Results 1 to 2 of 2
  1. #1
    Join Date
    Jun 2011
    Posts
    1

    Default What Mineral Rights Do You Have While Buying on a Land Contract

    My question involves real estate located in the State of: Michigan

    My sister and I are selling property on a land contract in Michigan. The buyer has signed an agreement to lease the mineral rights, receiving a signing bonus and possibly future royalties.

    The energy company will reject his lease unless we, the sellers, sign a 'Ratification'. I understand that basically we would accept his contract terms in the case of default.

    We are unsure if he has the right to lease the mineral rights while we still hold the deed. The sales agreement did not specifically reserve the mineral rights. We see a risk of damage to the property value if it reverts back to us due to seller default.

    Any help would be appreciated.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: What Mineral Rights Do You Have While Buying on a Land Contract

    I expect that the company attempting to lease the mineral rights has already reviewed the contract and title history to confirm that you had the right to convey the mineral rights and that they are included in the land contract. If you are not sure what you conveyed, have a real estate lawyer review the land contract and, if you aren't sure of whether or not you owned the mineral rights, the title history.

    Some sellers under land contracts decline to sign ratifications and suggest, instead, that the buyer pay off the land contract if they want to lease the mineral rights.

    1. Sponsored Links
       

Similar Threads

  1. How to Buy Partial Ownership of Land and Mineral Rights
    By vinniev in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 01-20-2011, 08:53 PM
  2. Mineral Rights: Buying Land Without the Mineral Rights
    By CJF1981 in forum Real Estate Ownership and Title
    Replies: 2
    Last Post: 06-16-2010, 08:54 AM
  3. Land Contracts: Seller's Rights After A Land Contract
    By landlady in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 11-04-2008, 10:58 AM
  4. Land Contracts: Can You Quit Claim Property You Are Buying on Land Contract?
    By snolff in forum Buying, Selling and Conveying Real Estate
    Replies: 23
    Last Post: 10-13-2008, 11:02 AM
  5. Mineral Rights: I am being told I do not own mineral rights on my land
    By NChemungGuy in forum Real Estate Ownership and Title
    Replies: 1
    Last Post: 11-01-2006, 02:25 PM
 
 
Sponsored Links

Legal Help, Information and Resources