the owner to the probability of litigation is not marketable. A title may be marketable even though it is not perfect or free from every technical objection. A marketable title may exist although it cannot be established of record and may be marketable even though it depends on proof of adverse possession. ### Standard 2.20. Marketable Title vs. Insurable Title **Insurable title** is title that a title insurer will insure, which may differ from marketable title. A title may be insurable but not marketable, or marketable but not insurable. ### Standard 2.30. Matters Not Affecting Marketability An examiner should not object to title because of matters not affecting the marketability of the title, such as: - Outstanding spouse's inchoate dower or curtesy interest (abolished in Texas) - Defects cured by limitations - Ancient mortgages presumed paid --- ## Chapter III: Name Variances ### Standard 3.10. Idem Sonans Names that sound substantially the same when pronounced are presumed to be the same under the doctrine of **idem sonans**. The test is whether the attentive ear finds difficulty distinguishing the names when pronounced. **Examples accepted as idem sonans:** - Smith/Smyth - John/Jon - Steven/Stephen **The doctrine does NOT apply to indexed records** for purposes of determining constructive notice. ### Standard 3.20. Name Variations – Common An examiner may ordinarily accept reasonable variations in names between instruments: - Use of nicknames (William/Bill, Robert/Bob) - Middle name present/absent - Use of initials - Minor spelling variations - Suffixes (Jr., Sr., III) added or omitted ### Standard 3.30. Name Variations – Corporate Corporate name variations acceptable: - "Inc." vs. "Incorporated" - "Corp." vs. "Corporation" - "Co." vs. "Company" - "Ltd." vs. "Limited" - "&" vs. "and" --- ## Chapter IV: Execution, Acknowledgment, Recordation ### Standard 4.10. Execution Generally An instrument must be signed by the grantor. A signature may be: - Written signature - Mark (if properly witnessed) - Signature by agent with written authority - Digital/electronic signature (Tex. Bus. & Com. Code § 322.009) ### Standard 4.20. Acknowledgment An acknowledgment is a formal declaration made before an authorized officer by the person who executed the instrument that it was their free and voluntary act. Required for recording but not for validity between parties. **Officers authorized to take acknowledgments in Texas:** - Notary public - County clerk or deputy - County judge - Judge or clerk of court of record ### Standard 4.30. Defective Acknowledgments An examiner need not take exception to a defective acknowledgment if: - The instrument has been of record for more than 4 years (Tex. Civ. Prac. & Rem. Code § 16.033) - The grantor's signature is proved in lieu of acknowledgment - A curative statute applies (Tex. Prop. Code §§ 5.027-5.031) ### Standard 4.40. Recording – Notice Statute **CRITICAL**: Texas has a **NOTICE** recording statute (not race-notice). Under Tex. Prop. Code § 13.001, an unrecorded instrument is void as to a subsequent purchaser for valuable consideration without notice. The subsequent purchaser prevails even if recording after the unrecorded instrument is finally recorded. **Requirements to be a bona fide purchaser:** 1. Pay valuable consideration 2. Take without notice (actual, constructive, or inquiry) 3. Good faith ### Standard 4.50. Correction Instruments Tex. Prop. Code §§ 5.027-5.031 authorize correction instruments to: - Correct a material error in the legal description - Correct a material error in the grantor or grantee names - Add a legal description that was omitted - Add an acknowledgment **Limitations:** - Cannot add conveyance language - Cannot correct ambiguity that requires interpretation - Available only for non-judicial correction (judicial correction always available) --- ## Chapter V: Land Descriptions ### Standard 5.10. Sufficiency of Legal Description A legal description is sufficient if it describes land that can be located and identified. The test: Can a surveyor locate the land on the ground? **Order of dignity of calls** (when conflicts exist): 1. Natural objects (rivers, trees, hills) 2. Artificial objects (fences, roads, buildings) 3. Adjoining tracts 4. Courses and distances 5. Area/quantity ### Standard 5.20. Ambiguity A latent ambiguity appears