"Lessor hereby warrants and agrees to defend title to said land when the claim is by, through or under Lessor, but not otherwise" was included in the additional provisions in a lease I'm negotiating when "Lessor hereby warrants and agrees to defend title to said land against the claims of all persons whomsoever" was crossed out in main part.
What does it really mean?
csm
Dear Mr. McClung,
This is a what is called a Special Warranty, which only warrants the title against defects during your tenure or ownership. Specifically:
The grantor (you) of the conveyance containing special warranty language, that in effect, only warrants the title against their own actions or omissions. They warrant nothing prior to their taking title. If specifically stated in the deed, other warranties can be conveyed.
Best
Buddy CottenThanks, Buddy. Appreciate the help. The language is challenging, to say the least.
I responded to the initial lease offer, In Lavaca Co., outlining what I would like to see the lease contain based on what I've read via the forum and recommended links. They responded to my requests, but I have to be honest and say, I don't know if they gave me what I asked for or not. The provisions for the royalties reads differently than other contracts.
For Instance, "Oil and other liquid hydrocarbons: On all oil and on all liquid hydrocarbons, one-fourth of that produced and saved from the leased premises, the same to be delivered to Lessor into the storage tanks or into the pipeline to which the wells may be connected, or, at Lessor's option, such oil and liquid hydrocarbons shall be sold with Lessee's oil and liquid hydrocarbons at the price received by Lessee, but in no event for less than the market value thereof. Lessor's options hereunder may be exercised from time to time, and the exercise or failure to exercise an option at any time shall not constitute a waiver of Lessor's right to exercise further options".
How do folks like myself make responsible and informed decisions regarding lease offers?
Thanks, again.
CSM
Buddy Cotten said:
Dear Mr. McClung,
This is a what is called a Special Warranty, which only warrants the title against defects during your tenure or ownership. Specifically:
- The grantor (you) warrants that they have received title.
- the grantor (you) warrants, unless noted specifically in the deed or conveyance, that the property was not encumbered during their period of ownership.
The grantor (you) of the conveyance containing special warranty language, that in effect, only warrants the title against their own actions or omissions. They warrant nothing prior to their taking title. If specifically stated in the deed, other warranties can be conveyed.
Best
Dear Mr. McClung
Have you joined the Lavaca County website?
Out of curiosity, who is making the offer?
Buddy CottenI joined it a while back. The company is called Buckaroo. Ever hear of them?
Buddy Cotten said:
Dear Mr. McClung
Have you joined the Lavaca County website?
http://www.mineralrightsforum.com/groups/group/show?groupUrl=eagle-...
Out of curiosity, who is making the offer?
Dear Mr. McClung,
For someone to make responsible and informed decisions generally requires research by a trained professional -- either a landman specializing in landowner issues or a board certified oil and gas attorney, or both. I personally like it when both are involved. At some point it comes down to dollars and cents (or sense) - at what price are you willing to pay for information or representation vs what dollars are being offered.?
Best
Buddy Cotten
I will second what Buddy said here, the right information can hugely affect how much money you are able to negotiate.