Hypothetical question on Mineral/gas/oil rights.

[ronwood]

Jeff,

I think you did well not to buy the property without the mineral rights. I wonder how much other property that they may have  bought and are trying to sell without the mineral rights.

Ron

[beenthere]

.........The realtor says they come from a part of the state that has gas and oil reserves, where you never give up the rights once you have them. They have owned the property for about 3 years.

Jeff
This indicates the present owners apparently did manage to get the mineral rights just three years ago. If so, that is likely recorded in the deed of the property, and one could learn the extent of those rights and how they currently are assigned to the property.

[Ironwood]

Yeah, The realtor's "NEVER" was evidentally , just three years ago, when someone else did give them up!. While you are looking up the deed, also look up what they paid for the place (also public info ususally found in the same office or nearly so).


Ironwood

[maple flats]

If you ever buy a place without all mineral rights it is recorded on the deed and many times you can never get a mortgage on the place. I recently attended a meeting sponsored by co-op ext about gas mining and leases. They warned that if any surface was tied up in the agreement then a bank will not give a mortgage. My understanding was that if only sub surface rights were tied up a mortgage could be gotten. They were talking to farmers who were being approached by gas mining companies, and some signed only to have there mortgage called in. Be careful, very careful. Before ever entertaining such an idea hire an attorney who specializes in gas and oil leases to be sure you are protected, even if it means two lawyers, one about underground rights and one for the real estate transaction.
Dave