R_Walter
Gold Member
The OP said the mineral rights don't convey to him. I only assume he knows of what he speaks. Do you know more about his situation than he?
Land Buying Do's & Don'ts...
- Thread starter ThrowinDirt
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The OP said the mineral rights don't convey to him. I only assume he knows of what he speaks. Do you know more about his situation than he?
EddieWalker
Epic Contributor
There are differnet types and levles of mineral rights. It gets complicated, and sometimes the owners of the land have them and either don't realize it, or want to keep what they have. I always put in the contract that I want he owers mineral rights, and when it goes through title, they are transfered to me. It's how I have what I have on my land.
Also there is surface rights to get to the minerals below. It might not apply, but if it does, you can refuse any surface access to the minerals below, but still receive royalties if your land falls into the block of other properties that are included if they drill near you.
This is what I've done and have been able to make a buck when they are drilling close by, but not on my land. I refuse to give access on my land, but still get something for the lease of my mineral rights, and something if they find anything. So far, nothing profitable has been found, so it's not very likely that I'll make very much from what I have.
What's important is that I can keep them off of my land, and if you can figure out how to do that even if you don't have mineral rights, you might want to work that into the deal.
Good luck,
Eddie
Also there is surface rights to get to the minerals below. It might not apply, but if it does, you can refuse any surface access to the minerals below, but still receive royalties if your land falls into the block of other properties that are included if they drill near you.
This is what I've done and have been able to make a buck when they are drilling close by, but not on my land. I refuse to give access on my land, but still get something for the lease of my mineral rights, and something if they find anything. So far, nothing profitable has been found, so it's not very likely that I'll make very much from what I have.
What's important is that I can keep them off of my land, and if you can figure out how to do that even if you don't have mineral rights, you might want to work that into the deal.
Good luck,
Eddie
Soundguy
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use a lawyer.. get title insurance. sure.. adds a lil tot he cost.. but in the long run.. it's a pittance. ( remember the title ins the lender gets don't protect you.. get a buyers policy ).. lawyer for a routine land purchase won't be much either.. probably 150$ on top of title search and ins fees..e tc. I'd use a lawyer even if there was a broker or sales agent involved...
soundguy
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ThrowinDirt
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Hey fella's,
To clarify, the mineral rights do not transfer to me, only after ten years & no production in the section. In an area like the one i'm in, everyone is highly aware of mineral rights & with certain people getting 50,000 dollars a month in royalty checks, no one is willing to just transfer the minerals. Heck, when all the oil companys were going around leasing all the acerage up I got 14,000 for the 1.2 acre lot my home currently sits on. Its ridiculous and has caused it to be extremely hard to find people willing to sell there land, much less transfer mineral rights. That's why i'm really trying to close the deal on this thing. I'm fortunate that all of you have helped out with alot of things that I wouldn't have thought of. Thanks, JY.
To clarify, the mineral rights do not transfer to me, only after ten years & no production in the section. In an area like the one i'm in, everyone is highly aware of mineral rights & with certain people getting 50,000 dollars a month in royalty checks, no one is willing to just transfer the minerals. Heck, when all the oil companys were going around leasing all the acerage up I got 14,000 for the 1.2 acre lot my home currently sits on. Its ridiculous and has caused it to be extremely hard to find people willing to sell there land, much less transfer mineral rights. That's why i'm really trying to close the deal on this thing. I'm fortunate that all of you have helped out with alot of things that I wouldn't have thought of. Thanks, JY.
OP
ThrowinDirt
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I make my living working on Natural gas wells & have absolutely no desire to have a location in my backyard, free gas or not. I spend alot of time looking at those things. Don't want it to be 24/7. That's why surface rights were extremely important to me. I was informed that if the current owner had sold off the surface rights to an oil company prior to my purchasing the land then it would trump anything that was stated in our contract & I would have zero conttrol over them putting a drilling rig in my backyard.
txdon
Super Star Member
Eddie, what do you put in the contract?
"I always put in the contract that I want he owers mineral rights"
"I always put in the contract that I want he owers mineral rights"
CubMon
Bronze Member
Just make sure it is not near a town named RedBud and don't buy or feed any local dogs.
Forget a local lawyer, bring one with gray hair with you and set him up for a few days to delve deeply onto that land deal for you.
Bill C.
Forget a local lawyer, bring one with gray hair with you and set him up for a few days to delve deeply onto that land deal for you.
Bill C.
EddieWalker
Epic Contributor
Don,
Just add to the contract that you want all owned mineral rights. When I've done this, I was told beforehand that they owner did not own any mineral rights. I put it in there anyway and in every case, it didn't matter except one time. That's how I ended up with a portion of the mineral rights to my land "AND" control of the surface rights. I didn't ask for control of the sufrace rights, but it came with ownership of the mineral rights that I was granted when buying the land. Kind of a bonus that I would not have received if I had not insisted on asking for the mineral rights when I was told the seller didn't have them.
That was a game. The seller knew he had them, but he was playing like he didn't. My realtor was shocked at what happened when we got to signing docs for title, and the seller played it off like he didn't know and didn't care. Later, both of our realtors got together and the truth came out. He didn't want to give them to me, but he was in big debt and had to sell the land. My low ball bid was an insult to him, but it was the only offer that he had received and he was in a panic to sell.
I got lucky, but it's also somehting that I made happen because I had nothing to lose and included something in the contract that nobody thought I would ask for.
Eddie
Just add to the contract that you want all owned mineral rights. When I've done this, I was told beforehand that they owner did not own any mineral rights. I put it in there anyway and in every case, it didn't matter except one time. That's how I ended up with a portion of the mineral rights to my land "AND" control of the surface rights. I didn't ask for control of the sufrace rights, but it came with ownership of the mineral rights that I was granted when buying the land. Kind of a bonus that I would not have received if I had not insisted on asking for the mineral rights when I was told the seller didn't have them.
That was a game. The seller knew he had them, but he was playing like he didn't. My realtor was shocked at what happened when we got to signing docs for title, and the seller played it off like he didn't know and didn't care. Later, both of our realtors got together and the truth came out. He didn't want to give them to me, but he was in big debt and had to sell the land. My low ball bid was an insult to him, but it was the only offer that he had received and he was in a panic to sell.
I got lucky, but it's also somehting that I made happen because I had nothing to lose and included something in the contract that nobody thought I would ask for.
Eddie
txdon
Super Star Member
Eddie, very good information. The mineral rights are so often overlooked by anxious buyers, a decision that is regretted latter. I have always wondered why the mineral right owners do not have some obligation to a pay percentage of the property tax. ??
crazyal
Super Member
Will this land need a drilled well or does it have town water? I ask because drilling for gas can have an effect on your well, even if it's not on your property. To get gas from shale they use a process called Hydrofracturing (think I got it right). They drill a hole then force liquids down it at very high pressures to open up the rocks to let the gas come out.
They also do this to water wells that have low yields. So depending on what chemicals they use it may or may not be a problem but they can leach into the water system. Also if they frack an area they may open up a different path for the water that was going to your well leaving you dry. You should read up a little then talk to some of the locals.
They also do this to water wells that have low yields. So depending on what chemicals they use it may or may not be a problem but they can leach into the water system. Also if they frack an area they may open up a different path for the water that was going to your well leaving you dry. You should read up a little then talk to some of the locals.