Was curious if someone could shed light on how to best document the purchase of mineral rights that are currently under a lease agreement. I’m new to this forum and to this type of investment. Thanks in advance! Chris
The seller needs to sign a deed wit legal description of the mineral acres being assigned, includung any reservations (something retained by your seller or earlier seller) or limitations (such an only rights to specific depth). If you are only buying an interest in the future revenues from the lease, and not the underlying minerals, that would be detailed. You can only purchase the interest currently owned by the seller, so if he owns only 1/4 of the minerals, then that is all you will receive. Once the deed is recorded, then you send a copy of the recorded deed to the lessee. You need to do your homework to understand exactly what the seller owns and then what he is selling to you.
Got it, thank you very much for the response.