I have royalty interests in numerous counties in Texas, Oklahoma and Louisiana that I am interested in selling. Who should I contact to help me sell all of them at the best price? Thank you.
One option is to post them on the Market Place category on the forum. You would need to list them individually.
Another option is to list them with several auction companies and see who bids the best price.
Remember that if you sell, you will need excellent documentation of your title and you will need to know your original value because the IRS may want a capital gains tax.
Best to get your ducks in a row before starting the process or you may get taken advantage of.
Thank you. I inherited them from my father, how would I find the original value? Also, there were division orders completed for each but no actual title accomanied the division order. Where would I find a title? Thank you so much.
If you inherited them from your father, do you have a probate document? That would be your title.
The Division Order is just a contract between you and the operator for payment of royalties. Sometimes you can get a copy of the title opinion paragraph from the operator.
Do you just have royalty rights or do you have mineral rights? Two different beasts. With mineral rights, you own the lands and the resources under the surface which includes the royalties if any are produced. With royalties only, you just own the product stream from certain wells, not the mineral rights. Do you know if you have other minerals that are non-producing.
The IRS will assume a value of zero unless you can prove what the rights were worth as of the date of death of your father. Was there an evaluation with the probate? That is the best answer, as going backwards is rather difficult. You have to find comparable sales, perhaps get an engineer involved (which costs money). If you don’t have the time or the funds to really evaluate the original value, sometimes, you just have to go with the zero value. Depending upon what kind of wells, if you have check stubs from the date of death, you can sometimes use a multiplier of the value received for the oil and gas. Getting that value can be complex.