Replies to This Discussion

Permalink Reply by Gary on November 29, 2012 at 12:19pm

Where are you located?

• ▶ Reply

Permalink Reply by Kathleen on November 29, 2012 at 12:27pm

Hi,

I saw your other posting. I can't help you on who to contact but your description of the mineral rights I know would make me as an investor if I was one concerned. You clearly state you think you own them. To market this auction I feel you would do a lot better saying "we do own the mineral rights and they go to the highest bidder".
I would be afraid to pay top dollar with a ?
Around us in columbiana county people with even 14 acres are selling the house separate from the minerals. If you are auctioning they would offer the house, then the minerals than add both together to see if it would bring a higher price still.
Right now auction houses should know what to do but to say you are not 100% sure you own these minerals will hurt you I believe. It would pay in the long run to have a full title search done and certified these minerals are still with the surface.

• ▶ Reply

Permalink Reply by Stephany on November 29, 2012 at 5:13pm

We're in Coshocton County outside of Warsaw. I have copies of all of the deeds and property records dating back 32 years and during that time there is no record of the mineral rights being owned outside the grantor/grantees. From the 70's it was owned by a non profit organization and unless they sold the rights and didnt document it in their 93 sale then Im only missing a few years of records that would be covered in title search and would cost thousands of dollars, also the auction, including the rights is in 7 days. I just wondered if anyone knows of a direct way to advertize the sale to investors buying properties in this area.

• ▶ Reply

Permalink Reply by Oliver Perry on November 30, 2012 at 2:00am

The mineral rights I own were severed in 1931, which was 81 years ago. You would have to do a mineral search back to at least the mid 1800s to know for sure if the mineral rights are intact with the surface. I know I would not buy property without being absolutely certain the mineral rights were included, and you can't guarantee that. It might be expensive to have the search done, but it would bring a much higher selling price with a guarantee of mineral ownership. Would it be possible to delay the auction until you could look into this further? It would be better than making a costly mistake. Either way, good luck to you.

• ▶ Reply

Permalink Reply by Finnbear on November 30, 2012 at 7:49am

It does not cost thousands of dollars to find out if you own the minerals. It might take a day or two in the courthouse/county recorder's office for you to dig out ALL the records on your property and maybe a hundred dollars worth of copies. There is really no additional value to your land due to gas/oil UNLESS you can legally prove to the buyer that you really own the mineral interest unencumbered. Investors will look at this sale as a giant gamble and bid accordingly (low). You can do this yourself, I traced my properties back to the land grant from the US govt in the early 1800's.

• ▶ Reply

Permalink Reply by Jim Litwinowicz on December 1, 2012 at 12:12pm

Finnbear; it may be possible for one to look back 200 years themselves to see what is there but that will not be acceptable to a savvy buyer.  They will want a certified search done by a certified, bonded, and insured company. While doing it yourself will get you some peace of mind, it will add very little value at an auction.

I still say her best option is to delay the auction or sell the rights separately. A bidder may be willing to put down a refundable 10% of bid contingent of a certified search. Making the deposit non-refundable adds risk to the bidder and will reduce to offer price.

• ▶ Reply

Permalink Reply by Jim Litwinowicz on November 30, 2012 at 3:56am

You have not done a full deed search. O & Gs go back to 1850 checking each and every sale/transfer/deed along the way. Your best option would be to delay the auction. Second would to accept offers contingent on a deed search before payment. Then bidders would be less reluctant to bid. Maybe sell house ans surface separately and sell rights at a later date.

As for finding mineral buyers, do a lot internet searching and contact what companies you find. There a lot of them out there. Your auctioneer should be doing that as part of his/her job.

• ▶ Reply

Permalink Reply by Dark Sonnet on November 30, 2012 at 6:18am

I agree, Jim, this is far from a total deed search especially considering this area is right in the middle of old coal country.  This area has been mining coal prior to the 1900's.  In addition, it is also an area of shallow gas well activity.

If I were a potential investor  (with the current information that has been provided) I would have to walk if not run away from this opportunity.  I would want a certified deed search back to 1850. A contingency clause just means my money is tied up while waiting for clarification.

Technically the auction house is indeed responsible for advertising this property, hopefully to a target market.  That is why they get paid a commission.

Best of luck to you Stephany. 

• ▶ Reply

Permalink Reply by Finnbear on November 30, 2012 at 7:40am

You should hire an auctioneer who understands the market you wish to address. Marketing is the realtor/auctioneer's job, not yours. If they don't understand the value of your entire package, then move on to someone who does. That being said, 14 acres is not that big of a deal unless it is unleased and in the middle of a "sweet spot" or already leased and in a drilling unit. What has neighboring land leased for? Research and hire wisely.

• ▶ Reply