If you have ownership over mineral rights it can be overwhelming to understand everything involved. Part of owning a mineral estate means that you, as the property owner, have a right to mine, exploit, or produce any and all of the minerals that can be found underneath the surface of your property. There are several tips that are beneficial for you to know about what it means to have a mineral estate.
What Your Need to Know: Mineral Ownership
As a mineral owner, there’s a few things you need to know to make sure that you can make informed decisions about your assets moving forward. Here are our tips:
- Know what you own: When selling a home, it is important to know what will attract buyers and what reasons the property may attract a higher or lower price than other homes in the neighborhood. Selling your mineral interest is no different because buyers will want to know where your minerals are, how large your property is, and other information about your land before they can submit an offer.
- Sell partially: In some cases it may be more beneficial for you to sell a portion of your mineral rights, but to still maintain ownership over a part of it. That way you can take a little more time to consider different options, such as selling or leasing your rights, and can consider many offers without time restraints.
- Know legitimate offers: Anyone who is providing a legitimate offer should give the mineral owner about a week to consider their terms so they can compare it with other offers or consult a professional if necessary. If someone is putting pressure on you to make a decision too quickly, it is a good indication that the offer they are giving you is too low and an unfair market value.
- Seek professional advice: Any time you are going to execute a legal transaction about something you are unfamiliar with it is vital to discuss this transaction with a professional. They can make sure that you are getting a fair offer and not getting taken advantage of. This may also mean speaking with an attorney to understand all the legal ramifications of the transaction.
- Have a clear title: Proving that you are truly the owner of the property will help generate more interest and can even raise the amount of the offers. Going to the courthouse to obtain a mineral deed or lease agreement will only help improve your mineral listing.
- Know your surface rights: If you decide that you want to sell your mineral rights, but maintain ownership over the surface rights, it is important to know how it will affect you. Legal advice is important when it comes to negotiating surface rights.
Being A Mineral Estate Owner
Knowing as much information as possible about your property and what having ownership of mineral rights means to you is imperative if you are planning on selling or leasing those rights. Just knowing a little about your rights can save you from unfair offers and getting taken advantage of. Contact us today if you have any questions, and see how Flatiron Energy can help!