Land Purchase question

[BackcountryIdaho]

Get a title report prepared. It's not much money for peace of mind.

 

[FLATHEAD]

Contract stated that even if the Title search found out someone else owned the
mineral rights I was still obligated to the purchase.

 

[YellCoAR]

I don't know for sure if I own the mineral rights to my place. I suspect I might as I have received offers to buy or lease the rights in the past.

 

[fmyth]

Contract stated that even if the Title search found out someone else owned the
mineral rights I was still obligated to the purchase.

Are you represented or are you dealing directly with the listing agent?

 

[FLATHEAD]

Are you represented or are you dealing directly with the listing agent?

It WAS the listing agent.
He called a little bit ago wanting me to sign or forfeit.
I've had the contract less than 24 hrs.
And havent even had a chance to look at the property
as it's 5 hrs. away.
I'm out.

 

[TXCO]

Mineral rights and water rights almost always supercede surface rights. Youll want a title opinion if they are claiming no knowledge. Those arent cheap either.


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[philos]

It WAS the listing agent.
He called a little bit ago wanting me to sign or forfeit.
I've had the contract less than 24 hrs.
And havent even had a chance to look at the property
as it's 5 hrs. away.
I'm out.

Good call. Seems to be sketchy.

 

[A.hol1]

The title/escrow company should be able to provide a title history for you. That is part of their job, next offer you submit have your agent contact the title company to run a report. That at least should get the ball rolling quicker. If anything pops up, you can call the court house for more details.I used to be a realtor and wife was in escrow, this was fairly common on larger land deals.


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[SloppyJ]

Do NOT trust the realtor. I'm reminded of their incompetence every day when it comes to legal liability, easements, and other common land ownership related items. No offense to any realtors here if you actually know about this stuff.

If you're serious about buying it, I would make an offer contingent upon a few items and leave yourself some room to back out. I've never dealt with mineral rights specifically but I imagine that would be in the title work.

 

[GMann]

Good call. Seems to be sketchy.

Yep, agreed! Glad you walked away

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[cuerro viejo]

county clerk will have the minerals and easements. Its not hard to figure out especially in rural county.

Contract stated that even if the Title search found out someone else owned the
mineral rights I was still obligated to the purchase.

there is your answer.. shady ass listing Agent

 

[def90]

Sounds like standard boilerplate CYA language. The vast majority of people buy homes and land and couldn't care less about mineral rights on top of the seller doesn't want to pay a lawyer to do the research. You probably find the same text regarding mineral rights in just about every real estate deal.

 

[gbflyer]

Do NOT trust the realtor. I'm reminded of their incompetence every day when it comes to legal liability, easements, and other common land ownership related items. No offense to any realtors here if you actually know about this stuff.

If you're serious about buying it, I would make an offer contingent upon a few items and leave yourself some room to back out. I've never dealt with mineral rights specifically but I imagine that would be in the title work.

Used Cars


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[stanginthe11s]

good call on backing out, never trust a pushy agent especially when he doesn't even know his job and the law. never ever are you obligated to purchase something. if you're in contract and something comes up you absolutely can back out. yes, you can lose some money but that depends on the state and the issue that caused you to back out. something involving legalities or falsified/undisclosed info is very easy to get out of.

 

[elkliver]

a couple of things. Listing Realtor does not represent you! He is not going to tell you what to watch out for. Have a Realtor who represents you. NEVER sign a sales agreement that is not subject to contingencies. Contingent to review and approval of a title report. Contingent on water sample, contingent on inspection, contingent on surveyor locating corners. That would be like agreeing to buy a car without hearing if it even runs.

As to the mineral rights, very common for mineral rights to be reserved. if not by a private individual, they are often reserved by the USA on the patent. Once you have a title report, you will know if there is a recorded reservation and can make a decision as to the risk. Some Reservations have a restriction that they can not disturb the surface. While most properties have a reservation, it is also true that most properties do not have a coal deposit , or uranium, or gold, etc underneath them. So you weigh the odds, will someone demand to start digging? If it is really a concern, in some states there is a statutory process for eliminating unused mineral reservations.

Elkliver
Title Insurance Underwriter

 

[7mm-08]

It WAS the listing agent.
He called a little bit ago wanting me to sign or forfeit.
I've had the contract less than 24 hrs.
And havent even had a chance to look at the property
as it's 5 hrs. away.
I'm out.

Smart move on your part.

 

[ohoopee]

Purchasing the property under an LLC may mitigate some
of the personal liability.

 

[Idaboy]

Realtors say they are unaware of a lot of things, and buyer should do their own research. Keeps them from getting sued and less work to do.

Agree. If it's too good to be true, well, then....do tons of research BEFORE any land purchase, which will end up being on your dime but well worth it. The reason they "don't know" is that they don't want to disclose anything that may devalue the land....you may actually find out there are some issues, but something you can live with, but give you leverage in negotiations...but yes, be wary

 

[Pony Soldier]

Just a few 'oops' to ponder.

1) On a property on the border of two counties, two families paid taxes on the same land in their respective counties for ten years on the property.

2) The state changed the reference point for the survey resulting in a change of ownership. People paid taxes on their land only to discover they were paying for their neighbors place while their land went up for sheriffs sale for nonpayment of taxes.

3) Given superfund rules, many older people panicked and sold patented mining claims in fear of the government and liabilities. I got numerous calls from the purchasers of the claims when they discovered they had no legal access across their neighbors claims even though the road had been there for over 100 years.

3) I know of two cases where neighbors tapped into their neighbors wells because the owners lived somewhere else.

The bottom line is the legal component of the land can and does contain serious items that can render the land worthless or at least requiring a significant legal investment equal to the price of the land.

 

[LostArra]

Never rush into any real estate deal. It's easier to find other property than to live with a bad purchase.

Find a real estate attorney who works for you and your best interest. Money well spent to avoid big headaches.

I wouldn't trust a pushy realtor any more than Tom Brady selling FTX.

The surface owner not owning mineral rights is not uncommon in oil and gas country and would not be a deal breaker for me. In fact, it might keep your purchase price down. I own a small parcel (20 acres) with no mineral rights and have never lost a second of sleep.

Remember that any drilling or mining activity usually results in paying "damages" to the surface owner which can be substantial. I hunt a ranch that the surface owner has negotiated his damages into cash, a well maintained gravel road, new gates, fencing and about 6 ponds. When the oil company dug the ponds the surface owner sold the removed shale back to the driller for well site prep and once the ponds were finished and full he sold water to the driller.