Payment on Lease

General Mineral Rights Discussion
1

I know it has been said many times, “don’t hand over the signed lease until you have the money in hand”, but….the terms of the lease we are being offered gives the company 45 days “due diligence” in which to remit payment. We have dealt with this particular landman in the past and payment has been prompt as soon as they receive the leases and required documentation.

The only other option I know of is to pay a lawyer to hold the signed leases until payment has been made. To do everything absolutely correct, we’d be paying out the majority of our benefits to the lawyer! Does everyone spend that much money to protect their payment? We did hire an attorney to review the lease and shared the cost between family members. That worked as we are all signing the same lease.

2
  1. You don’t need an attorney.
  2. Once a lease is written to all parties satisfaction, You sign the lease and get it notarized.
  3. You make a copy of the notarized lease (marked as copy) and send to the lessor, keeping the original.
  4. Once you receive payment and the funds have cleared, you make a copy for your files and mail the original lease to the lessor.
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3

Well, that sounds doable and sensible!! Thank you so much! Good advise!!