Untitled Texas Attorney General Opinion

Good.NeighborCommissionof Texas Austin,Texas Attention: PaulineR. Kibbe OpinionNo. O-7499 Re: Deeignationof granteein deed conveyingin trust to the u8e and benefit of the Mexicanpeople in Karnes Gentlemen: county. We acknowledgereceiptof your opinionrequestdated November6, 1946, from which we etate in subetanceand quote in part, as follows: The MexicanHonoraryCommirrsion of Karnes City desiresto purchasea small tract of land.for the purpoeeof erectinga platformand a hall to hold weekly meetingsand to stage cele- brationson the 5th of May.,the 16th of Septemberand at other times. As you know, these Commissionsare semi-official agenciee of the MexicanConsularServicein that they are composedof Mexican citizensand organizedby the Mexican Consulsto look after the Interestaof the Mexicanpopulationunder the Consul's direction. Inasmucha8 these groupehave no legal entity,at least, sufficientto own and disposeof real estate a8 such, the mem- bershipbeing of a migratorynature,the title to a given par- cel of land would be imperfectfor want of a definiteand clear- ly definedou?l.er,a point essentialwhen seekingto borrow money or to transferthe fee. Similarproblemsin other communitiesin the State may, in the future,arise,and we would like your opinionon the inquiry: Whethertitle to the land in questionmay be placed in a grantee as follows: "Joel S. Quinones,MexicanConsul,at San Antonio, or his succe88orin office,for the use and benefitof the Mexi- can people of Karnes County,Texas." Title 5, Aliena,V. A. C. S., containsthe pertinentstatutesgov- erning the ownershipof land by aliens and alien corporationsin Texas. .- Good NeighborCommissionof Texas _ Page 2 (0-7499) Article 166 providesthat no alien or alien corporati.on shall acquireeny ln- terest,right,or title eitb.er legal or equitablein or to any landr in the State of Texan, excepta8 hereinafterprovided. Arbtcle 167 lists the exceptionsto t,hegenerallaw stated in Arti- cle 166 and provideain part aa followr: "This title (title5) shall not apply to 0 a . the follow- ing claanesof all.ene,wto arep or who shall becomebona fide inhabitanteof this State, at;I.onga8 thgy &all continueto be bona fide inhabitanteof t.h!.s State: "Section3. Al.f.ens wha are ~at~l;~,r%I. born,ci~ti.zens of na- tions wb.ichhave a common. land bol;ndary with the UTi.ited States. ". . ." Article 1.76,V. A. C. S., reqnireathat al.1aliens and all alien corporationshereafterpurchasing,or ~,IJ any mazner arquiri.ng land located in Texas, shall,wi.thin65.xmonths after such purchase,or acquisition,file with the County Clerk of the County 1.nwhi.c'h su.9~.l.ar,.d !.alocated,a "Report of Alien Ownership"In accordancewith the terms therein aet out, and subject to the penaltyprovidedthereinfor failureof compliancetherewith. Under the provi.ai.ons of the above-ez:llmerated statuc,es,it is plain that the aliens in question,berm fi.deInhabitantsof Texas and cl.tizens of Mexico, a natj.ouwhich ha8 a commor~land boun,tiaPy xltb.the Unit4 States,may acquireand own any landa in the State of Texas, provf.dedthey file a Report of Allen Ownershipin accordancewi,thArtfcle 176. We are of the op:alonthat t;t.e deoi.gaati.ort of the granteein the contemplatedconveyanceas "Joel S. Q~.n.on.es,Mex9.canCon.su.1 at San Antonio, or his 8ucce88orin office,for the use and benefitof the Mexicanpeople of Karnes County,Texas"gwould be legal and proper. The legal effectthereof would be to constitutethe Mexican Consultb.eholder 1.ntrust of the property conveyedfor the use and benefit of the Mexicanpeople of Karnes County,Texas, the owners of the property. In a deed, *s l.c. al.1other written instruments, the thing to be determinedLB the intentionof the partiesto I,t;and when the instrumentitselfmakes ft manifestthat it wan the pu-poeeof the grantor to conveythe propertyto another,who in the deed Is designatedwith reasonable certainty,it will take effect aB a conveyance. 14.?ex. hr. p Page 798; Vine- yard vs. O'Connor,90 Tex. 59; Sparks ~8. :Eumbl.e 01.1an.dRefin.i.ng Company,l29 S.W. (2) 468. We desireto point out horaever,that a conveyauceto a granteea8 designatedabove pLacea the tLtl.e,the rlghtato alleoate,and all incidental powers appertainingto the landa conveyedin.the Mexicanpeople of Karnes County, Good NeighborCommissionof Texas - Page 3 (O-7499) Texas. To obviatethe necessityof obtainingthe approvalof all the Mexican people of Karnes County,Texas, whenevera transfer,aaaignment,or loan con- cerningthe land In question16 desired,we would auggeetthat the grantee be designatedaa follows: "Joel S. Quinonea,Mexican Consul,at San Antonio, or his succeseoreIn office,trustee". Article7425a, V. A. C. S., providesas follows: "Wherea trust is created,but ia not containedor declared in the conveyanceto the truqtee,or when a conveyanceor tranefer IS made to a trusteewithout dinclosingthe namee of the benefici- ary, or beneficiaries,the trustee &all be held to have the power to conveyor transferor encumberthe title and wheneverhe shall executeand delivera conveyanceor transferor encumbranceof such property,am trustee,such conveyanceor transferor encum- brance shall not thereafterbe questionedby any one claimingas a beneficiaryunder such trust or by any one claimingby, through, or under an undisclosedbeneficiary,providedthat none of the trust propertyin the hands of aaid trustee ahallbe liable for personalobligationsof said trurtee. Acts 1925, 39th Leg., ch. 120, P. 305, § 1," The affect of designatingthe granteea8 suggestedand as permitted under Art. 7425a would be to place in the trueteedesignatedthe authority or power to exerciseall rights concerningthe land conveyedto him in trust. The beneficiariesunder the trust could, of course,come in whenevernecessary to show they are partiea'forwhom the land wa8 conveyedin trust. We would be hesitant,of course,to euggestany conveyanceto a granteeae suggested herein except in those camea,a8 here, explicittrust, honor and reliancecan be placed in the designatedtrustee. Trusting that the above satisfactorily answersyour inquiry,we remain Very truly yours APPROVEDNOV 22, 1946 Al'TORNEYGENE3ALOFTEXAS Id RarrisToler FIRST ASSISTART By /a/ ChesterE. Ollison ATTORNFXGEEERAL ChesterE. Ollieon Assistant CEO-sl-lm APPROVED OPINION coMMITrEE BY /e/ GUB CHAIRMAN