What Does Pro Forma Mean on a Deed
If a spouse owns property before getting married, that property is separate property. Without written agreement, their subsequent marriage does not change the classification of property as communal property, but if they live in the property, it is their property. As mentioned above, if it is their property, the Constitution requires the spouse to accept the sale when the property is sold. Your consent will be documented by signing the warranty certificate at the conclusion. If the spouse signs the deed of guarantee, he can do so as a “pro forma” to prove his consent to the transaction only. When they sign in this way, they do not necessarily claim ownership of the property, but they simply prove their consent required by the Constitution. This prevents them from later arguing that they have not accepted the sale of their property. Instead of using the term “pro forma,” it is preferable for the spouse to execute the trust deed “for ownership purposes only.” The spouse`s signature is required to create a valid lien, so the requirement goes beyond mere form. In the case of a sale of non-real estate property, a title company may be formed without the spouse signing the deed of guarantee, provided that the spouse signs an affidavit of Non-Homestead and owns other real estate that can be claimed as property. Assuming that there are no facts that contradict the property that is not property, this affidavit is used instead of the spouse signing the deed to obtain the affidavit that the spouse does not live in the property.
This eliminates the worry of having to comply with the Constitution. We sometimes see the use of the term “pro forma” on a certificate, next to the name of a fellow. This is not an appropriate use of the term and leads to confusion regarding the transfer of ownership. We must treat the spouse “pro forma” as in the title. Please ensure that this term is not used in a certificate used in your financial statements. If the property in Texas is acquired by married couples, it is assumed that the property will be acquired as community property. Here, community property laws and family property can overlap. If the couple was acquired as community property, they are co-owners and both must sign at closing. If they live on the property, they both have to sign because it is their property. Some landlords offer their marriage contract to justify why their spouse doesn`t need to sign. Although a marriage contract can change the classification of community property into separate property for one of the spouses, it does not meet the requirements of the property. That is, even in cases where a marriage contract is provided to a title company, the spouse must still sign to accept the sale of his or her property.
Q: When should the term “pro forma” be used in conjunction with the name of a party on a real estate document? The scenarios described above are the most common problems that Homestead solves. Various facts can affect closing requirements, so always check with your trusted escrow team to find out what is required for a particular file. A: The term “pro forma” is a term that literally means a matter of form or form. In Texas, we see that this term is often used when we have a spouse who signs a trust deed for the perfection of a valid lien on the property. The Texas Constitution requires that before selling or borrowing the property, a person must agree to the transaction against the owner and his or her spouse. A common misconception is that the spouse must sign because of the Texas community property rules. It is important to understand that it is not the rules on common property that require one of the spouses to consent at the time of closure, unless the property was acquired while the spouses were married. The correct explanation of why a spouse must sign is that property protection under the Texas Constitution requires their signature. Both concepts are often present in one degree and sometimes overlap in the end result, so a spouse must sign for the degree, but they are separate and different laws. At each sale transaction, a title company is required to determine if the seller of the property is married. If they are married, their spouse will usually have to sign a document at the end, and the document will change depending on the classification of the property as property or investment. There are different signature options that can be used: Article XVI of the Texas Constitution, Section 50(b) states the following: An owner or applicant of the property claimed as property may not sell or abandon the property without the consent of each owner and the spouse of each owner, which is granted in a manner required by law….
