The term mineral rights are not only in reference to the fact that you will own minerals, but also oil, gas or rocks that are found under the ground on your property. It is important that you understand that they differ quite a bit from surface rights, which is when you own anything that is above the ground. If the landowner owns both, then it is possible to buy mineral rights, without purchasing the actual land.
We at H&M Land and Mineral have discovered that it is more common for people to lease mineral rights for a certain period of time. However, when you actually buy mineral rights, it will provide you with permanent ownership. Once you make this purchase, you can mine this property yourself, or hire a company that offers this service, or you may even decide to resell. We have created the following tips to help you if you want to buy mineral rights.
Determine What You Can Purchase
The deed to a piece of property may not include the information about a property’s mineral rights, since many states record the ownership of mineral rights in a separate location than the surface property information. Before trying to make a purchase, H&M Land and Mineral suggests that you do plenty of research in order to determine the ownership of the mineral rights you are interested in.
What is a Mineral?
Another important thing to consider is the fact that each state has varying definitions of what qualifies as an actual mineral. You need to determine what is considered a mineral in your state to know what you are actually purchasing. We have found if you skip this important step, the process may become more complicated.
Learn about the Local Laws
While most laws related to the process of buying mineral rights are similar, there may be specific laws regarding the drilling and mining regulations. There are some situations where we can help with understanding the laws that govern the area where you plant to purchase, since H&M Land and Mineral has extensive knowledge and understanding of this process.
Negotiating the Terms
This will not only include the price that you are going to pay for the rights, but the terms of the agreement as well. We know that this may be difficult to fully understand, which is why it may be a good idea to learn more from H&M Land and Mineral prior to making a purchase.
When you are ready to buy mineral rights, we may be able to assist the process. This can be invaluable if this is the first time you have ever completed this type of transaction.