when extrinsic evidence is applied to a description. A patent ambiguity is apparent from the face of the instrument. Parol evidence is admissible to explain latent ambiguity but not patent ambiguity. ### Standard 5.30. Water Boundaries When property is bounded by water: - **Navigable streams**: Boundary is the gradient boundary (mean high water line) - **Non-navigable streams**: Boundary is the center of the stream (thread) - **Lakes**: Similar rules apply based on navigability - **Gulf of Mexico**: Mean higher high tide line **Accretion**: Gradual additions belong to riparian owner **Avulsion**: Sudden changes do not alter boundary ### Standard 5.40. Roads When property is described as bounded by a road: - If grantor owns to center: Conveyance to road includes fee to center (strip-and-gore doctrine) - If grantor owns only to edge: Conveyance includes only to edge - A reservation of a strip along a road means only the strip, not the road ### Standard 5.50. Easements **Types:** - **Appurtenant**: Benefits a dominant estate, runs with the land - **In gross**: Personal benefit, generally does not run with the land - **Prescriptive**: By adverse use for limitations period **Creation methods:** - Express grant or reservation - Implication (prior use, necessity) - Prescription - Estoppel **Termination:** - Express release - Merger - Abandonment - End of necessity ### Standard 5.60. Cemeteries Property used as a cemetery is subject to special rules. Dedication for cemetery purposes creates rights in lot owners that survive conveyance of underlying fee. --- ## Chapter VI: Corporate Conveyances ### Standard 6.10. Corporate Existence An examiner may presume that a corporation existed at the time of a recorded conveyance. ### Standard 6.20. Corporate Authority An examiner may presume that a corporation had authority to execute a recorded conveyance, unless the instrument or record indicates otherwise. ### Standard 6.30. Corporate Seal A corporate seal is not required for a valid conveyance. Its presence or absence is not material. ### Standard 6.40. Officers' Authority An examiner may presume that officers signing on behalf of a corporation have authority to do so: - President - Vice President - CEO, CFO - Secretary or Assistant Secretary (for attestation) ### Standard 6.50. Corporate Name Variations See Standard 3.30 for acceptable variations in corporate names. ### Standard 6.60. Foreign Corporations An examiner should verify that a foreign corporation is qualified to do business in Texas if required, though failure to qualify does not invalidate a conveyance. ### Standard 6.70. Dissolved Corporations A dissolved corporation may continue to hold and convey property for winding up purposes. Tex. Bus. Orgs. Code § 11.356. --- ## Chapter VII: Partnerships, JVs, LLCs ### Standard 7.10. Partnership Generally A partnership may hold and convey real property in the partnership name. A general partner can convey partnership property with authority. ### Standard 7.20. Limited Partnerships A limited partnership conveys property through its general partner(s). An examiner should verify: - The LP is properly registered - The general partner has authority ### Standard 7.30. Joint Ventures A joint venture may hold title like a partnership. Each joint venturer may have authority to convey unless restricted by agreement. ### Standard 7.40. Limited Liability Companies An LLC conveys property through managers (if manager-managed) or members (if member-managed). Verify authority by: - Certificate of formation - Company agreement provisions - Certificate of authority from the company ### Standard 7.50. Unincorporated Associations An unincorporated nonprofit association may hold and convey property under Tex. Prop. Code Chapter 252. ### Standard 7.60. Business Trusts A business trust may hold property. Conveyance is by the trustee(s) with authority under the trust instrument. --- ## Chapter VIII: Powers of Attorney ### Standard 8.10. Powers of Attorney An examiner should determine that: 1. The power of attorney was valid when executed 2. The power had not been revoked at the time of exercise 3. The agent's authority covers the transaction 4. The power had not terminated (principal's death, incapacity) **Durable powers of attorney** (Tex. Estates Code § 751) survive the principal's incapacity if they contain language such