Thanks Buddy, I will remember that if and when I get another chance to lease. Will the average small time mineral owner be able to get the operator to accept that. I guess it means they have to be a little more thorough with their title work.
You of course are right. I bet the oil co left that part out when the seller sold and signed papers. LOL
Buddy Cotten said:
There is a huge difference between striking or saying you do not warrant title and a broad disclaimer of warranty, including the covenant of seizen. Much better to go on to say that entire risk, cost and expense of title is upon Lessee rather than Lessor and Lessor shall never be required to return any monies, including bonus, delay rental and/or royalties in the event of a failure of title, either partially or complete.
Best
Buddy Cotten
Mineral Manager
What about liens such as on their home or car?
Go Fast said:
Hi. I'm not an attorney but I did a lot of research (into collectible accounts) before marrying my husband, who is disabled. If you and your wife rely on disability checks, and don't own much free & clear, they will have a very hard time getting anything from you in the event that they do sue. They cannot garnish your SSD or a bank account that ONLY has SSD going into it. If you have money coming in from other sources, you might want to set up a seperate account, even at a different bank. Unless you are planning to finance something, & need to get a loan, don't worry about them putting it on your credit record. Like the people on here have said, tell him to contact you in writing only. Take care of your wife & let the landman take you to court (if that ever happens) & prove to a judge that you didn't own what you thought you did.
Does caveat emptor not cover product quality only or the lack thereof? It may not cover fraud, as with mineral rights transfers, which the buyer may claim in this case?
Charles Emery Tooke III said:
Morning, Boys -
After all these years, I Googled caveat emptor and Ken is right about the definition. I have thought of it the way I described for years because that's the way it was described to me when I was younger. Inspite of the difference I think the inference is clear.
Ken, you are the Attorney in this discussion, so I must admit that you are more than likely correct. But I just can't agree with your describing the circumstances as being a mutual mistake.
Richard, what County is your property in and what's the Landman's name?
What is Continental's full name and address?
Great answer!
Regardless if it was the landman's fault who prepared the lease, if there is a clause in the Lease called "Warranty of Title," or something to that effect, in which the Lessor (mineral owner) guarantees that he owns the minerals and will reimburse Lessee if he is not the owner, then the Lessor is in breach of contract if he does not return the money. The two times that I have encountered this situation, the client refused to file a lawsuit because the amounts at stake were $1,500 and $3,000. So it all depends upon how much money is at stake.