How to Retain Mineral Rights
Retaining ownership in the mineral rights to your home can be as easy as providing notice of it in the sales contract. The challenge is finding buyers who will be OK with sharing property ownership. The discount offered for such a right might prove to be substantial. You can always convey rights to another party before selling to avoid the conversation when reviewing the contract, but that might cross the good ethics line. Retaining mineral rights can be done, but the negotiation is a little tricky.
Other People Are Reading
Instructions
-
-
1
Define the word "mineral." A mineral is an ore of metal, coal, oil, gemstone, salt, dimension stone and many other materials extracted from the ground. However, the legal definition can vary state to state.
-
2
Determine the amount of money you can make from the transaction. The total sale will be surface rights minus mineral rights. Surface rights are all parts of the property above ground and mineral rights are all rights below the surface. Mineral rights might be more valuable than regular surface rights. Use comparable sales or contact an appraiser for an estimate.
-
-
3
Determine the ownership. In some countries outside the United States the government has ownership to all mineral rights of the property.
-
4
Decide on a lease or sales contract. If the owner is not interested in selling the rights, he may be interested in a leasing agreement that gives you the right to enter the property as you would if you were the owner. The lease would also allow you to reap the profits that come from production.
-
5
Negotiate a more customized offer by getting to know the buyer's needs. Find out what concerns the buyer. The buyer might be interested in allowing you to retain mineral rights as long as the property isn't disturbed. Perhaps you can both agree on less destructive exploration methods.
-
6
Adhere to state and local laws. Most states regulate drilling and mining activity as a way to protect the environment. Laws can vary substantially state by state, especially for oil and gas.
-
1
References
- Photo Credit freedigitalphotos.net
