i'm told that if i don't sign an exclusion of mineral rights that mineral rights automatically transfer to me. i'm concerned because

Asked by Confused, Fort Worth, TX Sun Mar 7, 2010

contract says nothing about mineral rights. do i need to request something in writing about the transfer of mineral rights? Thanks!

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T.E. & Naima…, Agent, Dallas, TX
Mon Mar 8, 2010
Try to ignore the out-of-state responses as they do not apply. Texas law is different from many places. Most of the Texas Realtors got it right.

In Texas the default contract is for the bundle of rights including all mineral rights surface, subsurface or anywhere else on the property as they exist and are owned by the seller.

This means only if the contract contains provisions for the mineral rights to be severed will you not get what the seller has. However, the seller may not have much if any rights. In the long chain of transfers someone may have taken a portion of the rights. It was common for early owners to convey only half the rights. After a few transfers this trend disappeared, leaving many with 1/8th of the original rights.

When mineral rights are severed, they appear in a separate report and you may find, as Naima pointed out, that the developer took away your rights. In some cases the neighborhood association or HOA retains them and controls what happens anyway. The shale "rush" on that side of DFW caused many people to try to hang on to the rights, so you may have to check if you even have any.

Your concern seems odd, though, because you get the rights unless you agree that the seller can keep them. Is there a downside to that? Also, if the seller did his disclosure properly you will find what he knows and if his has any leases contained in that.
Web Reference:  http://www.MyDFWLakeHome.com
1 vote
Kim Nwachukwu, Agent, Irving, TX
Mon Mar 8, 2010
The short answer is: if you did not sign an agreement that severed the mineral rights from the seller selling to you, AND that seller owns the mineral rights then yes, in Texas the mineral rights automatically "follow the land", ie, they convey to you.

Like most mentioned, in many cases the mineral rights were severed long ago by some previous owner. This could have been the farmers family that owned the farm long before it was developed, by the developer when he developed the community and sold to the builder, or by the builder himself. There could be many variations and even multiple heirships involved.

What I tell people about mineral rights when buying in large, developed subdivisions is that it's best that you are on a level playing field. For example, If the developer (or the farmer) severed the rights to the community as a whole, then no homeowner in the community or subdivision owns the rights - every one is on the same playing field. In older communities this may not necessarily apply and it may be impossible to even get on the field - because there isn't a level one.

There is no reason for a seller to not convey the rights on very small residential rights. The value of minerals are unknown, but typically will not be worth tons of money-the land area is simply too small. When it comes down to selling a small residential property vs. retaining the rights, sell the property and forget about the rights. I have a 100% capture rate for buyers on retaining the rights when the seller wanted to keep them (if they did indeed own them). The argument in favor of conveyance is pretty easily made if the seller wants to sell.

Some agents get confused when the sellers agent says "we can't transfer the rights - we have leased them already", Big deal - the lease should be and can be transferred to the new buyer, just like a tenant lease is.
That doesn't mean the seller gives up the bonus he received when he signed the lease (that is in the past and he doesn't owe that to a new buyer)- all it means is that any future royalties now belong to the new owner,

Mineral rights searches are not performed by title companies, they are performed by landmen. These are,more exhausive, way more expensive searches. A title company should be able to tell you whether or not there is a recorded lease on the land, but not necessarily who owns the rights.

Bottom line, if you didn't sign the severance agreement, and the guy that sold to you indeed DID own the rights, now they belong to you.
1 vote
T.E. & Naima…, Agent, Dallas, TX
Sun Mar 7, 2010
Many sellers assume that they own the mineral rights when they don't. Most developers these days retain them so even the builders don't own them when they sell you the house. Your are correct the standard TREC contract doesn't specifically give an option for retaining or conveying them, assuming the seller owns them, they will indeed transfer to you.

Naima
214-289-8555
Naima@Sumner-Realty.com
Web Reference:  http://www.SumnerRealty.com
1 vote
Ronda Schuch…, Home Buyer, Centralia, IL
Wed Apr 24, 2013
correct you may own proprty but mineral rights may not be sellers either go to court-house find out who owns them
0 votes
The United H…, Agent, Mansfield, TX
Sat Sep 8, 2012
You are exactly correct if the seller does not have an attached mineral rights exclusion added to the contact and the seller does own 100% of the mineral rights they will automatically convey to the buyer.

Keller Williams Realty
Joseph Fernandez
cell:817-975-7258
off: 817-635-1157
0 votes
Nathan Beckey, , Fort Worth, TX
Tue Aug 7, 2012
The mineral rights automatically default to the buyer if the seller truly has ownership of the mineral rights and a mineral right addendum is not executed...

I'll help any way I can.

Sincerely,

Nathan Beckey, Northwest Fort Worth Realtor

(m) 817.691.3602 (e) nathan@exclusivepropertiestexas.com

More Options. More Results.

check us out online http://www.exclusivepropertiestexas.com
0 votes
Darrell D. D…, Agent, Schertz, TX
Mon Jul 9, 2012
Just to add my 2 cents. There are promulgated contracts for 1-4 family residences which are quite different than the promulgated farm and ranch contract here in Texas. The Farm and Ranch contract has more verbiage regarding retaining or conveyance. Retainement of rights can only be obtained by the addendum for retaining rights by a seller and can further stipulate surface access and ingress/egress rights for mineral procurement.

