Agent2Agent in Fort Worth>Question Details

Bruce Lynn, Real Estate Pro in Coppell, TX

Around the Fort Worth area what are agents seeing with regards to mineral rights. Are the buyers forcing?

Asked by Bruce Lynn, Coppell, TX Wed Feb 27, 2008

the sellers to deed mineral rights or are sellers being able to keep them?

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5
There has been so much misinformation about mineral rights and the Barnett Shale. As the pace of leasing and drilling has accelerated over the past few years it has become easier to answer many of the questions. Once the monthly checks start arriving it will become a lot clearer what the real value of owning your mineral rights actually is.

Most sellers are retaining their mineral rights if they own them... as they should. When my buyers object to this I ask them 2 questions: first, " Wouldn't you want to retain the mineral rights if YOU were selling your property?" and "What if we discover that the seller doesn't even have mineral rights?... would you change your mind about wanting the property?"

On a typical quarter-acre lot in Fort Worth the up-front bonus has gotten up to around $4,000, with monthly royalties coming in between $50 and $150. If you were to invest that income over the expected 30-year production term you would wind up with well over $100,000. So, you can easily understand why people are generally not just throwing this asset in with the home purchase.
0 votes Thank Flag Link Sun Mar 23, 2008
In most of our transactions in this area the mineral rights have been retained by previous landowners, many back 25 years or more. There are some listings where the seller will sell 50%. However, unless it is a large tract, it is useally a non-issue. There is a brand new Texas RE Commission form that basically covers the agent/sellers if it is unknow who has the rights>
0 votes Thank Flag Link Tue Mar 11, 2008
Around 70% of all my clients in Arlington and Fort Worth areas want to keep their mineral rights. If it comes to costing the seller's a solid deal then most of them will convey the mineral rights.
0 votes Thank Flag Link Fri Mar 7, 2008
I believe it is about 75% of the sales the buyer is not getting the mineral rights transfered to them. Except for bank owned homes. I have never yet seen a bank try and sever the mineral rights.
0 votes Thank Flag Link Wed Mar 5, 2008
I was at 2 closings on Friday one in Southlake and one in Colleyville and I have asked the escrow officers at both companies if they are seeing a lot of resale homes that are not conveying the mineral rights and they both said yes. They said that some of them the buyers were not happy about it but others just didn't care.

I also have a contract with a new homebuilder in Collin county and they used a "mineral rights addendum" where they will not transfer because they didn't get them from the developer... weird huh?
0 votes Thank Flag Link Sun Mar 2, 2008
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