Honhra.ble.. Jerry Sadler
Commissioner
General Land Office
Austin, Texas
Opinion No. M- 9,
Re: Whether the Veterans’
Land Board has the author-
ity’ to permit a veteran
purchaser, at this time,
to substitute a different
tract,~.of land in lieu of
the tract covered In a
commitment issued by the
Board prior to December 1,
1965.
Pear Mr. Sadler:
~Your request for opinion of ,this office presents the
question as follows:
"At thepresent time we still have pending a
iew transactions ,that were cohitted on, prior
to De’ccmber 1, 1965, but due to the condition
of ,the title to tracts. of land, through no fault
of ‘the veteran purchaser, certain defect6 in the ~,
title of the tracts of land under contract, can-
not,’ ae a practical matter, be cured to the satis-
faction, of t,he Veterans’ Land Board.‘-
“Since the commitment was issued to a veteran
purchaser covering a tract of land prior to December
1, 1965, could the Veterans’ Land Board, if they
so deeired, under the Veterans’ Land Act permit ..
d veteran purchaser at this time to substitute
a new tract of land and apply the prior commit-
ment to the new tract of land having mark~etable
.title. n
The “Ap licatlon and Contract’of Sale”‘, supplied by the
Veteram 1 !a nd Board, to be executed In each transaction by
both the seller and the veteran purchaser contains the
following provisions, towit:
- 26 :
. . . 3
Honorable Jerry Sadler, Page 2 (M-9)
In paragraph,8 thereof, the contract provides, in
part; that:
“If this contract ie assigned to the Veterans’
Land Board the Board will aporpise the above de-
scribed, property::.and issue a letter of commitment to
the vetei~an and seller disclosing ihe conditions
under which the title will be accepted and the
amount, e . q which the Veterans I Land Board
will pay for said property.”
2. In paragraph 11 thereof, in providing for proof of
good and sufficient title, the contract provides, In part,
that:
“If such defects are not cured within a reason-
able length of time, the ‘buyer may reject ~the
title and refuse to purchase said land or may,
If the defects can be cured, kave same done
at the expense of the seller.
Further, it is understood that your customary commitment
letter provides basically that:
“Your application to purchase acres of land
in County has been approved for the
sum of t $_~~~~--A, subject to the de-
livery and approvarof a good and sufficient title
by warranty deed, and final confirmation by action
of the Chairman of the Veterans I Land Board. . . .I’
Such commitment is addressed to the purchase of the specific
tractor tracts of land described in the Application and Con-
tract of Sale and is conditioned upon the approval by the
Board of good and sufficient title to said property in the
seller. In cases where the title is not shown to be good
and sufficient, upon the refusal of the Board to accept such
title as the seller can produce , and in the absence of the
,‘~curing of the defects at the seller’s expense, said contract
of sale and the commitment in conjunction therewith, under
the terms of the contract is rendered null and void and of no
further force and effect insofar as the Board is concerned.
If, under such circumstances, a veteran purchaser isto
proceed with the purchase of. another tract of land through
the Veterans’ Land Board, a new contract of sale must, in
effect, be negotiated, executed and assigned to the Board
and a new commitment issued by the Board. This is .a
- 27 -
. . c
Honoiable Jerry Sadler, Page 3 (M-9)
materially different state of facts from those set out in
Attorney General’s Opinion No. c-352(1964), wherein this
office expressed the opinion that the completik of a trans-
action after December 1, 1965, was authorized when the con-
tract for the sale of the specific tract involved was
negotiated, executed and assigned to the Board and the Board’s
commitment thereon issued prior to December 1, 1965.
Article III, Section 49;b of the Constitution of the State .
of Texas provides, in part, as follows:
“The lands of the Veterans’ Land Fund shall be sold
by the State of Texas to Texas veterans. 0 . ‘as may
be included within this program by leglslatlve Act,
in such quantities, and on such terms, and at such
prices and rates of interest, and under such rules
and regulations as are now providtd by law, or as
may hereafter be provided by law.
Article 5421m, Sdctlon g(a), Vernon’s Civil Statutes, pro-
vides, in part, as follows:
. . .After December 1, .1965, all moneys received
by the Veterans’ Land Board under the terms of this
Act, or 80 much thereof as may be necessary,, shall
be set aside and used to pay principal and interest
on bonds then outstanding as they mature. When
there Is in the Veterans’ Land Fund an amount fully
sufficient to pay all interest on,’ and principal of,
the outstanding bonds due and to become due there-
after, any moneys in excess of such amount ahal.1 be
deposited to theicredit of the General Fund of ‘the
State of Texas to be appropriated to such purposes
as may be prescribed by law. The moneys so set
aside and not deposited to the credit of the General
Revenue Fund may be invested by the Board in bonds
or other obligations of the United States, or the
State of Texas, or of the several counties or munici-
palities, or other political subdivisions’ of tbe
State of Texas, and such Board may sell such secukitieb,
or any of them, at the governing market rate.”
Section 10 of said Article 542lm, provides, in part, as
follows:
“Until December 1, 1965, the Veterans’ Land Fund,
except a sufficient amount to pay the interest and
principal due on outstanding bonds, shall be used
by the Board for the purpose of purchasing land
situated in this State. r . .I’
- 28 -
-. -
Honorable Jerry Sadler, Paga 4 (M- 9)
From .the above cited constitutional and statutory.provi-
sions it is apparentthat December 1,. 1965 IS a termination
date, after which,the Veterans’ Land Board is without
authority to accept aesignment or transfer of application,8
and contracts of sale and to issue new commitments based
thereon.
It is the opinion of this office that to subetitute,~ at
this time, other lands for the land.deecribed in the contract
of sale and referred to in the commitmeht of the Board would,
in effect, require th8, negotiation, execution and assignment
of a new contract of sale as well as the ieeuance of a new
commitment at a date subsequent to December 1, 1965, and that
the VeteransN,Land Board is without authority to do 80 or
to expend fund8 from the Veterans’ Land Pund in pursuance
thereof.
The Veteran’s Land Board-does not have the
authority to permit a veteran purchaser, at
thie time, to substitute a different tract
of land in lieu of the tract covered in a
commitment issued by the Boerd prior to
December 1, 1965.
8 very truly,
Prepared by Harold G.,,Kennedy
A8eietant Attorney General
APPROVED:
OPIWIOWCOMMITTPZ ”
Wawthorne Phillips, Chairman
W. V. Geppert, Co-chairman
Arthur Sandlin ..
Malcolm Quick
Jameo Quick
STAFF IZGAL ASSISTANT
A. J. Carubbi
- 29 -