TX NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE A. ADMINISTRATION

CHAPTER 161. VETERANS LAND BOARD

SUBCHAPTER F. PURCHASE, SALE, AND OTHER DISPOSITION OF LAND



§ 161.2111. REPORT TO BOND REVIEW BOARD.
     With respect to purchases made under this chapter, the Veterans' Land Board shall file semiannually with the Bond Review Board a report on the performance of loans made by the Veterans' Land Board in connection with the purchases. The Bond Review Board shall review the reports filed by the Veterans' Land Board under this section to assess the performance of loans made under this chapter. The filing dates and the contents of the reports must comply with any rules adopted by the Bond Review Board.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 4, § 13.02, eff. Aug. 22, 1991. Amended by Acts 2001, 77th Leg., ch. 1420, § 8.355, eff. Sept. 1, 2001.

§ 161.212. APPRAISAL.
     (a) Before purchasing land under the provisions of this chapter, the board shall have an appraisal of the property made to determine its value.
     (b) A person making an appraisal on behalf of the board shall be licensed or certified as an appraiser by the State of Texas.
     (c) The appraiser shall make a written report to the board in the form and manner required by the board.
     (d) Repealed by Acts 2003, 78th Leg., ch. 674, § 21, eff. Sept. 1, 2003.

Acts 1977, 65th Leg., p. 2665, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 798, § 7, eff. Sept. 1, 1985; Acts 2003, 78th Leg., ch. 674, § 1, 21, eff. Sept. 1, 2003.

§ 161.213. SWORN REPORT.
     (a) Before the board purchases land under Section 161.211 of this code or Subchapter G of this chapter, it shall require the seller to execute a sworn report to the board that shall include the following:
          (1) the date the seller purchased the land;
          (2) the amount the seller paid for the land if purchased subsequent to June 7, 1949;
          (3) from whom the seller purchased the land; and
          (4) the improvements made on the land since the seller purchased it and the cost of the improvements.
     (b) If the land is purchased under Subchapter G of this chapter, the sworn report shall include the following additional information:
          (1) if the seller by any manner or method is making the down payment to the board on behalf of the veteran;
          (2) if there is a lease arrangement between the seller and the veteran, and if so, the duration, term, and amount to be paid; and
          (3) if there is an agreement or contract of any nature between the seller and the veteran to transfer, sell, or convey at any time in the future.

Acts 1977, 65th Leg., p. 2665, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.214. TITLE.
     (a) Before making payment for land, the board shall have the title of the property sought to be purchased examined and may require for this purpose a title insurance policy or appropriate examination of title. The board may submit the title to the attorney general for examination and opinion.
     (b) The board may purchase land that has mineral interests outstanding or that is subject to title exceptions acceptable to the board.

Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 2003, 78th Leg., ch. 674, § 2, eff. Sept. 1, 2003.

§ 161.215. PURCHASE OF LAND.
     Land purchased by the board shall be acquired at the lowest price that can be obtained in the opinion of the board, taking into consideration the quality, location, natural advantages, and improvements of the land. The land shall be paid for in cash and shall be clear of all liens and shall be a part of the fund.

Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.216. COST OF LAND SOLD BY BOARD.
     Except for forfeited land that may be resold by the board at less than actual cost under Section 161.319 of this code, land shall not be sold by the board at less than its actual cost.

Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.24, eff. Aug. 30, 1993.

§ 161.217. APPOINTMENT OF LOCAL COMMITTEE.
     The commissioners court of each county in the state shall appoint a committee composed of three resident real property owners of the county.

Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.218. WORK OF LOCAL COMMITTEE.
     (a) A person who considers himself an eligible veteran under this chapter and who desires to benefit under this chapter shall submit to the local committee the forms prescribed by the board before he submits his application of purchase and sales contract to the board. If the veteran is a resident of one county and is seeking to purchase land located in another, he shall submit the forms to the local committee in both counties.
     (b) The local committee shall consider the forms and shall submit to the board a report concerning the financial responsibility of the veteran, if it is known, a statement of opinion as to whether or not the transaction is bona fide, a statement as to the amount the committee considers to be the reasonable value of the land in question, and a statement of the credit rating of the veteran applicant.
     (c) Notwithstanding Subsection (a) or (b) of this section, or Section 161.217 of this subchapter, the committees of the various counties shall function as provided by the board's rules and may be abolished by the board if it is determined that they are no longer necessary.

Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 798, § 8, eff. Sept. 1, 1985.