as "This power of attorney is not affected by subsequent disability or incapacity." **Statutory durable power of attorney** form under Tex. Estates Code § 752.051 provides specific real property powers if authorized. --- ## Chapter IX: Trustees ### Standard 9.10. Trust Powers A trustee may convey trust property if authorized by: - The trust instrument - Texas Trust Code (Tex. Prop. Code §§ 113.001-113.030) - Court order The Texas Trust Code grants broad default powers to trustees. ### Standard 9.20. "Blind Trust" Conveyances When property is conveyed to "John Smith, Trustee" without identifying the trust: - Creates an enforceable trust if a trust actually exists - Trustee holds legal title - Examiner may accept subsequent conveyances from the trustee ### Standard 9.30. Conveyances to Trusts A conveyance should be made to the trustee, not to the trust itself. "John Smith, Trustee of the Smith Family Trust" is proper. --- ## Chapter X: Capacity to Convey ### Standard 10.10. Minority A minor may hold title but cannot convey except through: - Guardian - Court authorization - Ratification after reaching majority A conveyance by a minor is voidable, not void. ### Standard 10.20. Mental Capacity A person lacks capacity if they cannot understand the nature and consequences of the transaction. A conveyance by someone lacking capacity is voidable. **Presumption**: Adults are presumed to have capacity. ### Standard 10.30. Guardians and Conservators A guardian or conservator may convey a ward's property with proper court authorization. Verify: - Valid guardianship/conservatorship appointment - Court order authorizing the specific conveyance - Proper execution of deed --- ## Chapter XI: Decedents' Estates ### Standard 11.10. Passage of Title on Death Title to a decedent's real property passes immediately at death to: - Devisees under a valid will, OR - Heirs under intestate succession The estate holds no title; the personal representative holds power to sell, not ownership. ### Standard 11.20. Estate Administration Types of administration: - **Independent administration**: Executor acts without court supervision - **Dependent administration**: Court approval required for most actions - **Muniment of title**: Simple probate proving will without administration ### Standard 11.30. Independent Executor Authority An independent executor may sell estate property without court approval under Tex. Estates Code § 356. Authority terminates upon: - Discharge - Removal - Closing of estate - Death of executor ### Standard 11.40. Dependent Administration Sales Dependent administration requires: - Court order authorizing sale - Compliance with statutory notice requirements - Court confirmation of sale ### Standard 11.50. Heirship When no probate, title passes to heirs. To establish heirship: - Affidavit of heirship (Tex. Estates Code § 203.001) - Determination of heirship proceeding - Court declaration ### Standard 11.60. Affidavit of Heirship After 5 years of record, an affidavit of heirship constitutes prima facie evidence of the facts stated. Tex. Estates Code § 203.001. **Contents required:** - Decedent's name and date of death - Family history - Names and addresses of heirs - Property description - Affiant's knowledge source ### Standard 11.70. Community Property Survivorship Community property passes to the surviving spouse and heirs in varying shares depending on: - Whether decedent had children - Whether children are children of both spouses - Terms of will if one exists ### Standard 11.80. Transfer on Death Deeds (TODDs) Tex. Estates Code §§ 114.001-114.106. A TODD: - Is revocable during the owner's lifetime - Transfers property at death without probate - Does not affect owner's rights during lifetime - May be revoked by a later TODD, will provision, or revocation instrument ### Standard 11.90. Debts and Taxes Estate debts do not automatically create liens on real property. However: - Creditor may obtain judgment lien - Federal estate tax lien attaches automatically - State inheritance tax (repealed 2015) ### Standard 11.100. Foreign Wills A will probated in another jurisdiction may be recorded in Texas as "authenticated foreign will" under Tex. Estates Code § 501. ### Standard 11.110. Small Estate Affidavit For estates with no administration needed, a small estate affidavit (Tex. Estates Code § 205.001) may