To: Jean Pledger
Hi Jean,
If I enter into an option agreement to sell my mineral rights with five payments over a three year term,does the mineral buyer take ownership at the beginning or at the end of the term of the agreement?
I’d read the agreement before I signed.
We signed a lease waiver instead (50 years, renewable at end of term), and had someone negotiate a very good price for us. It was land that didn’t have a huge drilling potential. If you want to keep the minerals in your family’s estate, this is a better way to go than selling them.
1 Like
Hello Mark,
Because options to solar companies take many forms, it depends upon what your option contract states.
Sorry I can’t give you more information without knowing more details.
Mark,
Would you sell your car or home and expect to get paid over a 3-year period? I would highly advise retaining full ownership of any asset until you are paid in full. If you are still looking to structure an installment agreement then you should consult with an attorney to confirm your are protected.
2 Likes
Twinee, How much did you get per acre for your lease waiver and did you reserve any drill sites on your acreage?
Twinee,
Under California law, a lease of 35 years or more will result in two “changes of ownership” and will trigger two reassessments of your property. You may notice a much larger tax bill coming in the future. If this is a concern of yours please send me a message and I can put you in touch with an attorney that may be able to help limit some your tax liability by restructuring your lease. Unfortunately this is becoming a more common occurence with renewable developers not familiar with CA law.
1 Like
We own mineral rights on land leased to a solar company for a solar farm. They paid us to allow them to build the solar farm, but we still retained mineral rights. The land has been unproductive, but there has been success in the vicinity.
Three questions. How long is the agreement for? What did you receive per acre? And did you reserving a few acres of drilling sites so that you could drill on the land in the future without interfering with the solar panels/?
This topic was automatically closed after 90 days. New replies are no longer allowed.