‘Til Death Do Us Part
A goal for some marriages, a strong commitment for others, or maybe just words for some: “‘Til Death Do us Part.” Everyone that has ever been married remembers the day they were married or decided they wanted to be married. Everything coming up roses, the warmth of the sunshine, love in the air,…but then a few months roll by and things become a little complicated.
Unfortunately, marriage can become complicated in real estate transactions as well, but the good news is: you won’t need marriage counseling to resolve the issues. I know you are wondering how marriage can be complicated to the Texas title insurance industry. If the couple is married and a property is purchased, they each have a vested interest in the property. Where’s the problem? Well, there may not be a problem in that scenario, but what if the couple is common law married? Does that create a problem? Is the property purchased as two individuals or is the property purchased as a married couple?
In the State of Texas there are two types of marriages recognized: (1) Formal marriage—where a marriage license is obtained and (2) Informal—also known as common law marriage. Common law marriage has been recognized in Texas since 1847. Tarpley v. Poage’s Adm’r, 2 Tex. 139, 149 (Tex. 1847). Common law marriage is an unavoidable issue that needs to be reviewed when issuing a Texas title insurance policy.
For example, in a refinance transaction, the borrower is asked to complete a marital status affidavit, and he marks himself as “single.” However, the warranty deed or conveyance document shows he purchased the house as “a married man.” After investigating the situation, the Texas title company finds that he had a common law marriage to Betty Sue, but she left him 2 years ago. This matters!! Betty Sue, as his common law wife, has a marital interest in the house. At this point, the file would need to go to the Texas title insurance underwriter to be reviewed for further instruction.
If you think your client may have been in a common law marriage, and they decided to X the “til death do us part” all together, be sure and contact your Texas title company with any questions—and definitely let your Texas title company know in advance so any possible issues can be dealt with before closing.
Unfortunately, marriage can become complicated in real estate transactions as well, but the good news is: you won’t need marriage counseling to resolve the issues. I know you are wondering how marriage can be complicated to the Texas title insurance industry. If the couple is married and a property is purchased, they each have a vested interest in the property. Where’s the problem? Well, there may not be a problem in that scenario, but what if the couple is common law married? Does that create a problem? Is the property purchased as two individuals or is the property purchased as a married couple?
In the State of Texas there are two types of marriages recognized: (1) Formal marriage—where a marriage license is obtained and (2) Informal—also known as common law marriage. Common law marriage has been recognized in Texas since 1847. Tarpley v. Poage’s Adm’r, 2 Tex. 139, 149 (Tex. 1847). Common law marriage is an unavoidable issue that needs to be reviewed when issuing a Texas title insurance policy.
For example, in a refinance transaction, the borrower is asked to complete a marital status affidavit, and he marks himself as “single.” However, the warranty deed or conveyance document shows he purchased the house as “a married man.” After investigating the situation, the Texas title company finds that he had a common law marriage to Betty Sue, but she left him 2 years ago. This matters!! Betty Sue, as his common law wife, has a marital interest in the house. At this point, the file would need to go to the Texas title insurance underwriter to be reviewed for further instruction.
If you think your client may have been in a common law marriage, and they decided to X the “til death do us part” all together, be sure and contact your Texas title company with any questions—and definitely let your Texas title company know in advance so any possible issues can be dealt with before closing.
Labels: clearing title, dfw title company, Texas escrow services, Texas title insurance, title companies
posted by R. Jason Griffin at
10:42 AM
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