Home Selling in Grapevine>Question Details

House Hunter, Home Buyer in Fort Worth, TX

If the gas drilling issue resurfaces in a desirable area, and I am listing my home, as the seller should I retain Minerals or use as bartering tool?

Asked by House Hunter, Fort Worth, TX Fri Jul 1, 2011

In the past, I did not sign with a Gas Lease - and waited for the coalition to sign as a group. Now the Gas Lease group is back and is interested in a small area and has been contacting homeowners to sign. I am in this desirable area that the Gas Lease is looking at and could possibly have a pay out. I am getting ready to list my house and wonder should I use it as a negotiating tool, possibly build it into the asking price or if asked to sign with Gas Co - just sign and then give new buyer the mineral rights? Your thoughts?

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Unless you are already indepenently wealthy, if there is a gas play at any stage of progression, and you own the minerals, smart financial thinking should tell you to retain them. Most people looking to buy a home do not have owning the minerals high on their priority list. There is an entire industry of those who research to find out what properties in a play area have conveyable minerals. These properties are purchased and resold with minerals retained. If a prospective buyer is determined to procure minerals with purchase, it should be highly considered and reflected in the sales price, you could be conveying a lottery ticket.
With current alternative energy source offerings as weak as they are, it's only a matter of the right political administration coming to power to turbo-charge a strong available energy industry which will, in turn, turbo- charge your financial standing.
0 votes Thank Flag Link Thu Jul 7, 2011
Till you sign a gas lease in my opinion just a mute issue . Then it could be consider "misleading" statements

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Mon Jul 4, 2011
You have been given some great advice so far. I agree that if you own the rights than you should keep them. If push comes to shove and the buyer is insistent on the rights and you want to retain them , than perhaps you can share them rather than lose a sale. I do tell my clients that most of the money you make is on the lease itself. I would recommend negotiating the best deal you can with the Gas Company and get the sign on bonus prior to selling. It is much easier to have a lease in place prior to selling the home. Also when you do sell the home make sure that you have the neccessary addendums with the contract that protect your rights and make sure to even confirm with the title agent that it was filed properly. If no addendums are with the sales contract the mineral rights are automatically conveyed to the buyer.

Just one more reason to have an experienced Realtor assist when selling your home.
Have furher questions? Just contact me anytime.

Good luck, Mindy Lowry, RE/MAX Heritage 682-559-1246 cell
0 votes Thank Flag Link Fri Jul 1, 2011
Always, always, always retain the mineral interests when possible. However, be VERY cautious of the companies who are contacting you regarding the leases as many are third parties who simply make the deals and get a cut from the actual drillers. Mineral leases are a complicated area of law so seek wise counsel before doing anything. These types of leases are fraught with fraud, so PLEASE contact an oil and gas attorney. Deal only direct with the company in charge of securing the gas.

You will want to disclose in both your contract (via an addendum) and in your seller's disclosure that you are retaining your mineral rights. Personally, I wouldn't try to use them as a negotiating tool...most buyers are not that interested in the mineral right as they don't understand them anyway. They will simply purchase a home based on it's emotional appeal.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Fri Jul 1, 2011
I think it depends on the size of your property.
You own a lot of acreage and it could be big money.
You own 1/10 of an acre, then don't complicate things.

There are plenty of people who have retained the rights.
I guess I would look at it from the prospect of you as a buyer.
How do you feel about the property you are buying.....do you want them, do you care if the current owner keeps. Would you pay more or less for the property if they are there or not? Would you pay to have the mineral title searched if no one is sure?

I think it just complicates the transaction in an unneeded way for what is a little money in the scheme of things if you say you want to retain them. These days it is not always easy to sell, so even just putting that idea out in the listing might mean the difference between a sale or not. Are they that important to you?

If they are, they're worth fighting to keep.
0 votes Thank Flag Link Fri Jul 1, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
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