Has anyone had here experience with the US mineral exchange? I am currently submitting paperwork to join this service but I’m also receiving offers by phone/mail. Highest offer so far is by J Hawk investments LLC. I’m tempted to sell to them because the mineral exchange charges a 6% fee. But my research on the Mineral exchange seems to be the best way to go. Any thoughts?
6%?..ouch. This isn’t a home listing with open houses and all. Do they have people who do the legal paperwork as part of the commission? And if so, are they licensed in some way? You don’t want to rely on the counterparty to protect your interests.
These are great questions! I will definitely be finding out. Thank you so much!!
Where are your minerals located?
@zarahsergison I have private messaged you.
I have purchased minerals off of USME previously. They do not to the legal paperwork for you. It is up to the buyer and seller to furnish their own purchase agreement and deed. USME will do a cursory information check on your minerals but it is up to the buyer to do their own further due diligence and title check. They are great to deal with both via email and phone. They will hold the funds in escrow which is a nice safeguard for the seller.
Thanks so much Matt! Your information is super helpful
We’ve used them in the past and I can echo some of these replies. Very communicative/responsive, but we were disappointed with some of the interest/lack of buyers…but to be fair it wasn’t the best acreage. I believe that they are attempting to get more interest from buyers by adding a “seller willing to start negotiations at $X” versus what they used to do of just “please submit offer”. It looks like they’ll be starting a new auction service in 2019, too, but I don’t know any more info on it.
If we receive solicitation letters it’s basically a flag for us to start paying attention in certain areas. If one party is ready to buy, chances are there will be more to follow at higher prices. If you’re at the end of the list and that’s the highest offer of a few or a dozen, I’d look to see if/who the sender of the letter has sold to recently in the area as well as a few other things.
Good luck with the potential sale.
Nick Hunley, Attorney, CPL Disclaimer: This post is for informational purposes only and not for the purpose of providing legal advice.
I was considering US Mineral Exchange to sell part of my existing mineral rights. I made an appointment with a local attorney to review the internet agreement I would have to sign to get started.
The attorney warned me that the agreement contained some hidden landmines I needed to be aware of. Although the company says there is never a fee to the seller, the agreement is actually written to ensure that the company collects its 6% fee regardless of how how buyer got referred. In other words they will try to make the seller pay a 6% fee on buyers that were never actually referred by US Mineral Exchange. According to the attorney that’s what the agreement actually says although US Mineral Exchange wants sellers to believe otherwise.
Yes, you are bound to USME during the contract period. Even if an outside buyer contacts you directly (not through the USME), you have to pay them their 6% fee.