§ 161.219. BOARD INVESTIGATION.
     (a) The board may make inquiries and investigations it considers proper to determine the veteran's eligibility and qualifications and shall obtain from the veteran a written credit report.
     (b) If the board determines from the information submitted or from its own inquiries and investigations that the financial responsibility of the veteran leaves reasonable doubt as to his ability to carry the contract through to completion and make all payments, the board shall reject the application.

Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 798, § 9, eff. Sept. 1, 1985.

§ 161.220. EXEMPTION.
     The provisions of Sections 161.217 through 161.219 of this code do not apply to sales under Sections 161.175, 161.231 through 161.234, and 161.319 of this code unless the board so desires.

Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.221. INITIATION OF SALE.
     The sale of land by the board may be properly initiated by contract of sale and purchase, and the contract shall be recorded in the deed records in the county in which the land is located.

Acts 1977, 65th Leg., p. 2667, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.222. PURCHASE PAYMENTS.
     (a) The purchaser shall make an initial payment in an amount set by the board's rules for land sold under this chapter.
     (b) The balance of the selling price shall be amortized over a period determined by the board not to exceed 40 years together with interest at a fixed, variable, floating, or other rate or rates determined by the board.
     (c) The purchaser is entitled to pay any or all installments still remaining unpaid on any installment date.
     (d) In an individual case, the board may postpone for good cause the payment of the whole or any part of an installment of the selling price or interest on the selling price on terms the board considers proper.

Acts 1977, 65th Leg., p. 2667, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 1898, ch. 768, § 1, eff. June 13, 1979; Acts 1985, 69th Leg., ch. 798, § 10, 20, eff. Sept. 1, 1985; Acts 1993, 73rd Leg., ch. 242, § 1.25, eff. Aug. 30, 1993.

§ 161.223. BOARD TO SPECIFY TERMS.
     The board may specify in each individual case the terms of the contract entered into with the purchaser as long as they are not contrary to the provisions of this chapter.

Acts 1977, 65th Leg., p. 2667, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.224. TIME LIMIT ON TRANSFER.
     (a) No property sold under this chapter may be transferred, sold, or conveyed in whole or part until the original veteran purchaser has enjoyed possession for a period of three years from the date of purchase of the property and complied with the terms and conditions of this chapter and rules of the board.
     (b) If the veteran purchaser dies or becomes financially incapacitated or if there is an involuntary transfer by court order or proceedings including bankruptcy, sheriff or trustee sale, or divorce, the property may be conveyed before the expiration of the three-year period by the purchaser or his heirs, administrators, or executors by complying with rules of the board and by securing the approval of the board.
     (c) After the three-year period, a purchaser may transfer, sell, or convey land purchased under this chapter at any time if all mature interest, principal, and taxes have been paid, the terms and conditions of this chapter and rules of the board have been met, and the approval of the board has been obtained.

Acts 1977, 65th Leg., p. 2667, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.225. SALE TO A NONVETERAN.
     If the sale is made to a person other than a qualified Texas veteran, the assignee and all subsequent assignees shall assume an interest rate on the indebtedness to the board determined by the board at an amount not less than one percent a year greater than the rate determined by the board for sale to veterans under Sections 161.175 and 161.231 through 161.234 of this code or Subchapter G of this chapter on the date on which the transfer, sale, or conveyance is approved. If the purchase contract is awarded in a divorce action or incident to a written separation agreement, the interest rate shall not change.

Acts 1977, 65th Leg., p. 2667, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.226. DISPOSITION OF LAND THAT IS PAID FOR.
     Property sold under this chapter may be transferred, sold, or
      conveyed at any time after the entire indebtedness due to the board has been paid.

Acts 1977, 65th Leg., p. 2668, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.227. LEASE OF LAND.
     (a) No land purchased under this chapter may be leased by the purchaser for a term of more than 10 years except as follows:
          (1) leases for oil, gas, and other minerals may be for a term of not more than 10 years, and as long thereafter as such oil, gas, and other minerals are produced from the land in commercial quantities;
          (2) leases for coal and lignite may be for a term of not more than 40 years, and as long thereafter as such coal and lignite are produced from the land in commercial quantities; and
          (3) leases, whether referred to as leases, licenses, or easements, for microwave, radio, or other communication towers, may be for a term of not more than 50 years.
     (b) No lease may contain a provision for option or renewal of the lease or re-lease of the property for any term which would cause the entire fixed term of such lease or leases to exceed the applicable maximum fixed term set forth in Subsection (a)(1), (2), or (3) above, and the taking of any such option, renewal, or re-lease agreement in a separate instrument to take effect in the future is prohibited. A lease or instrument that contains an option, renewal, or re-lease agreement in violation of this section is expressly declared to be void.

