We purchased a home in August 2020. The minerals were included in the sale of the home. The previous owner had a paid-up lease that was signed in October 2017 for a 4-year term. If he sold us the home and the mineral rights, does he retain all of the upfront royalties/payment or does the remainder of the lease from August 2020 to October 2021 prorate and belong to us? Is the lease void because of change of ownership? Can we release the minerals in our name?
Thank you.
If the party you purchased from did not reserve the mineral rights on the conveying deed they now belong to you and the lease also transfers to you. No, you’re not entitled to any portion of the lease upfront signing bonus but now you need to provide a copy of your deed to the party holding the exploration rights.
You will not have the opportunity to lease until the current expires or if produced the lease won’t expire until production ceases.
Also, if the area is producing you should contact that company and advise them of the transfer.
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