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

View Debbie Solano's profile on LinkedIn

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
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

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the pants to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
1,389,048
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

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.

Nov 08, 2009 09:30 AM #1
Rainmaker
81,527
Debbie Solano
Coldwell Banker Select, Realtors -- Tulsa, Oklahoma - Tulsa, OK
CRS -- Tulsa, Oklahoma Horse Properties & Land

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

Nov 08, 2009 09:44 AM #2
Ambassador
1,892,230
Judi K Barrett
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma - Idabel, OK
Broker/Owner, Integrity Real Estate Services -IDAB

Debbie,

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

Thanks!

Nov 08, 2009 05:28 PM #3
Ambassador
1,892,230
Judi K Barrett
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma - Idabel, OK
Broker/Owner, Integrity Real Estate Services -IDAB

Debbie,

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

Thanks!

Nov 08, 2009 05:28 PM #4
Ambassador
1,892,230
Judi K Barrett
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma - Idabel, OK
Broker/Owner, Integrity Real Estate Services -IDAB

FEATURED IN

EVERYTHING OKLAHOMA

GROUP

Nov 27, 2009 07:31 PM #5
Rainmaker
81,527
Debbie Solano
Coldwell Banker Select, Realtors -- Tulsa, Oklahoma - Tulsa, OK
CRS -- Tulsa, Oklahoma Horse Properties & Land

Judi,

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

Thank you!

Nov 28, 2009 08:00 AM #6
Anonymous
Anonymous
ucmwwrmm
n9Jiuc dpjazwqecoon
Sep 23, 2011 01:23 PM #7
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the scissors to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
81,527

Debbie Solano

CRS -- Tulsa, Oklahoma Horse Properties & Land
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information