Mineral rights can be a profitable venture if you know how to unleash its hidden potential. And as first time mineral rights owner, it is very important that you understand the aspects related from this ownership especially if you’re looking to sell your rights to the right oil and gas company.
So read more as we are going to give you a guide on mineral rights ownership before you go and sell your rights to a very complicated marketplace.
Questions To Ask
It’s normal for a first time mineral rights owner to know more about your property. And so we have taken the liberty of compiling some of the main questions that you might think of asking to understand your mineral rights better:
- How much does it worth?
- How to maximize the value of my rights?
- What are the possible mistakes I should avoid?
- Where to sell my rights?
- What to do when I receive an offer to sell my mineral rights?
Questions About Value
- How much do my rights worth if it’s not producing minerals?
- How much do my rights worth if it’s producing minerals?
- Why is it difficult to find the value of mineral rights?
- Where can I find more information about mineral rights value?
Questions About Selling
- How to sell my rights?
- What is the cost?
- What are the requirements needed to sell mineral rights?
- How does the selling process work?
- How long will I wait to get offers?
Tips To Follow To Close Out A Profitable Mineral Rights Deal
Next is most landowners have no idea about the existence of mineral rights in their land until a prospective buyer approaches them to buy it. So after learning about the questions to ask, first time mineral rights owners like you should also pay attention to these tips before you sign any paperwork:
- Check the buyer’s reputation – Try to find out more about the company who is interested in buying your mineral rights and know more about their ability to close out deals.
- Do your own research – This is necessary so you’ll be properly informed about the current market value of your mineral rights and open new opportunities that will lead to a more profitable deal after presenting your rights to other potential buyers.
- To sell or lease? – Evaluate if you are planning to sell or lease your mineral rights as it will result in different outcomes for owners.
- Negotiate – Don’t be afraid to negotiate because chances are they are offering something that is lesser than the actual value of your mineral rights. Talk to the buyer until you come into terms before selling.
- Never accept the first offer – This is very important! Try to consider other options as much as possible and don’t give any impression to the first buyer that you are committing to them.
- And don’t accept instant offers – There’s always the best time for selling mineral rights. So it pays to think it over and assess your situation very carefully.
- Ask the buyer for down payment – If the buyer is willing to pay the initial down payment of 10%, then it’s an indication of they are serious buyers.
- Wait for the buyer’s payment before sending the deeds of your property – This is self-explanatory. Likewise, don’t accept bank drafts as a form of payment.
- Read everything including the fine print – Always make sure that you are selling tract of minerals as agreed and not the minerals you own in the county unless it’s properly declared and you are compensated from it.
- Trust in your instincts – And last but not the least, every first time mineral rights owner should trust your instincts. Your gut feeling will tell you if you are going to work with the right company.