Wells v. Dotson, 261 S.W.3d 275 (Tex. App.—Tyler 2008, no pet.).
Decedent entered into a lease with an option to purchase with Lessee.
After Decedent’s death, Lessee notified Executor that he wanted to
exercise the option to purchase. Decedent’s heirs threatened to sue
Executor if he deeded the property to Lessee and thus Lessee sued for
specific performance of the option provision of the contract under
Probate Code § 27. The trial court granted summary judgment in favor of
Lessee.
The appellate court reversed. The court explained that § 27 applies only
“to circumstances in which a person has sold property or has entered
into a bond or other written agreement to make title to that property
and dies without having conveyed title.” Id. at 280. Because the
granting of an option is not the sale of property or an agreement to
sell, Lessee’s claim for specific performance did not fall within the
purview of § 27.
Moral: Enforcement of an option contract after the death of one of the
parties is not available under Probate Code § 27. However, enforcement
of the option contract may be available on other grounds.