Oil Rights For Sale? Exercise Due Diligence Before Selling!
September 3, 2018
If you have oil rights for sale, you may be wondering how this type of sale is actually made.
To benefit you the most, your sale of oil rights should be done using a multi-step process that will protect your interests as a seller and spell out all legal concerns within your contract.
You should always exercise due diligence when selling oil rights to be certain you receive the best transaction for both you and your buyer.
A critical need prior to attempting the sale of oil rights is first confirming that the minerals you wish to sell are actually yours.
Ownership of mineral estates can get blurry over the decades, especially when estates have been divided, passed down, and sold along the way.
You must first research your property deed of sale to confirm ownership of your mineral estate and legal right to sell it.
If there is no mention of minerals on your property deed, you will have to dig deeper and conduct a title search to track the ownership of your estate before you attempt selling oil rights.
Once you have determined that you do indeed own the mineral estate and plan on offering your oil rights for sale, you must determine their value.
Without doing so, you run a very high risk of selling below the actual value of your estate.
Due diligence to protect your investment involves doing the research necessary to first determine what you actually have to sell, then researching demand and current market prices.
If you are attempting the sale of oil rights on your own, work with a geologist who can explore your estate and answer important questions like depth, size, and any challenges that may be encountered while drilling.
If your estate is already producing, past royalty records are helpful in determining value.
You should also work with industry specialists who are experienced in valuing mineral estates and can help you set the best price for yours.
Advertising Your Sale
After you have determined value and set your price, then you will need to start advertising your oil rights for sale to the right buyers.
The best method for attracting reputable buyers willing to pay fair prices and will not try to short-change you is by selling either through a mineral exchange or working with a reputable broker.
Both circumstances will expose you to more buyers who will bid on your estate so you can sell for the highest price.
Conducting the Sale
Before signing on the dotted line when selling oil rights, it is essential that you finalize the sale with a contract that records all necessary details so you and the buyer understand what is being sold and all associated conditions.
Your contract must detail mineral interests, royalty interests, working rights, and other clauses that can affect contract length as well as termination, surface rights, liabilities, and other details.
It is best to have your contract individually composed by a lawyer experienced in mineral rights transactions to avoid future legal issues.
The sale of oil rights can be lucrative for you when properly executed.
Unfortunately, many inexperienced owners of oil rights for sale do not exercise due diligence beforehand, suffering monetary losses and facing legal concerns as a result.
Although you can surely handle selling oil rights on your own, the process is complex.
A better option is to partner with experienced royalty experts who can help you throughout the entire process until you have made a successful and legally sound sale!
Have Oil Rights For Sale In Texas?
Permico Royalties Can Assist You When Selling Oil Rights!
Call (432) 242-7335 to Learn More!Oil Rights For Sale in Texas, Oil Rights For Sale in the Permian Basin Texas, Sale of Oil Rights in the Permian Basin Texas, Sale of Oil Rights in West Texas
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