Here is some information from Tom Scott about documentation of Ownership of undivided interest in land
Another question - Some of the recent heirs on the McClintock side may not have “deeds” of the transfers of their parents Interest ownership. - Should the interests have been “Deeded” to them from the parent’s estate? Is re-deeding the interest to the son or daughter really necessary? And if it was not done - how would the O&G co’s known who to send Division Orders / checks to? I think the people are getting check directly from the Companies
Mike Alles
From: Tom Scott
[mailto:tom.scott@bullockscott.com]
Sent: Friday, October 29, 2010 1:11 PM
To: mike@iceops.com
Subject: RE:
Mike,
The law of Texas is that a will is effective to transfer title upon probate. Intestate succession is effective upon the death without a will. It is not necessary to have a "deed" from an executor, or administrator. However, the "deed of distribution" is a very common and effective way of getting title into the successor and into the mind of landmen, division order analysts, and others friends in the oil patch.
If there is an out of state probate the will can be probated in Texas by filing the will together with the order admitting the will to probate in the home state. These copies will have to be "exemplified" copies. Such certification is usually accomplished by a three way certificate which amounts to the clerk certifying the document is a true copy, a judge certifying that the clerk is the clerk, and the clerk certifying that the judge is the judge. Don't think of this too long or you will start muttering a line from Dickens about the law being an ass.
If the decedent did not leave a will the intestate heirs can be shown by an affidavit of heirship which is usually accepted in Texas. There is good authority that such affidavits are prima facie evidence of heirship. There is also a court proceeding which can be drawn out and expensive for the determination of heirship. The affidavit is a device for avoiding that.
A more frequent complication today is that there is a "living trust" (aka revocable trust) or even an irrevocable trust which is not recorded. If the beneficiaries do not wish to file the entire document of record statutes in some states specifically provide for the filing of a summary sworn to by a successor trustee. This accompanied by ready access to a true copy will satisfy the purchaser or production/lease purchaser or ultimately a buyer of the interest. In dealing with these trusts, it is best to have the successor trustee named of record in the deed into the trustee.
Most Texas landmen and landowner lawyers are familiar with the headaches and practical cures for succession by death. .
NONE OF THESE HELPFUL HINTS ARE GUARANTEED TO YIELD "MARKETABLE TITLE" (OF WHICH THERE IS VERY LITTLE IN THE OIL PATCH) BUT IT MAY GET OVER THE HUMP OF GETTING PROCEEDS OUT OF SUSPENSE.
Tom