Kenneth L. Musgrave and Etta D. Musgrave - Page 2




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            petitioners' entry into a contract for deed of real property with                          
            a charitable organization in 1994 constituted, in part, a                                  
            completed gift.  We hold that it did.                                                      
                  The stipulation of facts and attached exhibits are                                   
            incorporated herein.  The stipulated facts are hereby found.                               
                                             Background                                                
                  When the petition was filed, petitioners resided in Abilene,                         
            Texas.  Petitioners owned a property located at 3001 North 3d                              
            Street, Abilene, Texas (the property).  On November 30, 1994,                              
            petitioners signed a contract for sale of the property (contract                           
            for deed) with the Word of Emmanuel Church (the Church).                                   
            Petitioners agreed to sell and the Church agreed to purchase the                           
            property for $152,500, to be paid in monthly installments of                               
            $1,400 each, beginning on January 1, 1995.  When the contract for                          
            deed was signed, the property was valued at $450,000.  The value                           
            of the property is not an issue.                                                           
                  Under the contract for deed,2 petitioners retained legal                             


                  2In Graves v. Diehl, 958 S.W.2d 468, 470-471 (Tex App.                               
            1997), a contract for deed was described as:                                               
                  an agreement by a seller to deliver a deed to property                               
                  once certain conditions have been met.  BLACK'S LAW                                  
                  DICTIONARY 325 (6th ed. 1990).  These contracts, also                                
                  referred to as “land sale contracts” or “contracts of                                
                  sale” typically provide that upon making of a down                                   
                  payment, the buyer is entitled to immediate possession                               
                  of the property; however, [legal] title remains in the                               
                  seller until the purchase price is paid in full.  * * *                              






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