Will escrow companies handle a sale of royalty rights? I hate sending off signed and notarized documents based on trust alone.
I have not heard of Escrow companies closing mineral transactions. However, I suppose its possible…
Alternatively, you could offer to provide executed, notarized COPIES of conveyance docs and release the originals once consideration is received.
Keep in mind - A contract places an obligation on both parties to perform… The seller/lessor should not be required to perform until the purchaser/lessee has fulfilled his obligation. Don’t let any broker or landman tell you otherwise…
Do you require title or curative work prior to closing the transaction?
Otis:
You can use your bank’s collections department via a bank draft. Request the transaction be handled that way. The buyer sends you a bank draft in the amount of the consideration along with the mineral deed. You then execute the deed and place with your bank. They send to the buyer’s bank and upon payment of the draft, the buyer gets the executed deed. This is the same as an escrow transaction.
As for sending documents through the mail, do so using certified mail to show proof it was mailed. The buyers doesn’t want to get himself in a mail fraud lawsuit that is a felony.
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I think our title is pretty clean, thank you!
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