Should you lease or sell your minerals? While some would rather have an upfront payment, others would rather lease their minerals. While no one way is right for every mineral owner, there are a plethora of pros and cons that every mineral owner should know and understand before making their final decision.
Leasing provides financial security because continual payments will be made. However, there are some circumstances when leasing is not as fruitful as a person had hoped.
- Leasing has the possibility of providing a lasting income. Monthly payments are made when minerals are producing profits and if a large deposit is found, income levels will rise.
- Leasing allows the mineral rights to be transferred to other family members.
The property that you own may hold far more value than you think. With the possibility of valuable minerals being found, landowners can profit off of the sale of these minerals. In fact, there are a plethora of reasons why it’s safe to sell the minerals on your land and do so without relinquishing your property rights.
1. Financial Security
Unless land is sold, it normally will not produce a profit for the owner. When mineral rights are sold, however, this provides immediate financial security. Depending on the quantity of minerals found, a person may have thousands or millions of dollars’ worth of minerals that they never knew about. These minerals are valuable and many companies will pay to purchase the right to use these minerals.
2. Cash Upfront
Being weary of roy
Did you know that the United States is one of the only countries in the world where a land owner also owns the mineral rights of their property? In other countries, it is the government that owns these rights. This is part of what makes the buying and selling of mineral rights such a lucrative business. If you own a piece of property and are considering selling your mineral rights, you may be having a difficult time coming to a final decision. Follow the steps below to find out whether or not you can sell your property’s mineral rights and how to find out how much these rights are worth. With this information in hand, you will find it much easier to make your decision.
1) Research Local Laws that Govern Mineral Rights Sales
Leasing minerals is very enticing and if you've ever wondered how does a mineral lease work, this article is for you. With the possibility of frequent royalties being paid, a mineral owner may find that they have just found their source of income. However, there are a lot of legalities and general misconceptions that mineral owners do not understand when they lease their minerals. Sometimes, the owner of the land will not be the owner of the minerals. Minerals are severable from land ownership. This will need to be determined by going through previous land and mineral records and is often a tedious task.
Leasing occurs when the owner of the minerals comes to a contractual agreement that allows the lessee to utilize the minerals found wi