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Understanding The Process Of Transferring Mineral Rights

Friday, November 3rd, 2017

Selling or buying mineral rights is a legal transaction that requires a real estate deed specifically outlining the types of mineral rights being transferred. State laws generally control these transfers. All parties must be aware of laws and regulations regarding the sale of mineral rights and should have experienced legal assistance during the process.

Proving ownership of the mineral rights

The first step in transferring mineral rights is to ensure title to the minerals is marketable or clear, and that the seller owns legal title to the mineral rights. This can be accomplished by having a qualified person perform search of the public records. The title search should determine actual ownership of mineral rights by the seller and ensure that they are clear of liens or any other issues that could make title unmarketable.

Getting a warranty deed

A deed is a document conveying title to property from seller to buyer. A warranty deed contains covenants concerning the quality of the title, and it binds a seller to defend the title against any claims that may arise against the property. Having a warranty mineral deed protects buyers against false ownership claims if you cannot find clean title.

Preparing legal documents for the sale

After title is found to be clear, the seller can begin preparing the legal documents to transfer the mineral rights. This step does not necessarily require legal help, as the form can be found easily on the internet. However, it is important that both buyer and seller understand what type of transfer is being prepared and what type of warranty is being provided.

An absolute transfer means that complete rights are transferred to the buyer, so they can do what they wish with the property. Other transfers can be limited to specific mineral rights or reservations. A mineral rights buyer should be well educated on exactly what is being transferred.

Contacting an experienced attorney

If you need help with the purchase or sale of mineral rights, it is important to find experienced and professional legal assistance. Contact the attorneys at Brown & Fortunato today to see how we can help you. You can call us at 806-345-6300 or Contact Us by email for more information about our Practice Areas and to schedule a consultation. You can also visit us in person at 905 S. Fillmore, Ste. 400 in Amarillo, Texas.