I have a Stipulation of Interest and Cross Conveyance document to sign for property in Texas. However, by my calculation, the total percent allocated to each party as per the document, does not total 100%. How important is it that the Stipulation of Interest percentages divided between owners add up to 100%? Is this a concern to let the oil company know about? Or should I go ahead, sign it as is, and return it to the folks drilling the well?
The stipulation of interest is used for a group to settle and agree on how their minerals or land is owned among themselves, usually due to a title issue. For example, if a group owns 1/2 of the minerals, then the agreement would be on how that 1/2 minerals is owned among the group. It would include the owner of the other 1/2 who has clear title. That said, the agreement should specify the fractional mineral interest - such as 1/2 of the minerals - and state the fractional interests adding to 100% for the owners - such as John 3/10, Mary 5/10 and Albert 2/10. So total of 10/10 (100%) ownership of 1/2 minerals. You should have an attorney review this stipulation of interest and the fractional minerals involved before signing. Once it is signed and recorded, you will not be able to rescind or change your ownership. It is never advisable to simply sign a binding legal document that you do not fully understand or agree with.
It needs to add up to 100%. Sounds like a simple drafting error. Double check your work and make sure your interpretation is correct, then let the other parties know about the error in the document.
Thank you very much for your replies! They are most helpful!.. Last question… does there need to be a whole new, corrected document sent out to be notarized and signed or can there be just an amendment correcting the drafting error?
Never sign any defective legal document. Why are you asking this question? The agreement would only be recorded after all parties sign. You can never be assured that everyone will sign a amendment or correction document and no amendment will be effective unless all the parties sign. You should have an attorney review any agreement that affects your legal title to make sure that it does not have any adverse effect. There are lots of drafting errors which lead to later litigation and that is far more expensive.