How to Keep Mineral Rights
Owning and selling land is not as simple a transaction as it might seem. The full transaction in a large city might include sale or retention of air-rights above a building, either allowing or preventing construction of a tall building on the land. In other areas, sub-surface issues, including mineral rights, play a large part in land sales. Safeguarding rights to mineral ownership is usually a matter governed by state laws. If you wish to keep mineral rights to land you are selling, you should be aware of the documents and other requirements you need to meet in the area where you live.
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Things You'll Need
- Access to state and local laws governing the ownership of mineral rights
Instructions
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Consult your local or regional government clerk's office to determine whether and how you can separate ownership of mineral rights before entering into any sales agreement for your land. In some states, retention of mineral rights can be specified on a deed of sale; in other states, you may need separate documents to prove retention.
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Contact your local or regional government land-assessor or property tax department to determine what financial obligations may be tied to your retention of mineral rights. Even though sale of your land may remove your general property tax obligation, you may still be responsible for paying taxes on mineral rights, whether you choose to exploit them or just keep them for the future.
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Determine any possible restrictions on retaining mineral rights if you plan to sell land to a federal government entity, such as the Department of Forestry, or to a land-conservation trust. Federal or state environmental policies may supersede or restrict your rights to exploit subsurface mineral deposits exactly as you see fit.
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Consider paying for expert exploration and assessment of the gains you are likely to realize from retaining mineral rights. Proximity of your land to large deposits of oil, gas or other minerals is no guarantee that your land will yield similar resources. Retention of mineral rights may restrict the interest of prospective buyers. The more information you can gather about what lies under your land, the better you will be able to decide about keeping mineral rights.
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Make certain that you and your purchaser have full legal documentation of your property rights. This is not a matter for handshake deals or informal agreements. Full compliance with state and local requirements protect both of your rights.
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