Acts 1977, 65th Leg., p. 2668, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 3080, ch. 812, § 1, eff. June 17, 1981; Acts 2003, 78th Leg., ch. 674, § 3, eff. Sept. 1, 2003.

§ 161.228. CONDITIONS OF LEASES.
     While the veteran is indebted to the board for land purchased, if he executes or there exists a lease or contract of sale of oil, gas, or other minerals, chemicals, or hard metals or a lease or contract of sale for timber, sand, gravel, or other materials that covers all or part of the land and that would result in the depletion of the corpus of the tract, at least one-half of all bonus money, delay rentals, and royalties received as consideration for or payment under the oil, gas, and mineral lease and at least one-half of all money received under a lease or contract of sale of any other minerals, chemicals, hard metals, timber, sand, gravel, and other materials or as much as is required, shall be paid to the board by the owner of the lease or contract of sale and applied by the board to the satisfaction of the indebtedness.

Acts 1977, 65th Leg., p. 2668, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 3080, ch. 812, § 2, eff. June 17, 1981.

§ 161.229. DEEDS.
     (a) When the entire indebtedness due the state under the contract of sale is paid, the chairman of the board shall execute a deed under seal to the original purchaser of the land or to the last assignee whose assignment has been approved by the board.
     (b) None of the provisions of this chapter shall be construed to prohibit the board from accepting full payment for a portion of a tract and issuing a deed to the land according to the rules of the board.
     (c) Deeds issued by the board and executed by the chairman under seal are ratified, confirmed, and validated whether they convey all or only a part of the land contracted to be sold to the veteran.
     (d) If a deed is executed to a person other than the legal owner or to a deceased grantee, the deed and the rights conveyed still inure to the benefit of the legal owner.

Acts 1977, 65th Leg., p. 2668, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.230. DEATH OF PURCHASER.
     (a) If the purchaser of the land dies while indebted to the board under a contract, his rights, acquired under this chapter and the contract devolve on his heirs, devisees, or personal representatives under the laws of this state, but subject to all rights, claims, and charges of the board.
     (b) Default by an heir, devisee, or personal representative with respect to a right, claim, or charge of the board has the same effect as default by the purchaser before his death.

Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.231. SUBDIVIDING LAND.
     Land acquired by the board may be subdivided for sale into tracts of the size the board may consider advisable.

Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.232. CONDITIONS FOR SALE OF LAND.
     Land acquired and subdivided under Sections 161.175, 161.231, 161.233, and 161.234 of this code shall be offered for sale according to rules adopted by the board and shall be sold by the board to veterans qualified to participate in the program in conformity with the provisions of this chapter relating to the sale of land purchased generally by the board.

Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.233. DOWN PAYMENT.
     (a) The sale price of land sold under Sections 161.175 and 161.231, 161.232, and 161.234 of this code may include the addition of the expenses and fees in Sections 161.069, 161.070, and 161.175 of this code. Provided, however, no tract may be sold under Sections 161.175 and 161.231, 161.232, and 161.234 of this code at a price exceeding $40,000 unless the veteran pays the board in cash, in accordance with its rules, a down payment equal to that portion of the sale price in excess of $40,000. This down payment shall be in addition to the initial payment required by Section 161.222 of this code and shall be paid not later than the sale date.
     (b) If the sale is not consummated, the down payment shall be refunded to the veteran.

Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 1899, ch. 768, § 2, eff. June 13, 1979; Acts 1985, 69th Leg., ch. 798, § 11, eff. Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 160, § 1, eff. Aug. 26, 1991.

§ 161.234. SALE TO OTHER PURCHASERS.
     The provisions of Sections 161.175 and 161.231 through 161.233 of this code notwithstanding, land acquired and subdivided under these sections that has first been offered for sale to veterans and that has not been sold to the purchasers may be sold to any purchaser in the same manner as land forfeited under this chapter.

Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.235. RIGHTS OF SURVIVING SPOUSE.
     If an eligible Texas veteran dies after he has filed with the board an application and contract of sale to purchase through the board the tract selected by him or her and before the purchase is completed, the surviving spouse of the veteran may complete the transaction.

Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.236. NUMBER OF TRACTS PURCHASED.
     The board may promulgate rules to determine the number of tracts of land that a veteran may purchase under this chapter.

Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1999, 76th Leg., ch. 133, § 1, eff. May 20, 1999.