Sometimes, landowners no longer need their land but find profit potential from the minerals beneath the property. Fortunately, they can sell their land and retain mineral rights. This way, they can continue exploring and making most of the minerals under the ground. But how is it possible to have mineral rights without surface rights?
Mineral and surface rights are independent
When landowners successfully explore ownership rights, they can retain both surface and mineral rights. The two, however, are not dependent on each other and are a distinct set of rights. It is possible to sever the mineral from the surface estate.
How to ensure retention
If the seller decides to keep the mineral rights, they must record their mineral reservations deed with the appropriate land title office. Furthermore, the seller must explicitly and clearly state in the contract that they will keep the mineral rights. Otherwise, the same will be transferred to the new landowner together with the surface rights.
An issue to look out for
While severing mineral from surface rights is possible, many buyers prefer to buy the property with both rights attached. This is usually to protect privacy and avoid property damage. With this, it may be challenging to find a willing buyer unless there is a substantial reduction in property value.
Selling property while retaining mineral rights seems promising for a landowner. However, it can be challenging and confusing. It is essential for a seller to review the advantages and drawbacks of this option to ensure that the seller can make the most out of their rights.