Honhra.ble.. Jerry Sadler

Commissioner General LandOffice Austin, Texas Opinion No. M-9, Re: Whether the Veterans’ LandBoard has the authority’ 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: ~Yourrequest for opinion of ,this office presents the question as follows: "At the present 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, cannot,’ ae a practical matter, be cured to the satisfaction, of t,heVeterans’ LandBoard.‘-

“Since the commitment was issued to a veteran purchaser covering a tract of land prior to December 1, 1965, could the Veterans’ LandBoard, 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 commitment to the newtract of land having mark~etable .title. n The “Ap licatlon and Contract’of Sale”‘, supplied by the Veteram 1!and Board, to be executed In each transaction by both the seller and the veteran purchaser contains the following provisions, towit:

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Honorable Jerry Sadler, Page 2

In paragraph,8 thereof, part; that: 

### (M- 9)

the contract provides, in

“If this contract ie assigned to the Veterans’ LandBoard the Board will aporpise the above described, 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 . qwhich the Veterans I LandBoard 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 reasonable length of time, the ‘buyer mayreject ~the title and refuse to purchase said land or may, If the defects can be cured, kave samedone 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 sumof t$_~~~~--A , subject to the delivery and approvarof a good and sufficient title by warranty deed, and final confirmation by action of the Chairman of the Veterans I LandBoard.

. . .I’ Such commitment is addressed to the purchase of the specific tractor tracts of land described in the Application and Contract 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 shownto 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’ LandBoard, a newcontract of sale must, in effect, be negotiated, executed and assigned to the Board and a newcommitment issued by the Board. This is .a

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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 transaction after December 1, 1965, was authorized whenthe contract 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’ LandFundshall 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 nowprovidtd by law, or as mayhereafter be provided by law. Article 5421m, Sdctlon g(a), Vernon’s Civil Statutes, provides, in part, as follows:

. . .After December 1, .1965, all moneys received by the Veterans’ LandBoard under the terms of this Act, or 80 muchthereof 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’ LandFundan amount fully sufficient to pay all interest on,’ and principal of, the outstanding bonds due and to become due thereafter, any moneys in excess of such amount ahal.1 be deposited to theicredit of the General Fundof ‘the State of Texas to be appropriated to such purposes as maybe prescribed by law. Themoneys so set aside and not deposited to the credit of the General Revenue Fundmaybe invested by the Board in bonds or other obligations of the United States, or the State of Texas, or of the several counties or municipalities, or other political subdivisions’ of tbe State of Texas, and such Board maysell 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’ LandFund, 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’

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Honorable Jerry Sadler, Paga 4 (M-9)

From.the above cited constitutional and statutory.provisions it is apparentthat December 1,. 1965 IS a termination date, after which,the Veterans’ LandBoard is without authority to accept aesignment or transfer of application,8 and contracts of sale and to issue newcommitments 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 newcontract 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’ LandPundin pursuance thereof.

TheVeteran’s LandBoard-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. 8very truly,

Prepared by Harold G.,,Kennedy A8eietant Attorney General APPROVED: OPIWIOW

COMMITTPZ” Wawthorne Phillips, Chairman W.V. Geppert, Co-chairman Arthur Sandlin Malcolm Quick JameoQuick ..
STAFFIZGALASSISTANT A. J. Carubbi

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