Does anyone know the amount of time a landman or oil company has to pay when a leases is signed. We signed a lease with DoubleEagle Devleopemnt over 60 days ago and have not recieved payment yet. Cannot get an answer from them. They say they have to do a title search even tho the lease is signed.
If you took a bank draft (not a good idea) read the fine print and see how long in "bank days" they have to honor the draft. If they don't satisfy that term satisfactorily, check to see if the lease was recorded at the courthouse. If it was you are in for a difficult time. Good luck.
Seems like they should have done a title search first and then had you sign the lease. at least that's the way mine was done. of course, I did not deal with this company. like Gary says, Good Luck.
perhaps you were given an Order For Payment; this document would specify the waiting time for payment. Also pay close attention wo whether they state calendar days or business days. 60 business days is actually 3 calendar months. Look to in your terms of payment document for instructions on what to do if you aren't paid in time. If is often necessary to write them a letter informing them they are late and then they get xx more days to pay.
As Gary advised, be sure to check with the courthouse to be sure they have recorded the lease yet.
Keep in mind that since you don't know the payment terms they may be well within their rights to not have paid you yet. I have heard of 120 business day leases too. So check out your documents and let us know what you find.
By the way, where are you located and any idea who Double Eagle Development might be representing?
I presume they gave you a draft, order of payment or bill of exchange. If they are over a week late even if figured in banking days, I would record a statement of non-payment immediately, with a copy to your lessee's legal department sent with tracking. If you wind up in court one day you want things to be black and white. This does not mean that the lessee could not still lease from you. They could send you a check along with a ratification of your previous lease. If the lessee is late paying you want to get on record first that they did not pay before they record the lease and assign it to someone else to avoid a court battle that could cost you $100,000. I am speaking from experience, you need to act as soon as possible.
I sent you a friend request. I may be able to help you out, but would like to talk about it privately. Thanks.
All of the comments on this thread are accurate, and you should act quickly.