We are a very privileged country to be able to buy and sell mineral rights freely. In many countries you are not permitted to do so. While certain states such as Texas are very familiar with selling mineral rights due to the abundance of oil and natural gas, many other states are jumping on board and becoming experts when it comes to selling mineral rights too. No matter where you live, you are always going to want to make sure you are getting the best out of a deal, so knowing the facts is absolutely crucial. Here are some guidelines to follow if you are looking to sell your mineral rights.
Reasons to Lease
Most sellers choose to lease their mineral rights as opposed to selling them. When you have something as valuable as crude oil or gas, you are going to want to create a steady stream of income for yourself. When you lease your mineral rights, you will receive a smaller amount up front. You also receive a consistent monthly lease payment that creates that steady stream of income. If you choose to sell outright, you will get a bulk amount of money up front but will not receive any residual income. However, if you decide to lease your mineral rights you run the risk of running out of product, which can put you in a very sticky situation. When you consider selling mineral rights, these are all important factors to keep in mind.
The Selling Mineral Rights Process
There are rules that must be followed when purchasing or selling mineral rights. If you currently own your own home, it is a much simpler process and do not necessarily need a lawyer. If you are a business, you should consider hiring an attorney to complete the process for you. Once you contact some different purchasing companies you can find out what is the best fit for you.
If it becomes too complicated for you, you may contact an attorney to help you file the paperwork. There is bigger risk involved in that you own a large amount of property, so by all means talk to an attorney before signing anything. The lawyer can then look over the entire agreement, including the minerals it covers as well as taxes that may be involved. This helps to eliminate any possible legal issues in the future.
These are just a few useful tips to help you along your way when you are considering selling mineral rights. Make sure you have all of the facts before you sign anything. Talk to your attorney and make sure all of your i’s are dotted and t’s are crossed!
