I am buying a house in which the mineral rights are non negotiable. Should I walk away from this and look for a house that includes the mineral rights? How often does this happen? How will buying a house without mineral rights affect my property or resale value?
If it's just a lot in town or a subdivision, it should be no big deal. In fact, it would be uncommon for the minerals to be included. If you are buying a larger piece of land, it could be an issue, depending on what part of the Country you are in.
Thank you for your help.
Steve Durrett said:
If it's just a lot in town or a subdivision, it should be no big deal. In fact, it would be uncommon for the minerals to be included. If you are buying a larger piece of land, it could be an issue, depending on what part of the Country you are in.
Rocio:
Mr. Durrett is correct in his response as most times the minerals are not included in the purchase of a house. At times, when an idividual purchases a house along with some acreage, the seller will include a fraction of the mineral rights but many times this perk is thrown in to offset the higher value of the property. There has been instances that owners of homes in subdivisions have acquired the mineral rights, even though the residence is within city limits. There was instances in the Ft Worth, Texas area where owners of homes in subdivisions were paid royalties since gas wells were drilled within the city. Bottom line, buying a home without minerals in a subdivision will not affect your resale price but if you have the minerals on acreages, this is a big plus in the sale.
Depends on if you want mineral rights or a home? Do you like the house and the location of the house? Just because you get a a property with mineral rights doesn't automatically mean there will be any oil or gas exploration. If its a house and a location I wanted then I wouldn't let mineral rights be the issue to stop me.
How many acres? What are the mineral rights worth? (this would depend on location, and amount of land). Don't expect the seller to 'give them away free' , especially if the mineral-value dwarfs the home-value.
In Texas, the mineral estate is/can be separated from the home(surface) estate , and each (the home, and the mineral estate) should be valuated separately and thouroughly (if we are talking about some acreage). Only buy what is a good value to you.
Years ago in Oklahoma the mineral rights automatically went with the property when you purchased it but for several years now nearly all property is sold separate from the mineral rights. There are some exceptions, however. When my dad sold 400 acres at Eucha near Jay in Northeastern Oklahoma about 15 years ago he retained half of the mineral rights and let the other half go with the property (he had gotten all mineral rights with the property when he bought it about 40 years ago). To my knowledge they aren't doing any drilling there. It would be hard drilling in those mountains and rocks but I believe they had done some coal mining in the past so the minerals might be worth something someday. We're not holding our breath.
Like someone on here said "you need to buy the land or house you like and if you happen to get the minerals it would be a plus". But unless they tell you the minerals are included I would assume they aren't on any property. (I was a Real Estate Agent for a few years and that is what my experience was) but don't hold my foot to the fire, please.
I have a home in Fort Worth, Texas it's on about 1/3 of an acre. They Leased and drilled for natural Gas, which the price is very low. I got my first royalty check for the home and we suspect it is for 3 months of drilling. $123.00.
Here in Fort Worth, The Oil Companies started the Boom Times here, we got about $6000 singing bonus on the 1/3 of an acre. I have some other homes that I placed on the Market and sold without the minerals, because in Texas you can several the Minerals from the Land. Every little bit helps these days. However one of the people buying one home wanted the minerals. I told him for $10,000 more he could have them. He declined the offer and took the home. Remember everything is negotiable when it comes to buyers and sellers. When I helped my daughter buy her first home, she asked for the minerals and the owners didn't even know about the drilling going on, and said that was fine. So it comes down to you and what you want.
Continued Success to you in all endeavors.
Chris
I bought a house in Colorado last year. Originally during the offer exchanges, the PO would not negotiate on the mineral rights (he had an oil lease). However the bank said that since this was a short sale, he could not keep anything of value and had to give up the mineral rights with the house. Both of the real estate agents had never had to deal with mineral rights during a sale since most of those rights had been acquired 50+ years ago here in the Weld County area.
I would say that generally, if it is a short sale purchase, that you would get the mineral rights, assuming the owner HAS them.