We signed paperwork 230 days ago to sell our mineral rights. 100 days later they sent a 3% check as good will while they checked out if we lawfully owned the mineral rights. according to our lawyer we do own them according to Ohio law. Is 230 days normal for this to not be finalized and they take ownership?
If you signed a deed, you may want to double check to see if it has been filed with the land records. Sounds like a long time to be held in limbo. Depending upon your agreement you may want to cancel the sale or give them a deadline. Use an Ohio attorney.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
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I work for a Mineral Purchasing LLC and we normally pay within 30 days, as long as the Title is run and clear. If you signed the Mineral Deed, I hope you still have the original.
We do have an Ohio lawyer. We have contacted the oil company’s rep. He told us not to contact him as he would only speak thru our lawyer. We did ask our lawyer if we could back out and he said no. Plus we tried to add a deadline to no avail. It’s like we are in holding forever. And at their mercy.
My family contacted a lawyer in NM to clear up our title requirements for mineral rights owned in 2022. We are still fighting with Coterra to pay out our funds in suspension. It’s been a nightmare.
@MistyRose - Did you sell to a Mineral Investment Company or a Drilling operator?
Did your lawyer review the agreement before you signed it and fail to set any deadlines for closing or termination? If you asked to set a deadline and were refused before signing, that should have been a red flag to terminate negotiations. Is there language that your acceptance of a partial payment acted to extend the term of the agreement? Or did that acceptance compromise your legal rights under state law? No one sends money as ‘“good will” but rather as a way to cement their rights under a contract. Is there a penalty clause if you terminate the contract? Consider getting a second opinion from another attorney about your right to demand the purchaser conclude the sale or release you. You may need to refund any payments received to date.
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You need a new attorney. Its the only gripe I have about this board, everyone suggests hiring an attorney 1st before doing anything, but when they do, they often come back on here asking about what their attorney did and asking questions. A mineral purchase should take no more than 45 business days to close. The fact your attorney signed off on whatever contract you signed and then took 3% owed after that much time, is quite baffling and would be enough for me to hire a new attorney Monday or 130 days ago! But, the big question is, how many acres are you selling/expected profit from the sale? If its a tiny mineral interest, then obviously dont want to spend more money on it, if you are expecting 6+ figures, then you need to act fast.
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Bob, It is not clear that they consulted an attorney before signing the contract provided by the buyer. If they did, then either the attorney did not build in adequate protections or they signed despite his warnings. Sometimes people sign documents because they like the agent on the other side and just hope it goes well. The buyer sent 3% payment to the seller stating it was “good will.” No idea what they have paid the attorney.