Understand as stated, that even if a seller conveys their mineral rights, they may only own 1/4 or 1/16 of the rights. They can only convey what they own and other proportions of rights may be held by previous owners and their heirs. And Kim was absolutely correct in that a Title Company will identify leases, but will not further ascertain ownership.

Hope this helps!


Darrell D. Drouillard
Home Team of America
16719 Huebner Rd., Bldg 4
San Antonio, Texas 78248
210-373-6160
210-881-6760 (Fax)

http://www.dddrealtor.com

'Serving all Your Real Estate Needs'
0 votes
The United H…, Agent, Mansfield, TX
Mon Jul 9, 2012
"Meeting your needs and exceeding your dreams!"

Please, feel free to contact me today in regards to assisting you and your real estate needs.

Keller Williams Realty
3xUS Army Vet./ Real Estate Consultant
Joseph Fernandez
cell: (817)975-7258
off: (817)635-1157
email: blissfulestates84@gmail.com

FOR ACCESS TO AN UPDATED SEARCH ENGINE CHECK OUT http://WWW.BLISSFUL-ESTATES.COM
0 votes
Jessica Bona…, , Southlake, TX
Wed Jun 23, 2010
It's like to the good ole days when minerals automatically transferred to the buyer. You are correct, in order for the seller to exclude them you would have had to sign a one page addenda stating that. There is still a chance that you won't own the minerals...if the farmer or land developer way back when sold them. But if you are the buyer and haven't signed anything about minerals the seller is not keeping anything from you. (when you receive your title paperwork before closing, you should be able to see if a mineral lease has been purchased.)
0 votes
Bruce Lynn, Agent, Coppell, TX
Wed Mar 10, 2010
We generally do not comment on mineral rights and transfer of the rights as these are not covered under the standard title policy.
If the seller owns the mineral rights and the purchase contract is silent, you are correct that the mineral right should transfer to the new owner. They don't automatically transfer though. It could be that they have been sold. The only way for you to know is to hire a landman to research the title for the mineral rights. Probably $400 or so to find out. They can be separated from the surface rights here in Texas and it is common that they are not attached to the surface sale.
No lender should have a problem lending on a home that has both the surface and mineral rights. This is a very common practice here in Texas and around the country.
Web Reference:  http://www.teamlynn.com
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Mar 8, 2010
The Fort Worth area is "little odd" when purchasing a home for mineral rights.

I have read all responses from local agent vs. out of state agents. Local agents are correct.

HOWEVER some lenders may not do a loan with mineral rights can cause some delays.

I was a listing agent on home in Mansfield with mineral rights several lenders declined doing the loan for new home owners. Anticipate some delays.

Lynn911
972-699-9111
The Michael Group - Dallas Business Journal "Top Realtors for DFW area"
Web Reference:  http://www.lynn911.com
0 votes
, ,
Mon Mar 8, 2010
Possibly. If no language is in the title/deed vesting the property to you then you would receive all the rights the prior owner owned. However if they didn't own the rights then you also do not own the rights. One way to know for sure is to have a chain of title done on the description by a company like Hollis Energy Resource Services.
0 votes
Blaser Yoakum…, Agent, Southlake, TX
Mon Mar 8, 2010
The short answer is per contract your mineral rights convey unless there is language in the contract for the rights not to convey. It is possible that the owner of the property does not own the mineral rights. You perhaps can find this out from the title company or from a "landman"

Hope everything works out for you!
Web Reference:  http://www.MyEbbyTeam.com
0 votes
Robert Regan, , Dallas County, TX
Mon Mar 8, 2010
As Dan mentioned below, mineral rights may likely no longer be something that can be transferred to you as they were probably sold long before the now current owner purchased the home. Mineral Rights have become quite a heated issue here in N. Texas in the recent years, and the reason for the outcry of questions concerning them, but while hundreds of thousands of deeds have changed hands over the last century, mineral rights have been silently ignored as they were never thought to be of any worth, concern and assumption was made they were conveyed with title. It's just now folks are realizing that mineral rights to most property was never conveyed as the person selling the Real Estate and parcel of land it sits on never owned the mineral rights themselves.You would want to check county records to determine if the seller even owns the mineral rights to transfer to you.
Web Reference:  http://www.RKRegan.com
0 votes
Cindy Allen, Agent, Southlake, TX
Sun Mar 7, 2010
You have been told correctly, assuming the seller owns the mineral rights to transfer. Call the title company closing the sale and they can tell you if the mineral rights are still attached to the land and are available to be sold with the property.
0 votes
Grace Hanamo…, Agent, Cupertino, CA
Sun Mar 7, 2010
Hello Confused and thanks for your post!

Typically, when you purchase a home, you only own the "surface" rights to the land, and not the mineral or subterranean rights. However, to determine if, indeed, you have gained and now retain mineral rights, speak with your real estate professional.

Good luck!

Sincerely,
Grace Morioka, SRES
Area Pro Realty
San Jose, CA
0 votes
Dan Chase, Home Buyer, Texas City, TX
Sun Mar 7, 2010
The mineral rights could have been sold off over 100 years ago.

A title search should show if this is true.
0 votes
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