TSPS MAY 2025 FINAL - Flipbook - Page 19
ATTORNEY’S ANGLE
TEXAS REAL The following is a summary of the
Texas real estate law cases as
ESTATE LAW recent
prepared by the Real Estate Section of
RECENT CASES the State Bar of Texas.
TITLE DISPUTES, ADVERSE POSSESSION, AND QUIET TITLE
SteIly v. DeLoach,
644 S.W.3d 657 (Tex. 2022).
Stelly ha[d] lived on and rented the land in question from the
original owners since 1999. In April 2000, SteIly and DeLoach
decided to form a joint farming venture. They purchased farming
equipment and the 600 acres Stelly lived on from the original
owners. They closed on the land transaction in October 2000,
with DeLoach securing a loan for the land from Capital Farm
Credit. DeLoach’s name alone was on the original warranty deed.
Id. at *658.
The handwritten agreement between Stelly and DeLoach said
that Stelly would pay DeLoach the total notes, taxes and fees
for the land along with all notes on equipment 昀椀nancing by DeLoach. DeLoach agreed to pay Stelly $4,500 a month for Stelly to
manage farming operations. In exchange, Stelly made payments
on the note and allowed DeLoach to use farm equipment owned
by Stelly. The agreement concluded by saying that, ‘”upon 昀椀nal
payment, DeLoach will deed the property to Stelly. ‘Same with all
equipment purchased.”
Id.
Stelly had fully repaid DeLoach by May 2005. In September
of that year, they both signed a deed of two and a half acres to
Stelly’s parents for their home. However, despite Stelly’s performance, DeLoach did not transfer ownership to Stelly. DeLoach
stopped paying Stelly and announced that Stelly owned nothing
and that he intended to sell the 600 acres.
Stelly sued for breach of the contract for the sale of the land.
The trial court rendered judgment holding that Stelly owned the
real property and the equipment free and clear.
The court of appeals reversed, holding (i) that Stelly had pleaded only a breach of contract claim, not a trespass to try title claim,
(ii) the cause of action on the breach of contract claim accrued in
2005, and (iii) therefore, limitations had run on the claim. The
court of appeals noted that a trespass to try title claim would
have been timely.
Based upon the Texas Supreme Court’s earlier holding in Brumley v. McDuff, 616 S.W.3d 826 (Tex. 2021), it held that Stelly had
adequately pleaded a trespass to try title claim and had acquired
equitable title upon completing the payments to DeLoach.
A trespass-to-try-title action requires the petition to allege: (1)
the parties’ real names and residences; (2) a legally suf昀椀cient description of the premises; (3) the plaintiff’s claimed interest; (4)
that plaintiff possesses the premises or is entitled to possession;
(5) that the defendant unlawfully entered and dispossessed the
MARK J. HANNA
practices law in Austin and
has served as TSPS Legal
Counsel since 1992. In
addition to providing legal
and legislative representation for the Society,
Mr. Hanna specializes in
representing the interests
of individual business and
professional clients located
throughout the State.
plaintiff of the premises and withholds possession; and (6) a prayer
for relief. [The court] held in Brumley that “these pleading requirements
are ‘detailed,’ but they are not arduous.”
Stelly satis昀椀ed these requirements.
DeLoach does not contest that a trespass-to-try-title action
where equitable title vested would be exempt from the four-year
limitations period. The jury found that an agreement existed
between DeLoach and Stelly, that Stelly had not breached the
agreement, and that DeLoach had failed to comply. Under our
precedents, this jury determination is suf昀椀cient to 昀椀nd that Stelly
was “vested with an equitable title to the property suf昀椀cient to enable him to maintain his action in trespass to try title.”
Id. at *659-60 (internal citations omitted).
For more information regarding these cases or other legal issues of
signi昀椀cance to the surveying profession, contact TSPS Legal Counsel, Mark J. Hanna, 2414 Exposition Boulevard, Suite A-1, Austin,
Texas 78703; telephone: (512) 477-6200; fax: (512) 477-1188
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May 2025 THE TEXAS SURVEYOR
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