be used if: - No will has been probated - 30+ days since death - Estate qualifies (certain value limits) --- ## Chapter XII: Bankruptcies ### Standard 12.10. Relevance to Title An examiner should determine whether any party in the chain of title was in bankruptcy and, if so, whether transfers were properly authorized. ### Standard 12.20. Automatic Stay The filing of a bankruptcy petition creates an automatic stay (11 U.S.C. § 362) prohibiting: - Foreclosure - Perfection of liens (with exceptions) - Collection actions - Enforcement of judgments A transfer in violation of the stay may be void or voidable. ### Standard 12.30. Authority for Transfers **Chapter 7 (Liquidation)**: Trustee has authority; verify trustee appointment and court authorization. **Chapter 11 (Reorganization)**: Debtor-in-possession or trustee; check for: - Operating orders - Sale orders - Plan confirmation **Chapter 12/13**: Debtor generally retains property subject to plan. ### Standard 12.40. Foreclosure in Bankruptcy Foreclosure during bankruptcy requires: - Automatic stay to be lifted (11 U.S.C. § 362(d)) - Motion and court order - Examiner should review relief from stay order ### Standard 12.50. Confirmation of Plan Upon confirmation, a Chapter 11 plan: - Vests property in reorganized debtor - Discharges certain liens - Creates binding effect ### Standard 12.60. Discharge vs. Lien Survival **Critical distinction:** - **Discharge** eliminates personal liability - **Liens survive** discharge and remain attached to property A creditor may foreclose post-discharge even though personal liability is eliminated. ### Standard 12.70. Judgment Liens in Bankruptcy Judgment liens on the debtor's residence may be avoided (stripped) if they impair the debtor's homestead exemption. 11 U.S.C. § 522(f). ### Standard 12.80. Recitals in Bankruptcy Sales An examiner may rely on recitals in a deed executed by a bankruptcy trustee that all required procedures were followed. --- ## Chapter XIII: Affidavits and Recitals ### Standard 13.10. Affidavits Defined An affidavit is a written statement sworn to before an officer authorized to administer oaths. ### Standard 13.20. Reliance on Affidavits An examiner may rely on affidavits of record regarding: - Heirship (after 5 years) - Identity - Marital status - Non-production (when original cannot be located) - Facts supporting marketability ### Standard 13.30. Non-Production Affidavits When an original instrument cannot be located, an affidavit reciting its contents and circumstances may provide sufficient evidence. ### Standard 13.40. Recitals in Ancient Documents Recitals in an instrument that has been of record for **20 years or more** (ancient document) may be accepted as evidence of the facts recited. The 20-year period relates to the document's age, not the matter recited. --- ## Chapter XIV: Marital Interests ### Standard 14.10. Community Property Presumption **All property acquired during marriage is presumed to be community property.** Tex. Fam. Code § 3.003. **Separate property** requires tracing to: - Property owned before marriage - Property acquired by gift or inheritance - Recovery for personal injuries (except lost wages) ### Standard 14.20. Gifts Between Spouses A transfer between spouses is valid and creates separate property in the receiving spouse. ### Standard 14.30. Conveyances Affecting Community **Both spouses must join** in a conveyance of community real property. Tex. Fam. Code § 3.001(b). A conveyance by one spouse alone is **voidable** by the non-signing spouse during marriage or within 2 years of dissolution. ### Standard 14.40. Separate Property Conveyance One spouse may convey their separate property without the other's joinder, **except** when homestead rules apply. ### Standard 14.50. Marital Status Recitals An examiner may rely on marital status recitals in recorded instruments. ### Standard 14.60. Joinder Requirements When joinder is required but missing: - Conveyance is voidable, not void - Non-signing spouse may ratify - Statute of limitations may cure ### Standard 14.70. Homestead – Both Spouses Must Sign **Regardless of how title is held**, both spouses must join in a conveyance of the homestead. Tex. Const. art. XVI, § 50. This applies to: - Sales - Mortgages (except specific permitted liens) - Leases exceeding one year ### Standard 14.80. Single Person/Marital