Selling Land in Texas? Here’s How to Handle Mineral Rights

1. Confirm Whether You Own the Mineral Rights

Mineral rights ownership isn’t always straightforward. Many Texas properties have had these rights separated from surface ownership over time. To determine whether you own them:

• Review property deeds and title documents.
• Check public land records for any past transfers of mineral rights.
• Consult a real estate attorney or title specialist to clarify ownership.

If you discover that previous landowners retained mineral rights, you may only have control over the surface estate.

2. Decide Whether to Transfer or Retain Mineral Rights

Once you confirm ownership, you need to determine how to handle the rights in the sale. Options include:

• Selling Both Surface and Mineral Rights: Transfers full property ownership to the buyer.
• Retaining Mineral Rights: You keep control over underground resources, even after selling the land.
• Partial Retention: You sell part of the mineral rights while keeping an interest in future mineral production.

Your decision affects the land’s marketability and price. Buyers generally prefer full ownership, but retaining mineral rights could offer long-term financial benefits if resource extraction occurs.

3. Address Surface Use Considerations

If you keep mineral rights, future resource exploration may require land access. To prevent disputes, sellers often create a surface use agreement, which outlines:

• How and when mineral extraction activities can occur.
• Limits on drilling or mining locations.
• Compensation terms for surface disruptions.

A well-structured agreement ensures that both parties understand their rights and obligations.

4. Include Clear Legal Terms in the Sales Agreement

Proper legal documentation is essential to prevent misunderstandings. Your sales contract should specify:

• Whether mineral rights are included in the sale.
• Any surface restrictions related to mineral extraction.
• Buyer acknowledgment of existing or potential leases.

Consulting a real estate attorney experienced in Texas mineral rights ensures these details are properly addressed.

5. Understand Texas Regulations on Mineral Rights

Texas law strongly protects mineral rights owners, allowing them reasonable access to extract resources. However, environmental regulations and local zoning laws may impose restrictions. Staying informed about these legal aspects can help you make informed decisions when structuring the sale.