Broadway National Bank v. Yates Energy Corp. (Opinion)Annotate this Case
The Supreme Court reversed the judgment of the court of appeals ruling that a validly executed correction instrument under Tex. Prop. Code 5.029 must be signed by the property's current owners, holding that the court of appeals incorrect interpreted the "if applicable" clause in the statute.
To be effective, the instrument correcting a material error in a recorded original instrument of conveyance by agreement must be executed by each party to the original instrument or, "if applicable, a party's heirs, successors, or assigns." See section 5.029(b)(1). At issue as when are a party's heirs, successors or assigns are applicable such that their agreement is necessary to make such a correction. The court of appeals concluded that the original parties could not correct their mistake in the original instrument of conveyance solely by their agreement after an assignment and, rather, a validly executed correction instrument under section 5.029 must be signed by the property's current owners. The Supreme Court reversed, holding (1) the original parties to a recorded original instrument of conveyance may validly execute a correction instrument under section 5.029, even after a third party has acquired an interest in the original transaction; and (2) the statute does not require that an original party's "heirs, successors, or assigns" sign a correction agreement when the original parties all execute the correction.