Marketable Mineral Title

I’ve inherited interest that was unknown to me until just almost a year ago. This is the most aggravating thing to try to learn.

My question, do I have to have marketable title to receive royalties or do I have to probate first?

Thanks!

Welcome to the forum.

Start with the company producing the minerals and ask what they need to put the royalties into pay status.

The answer to your question depends upon the state where the minerals are located & the producing company’s requirements. For instance, in some states an Affidavit of Heirship can establish your rights. But in Oklahoma an AOH only establishes marketable title if done correctly and it has been on file with land records for 10 years without anything to contradict it. So more often than not Oklahoma will require a probate.

This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.

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Great advice from @Richard_Winblad. Too many people complicate issues when a brief communication with the purchaser can provide you with the required process.

You will discover that collecting and organizing the property information is going to be invaluable. Make sure to keep a record of all communications related to the properties. I prefer to manage all docs and comms digitally for speed and ease of use. With a little effort, you can use the Google or Apple eco systems as a no cost system for property management. The greatest advice that I have received is be patient and diligent. Good luck.

Thank you for that. My question was pretty vague. The lease is in Eddy County New Mexico. Also, we have been put into Pay Status, back in October, but haven’t received anything as of yet. The lease has been in the family sine back in 1930’s. The energy company is saying is pushing me to probate but there are other family members involved that receive royalties that haven’t done an informal probate. Also, my attorney tells me that when the informal probate is done, going through the process now, that the other family members will automatically receive marketable title.

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Correct on the marketable title. Companies make “on pay” determinations differently at different times, if that makes sense. All that benefit from the probate should contribute to the cost on a fairness basis, but that does not always happen. Stick with the advice of your attorney. Good luck.