Hello everyone, to quote another member, long-time listener, first-time caller. I am an intake attorney here at the DA's in Corpus Christi with a puzzler and wanted to get some feedback. Here goes:

Victim is a president of Acme Company who bought a house from Suspect on behalf of Victim's company. Previously the house was in poor condition and repairs cost $30K to make it habitable. After repair, Suspect's children contacted Victim's company and claimed an interest. The kicker is: According to Victim, due to Suspect's divorce he only retained a life estate but...sold the property under general warranty deed.

Victim's company Acme received a title policy from Quality-Corp. for the purchase price. Quality tries to get Suspect to cure the title but Suspect's kids want $69K to do so. Quality pays Acme the face amount of the policy and "walks away."

Victim's bottom line is that his company Acme bought and repaired the property and has been harmed by Suspect for the costs incurred for the repairs. Is this a civil or criminal act on the part of Suspect? Specifically, I am looking at PC 32.46, Securing Execution of Document by Deception, i.e., was Suspect deceptive in causing the sale of the property knowing that he only retained a life interest?

Really would appreciate any feedback. - Jason

You may have a theft case depending on what representations were made by the seller. To determine the amount of the theft, you have to determine the value of the life estate versus what was paid for the house.

If a sales contract was executed beforehand, you might want to look at that too. A lot of times the contract for sale will include language to the effect that the grantor represents that he holds title "free and clear of encumbrances" or promises to convey "fee simple title free and clear of any encumbrances." A warranty deed executed by the seller could very likely include similar representations upon which to base a theft prosecution.

Civil.

If suspect signed deed and/or other documents stating that he had clear title to the property, you have a theft, or you could go False Statement to Obtain Property (the purchase price--3rd deg. fel. if $20,000-$100,000). I would imagine the victim wouldn't have even been interested in obtaining a life estate, so a sale would have never taken place without the deception.

Your criminal case is going to depend on proving that Defendant knew that he had only a life estate. I would want to see some previous documents or conversation by the defendant in which he acknowledged that he had a life estate only in the property. Failing that, I would send the case over to civil court. If I were defending the guy criminally, I would focus on the confusing-to-laymen way that our law allows the dividing of property rights.

Appreciate all of the perspectives.


Jason Espinosa
Assistant District Attorney
Nueces County, Texas