We purchased property in Pennsylvania that was purchased by the previous owner at a Tax Deed Sale. Does the Tax Deed sale dispose of any oil and gas leases in place on the property at that time?
Thank You
Dear Mr. Ward,
If the oil and gas leases were in effect at the time that the previous owner purchased the property and the minerals were not severed from the surface estate, then the tax sale voids the oil and gas lease – in Texas, as to PA, I have no idea. There is a redemption period in most states, some more liberal a redemption period than others.
IF the mineral estate were separated from the surface estate and the land was sold for taxes surface estate then the mineral leases are not affected. That is my take.
Perhaps one of our PA friends will see this and can comment.
A modern upset tax sale in Pennsylvania won't void an oil and gas lease in effect before the sale. And there's currently no redemption period in Pennsylvania. Years ago under a different system then in effect, the outcome wasn't the same, so you need to know the date of the sale, and what system it was held under, to be sure.
Buddy Cotten said:
Dear Mr. Ward,
If the oil and gas leases were in effect at the time that the previous owner purchased the property and the minerals were not severed from the surface estate, then the tax sale voids the oil and gas lease -- in Texas, as to PA, I have no idea. There is a redemption period in most states, some more liberal a redemption period than others.
Perhaps one of our PA friends will see this and can comment.
Best,
Buddy Cotten
www.cottenoilproperties.com