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Mineral Rights Scam in TX
An elderly mineral owner in the Barnett receives a letter with a check that looks VERY similar to a check from the operator for payment of royalties, but the letter states that by cashing the check, she agrees to convey her mineral rights.
I understand that the payment in consideration for the mineral rights is a type of contract; However, I don't understand how they can claim to have title to mineral rights without a signed and notarized deed?
I have heard of this type of thing before, but never knew anyone it happened to. Any recourse other than getting an attorney?
Replies to This Discussion
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Permalink Reply by r w kennedy on -
Search, "Mineral Sales by Mail Covering Properties in the State of Texas" by Buddy Cotten. it may be helpful to you.
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Permalink Reply by Cliff Williams on -
In order for a contract to be valid the contract must be an offer, acceptance and delivery of the bargained for item. There cannot be the use of fraud to induce the sale. When one party is mistaken about what is going on then there is no "meeting of the minds" and a contract has not been made.
There is very little help outside contacting an attorney. I have handled a few situations like this but it is worth your time to write a letter to the fraudulent company and go through the steps that I mentioned...expounding upon the elements and how the fraudulent check doesn't comport with Contract Law and see if the will back down some.
There can be no transfer of ownership without a document that is recorded conveying the mineral interest from the elderly person to the company so how would they accomplish this portion?
Cliff Williams
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Permalink Reply by Myranda Shugart on
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Thank you Mr. Kennedy and Mr. Williams. I have directed her to a good O&G attorney. I think this can be worked out.
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