Hey everyone, I have a question about leasing mineral rights if you don't mind.
If I lease mineral rights underneath my property to a company, and then sell my house to a third party, does the company keep the mineral rights, or do the new owners get the mineral rights? Or does it vary from state to state?
I'm in Tx so your laws may vary and I'm not an attorney:
You have a choice to severance the mineral estate from the surface estate. If you choose not to do anything then all your rights to property will be transferred to new buyer including mineral leases. Whenever I sell a property I retain mineral rights if they were not previously reserved. You title company can help you with this.
The mineral rights remain with whoever specifically bought the mineral rights. There would be language in the real property sale that mineral rights were excluded. I'd never buy a property without mineral rights, if there was the slightest chance they could grant access to someone else.
So the company, whom I originally leased the mineral rights to, would have to make a new deal with the new owners of the property? What if I sold the mineral rights to the company, but then sold my property to a new owner? What then?
Thank you very much for your input already, I really appreciate it.
No, your lease will remain in effect and pass on to new owners of mineral estate. If you sold mineral estate and did not lease them then mineral rights would not be transferred with sale of property. I recommend holding onto any minerals you have and only signing mineral lease agreements.
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!