Honhra.ble.. Jerry Sadler 

Commissioner 

General Land Office 

Austin, Texas 

Opinion No. M- 9, 

Re: Whether the Veterans’ 

Land Board 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: 

~Your request 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,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 commitment 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: 

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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’ 

Land Board 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 . 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 reasonable 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 delivery 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 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 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 

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. . 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 transaction after December 1, 1965, was authorized when the 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’ 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, provides, 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 thereafter, 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 municipalities, 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’ 

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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’ 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: 

OPIWIOW COMMITTPZ ” 

Wawthorne Phillips, Chairman 

W. V. Geppert, Co-chairman 

Arthur Sandlin 

Malcolm Quick 

Jameo Quick 

. . 

STAFF IZGAL ASSISTANT 

A. J. Carubbi 

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