Savanna SteeleParticipantMay 14, 2018 at 12:53 pmPost count: 26
I’m curious as to why the PA template suggests that the seller can retain mineral rights. I’m working on a deal in Texas, and the seller wants to retain mineral rights. Doesn’t this mean that the seller wants to have the right to drill for oil even when the property is owned by someone else? If that is the case, who would buy this property?Kevin FarrellModeratorMay 14, 2018 at 4:22 pmPost count: 634
Savanna – Some people think that the mineral rights might be their lottery ticket someday, so they want to keep them. You are correct, the person with mineral rights can access the surface and drill or mine. I am not an expert so I can not tell you if there is any compensation for the use of the land. As far as I am concerned, mineral rights only makes sense at very large scales – like 1000 acres.
You can buy and sell property like this easily. Most people don’t ask and if they do ask about mineral rights I usually say “I don’t know.” Which is true because I don’t search for it. For a seller like yours, just add a statement on the deed after the Legal Description declaring that the mineral rights are retained by the Grantee, John Smith. I don’t have a good example handy, but you can google it and find a deed with mineral rights clause.Michael AillonParticipantMay 14, 2018 at 5:57 pmPost count: 208
I think mentioning mineral rights creates more problems than its worth. When people buy land, they want it to be “their” land.
If you start removing mineral rights and adding easements, etc. I would think it becomes less attractive. I have removed it from my agreements. No one has ever asked to keep them.
Now if you are buying and selling in Texas, I suspect mineral rights will have more meaning to buyers and sellers than other states.Kevin FarrellModeratorMay 14, 2018 at 6:23 pmPost count: 634
Michael – I strongly agree. I have removed the mention of mineral rights from my offer letters. Just a can of worms I don’t want to open.MilanParticipantMay 14, 2018 at 6:37 pmPost count: 423
Buyers also ask about mineral rights.
I tell them, I don’t know if they come with the land.
I ask them: Why are you asking? Do you want to mine, look for gold, silver?
They say: Yes some day maybe.
My standard answer that usually ends the conversation is: Nobody is watching you over there.Kevin FarrellModeratorMay 15, 2018 at 4:31 amPost count: 634
Milan – “Nobody is watching you over there.” Brilliant! This is a very appealing answer for some people who want to feel like they are getting away with something.
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