If you have precious metals, gemstones, oil, or natural gas beneath the surface of the land you own, investors may be interested in purchasing mineral rights to your property. However, you may be hesitant to sell mineral rights for the valuable substances without receiving reassurance that you can keep your home. It is possible to continue living in your home after you release your mineral rights, but there are some exceptions. Here are some things to consider before you agree to give another party rights to your minerals.
Are You the Owner of the Minerals?
You may assume that you own the minerals beneath your home, but some developers sell mineral rights to other parties after a home is built. A bidder may approach you about the land, but you cannot relinquish the mineral rights if you do not own them.
In this situation, losing your home is a possibility. You may want to meet with a real estate broker who has extensive experience dealing with mineral rights so you can learn how state and local laws affect you and your home.
Is Your Home in the Way?
Can a drilling crew safely access the minerals on your land without demolishing your home? If the answer is yes, then you may be able to sell the rights to the substances on your property without relocating.
But what if the excavators destroy your land and leave behind a big mess? Some states have guidelines for the extraction and cleanup process, so mineral miners or drillers have to leave the property in good condition when they finish their work.
How Does Your Mortgage Company Feel?
When you apply for help with a mortgage, you agree to abide by the requests in the loan paperwork. Some mortgage companies do not allow homeowners to keep hazardous materials near their homes, which can be a problem if the company you grant mineral rights to decides to store waste on your property. You may have to request consent from your lender, even if you are the owner of the minerals, before you relinquish your mineral rights. If the lender approves your request, you may be able to keep your home.
Navigating through the legal and financial procedures associated with transferring mineral rights can be confusing. If you have a unique situation that was not referenced in the aforementioned scenarios, or you simply have questions about selling rights in general, contact an experienced mineral sales broker.