my siblings and I are in the process of signing a 5 year lease through Hoover & Stacy, Inc. I received the documents and bank draft for what I though was for the first year but verbage says it's prepaid. Does that mean this amount is all we are getting for the 5 year lease? Time is of the essence since I have one family member who already sent in his notorized documents to the co.
Yes, "prepaid", or the term "paid up", means that is the total you will receive for signing the lease. So whatever amount is shown on the bank draft is all you should expect. FWIW, it has become rare to see any leases done with annual payments for the lease bonus.
That was not fully disclosed or I misunderstood. Guess I should have signed up for this site and did more research. Have other mineral rights in Colorado so I will keep this in mind. Thanks for your reply
Eastern MT said:
Yes, "prepaid", or the term "paid up", means that is the total you will receive for signing the lease. So whatever amount is shown on the bank draft is all you should expect. FWIW, it has become rare to see any leases done with annual payments for the lease bonus.
Debbie Ann Heinz said:
That was not fully disclosed or I misunderstood. Guess I should have signed up for this site and did more research. Have other mineral rights in Colorado so I will keep this in mind. Thanks for your reply
Eastern MT said:Yes, "prepaid", or the term "paid up", means that is the total you will receive for signing the lease. So whatever amount is shown on the bank draft is all you should expect. FWIW, it has become rare to see any leases done with annual payments for the lease bonus.
Time is not of the essence. You have all the time you need if you have not sent the company your executed lease. In fact you should not send the lessor your executed lease until you have spendable cash in hand, which a bank or site draft is not. Search the term cold draft.
Nothing stated as cold draft. Calling Hoover & Stacy for more info. Thanks R. W