Home Buying in Roanoke>Question Details

L, Home Buyer in Fort Worth, TX

Should I buy a home from a seller who plans to keep the mineral rights?

Asked by L, Fort Worth, TX Sat Jan 19, 2008

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Why not. It happens all the time. Just make sure that there are clear terms on this aspect. The price should be adjusted for this. Also what rights do they have?? Can they mine everything off the surface and make the place look like the Planet Mars? Is it for gas or oil? Would they be able to come and go as they please? I think the answer is that this is done all the time but you need to have conditions and maybe attach a map to clarify what area of the land this applies too. In this market you may just tell him "No" and see if he really is a seller or not. There are a lot of reasons to say no. But if the conditions are fair enough it might be ok. It has been doen this way for years.

Best of luck with this.

regards;

Dirk T Knudsen
Re\max Hall of Fame
#1 rated Re\Max team in Oregon
"The Real Estate Doctor"
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1 vote Thank Flag Link Sat Jan 19, 2008
Hi Lyla,
Dirk has the best answer on this -- first the price should be different if you do not purchase the mineral rights. second it is NEVER in your favor for this type of a deal. I have a friend that experience this in Colorado..and he has lived to regret everyday that he didn't spend (going on memory for a deal that happened 15 years ago) the extra $15K per acre to own the mineral rights on a 500 acre tract of land in Trinidad NM.
Mary
2 votes Thank Flag Link Sun Jan 20, 2008
Lyla

This happens all the time in states where mineral rights can be conveyed.

You may want to speak with a knowledgeable Local real estate broker who can evaluate your property with and without the conveyance of the mineral rights. (Each right of ownership in real property has its own value)

You can then determine the value of what you are purchasing.

Best of luck
1 vote Thank Flag Link Sun Jan 20, 2008
Please contact a local real estate attorney. Every state has different laws regarding mineral rights and this could potentially adversely impact your investment
1 vote Thank Flag Link Sun Jan 20, 2008
Discuss this with a knowledgeable LOCAL real estate broker. This is critical. Esp if you are buying in Fort Worth. You could be throwing money away, why not find out 1st?
1 vote Thank Flag Link Sat Jan 19, 2008
I have never heard of this one but I guess there is first time for everything. What is next air space?
Anyhow I thought that this might be a bit helpful
http://geology.com/articles/mineral-rights.shtml
1 vote Thank Flag Link Sat Jan 19, 2008
If you totally understand what you are getting into. Sit with an attorney and the seller if necessary and clarify what minerals, where, how, for how long, how close to your home, will there be excavation, will the land be put back the way it was. You get the idea.
1 vote Thank Flag Link Sat Jan 19, 2008
If you're getting a great price for it and it doesn't disrupt your home, I don't see the problem. However, "If thar' are gold in them thar hills" you better make sure your agreement protects your home. How does the seller plan to get the minerals out? Dig under your foundation? Tear up your brand new landscaping? Put holes for you to fall into while hiking through your acres? Does he think Black Beard buried treasure on the land? Would gold coins be considered "minerals" if they have already been processed and then buried?

This sounds like a case for an attorney and a psychologist. Why does he want the rights and how does he plan to use them? It just sounds odd and unrealistic. The only way I can see it working is if the mineral rights are along the line of a option to buy. If valuable minerals are discovered, the seller would have to buy your home back to access them? Talk to a Virginia attorney.

Good luck,
Ruth
Web Reference: http://www.pirate-kid.com
1 vote Thank Flag Link Sat Jan 19, 2008
Ruthless, Other/Just Looking in 60558
MVP'08
A relative had this happen. They had someone come in a mine for coal. When the coal was mined their well went dry. Now the company has to bring in water for them all the time. Even though the company pays for the water is it reasonable to think the company may go out of business some time and then they will have no water?

Plus when they mine for coal, or suck out gas or oil they leave a hole in the ground. Over time that hole can collapse. Out west somewhere there is a town that is literally falling into the ground from mining in the 1800's.

Personally, I would not buy a place that I did not own 100%. That rules out duplexes as you do not own half of the house. If the other owner lets his half fall into the cellar from neglect what can you do? The same thing applies to lost mineral rights. If you give them away and someone sucks your well dry, digs ugly holes, strip mines, or sticks oil derricks over all of your land what can you do? NOTHING!!! they have the rights.

You could potentially never have any issue with this in several lifetimes. So it is in reality a non-issue. But what if 1 year from now they come in and mess up your land? What do you do then?

If I wanted the place I would say I buy it, but that is ALL of it, Mineral rights included. Take it or forget it. Then be prepared to walk away.

Just things to think about.
0 votes Thank Flag Link Mon Oct 5, 2009
How much land will be conveying in the purchase? If it is only a normal residential lot then you will probably not be impacted by the seller retaining the minerals. However, if you are buying a larger tract, you need to have an attorney review the contract and any mineral leases that are currently on the property. If in doubt, speak to an attorney.
0 votes Thank Flag Link Wed Apr 16, 2008
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