I think they send these things hoping to find elderly people who may not have all their cognitive abilities and might even cash a check by accident. My mom used to get these "offers" in the mail many times a year. There would be a check inside which, if cashed, made a contract deeding away the rights to her mineral property in Loving County, Texas. I agree with what others have said: this is a totally unscrupulous practice and should be outlawed. It is like getting scam phone calls claiming your grandson needs cash because he's in jail in another country. They prey on the elderly and it makes me shudder.
You really need not 'beware' of your mail. Many of these companies are on the up and up. They are legitimately trying to purchase mineral estates and or royalty interests, present or future. That in and of itself is not the least bit nefarious. There are indeed those who would take advantage, however your attorney can tell the difference. Just don't sign anything without his advice. Simple, huh?
As to their offer of 'a couple hundred dollars', many times these companies try to begin negotiations using a low dollar amount - as a particular company may be located in a distant city and have little expertise in what minerals and or royalty interests are commanding in a certain area. That figure is undoubtedly negotiable.
Just like making a deal on a new car, these deals are always open to negotiation as to price. Additionally, every contract is inherently open to negotiation as to all points...so long as both parties remain interested.
Until such time as you may come to an agreement of terms with one of these firms, and you execute a legal instrument delineating what you are selling, the price, and other relevant terms....there is no deal...and those offer letters contain no more threat to you than those letters offering to sell you aluminum siding or a new tractor.
Contractually, it takes two to tango.
There are 6 elements which make a contract legally enforceable:
1. Offer
2. Acceptance
3. Consideration
4. Capacity of the Parties to Contract -
5. Intent of the Parties to Contract -
6. Object of the Contract
I'm not an attorney, but I do deal with oil & gas land issues on a professional level and I simply don't believe cashing a check satisfies the above 6 elements which constitute a contract. In order for a 'mineral estate' to change hands, it requires a Deed or some type of conveying instrument, heirship though the laws of descent and distribution, or condemnation and taking by a court. The mere act of cashing a check without signing ancillary instruments neither constitutes a contract nor does it allow for a legally recordable instrument to be put of record.
No court in the nation would find for someone claiming they purchased real property merely by issuing a check.
Again, I'm not an attorney, but I have stayed at a Holiday Inn Express a couple times.
Shayne Davidson said:
I think they send these things hoping to find elderly people who may not have all their cognitive abilities and might even cash a check by accident. My mom used to get these "offers" in the mail many times a year. There would be a check inside which, if cashed, made a contract deeding away the rights to her mineral property in Loving County, Texas. I agree with what others have said: this is a totally unscrupulous practice and should be outlawed. It is like getting scam phone calls claiming your grandson needs cash because he's in jail in another country. They prey on the elderly and it makes me shudder.
You probably own a half acre or something
Texas Lady said:
Thank you so much for your reply ,but i can`t imagine the nerve of these company`s to try to buy your minerals
for just a couple of hundred of dollars ,i think they probably saying we are in need of money and we would sell .
but i did what all of you said i shredder the papers then i burn them ,probably won`t be the last that i get but i sure will take the advice you gave me ,,Texas Lady.
I took some advice from this newsletter and, with others in the family, got 3x what they offered. Under no conditions would I sell. I firmly believe that some of these guys are fishing for a brokerage. There must be something else driving this new quest of these companies, perhaps they see a new price surge coming up because of a new technology.
Go Texas lady, I think you are on the right track.
Never, ever sell or lease your mineral rights until you have determined the market the value of your minerals. You can pay a Petroleum Engineer or a consultant to do this for you, or you can go to www.OGR3.com and use the automated Petroleum Engineering tools there to do it yourself, or they will do it for you. It's cheaper than a consultant and it will generate industry standard economic reports for you. This way you have ammo when "they" come knocking.