The moment of truth is approaching……….
The company buying is reputable, as am I, but how do I make sure funds are in my bank account positively and how do they make sure they are getting a signed deed?
Our agreement reads " signing of the mineral deed in exchange for payment at a location of your choice".
Trouble is, I have not figured out exactly where that location should be.
Next week is our agreed upon date to complete deal…….Suggestions? Thank you, Barry
Barry,
I am going to assume "reputable" as in larger mineral company, with a clear public record of transactions. In most cases, the language in the PSA for in-person closing is a last resort. While most companies should have no issues meeting you to close a transaction, generally this is all done by overnighting of documents and wires. It takes a bit of trust but as long as you have a PSA and not an LOI from a reputable company; you may not have to meet in person to finalize the sale.
Generally, if I were to close a mineral deal. I would overnight you a deed to sign and notarized and send back to me. Once I have the tracking number, I will overnight you the check to purchase the minerals. This way you don't have the deed, and I don't have the check. I've never had anyone overnight an empty envelope and hopefully, I never do. The same can also be done with a Wire. However, most companies will wait to have the deed in hand before initiating the wire given most wires from large institutions (not ACH) happen instantly.
Hope this help. Also, sorry for the Reputable part. Its just I have seen many unethical players hold deeds over people because they don't have the money and are trying to flip the minerals. Always good to be cautious.
CVR
Your bank is a great place to transact.
Your attorney more than likely has an escrow account for just such purposes. Use him/her as your intermediary.
Where i have done business with the company and landman before, i will send them a scanned copy and when i have the check, I send the original document. Most have been willing to trust me, but i suppose a scanned copy could be filed with the county, but not sure if that doesn't require original signatures. I have been lucky and had only one Oklahoma "flipper" try to beat me out of the full lease bonus.
Thanks for ideas. I guess I used a little from all advisors here. Closed at my bank with cashiers check. Funds were verified by my banker and he also acted as notary. I think next time I would do it at their bank, and try to avoid the couple days of lag due whatever happens to convert a cashiers check into “funds avaiable” in my account. Pending to avaiable was a tortuous wait.