Gauging Who Owns The Mineral Rights To A New Property
When you take a look at the title of a new piece of property, you need to understand who owns the mineral rights. If you don't own them, it is important to track down who does and to find out if they will be willing to transfer them to you. This can help you make a lot of money if you try to obtain the minerals or sell them to a company who will.
The Value Of Mineral Rights
If you are interested in purchasing mineral rights, it is important to know why they are so valuable. Mineral rights give you the ability to sell any of the minerals found underneath of your property, including various metals (like iron) and even oil and natural gas. Failing to procure the mineral rights can cost you a lot of money.
Why? If such items are discovered under your property, you won't be able to access them. The person who owns the mineral rights will receive all of the profit. As a result, it is important to quickly gauge who has the mineral rights to the property you own and to find a way to transfer it back to your name.
Identifying The Mineral Rights Owner
Finding out who owns your mineral rights is akin to a simple investigation. Start by taking your title to the county clerk's office and asking about the mineral rights to your land. The county clerk will do this for free in most states, making this a great option. However, if they cannot find the records, you may need to go to the abstract office, which will charge a fee.
Usually they can locate who owns the mineral rights pretty quickly. However, there is a chance that it may require multiple looks into the past of your property. The mineral rights may have stayed with an earlier owner of the property or may have been sold to someone else. These transfers must be noted at the above-mentioned offices, so visit them to find out.
It Is Possible To Transfer It To Your Title
Thankfully, you can transfer the mineral rights back to your title by purchasing them directly from the person who owns them. Unfortunately, this is going to cost you some money. The amount will depend on the person who is selling them and how many minerals they anticipate may be under the property.
Before buying the mineral rights, it's not a bad idea to have a mineral surveyor take a look at what may be on the property. This can give you a better idea of whether or not it is worth the price or if you should just pass. Generally, you're going to want your mineral rights for your property whenever possible.
This is true even if you don't actually look for any minerals. A good title company, such as TitleSmart, can help you obtain your mineral rights and then find a good way to maximize your profit with them, such as selling them to a company who is interested in digging or drilling for iron or oil.