Received an offer from Matador regarding Lea County Twnshp 16S R 36E Section 2. 10 acres net of 80 gross. $325 per acre bonus 20% royalty w/ 3 year lease. They ask for Warranty of Title. This was from a family inheritance and I do not have documentation of mineral rights. How do I discover the title and if there any tax liens. I contacted the Lea County Tax assessors office, Lea County clerk, BLM for original homestead filing(pending) all helpful but could not provide info on mineral rights using. I need to know if the title is clear before I sign.
I would just tell them no for starters. “You contacted me”. But…this isn’t really my thing.
I also think you could get a better offer, it might be worth it to enlist professional help to check on title and they can pay for themselves by negotiating you up to $500/acre or 22.5% bonus etc.
Thanks. Lea county records said to contact a local Landman to research the title on mineral rights. The offer from Matador came through a Texas Landman. I’ll call him with questions and see where we go from there…without committing.
If you agree to a full warranty instead of a special/limited warranty, will you be responsible for defending the entire chain of title (in court) against all comers at any time in the future? I am not an attorney and would not sign a oil lease without having an attorney review the document. The following language is for informational purposes only and is not–nor should it be construed as being–legal advice: “Lessor warrants title only as held by itself at the time of executing this lease and disclaims any further warranty as to title not actually in its possession at that time.”
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