History For a person claiming to be single: - Examiner may rely on recital if reasonable - Consider requiring affidavit of marital status - Review for prior spouse in chain ### Standard 14.90. Divorce A divorce decree: - May award property to either spouse - Does not automatically convey title - Requires deed to transfer legal title **Exception**: A decree may directly divest title under Tex. Fam. Code § 9.009. ### Standard 14.100. Premarital Agreements A valid premarital agreement may: - Characterize property as separate - Waive community property rights - Affect title analysis --- ## Chapter XV: Liens and Lis Pendens ### Standard 15.10. Liens Generally A lien is a charge on property for payment of a debt or obligation. Types: - **Consensual**: Created by agreement (deeds of trust, mortgages) - **Statutory**: Created by statute (mechanic's, tax) - **Constitutional**: Texas Constitution (mechanic's lien, homestead protection) - **Equitable**: Created by court (equitable lien, vendor's lien) Texas follows the **lien theory** for mortgages—the borrower retains title, lender holds security interest. ### Standard 15.20. Mechanic's and Materialman's Liens **Constitutional lien** (TEX. CONST. art. XVI, § 37): - Attaches to land regardless of recording - **Inception date**: When labor or materials first furnished - May have priority over earlier-recorded liens - Available for houses, buildings, improvements, levees, railroads **Statutory lien** (Tex. Prop. Code Chapter 53): - Perfection requirements (affidavit filing) - Notice requirements for subcontractors - Filing deadlines (generally 15th day of 4th month for commercial, 3rd month for residential) **Key rule**: Lien relates back to commencement of visible construction (Tex. Prop. Code § 53.124). **2022 Amendments**: Effective January 1, 2022, significant changes to Chapter 53 expanded definitions and simplified perfection. Period to file suit shortened to 1 year unless extended by recorded agreement. ### Standard 15.30. Judgment Liens To create a judgment lien, an **abstract of judgment** must be: 1. Properly prepared per Tex. Prop. Code § 52.003 2. Recorded in county where property located 3. Properly indexed (direct and reverse) **Duration**: 10 years from date of recording and indexing. May be renewed. **Homestead**: A judgment lien cannot attach to homestead property. Tex. Prop. Code § 52.0012 provides procedure for clearing cloud. **Requirements for valid abstract** (Tex. Prop. Code § 52.003): - Names of plaintiff and defendant - Date of birth of defendant (if available) - Last 3 digits of DL and SSN (if available) - Court information - Date of judgment - Amount of judgment and balance due ### Standard 15.40. Implied Vendor's Liens Where no express lien is reserved and purchase money remains unpaid, an implied vendor's lien arises in favor of the seller. This lien: - Is not recordable - Is good against all except BFPs - May be waived by express lien ### Standard 15.50. Other Involuntary Statutory Liens Specialized liens that may affect Texas real property include: - Child Support Lien (Tex. Fam. Code §§ 157.311-331) - State Hospital Lien (Tex. Health & Safety Code §§ 533.004, 533A.004) - Water District Standby Fees (Tex. Water Code § 49.231) - Municipal Liens (various Tax and Local Gov't Code provisions) - Appraisers and Broker's Lien (Tex. Prop. Code ch. 62) ### Standard 15.60. Federal Tax Liens Federal tax liens (26 U.S.C. §§ 6321-6323): - Attach from date of assessment - Not perfected against purchasers/lenders until filed - Notice valid for 10 years + 30 days - **120-day redemption right** after foreclosure sale **Priority**: Federal tax liens are subordinate to: - Property tax liens - Purchase money security interests (45-day rule) - Mechanic's liens (if inception before federal filing) ### Standard 15.70. Ad Valorem Taxes Property taxes: - Assessed January 1 each year - Due October 1, delinquent February 1 - Lien attaches January 1 **Tax certificate**: Examiner should verify taxes are current. Tax certificate shows delinquent amounts. ### Standard 15.80. Ad Valorem Tax Lien Priority Ad valorem tax liens are **superior to all other liens** including: - Federal tax liens - Prior recorded deeds of trust - Judgment liens - Homestead exemptions do not affect tax lien priority ### Standard 15.90. Lien Priority and Subordination **General rule**: First in time, first in right, subject to: - Recording statute (notice, not race-notice) - Subordination agreements - Purchase money priority **IMPORTANT**: Texas has a **NOTICE** recording system, not race-notice. A prior unrecorded mortgage may lose priority to a subsequent good faith lender even if the prior mortgage is recorded first. Tex. Prop. Code § 13.001. **Subordination agreements** contractually alter priority. The subordinated lien moves directly after the lien to which it subordinates. ### Standard 15.100. Removal of Lien A lien is presumed extinguished when: 1. The secured debt is paid, OR 2. The lien becomes unenforceable under statute of limitations **4-year limitation** (Tex. Civ. Prac. & Rem. Code § 16.035): - Action to foreclose real property lien must be brought within 4 years of maturity - Running may be suspended by recorded extension ### Standard 15.110. Lis Pendens A notice of lis pendens gives constructive notice of pending litigation affecting title. Requirements (Tex. Prop. Code § 12.007): 1. Style and number of proceeding 2. Court where pending 3. Names of parties 4. Kind of proceeding 5. Description of property A recorded lis pendens effectively prevents a grantee from being an innocent purchaser. --- ## Chapter XVI: Foreclosures ### Standard 16.10. Nonjudicial Foreclosure An examiner should verify that all requirements for nonjudicial foreclosure were satisfied: 1. **Power of sale** in the deed of trust 2. **Default** under terms of the instrument 3. **Proper trustee** appointment (substitute trustee properly recorded) 4. **Statutory notices** given: - Notice of default to debtor - 21-day notice of sale (posting + filing + certified mail) 5. **Sale conducted properly**: - First Tuesday of month - Between 10:00 AM and 4:00 PM - Courthouse door or designated area 6. **Trustee's deed** delivered **Historical note**: Requirements have changed over time; examine based on law in effect at time of sale. ### Standard 16.20. Judicial Foreclosure and Execution Sales When foreclosure is by court judgment: - Verify valid judgment - Order of sale or writ of execution - Sheriff's or constable's deed - Return filed with court ### Standard 16.30. Home Equity and Reverse Mortgage Foreclosure **Home equity loans** (TEX. CONST. art. XVI, § 50(a)(6)) and **reverse mortgages** (§ 50(a)(7), (k)) require **judicial foreclosure**. **Exception for reverse mortgages**: May foreclose without court order if: - All borrowers have died, OR - Property sold or transferred, OR - Borrowers ceased occupying for 12+ consecutive months ### Standard 16.40. Deeds in Lieu of Foreclosure A deed in lieu of foreclosure: - **Does NOT extinguish junior liens** - Conveys only what the grantor owns - Junior lienholders may still foreclose **Title analysis**: Require releases from all junior lienholders or accept subject to their interests. --- ## Chapter XVII: Title from the Sovereign ### Standard 17.10. Title from the Sovereign Title must trace to a grant or patent from the sovereign. Sovereigns who have issued grants in Texas: 1. **Spain** (prior to 1821) 2. **Mexico** (1821-1836) 3. **Republic of Texas** (1836-1845) 4. **State of Texas** (1845-present) **Mineral reservations**: The State of Texas has reserved minerals in many grants, particularly: - September 1, 1895 to May 29, 1931: State reserved minerals in "mineral classified" lands - After May 29, 1931: All public lands sold with state mineral reservation (Tex. Nat. Res. Code § 51.011) --- ## Chapter XVIII: Adverse Possession ### Standard 18.10. Effect of Adverse Possession Title by adverse possession (limitation title) arises from statutes of limitation that bar claims of other claimants. Six different statutes apply: | Statute | Code Section | Requirements | |---------|--------------|--------------| | **3-Year** | § 16.024 | Title or color of title + peaceable adverse possession | | **5-Year** | § 16.025 | Deed/written instrument + cultivation/use/enjoyment + taxes paid | | **10-Year** | § 16.026 | Peaceable adverse possession + cultivation/use/enjoyment | | **15-Year Cotenant** | § 16.0265 | Special rules for co-owners | | **25-Year (§ 16.027)** | § 16.027 | Peaceable adverse possession of 160 acres or less | | **25-Year (§ 16.028)** | § 16.028 | No deed required, no acreage limit | ### Standard 18.20. Quality of Title by Adverse