I am wondering if there is any information that you never share with someone looking to purchase/make an offer for your mineral interests? And if so what should you not share or what is it okay to share?
When I get an offer, I do several things to see if the buyer is legitimate. -I look them up on Bizapedia and see how long they have been in business. No problem in being a new company, but I am look for the owners to see if they have experience and their BBB rating.
-I look up the owners on LinkedIn or other sites to see what their training and background is.
-I look up their website. Are they willing to say who they are? Who is funding them? What do they do? etc. If they are not willing to reveal who they are and how they are funded, then I will not deal with them.
-I ask if they are willing to put 10 percent of the purchase price in an escrow account as a good faith measure. What third party is holding that escrow for them? Attorney? Accountant? I want a PSA in writing and an agreement that the remainder of the payment will either be paid to the escrow account and my third party who is holding my lease or deed will turn it over when the check clears or it will go to my direct direct deposit account before my third party will be handing over the lease or deed. Never turn over a lease or deed without getting paid.
There are ways to protect yourself. I also would get at least three-four bids from other buyers in the area. If I had extensive holdings, then I would probably get an independent third party to evaluate the minerals since that is one the best counties in the Permian Basin with multiple reservoirs.
Most mineral buyers will want to see your check stub, which is no big deal to share. They are just trying to make sure you are in “pay status” and confirm your decimal interest amount (aka NRI) and well names. You can share as much or as little as you want as far as other things go, just personal preference. Sometimes being more transparent and sharing the amount of each offer you’ve received will help the buyer get more aggressive - but the risk is that you might reveal that your existing offers are below market. Just personal preference on how you like to do business.