I was just curious to know if anyone has ever used an escrow service or title company to handle a mineral sale in Oklahoma and if they have any recommendations. I know that most buyers will offer to send a check after receiving the deed – and I have done that in the past without any problems – but now I have a much more substantial transaction on the horizon and want to do things right.
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Whomever you choose, NEVER hand over a deed without getting a check at the same moment. You can send a scan with COPY DO NOT FILE over a signed deed as proof of good faith while they do the title search. But do not give the original without getting paid at the handoff. I prefer a cashier’s check.
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If a company or individuals want to lease or buy, the title work needs to have already been completed! I would NEVER sign a lease without a Cashier’s check and all the documents have been completed. Show me the Cashier’s Check and I’ll sign the documents and I’m not going to warrant your title work.
When I have purchased minerals in Oklahoma I have used bank drafts. I prepare a deed and draft drawn on my bank. The draft is set up for payment within 15 days of sight subject to approval of title. The seller signs the deed and presents it along with the draft to his bank as a collection item. They forward the deed and draft to my bank who holds it for pay off. I do not receive the deed until I pay it off. My bank sends the proceeds back to the sellers bank unless title fails in which case they would return the executed deed. I have also purchased hundreds of oil and gas leases in the same manner.
Thanks for all the feedback. The buyer agreed to let my attorney in Oklahoma City hold onto the deed until the funds were transferred via wire and that seemed to work well and make everyone happy.