Possession Once perfected, title by adverse possession is as complete as fee simple title. ### Standard 18.30. Adverse Possession by Co-Owners A co-owner must prove ouster or repudiation to start the limitations period against other co-owners. The 15-Year Cotenant Heir Statute (§ 16.0265) provides special rules for heirs. --- ## Chapter XIX: Cotenancy ### Standard 19.10. Cotenancy Presumed If title is held by two or more persons, an examiner should presume: - Title is held as tenants in common - Each cotenant may separately convey their interest - Equal shares unless stated otherwise ### Standard 19.20. Joint Tenancy with Right of Survivorship Joint tenancy with survivorship must be **expressly created** in writing. Tex. Estates Code § 111.001. Phrases such as "with right of survivorship" or "will become the property of the survivor" create survivorship. **Effect**: Upon death of one joint tenant, title vests automatically in survivor(s) without probate. ### Standard 19.30. Co-Ownership and Easements A co-owner may not grant an effective easement without consent or ratification of other co-owners. ### Standard 19.40. Satisfying Adversarial Claims When one co-owner satisfies an adverse claim (pays off lien, redeems from tax sale), they are presumed to act for the benefit of all co-owners. ### Standard 19.50. Co-Owner Conveyances and Leasing A deed by one co-owner conveys only that co-owner's interest. The grantee becomes a tenant in common with remaining co-owners. ### Standard 19.60. Executive Right A conveyance of a mineral interest by an executive rights owner conveys the executive interest unless reserved or excepted. ### Standard 19.70. Partition Co-owned property may be partitioned by: - Agreement - Court decree (Tex. Prop. Code Chapter 23) ### Standard 19.80. Claims Between Co-Owners An examiner ordinarily does not opine on claims between co-owners for waste, contribution, or improvements. --- ## Chapter XX: Zoning and Land Use ### Standard 20.10. Zoning Ordinances Unless specifically directed, an examiner generally does not address compliance with governmental laws, rules, or ordinances affecting land use. However, the client may request identification of zoning restrictions. ### Standard 20.20. Real Covenants and Equitable Servitudes An examiner should identify restrictions affecting land use from: - Recorded declarations (CCRs) - Deed restrictions - Plat notations - Prior conveyances **Enforceability**: Presume restrictions are valid and enforceable unless clearly unenforceable (e.g., racial restrictions are void as against public policy). --- ## Chapter XXI: Rule Against Perpetuities ### Standard 21.10. Rule Against Perpetuities An examiner should identify any future interest that violates the rule against perpetuities and warn that it may be void. **Texas rule** (Tex. Prop. Code § 112.036): - Interest must vest within 21 years after some life in being at creation, plus gestation period - **For trusts effective on/after September 1, 2021**: Interest must vest within 300 years **Reformation**: Courts may reform instruments to comply with the rule under Tex. Prop. Code § 5.043 (cy pres doctrine). **Exceptions** (interests not subject to the rule): - Charitable trusts - Options to purchase at same price another purchaser offers - Easements - Covenants running with land --- ## Quick Reference: Key Texas Citations | Topic | Citation | |-------|----------| | Recording Statute (NOTICE) | Tex. Prop. Code § 13.001 | | Correction Instruments | Tex. Prop. Code §§ 5.027-5.031 | | Mechanic's Lien (Constitutional) | TEX. CONST. art. XVI, § 37 | | Mechanic's Lien (Statutory) | Tex. Prop. Code Chapter 53 | | Homestead Protection | TEX. CONST. art. XVI, § 50 | | Community Property | Tex. Fam. Code § 3.003 | | Independent Administration | Tex. Estates Code § 356 | | Affidavit of Heirship | Tex. Estates Code § 203.001 | | Transfer on Death Deed | Tex. Estates Code §§ 114.001-114.106 | | Powers of Attorney | Tex. Estates Code §§ 751-752 | | Trust Code | Tex. Prop. Code §§ 111-115 | | Judgment Lien Abstract | Tex. Prop. Code § 52.003 | | Lis Pendens | Tex. Prop. Code § 12.007 | | Foreclosure | Tex. Prop. Code § 51.002 | | Home Equity Loans | TEX. CONST. art. XVI, § 50(a)(6) | | Rule Against Perpetuities | Tex. Prop. Code § 112.036 | | Adverse Possession | Tex. Civ. Prac. & Rem. Code §§ 16.024-16.028 |