Threat of Trespass To Try Title, Fear Losing Minerals

Ownership and Title
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I am looking for perspective/guidance on a title situation in Cass County, Texas.

Our family was approached by a landman asking certain heirs to sign a Deed Without Warranty to help clear a title cloud. The property is a small tract where, decades ago, the surface appears to have been conveyed out of the family, while minerals were reserved and later passed down through heirs. Supposedly, there are older documents in the chain that contain some confusing or conflicting language about whether surface, minerals, or both were conveyed at different points.

A later surface owner apparently occupied/used the property for many years, including timber operations and paying taxes. The landman says this supports merchantable title. This owner then deeded the land to a company, but its title company apparently will not insure without either curative deeds from the heirs or a trespass-to-try-title action.

We are not trying to fight a legitimate surface ownership claim. If the issue is truly surface only, I am comfortable cooperating. My concern is making sure we do not accidentally affect any retained mineral or royalty rights.

The proposed Deed Without Warranty includes mineral reservation/exclusion language stating that no oil, gas, or associated hydrocarbon interests are being conveyed. That is helpful, but I am not a lawyer and am still trying to understand the situation as a whole.

My questions/concerns are:

  1. If a buyer believes the surface title was merchantable due to long possession/use, does it still make sense that the title company would require curative deeds or a trespass-to-try-title action before insuring?
  2. Can a Deed Without Warranty still create risk to retained minerals if the deed contains broad conveyance language but also has a strong mineral reservation/exclusion clause? Are there loopholes to look for? Can a Deed Without Warranty override things somehow in a way I don’t understand?
  3. For a deed review like this, would any Texas real estate/oil-and-gas attorney be appropriate, or is it important to find someone specifically familiar with Cass County/East Texas title issues? I am in the state but do not live near the county.
  4. Are there low-cost resources for those with low income for this kind of limited deed review? I am not looking to litigate or hold up the transaction. I just want to avoid signing something that affects minerals unintentionally. The royalties don’t even payout much of anything, but that doesn’t mean I want to put them at risk..

One additional concern is that recent research suggests the landman may have some connection to the buying entity, which was not made clear to me. I do not know whether that is unusual in this context, but it makes me want to be extra careful.

I understand no one can give a definitive answer without reviewing the documents, but I would appreciate any general guidance, especially if someone has experienced similar issues.

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The buyer needs title insurance, whether to get a loan or just to be sure that he is not throwing money away. The title company will not issue a policy unless there is absolute clarity of the surface ownership. Title policies rarely cover any mineral ownership. There is a problem in the deed history regarding surface ownership. The interim surface owner may have had a claim of adverse possession due to use of surface but that leaves title holes unless it is resolved by deeds or by legal action. The landman’s job is to get the mineral owners to sign and his verbal statements and emails are not the law and will not ensure that you retain any or all mineral ownership by signing the proposed agreement. The wording of any deed you sign will prevail, whether or not it is in accordance with your understanding of the intent. You need a Texas oil and gas title attorney to at least review the proposed deed to make sure that your minerals are protected, preferably in light of relevant deeds and facts and the attorney’s title opinion about the situation. The buyer and title company have all this information, but may not be willing to let you see it. Perhaps you can ask an attorney about the fees to review and then require that the seller reimburse you for all costs in exchange for executing the deed. Even better to let the attorney handle that part of the negotiations. If you can get this, do not hand over any signed deed or even a copy without being paid first. If they file a trespass to try title action, then you need to respond to the court with a correctly worded denial within the required time (perhaps 30 days after service). The title attorney does not have to be in the county.

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Sorry for the slow reply! The days got a little hectic lately.

Thank you so very much for taking the time to type that up. The oil and gas attorney we are familiar with is on vacation, so I was trying to figure out what I could until he returns. I like your idea about seeking reimbursement for review, as it should still ultimately cost the buyer less than having to deal with lawyers himself to initiate legal proceedings. I will of course see what the lawyer says first and potential costs of his services.

Thank you for the added information on the trespass to title action as well. I was not aware of the time limit. I wouldn’t want to drag it out to start with, but it is good to know because things often get away from us as we are still dealing with some life events.

I am glad I can use an attorney out of county. We plan to use a local one we know and trust, but this type of stuff is new to me and so I was unsure if it mattered.

Thank you again for your help, and sorry again for the slow reply. Time got away from me.