We get proposals from time to time that have been signed (not lease agreements) proposing development of a certain piece of land. Do we have to keep track of what leases we have signed for what property or does that get handled at the county court when the lease agreements are recorded.
In other words are we at risk of having some legal conflict of having two developers leasing the same land?
Thanks,
AccidentalOwner.
The purpose of recordation is to give notice, which is public record.
If the lease is not of record and you signed two leases covering the same land and depths thereunder, different statutes will apply, depending on where the land is located.
Just to give you some examples. In a RACE state, the first to record their lease will win so to speak.
In a RACE NOTICE state, the first to record would not win if the lessee has notice of a prior lease, whether it is recorded first or not.
Hey, Again -
You're going to have to give me a more specific scenario here. "Not lease agreements" means exactly what?
Are you talking about the possibility of conflicts between SURFACE development and SUB-SURFACE (Mineral) development? That's a no-brainer.
As Dave Quincy in part explained, everything effecting real property (which includes oil and gas mineral rights) must be filed of record in the Official Public Records of the County or Parish in which the property(ies) are located.
States vary in their laws, but in essence:
In a "Race" State it is literally a race to file your documents at with County Clerk's Office - whoever gets there first wins, establishing legally required "Public Notice".
In a "Notice" or a "Race/Notice" State, the fact that the two parties to an agreement or conveyance (Seller / Grantor / Lessor and Buyer / Grantee / Lessee) are aware of the transaction validly establishes "Public Notice". The earliest executed Document wins, no matter who wins the race to the courthouse.
One last thing, then I've got to go (hungry guests have arrived): If you have entered into any conflicting or potentially conflicting agreement, lease or conveyance, however so inadvertently, from my experience you could and very likely will find yourself in an "Actionable Position".
If you warranted title, I wouldn't spend any money you made on either of the conflicting deals until you find out whether you have to return any of it.
Gets messy, otherwise. People are funny about money.
Hope this helps -
Charles
I'm not sure why you felt the need to re-explain Race and Race/Notice, especially since you had guests coming. You added absolutely nothing to my explanation.
There would be no reason for him not to return the bonus money to the second lessee, whether he warranted title or not. If he mistakenly was paid twice for the same lease, the right thing to do would be to return the money to the second lessee if the lessor was confused about what land he had leased. If it was a Race state, he could return the bonus money to the lessee who lost the recording race.
There is nothing filed of record effecting real property. There are many things filed of record affecting real property.