We are currently considering offers to buy mineral rights in the area and I am wondering about a couple things hopefully someone can help shed some light on.
Have received a letter of intent agreement from an interested party with two days to respond which is obviously not enough time to properly evaluate the offer but regardless, I am wondering what the phrase in the letter means, "Sellers shall provide general warranty as to subjects interests conveyed thereunder."? Does this mean we are guaranteeing title? I've read about this on the forum and believe that it is not advisable to have seller warrant the title, is that correct?
If a person signs the letter of intent, it states that the buyer will forward approved mineral deed. I'm wondering if signing a letter of intent actually obligates a person to sell? It seems that a person would need to have the mineral deed in order to review before making a decision to sell or do I have this wrong?
I have written down the name of a legal firm someone mentioned on here out of Kingfisher and am thinking that we should have a deed reviewed by a legal expert before completion of the sell.
One company we are are in contact with is Mayhawk Energy out of Norman, does anyone have experience with this company?
Sorry for the litany of questions but need as much as advice as I can get, thank you!
I can’t answer all your questions, but I think a few things are worth mentioning.
If you are the same Lesley A. Shriver, that was formerly known as Lesley A. Vaughan who sold their surface interest to a Robert Brown, I’d point out that the last deed you signed was a Warranty Deed with a warranty clause. No harm there.
A warranty clause is not necessarily a bad thing and often you will find that some buyers simply will not entertain quit claim mineral deeds. However, you are correct that you should be wary of any deed that they sent to you, and if you do intend to sell, simply utilize your own mineral deed if you are not comfortable using theirs.
Also, take that 2-day letter of intent and throw it away. That is a commonly used high pressure sales tactic. You are 100% correct, you should be able to review the deed prior to agreeing to sell.
You may have to sign a letter of intent with some buyers. Some simply do not want to waste the money verifying title to property that you never had an intention of selling. Never surrender possession of a signed deed without the check in hand. However, I suspect that because of this post here, you are about to receive a few more offers so take some time to weigh them all.
If you are not local to Oklahoma, then check to see if your local bank or attorney's office will hold the deed pending payment. Otherwise, have the buyer deliver the check before you surrender the deed.
It is your property. You can do with it as you please for as long as you hold the deed. You set the terms of the contract which is why any deed you sign is always construed in favor of the Grantee.
You can request earnest money prior to entering a contract for sale of your real estate with a clear expiration/full payment date. A typical amount could be between 2-5% of total value of the acreage, as it's negotiable. This demonstrates good intentions on both sides of the transaction.
If the sum is a great amount you may consider working with them a bit more on the details as they may have to coordinate with investors or a client. In any case, I strongly recommend not giving them a signed deed without full payment in hand. Not even an image of a signed deed, as some places allow electronic filing these days.
Be very cautious about offers to buy your minerals. There are lots of lowball offers out there. Anyone who rushes you is also cause to slow down and think carefully. Get help from members on the forum for the pros and cons. Friend me if you need more info. I do not buy or sell, just want you to be informed.
I Lesley. I am from Watonga having graduated in 1974 and have been in the land business for 35+ years. I buy minerals, oil and gas leases and participate in the drilling of wells.
If you have an interest in selling and haven't done so yet, please do not hesitate to get in touch with me by
Its actually more of a Felony offense than the honor system. Most county clerks have that hanging in their office stating so. I know in Oklahoma they are looking into with several groups who claim "exempt." It is a form of Tax evasion and one that has been over looked for awhile. Better be able to prove you are exempt if you claim to be. Most of the county records are online now, so they search those in question daily to keep adding up the offenses with the groups in question.
Couldn't agree anymore with that. Martha Barnes is very savvy and always offers unbiased help in the mineral owners favor. Any time you see her or RW Kennedy you should listen closely and take notes.
Tim, you should write an article praising those two for how much they have helped others make decisions that have saved/made family legacies by making informed decisions. I'm sure they hear it often but they make this forum a trusted place for mineral owners who lack the proper tools and information needed to make an informed decision. Not only do they do that but help police the forum for low life's looking to take advantage of someone who is reaching out for help and trusts the forum to will help them and not take advantage of them.
I sincerely thank you, M Barnes and RW Kennedy for all that you do. Have a very Merry Christmas, and a Happy New Year.
Happy New Year to all! Hope our prices keep going up. Kudos to all of you mineral owners out there who ask questions and try to get informed and to those of you who share. Knowledge is power and if we help each other, we will make better decisions. All of us were beginners at some point and never stop learning. My thanks to all of you who have taught me over the years.