I am selling a piece of property and reserving mineral rights. I own 50 percent mineral rights and want to convey only 10 percent of my 50 percent mineral estate. So how do i fill out the TREC form Line B. By my understanding I would fill in 90 percent. This would give the buyer 5 percent Total mineral rights, leaves me with 45 percent and the third party 50 percent. Is this correct??? We do not have a broker.
IMHO I would make 2 conveyances. One selling the surface only. Then on a mineral deed convey 10% of your mineral interest. When in doubt, have the documents prepared by a Texas lawyer with a Contact for sale executed by both sellers & buyers so there is no misunderstanding as to what the deal is.
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Donât try to prepare the contract and deed yourself. An attorney will make sure the right language is used so that your goal is accomplished. There are thousands of court cases where people prepared the deed themselves and found out later that what they intended isnât what was in the deed.
I agree with Todd. Donât try to prepare the contract and deed yourself. An attorney will make sure the right language is used so that your goal is accomplished. There are thousands of court cases where people prepared the deed themselves and found out later that what they intended isnât what was in the deed. [/quote]
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Thanks for your opinions but thats not helpful to me and doesnt answer my question.
Unfortunately, we canât tell you how to fill out a contract without reviewing the contract and knowing more about the details of the transaction. In addition, that would be giving you legal advice and we are prohibited by law from doing that.
My question really isnt legal in my mind anyway. Its am i filling that in based on owning 100 percent of the part that i own or based on owning 50 percent of the total. By my reading I am working off 100 percent of what I own. So if im giving up 10 percent of what i own I am reserving 90 percent and 90 percent is what belongs on ling B
We are suggesting you stay away from a legal battle later. Since you are in doubt yourself, why not do it right the first time?
Im not in doubt i know the answer is 90 percent, Im trying to show the buyer thats shes figuring it wrong by using 80 percent of 50 when its 90 percent of 100. Im keeping 90 percent of my minerals shes getting 10 percent. Its pretty simple. I didnt need advice on anything else.
The TREC form I found online has â2. PROPERTY E. RESERVATIONS: Any reservation for oil, gas, or other minerals, water, timber, or other interests is made in accordance with an attached addendum.â
If one were insistent that no attorney will be consulted, might one look into writing BY HAND at the end of the contract above the notarized signatures something like
âNothwithstanding anything contained herein to the contrary, grantor reserves unto himself, his heirs and assigns 90% of grantorâs interest in the minerals on, in, and under (parcel description). If more than 10% of grantorâs mineral interest is conveyed by the sale of this property to (grantee), grantor reserves the right to repurchase for the sum of $20.00 all minerals conveyed in excess of 10% of grantorâs pre-sale mineral interest.â I am attempting to call attention to some hazards that may be present with a DIY mineral reservation in Texas. I am not an attorney and am not giving any legal advice with the above. A reliable, tested mineral reservation addendum perfected and approved by a licensed attorney is the way to go, imo.
Im not looking for that. Im just trying to establishing the percent that goes into the box on the trec mineral rights addendum line B. I own 50 percent of mineral rights. I am selling 10 percent of my mineral rights. I want to put 90 percent on line B. The buyer thinks its 80 percent somehow. Thats all im asking for. Im doing it myself im not asking for opinions on that. Im asking a math question to show the buyer shes figuring it wrong. Shes figuring off of 50 percent when she should be figuring off 100 percent of the 50 I own. Am i not explaining my question right?
You have not shared how âline bâ is worded. I would think that you would reserve the fraction you want to retain, i.e., 90% of your interest in what you now own. I am concerned you may not be aware of the very specific legal language which must be used. Make sure that your line b actually controls throughout of ALL of your transactional documents.
Thank you very much for your reply thats what i was looking for. Line B refers only to the sellers interest which is 100 percent of 50 but the buyers was figuring off 50 percent of the whole total mineral estate if that makes sense.
âB. Subject to Section C below, the Mineral Estate owned by Seller, if any, will be conveyed unless reserved as follows (check one box only): ï±(1) Seller reserves all of the Mineral Estate owned by Seller. ï±(2) Seller reserves an undivided _________________interest in the Mineral Estate owned by Seller. NOTE: If Seller does not own all of the Mineral Estate, Seller reserves only this percentage or fraction of Sellerâs interest.â
Youâre welcome. It is my belief hand-written language in a document such as the earlier mentioned Notwithstanding amendment may be superior to that which is printed in type. If you sign any document other than the form, it might behoove you to insert handwritten language stating the document is subject and inferior to the mineral reservation in the form.
TREC contract forms are intended for use primarily by licensed real estate brokers or sales agents who are trained in their correct use .
Attorneys also use the forms. Mistakes in the use of any of the forms may result in financial loss or a contract which is unenforceable. Persons using these forms assume all risks associated with their proper use.
You are using a document that, once signed and filed in the courthouse deed records, becomes unchangeable. Anything written above the signatures need to be initialed and dated by all signers. If not, there is a potential argument that the language was not there when signed.
In law it is referred to as the â four cornersâ doctrine. What is written, and as it is written, is what a court has to rely on. Cases in Texas have been won and lost based on misapplied punctuations - a comma in the wrong place or omitted, and especially references to mineral interests.
Liberally paraphrasing a quote from Alice in Wonderland Humpty Dumpty said âWhen I use a word, it means just what I choose it to mean â neither more nor less.â Alice replied âThe question is, whether you can make words mean so many different things.â And, in law, wordsmithing is an art. Sentences can be very complex and grammatical rules dictate how the subject and verb interact. This is one good reason to use get legal advice and, they have malpractice for their errors!
A judge I once knew had a sign on her wall that read âYou may think you understand what I said (wrote) but, what I said (wrote) is not what I meantâ.
So trace back through the deeds to where a previous owner originally had 100% and make sure you can prove you have 50% of the minerals. Wording in previous documents may prove you have less than 50%. Someone may have said they were conveying 50% of the minerals thinking they were conveying all that they had when, but in reality, they conveyed 50% of what they owned and mistakenly kept the other 50%.
As an example, I convey 1/2 of what I own to you for some purpose. I own 50% and you own 50%. Using the exact same language you convey back to me. I now own only 75% and you still own 25%.
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