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Permalink Reply by Pondage on January 30, 2013 at 2:06pm

I do not no if the fact that the land was purchased on a land contract deed has any bearing on the matter. which it very well could, you need to read the fine print. But with my own experience, in a deed contract purchase, if the mineral rights where not reserved in the deed then they where in fact not reserved and would transfer to the party of the second which i assume would be your relatives. Also it seems to me in your relatives situation that no one else is going to say anything about the problem because the party of the first has her lease and money and the landman made the mistake i assume for not doing a complete title search. find out how much money you are talking about first and see if it is really even worth the possible thousands of dollar you will pay a lawyer to fix the problem. For instance a real estate lawyer that does mineral rights will have to do a title search for you, this could cost between 500 and 1500 i used AFX LLC to save money it still cost me 1150. That is before the lawyer even reviewed the doc's. Very expensive. This is just my opinion, make sure you sign the disclaimer. LOL hope it helps you out.    

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Permalink Reply by 0agf12owuyn7d on January 30, 2013 at 6:13pm

I have a land contract with j.j detweiler and I recieved my bonus money! But my paper work stated that I have all mineral and gas right except egisting wells, witch there isn't any there now! But must be paid up and an no not behind on payments! But one of my neighbors didn't get the bonus! Not sure what happen, Witch we where both invested 20% and I got my deed work done and he stated they are giving him a hard time! not really sure what the truth is. But good luck and keep at it, I was told I couldn't by the first company that came with offer, But second company eclipes paid me and early! I had everything documented at the recorders office and tax department as quick as I could and I think it helped out!

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Permalink Reply by 0agf12owuyn7d on January 30, 2013 at 8:43pm

Everyone opininon matters!! I think you hit it on the nose!! for the most part.

I won on my land contract and wish after spending the bonus money! they wuld have made me applie it to the property the amount to pay it off at least!! but all is good and I'll keep paying the payment!...lol and yeah! still the tax on it..lol thanks! Fang!

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Permalink Reply by Kathleen on January 31, 2013 at 1:18pm

This is so interesting.
What a mess it would be if the person who is buying by land contract took the bonus than just left the property and never made another payment.
There is so many scenarios this issue brings up.

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Permalink Reply by Oliver Eastern on January 31, 2013 at 1:34pm

AM,

The general rule is if the land contract is silent, the mineral rights transfer to the vendee. When your in-laws executed the land contract, they received "equitable title," and the vendor retained "legal title," subject to the LC. In this scenario, the vendor did not have the authority to encumber the property with a lease. LCs have caused a lot of problems in the current boom; i'm not sure if they are a foreign concept to Texans and Sooners, but they are too often overlooked.

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Permalink Reply by AM Kuzma on January 31, 2013 at 3:17pm

Thank you guys for the responses. Fang, I was hoping you would comment on this situation as I have ready many of your posts and believe you are are quite intelligent in the OG industry. Thanks. I will let you all know the outcome of the Land contract dibacle. Hopefully, it is resolved fairly.

AM

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