Ownership of Mineral Rights: How do I know who owns the rights? How do I go about selling them?
Posted on Thursday, August 31st, 2017 at 9:37 pm
If you are a property owner in an area that has precious resources like oil, gas, or minerals, you may consider the immediate revenue that your land can provide you and your family if you were to sell the rights to your land to companies that are waiting to pay top dollar for the right to access those resources. The team at Mineral Auction know that the value of your land can be a long-lasting benefit to you and your family members if managed correctly, so we have focused on connecting property owners with our impressive list of over 11,000 buyers who are interested in purchasing the rights to your land. We bring vetted, interested buyers to you, and help you secure your financial future.
While many people know exactly the ownership status of their land, or who is in charge of granting access to it, property ownership is not always so clearly defined for other families. There may be a debate over who truly owns the land, who has the rights to it, or who is in control of decisions that concern a larger family’s property. We will discuss in the sections below how to find out who has legal ownership of a property and how mineral rights can be granted once that has been cleared up.
If you are looking to get the most value out of your land and take advantage of the current energy and natural gas boom in the United States, now is a great time to discuss auctioning off the rights to your land. With our extensive list of interested buyers, we know that it doesn’t make financial sense to only offer it to them directly. Instead, we put your rights up for auction so that our group of interested buyers can compete against each other for the rights. Who does this benefit, you ask? It benefits you, the property owner, who will get the absolute best price, driven up at auction by qualified buyers. Contact us at (512) 698-2802, email us through our website’s contact form, or email us directly to get started today.
Finding Your Mineral Rights Records
It is important to do a thorough search for mineral rights records because it is not always as simple as finding who owns a particular property. In fact, in some cases, the landowner is not always the person who holds the mineral rights, even if they have an official deed to the property. When new property owners purchase a piece of land, they should be informed of existing rights. Otherwise, the rights are automatically transferred over to the new owners of the property. In particular cases, though, especially with the first oil and gas companies in this country, a company may have retained the rights to the minerals and resources on a given property, even after selling the ground property (where a home might sit) for settlement. The companies would allow people to purchase the property, all while keeping the rights to mine on that land at a later date and time.
Common ways to research mineral rights include:
- Reviewing County Records and Tax Assessor’s Documents – By performing a title deed search at the county records office, you can see the ownership history of any particular property over time. If a gas and oil company ever owned the property in the past, this might be an indicator that they may have retained the rights over time. The deed will probably not have a clear sign of mineral rights, so you may have to do some more intricate research, but this is a good start for most people to find out who has the rights to their property.
- Loan Default and Foreclosures – If a property has ever gone through foreclosure or if an owner has ever defaulted on a loan, the bank has taken control of the property, including the mineral rights to that property. If the property was sold at auction, the bank might have neglected to transfer the mineral rights to the new owner, so this is an important item to research and note.
- Royalty Deeds – On certain properties, an owner may have issued a royalty deed, which allows the owner to collect a “royalty” on minerals that are mined from their property.
- Title Company Search – Title companies, can do focused searches to find out who has mineral rights to your property. While you may be able to do this yourself and title companies typically charge a fee for this service; sometimes it is worth paying a nominal fee to have a professional search the official records for you.
Frequently Asked Property Ownership Questions
It is not uncommon for property owners to be unfamiliar with the specific laws, terms, and regulations regarding the details of their property, especially when it comes to mineral rights. Below are a few frequently asked questions that people have when it comes to property ownership:
What happens if there is a dispute over rights?
In certain cases, a company may fail to pay royalties that it owes to royalty deed owners, or there may be a dispute over who owns or controls the land. In cases like this, property owners or deed-holders may wish to consult an attorney to help resolve disputes, even if it means legal action. With the ownership and all of the financial benefits at stake with valuable property, it is worth going through the trouble to make sure you have complete ownership of what you are owed.
What is the difference between “surface estates” and “mineral estates”?
In Texas, there are two distinct sets of rights when it comes to land ownership, called “estates”. In some regions of the state, “surface estates” and “mineral estates” are not the same, and a party can own one of them and not necessarily own the other. An owner could sell the surface estate and retain the rights to the mineral estate, or vice-versa.
Which is dominant? The surface estate, or the mineral estate?
Again, in the state of Texas, the mineral estate is the dominant estate, according to state law. Even if the estates have been “severed”, meaning one person owns the surface and the other the mineral estate, the person who owns the mineral estate has free reign “within reason” to explore, develop, and produce oil and gas beneath the property. To learn more about surface estates and mineral estates, read more at on the official website of the Railroad Commission of Texas.
Why should I choose The Mineral Auction to handle the sale of my mineral rights?
As you can see above, the rights to the natural resources beneath your land are governed by specific rules and regulations, many of which have been around for over a century. Instead of trying to negotiate deals for yourself and work out complicated arrangements with buyers directly, consider turning to the experts who know the process and can get you the most value for the rights to your property.
When you auction the mineral rights to your land with The Mineral Auction, you stand to gain immediate financial liquidity for yourself and your family, a financial security that can last for generations to come. You can capitalize on valuable tax savings before taxes go up, or as soon as they start to drop, and you may be able to take advantage of the energy boom that we are currently experiencing. Once it is over, you may not be able to get as much for your property as you would if you had sold the rights during this time.
Our mineral rights brokers have the experience and the network of reputable, interested buyers to ensure that you get the best value for your oil and gas royalties and mineral rights. Our fees are tied directly to the price you get for your rights, so we will always strive to get you as much as possible for the rights to your land, unlike other “set-fee” companies who don’t care who wins in the end. We will pitch your rights to thousands of interested buyers all at once, saving you the hassle of having to negotiate with different buyers in a line. You will be able to rest knowing that you have an experienced broker on your side. Our trained brokers will help guide you through every step of the process and will help you maximize your profits in the end.
If you are considering selling your mineral rights, turn to the experts at The Mineral Auction today. By putting the rights to your land up for auction, you can maximize the value and realize the enormous financial benefits immediately. Contact us through our website’s contact form, by email, or call us directly at (512) 698-2802 today and get the process started.