Legal Question in Real Estate Law in Texas

Re: Transfer of Oil & Gas Lease from Separate property to Joint

If the property is in Texas, and you are Texas residents, then the procedure is relatively straight forward. I would need to prepare a document setting forth the property description and the fact that the property is separate, and the intent to convert it. After that, I would file it in the county where the property is located. It's around $500.

Re: Transfer of Oil & Gas Lease from Separate property to Joint

Texas and California are both community property states. It is probably technically easier and neater to convert this interest to community property rather than a joint tenancy, but there are differences in the consequnces upon the first spose's death. In a joint tenancy, the surviving spouse gets 100% of the property. If community property, some portion of the property can be directed by the deceased spouse's will to persons other than the surviving spouse, such as children from a previous marriage, etc., so the form of holding should take the couple's circumstances and wishes into account.

Assuming the couple lives in California and the oil interest is in Texas (or vice-versa), I would first contact the county recorder in the county in which the property is located to see whether there are any special requirements as to form, cover sheets, etc.

Next, I would examine the lease itself to see whether there are any terms that restrict the free transferability of the lessor's interest.

I would then prepare an interspousal grant deed. Such a deed must describe the interest being transferred with precision. Probably a copy of the lease should be attached as an exhibit. However, (in California at least) no consideration is required and no transfer tax is payable. The deed must clearly state the intention of the grantor spouse to transmute his separate property into community property. Blank deed forms are sold by the larger stationery stores.

This is probably a task for an attorney, I recommend finding a real-estate attorney practicing in the state and county where the property is located. Although there are some minor issues involving the state of residence of the individuals, property-location issues would seem to predominate, especially since Calif. and Texas are both community-property states.