What Is Overconveyance of Mineral Interests?

Mineral interests can quickly become confused and complicated as ownership changes hands and ownership details change. Due to that complexity, some mineral property owners may sell more mineral interests than they actually own. This is known as overconveyance of mineral interests.

Below, you can learn more about overconveyance, how it happens, and how The Mineral Auction helps qualified sellers prevent this issue.

Overconveyance of Mineral Rights: How It Happens

Just because you own a piece of land, that doesn’t necessarily mean you own a full ownership interest in the minerals beneath the surface, and portions of the mineral estate may be sold off and separated over time. 

In addition to those complications, deals like common law quitclaim deeds can make things even more complex. In a quitclaim transaction, mineral interests conveyed between parties are not guaranteed to be owned by the seller. In other words, the property is transferred without any verification as to the extent of the property or the actual ownership. In this way, the land owned may be less than that included in the legal document. Quitclaims are often used for things like divorces and inheritance. The spouse or grantor’s heirs may be left with an inaccurate picture of their property.

In other cases, sellers may attempt to sell their property through a warranty deed meant to convey the entire mineral estate, while also attempting to retain a portion of those interests. A warranty deed is a written instrument that gives special promises and is meant to ensure a clear title. This practice can also lead to overconveyance.

How Duhig’s Rule Impacts Sellers

One important concept to keep in mind when it comes to overconveyance is Duhig’s rule. Under this rule, when a mineral owner claims to convey the entirety of their mineral estate through a warranty deed while also attempting to retain a reserved fractional interest, the granted interest is prioritized over the reserved interest. In other words, the seller is prevented from retaining the reserved interest in as much as it conflicts with the granted interest laid out in the warranty deed through court order. Depending on your state, Duhig’s rule may only apply to special warranty deeds and not quitclaims.

With this in mind, it’s important to prevent overconveyance to avoid these sorts of legal complications.

How to Avoid Overconveyance

Overconveyance can cost mineral owners. The good news is that there are steps you can take to prevent this from happening. To ensure you get fair payment for your real estate, follow the tips below:

• Determine What You Own – Look through the property deeds and conveyance history. We’ll discuss how to determine your ownership in a separate paragraph below.
• Work With a Professional – An experienced mineral rights broker can assess your deed construction to determine exactly what you own.

How to Determine Exactly What You Own

In order to determine the fair market value of your property, and to ensure that you are accounting for everything you own, it’s important to take steps to evaluate how much your real property is worth. You can follow the steps below to confirm your oil and gas ownership:

1. Check Your Property Deed – Your property deed is the first place to look to find information about your mineral interests. Your deed may discuss property sold from the estate and what portion of the property you own.
2. Visit the County Clerk – Next, you can visit the county clerk’s office to examine the legal title of your property and past sale deeds. You’ll need to know your land’s legal description, found on your deed or title insurance.
3. Get Help – If you’re not having luck interpreting the documents, it’s time to get help from a title company, landman, or mineral rights broker.

Keep in mind that there are other aspects of mineral ownership, such as life estates, that can also complicate matters. Getting professional advice is a good idea.

Get Maximum Value for Your Real Property With The Mineral Auction

Whether it makes the most sense for you to sell your mineral interests or pursue an oil and gas lease, determining exactly what you own is an important part of profiting from your mineral interests.

If you want to ensure your mineral rights sale is as seamless as possible, you should consider working with The Auction Mineral Rights. For qualified sellers, we will always ensure the property deed is accurate and up to industry standards. We’ll do all the work needed to get a fair offer before you sign on the signature line.

Make the most of your mineral real estate with The Mineral Auction.