Final answer:
Section 5.008 of the Texas Property Code does not explicitly address the situation where one co-owner conveys interest to another co-owner. Instead, it details requirements for sellers' disclosures in residential property transactions. Properly defined property rights and the use of proper legal instruments are necessary for a co-owner to transfer their property interest.
Step-by-step explanation:
When one co-owner conveys interest to another co-owner, this typically involves a transfer of ownership or property rights which is governed by state property laws. Section 5.008 of the Texas Property Code does not specifically address the circumstance where one co-owner conveys interest to another co-owner directly. However, it does mandate property sellers to provide buyers with a seller's disclosure notice regarding the condition of the property when selling residential property. In the context where one owner wants to transfer their interest in common property, usually a deed would be used to facilitate the transfer which must be in compliance with the Texas Property Code.
Property rights are a central aspect of such transactions and they determine how and under what conditions one can transfer their property. The importance of clearly defined property rights was highlighted by economist Ronald Coase, who emphasized that without clear definitions, disputes can arise and they may result in inefficient outcomes. The rights related to private property include the ability to contract, which would also include the ability for an owner or co-owner to sell or transfer their share of the property.