Mineral Rights and Surface Rights in Oklahoma -- Do What Your Client Wants

By
Real Estate Agent with Coldwell Banker Select, Realtors -- Tulsa, Oklahoma

Mineral Rights and Surface Rights in Oklahoma -- Do What Your Client Wants

If you have been following my blogs, you know I am passionate about my clients getting the mineral rights -- putting the chocolate cake back under the icing.

I showed property this week in Osage County, Rogers County, Tulsa County, Okmulgee County, Okfuskee County, and Pittsburg County to two different sets of clients.

In every case the realtors said the minerals did not come with the property, that the sellers were only selling the surface rights. 

However, when meeting and speaking with the sellers directly, in half the cases the sellers owned the minerals and were willing to convey the minerals with the property.  These sellers had minerals that were not in production.  When they sell with the "old" Oklahoma contracts used by GTAR, these sellers will be conveying the entire bundle of rights -- whether or not the realtors know what that bundle of rights contains or not.  The attorneys will be probably be using a General Warranty Deed conveying the entire chocolate cake in fee simple  or even if unbeknownst to them there is a piece or two already eaten out of the cake or not, they are planning to sell 100% of what they have, thereby conveying the property through a General Warranty Deed.

However, one seller this week refused to sell the minerals because the gas under his land was being produced and he wanted his descendants to get the little royalty checks in the future.  His land had been unitized already.  That particular property was out in the country near McAlester where a lot of gas has been being produced in the last few years.  My buyers were comfortable with not getting the minerals because they loved the house and the land.  They did not seem to really understand that just because the property is already being produced doesn't mean the D6 dozers and drilling rigs won't come onto the property in the future.  If they had bought that place they would only have been purchasing the icing on the cake because the seller wanted to sever the mineral estate from the surface estate, making the minerals personal property.

We couldn't get the deal together anyway, and so the minerals ended up being a moot point.  In the offer I put:  "Seller shall retain 100% of the minerals under this property."   To me that language using the "old" Oklahoma contract still being used by GTAR would allow the buyers to acquire the entire bundle of rights without the minerals, while still retaining air and water rights and any other rights that go along with the surface. 

There is no way I will use a "Surface Only"  contract.  Thankfully, the Greater Tulsa Association of Realtors (GTAR) has not approved the use of the new Oklahoma contracts.

Nevertheless, if I have a Single-Party Broker's agreement, I am legally bound to obey my clients and do what they want, even if I think it is not in their best interest.  You bet in such a case that I will be documenting that I inform them of the negative consequences of not getting the mineral rights.

http://OKLandandRanches.com

http://TulsaRealEstateWeb.com

http://NortheastOklahomaRealEstate.com

http://BixbyOklahomaRealEstate.com

http://dsolano.homesandland.com

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Topic:
Real Estate General Information
Location:
Oklahoma
Groups:
Equine and Rural Issues and Answers
Farm and Ranch Real Estate
Oklahoma Real Estate
Small Town Rural Marketing
Everything OKLAHOMA
Tags:
oklahoma real estate contract forms
ownership of mineral rights
fee simple
mineral rights

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Rainmaker
1,345,556
Andrew Mooers
Northern Maine Real Estate-Aroostook County Broker
MOOERS REALTY

Mineral rights in Maine...they go with the land, are conveyed in every transaction as a given here. Rarely a well is on the neighbor, but it may be a family member so they have written in to the deed rights to that well. That's it..no oil or gas here. Just 91 percent of Maine wooded. That's our precious fuel.

November 08, 2009 09:30 AM
Rainmaker
81,527
Debbie Solano
CRS -- Tulsa, Oklahoma Horse Properties & Land
Coldwell Banker Select, Realtors -- Tulsa, Oklahoma

Andrew,

You are so lucky not to have to deal with this issue. 

When you are talking about wells, do you mean an artesian water well? If so, are family members nearby given a right to the water? 

I almost bought a place here in Oklahoma where we would have had to use the spring water pumped through the neighbor's pump house.  We did not do the deal, but now that I am in real estate I am not sure how I would have written that one up.  Is it an easement or actual division of ownership?

-- Debbie

November 08, 2009 09:44 AM
Ambassador
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Judi K Barrett
Broker/Owner, Integrity Real Estate Services -IDAB
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma

Debbie,

Very good article coveing mineral rights conveyance within Oklahoma.  Please add Oklahoma somewhere in your title for "Everything Oklahoma" guidelines.

Thanks!

November 08, 2009 05:28 PM
Ambassador
1,859,187
Judi K Barrett
Broker/Owner, Integrity Real Estate Services -IDAB
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma

Debbie,

Very good article coveing mineral rights conveyance within Oklahoma.  Please add Oklahoma somewhere in your title for "Everything Oklahoma" guidelines.

Thanks!

November 08, 2009 05:28 PM
Ambassador
1,859,187
Judi K Barrett
Broker/Owner, Integrity Real Estate Services -IDAB
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma

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November 27, 2009 07:31 PM
Rainmaker
81,527
Debbie Solano
CRS -- Tulsa, Oklahoma Horse Properties & Land
Coldwell Banker Select, Realtors -- Tulsa, Oklahoma

Judi,

I am so honored to be featured.  I have never been featured before!

Thank you!

November 28, 2009 08:00 AM
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Rainmaker
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Debbie Solano

CRS -- Tulsa, Oklahoma Horse Properties & Land
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Additional Information

AuthorBio: Debbie Solano has earned two Masters degrees: 1) an MLS (Masters in Library Science) from SUNY at Albany, School of Library and Information Science, 1978 and 2) an M.Div (Masters in Divinity) from Southern Methodist University, Perkins School of Theology, 1997. Debbie earned her Oklahoma Real Estate license in 1994 and has been a REALTOR full time since 2005. She is a member of the Greater Tulsa Board of REALTORS®(GTAR) and a member of the Northeast Oklahoma Board of REALTORS® (Grand Lake), the Oklahoma Association of REALTORS® (OAR), and the National Association of REALTORS® (NAR). She is also an active member of the American Association of Professional Landmen (AAPL) and the REALTORS® Land Institute (RLI). Her professional real estate designations include: CRS, ABR, AHWD, CHMS, e-PRO, GRI, REOS, and SRES. She currently serves as the Membership Chairperson for the Oklahoma Chapter of the Council of Residential Specialists. Debbie is a Volunteer Visitor in the Pastoral Care Department at St. John Medical Center in midtown Tulsa. She is also a member of the choir at the Church of St. Mary in Brookside.

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