Patch LLC et al v. Indio Minerals LLC et al was a dispute over title to a 1/8th NPRI in land in Midland County. Viola Ash, an Illinois resident, executed a warranty deed in 1932 for land in Midland County, reserving a 1/8 NPRI. Viola died in 1974 leaving no children.
Due diligence
Patch's due diligence concluded that Viola died without a will and Patch purchased mineral interests from most of her living heirs. Patch made offers to other heirs but Indio had already purchased those interests.
In its own due diligence, Indio found Viola's will that had been filed in the probate records of Macon County, Illinois, three days after her death. Her interest was devised to ancestors of Ms. Shook and others who had conveyed to Indio.
in order to establish its title, Indio filed a small estate affidavit in Midland County in 2020 and initiated the probate of Viola's will in Macon County. The will was filed in the Deed Records of Midland County in 2021 and admitted to ancillary probate in 2022.
When did title vest?
In Texas if a person dies leaving a lawful will, all of the estate that is devised by the will vests immediately in the devisees. A a copy of a foreign will takes effect as a conveyance beginning at the time the instrument is delivered to the Clerk in Texas to be recorded.
So, which is it here? It depends on whether the will is a foreign will. Viola's will that was probated in Illinois had the same effect as a domestic will and transferred title to her devisees on the date of her death.
Patch was not a bona fide purchaser
When Patch acquired its interest Viola's will was on deposit in Illinois. The Estates Code regarding the deposit of a will only pertains to a deposit in Texas. The will of a testator not domiciled in Texas may be admitted to probate at any time in Texas if proof is presented that the will was probated in another state.
In Illinois, there is no limitations period following the testator's death in which a will may be admitted to probate. Patch, contended it was a bona fide purchaser, which it could have been if it had purchased the property from the decedent's heirs after the fourth anniversary of the decedent's death. But that rule does not apply to foreign wills.
Patch's misery was compounded by the admission by a Patch witness that before Patch purchased the interests, the Clerk of Macon County informed him that Viola had a will on file.
The court relied on several sections of the Estates Code and the Property Code to arrive at these conclusions. It's worth a read if this is an immediate issue for you.
What does your mineral deed convey?
Patch acquired its interests by both a "Quitclaim Deed" and a "Mineral and Royalty Deed". A party that acquires a real property interest in a quitclaim deed cannot be an innocent purchaser for value because the grantee receives only whatever right, title, interest or claim the grantor has, not the property itself. The grantee is on notice of legal or equitable claims in favor of a third person.
Patch's Mineral and Royalty Deed granted "all right, title and interest that grantor may own". The court agreed with Indio: that language indicated a quitclaim deed.
The result
Indio acquired its interest from Viola's devisees under her duly probated Illinois will, and Patch was not a bona fide purchaser.
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