What is Reserving Minerals in Texas Real Estate

What is Reserving Minerals in Texas Real Estate

What is Reserving Minerals in Texas Real Estate

In Texas real estate, "reserving minerals" refers to the practice of a property owner retaining ownership rights to the minerals (such as oil, gas, and other valuable subsurface resources) beneath the surface of the land while selling or transferring ownership of the surface rights to another party. This means that although someone may own the surface of the land and can use it for various purposes like building structures or farming, they do not own the rights to extract or exploit the minerals beneath it.

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When a property is sold or transferred, the seller may choose to reserve these mineral rights for various reasons, such as potential future revenue streams from mineral extraction or the desire to retain control over how the minerals are exploited. This is a common practice in regions where there is known or potential mineral wealth, such as parts of Texas where oil and gas reserves are abundant.

Minerals can be reserved by the seller using TREC form "Addendum for Reservation of Oil, Gas and Other Minerals". This form can be used to reserve all or a portion of the minerals thats owned by the seller.

Buyers should be aware of any mineral reservations when purchasing land, as it can affect land use rights and potential income streams. Additionally, in Texas, surface owners may be subject to certain limitations or regulations regarding the use of the surface land if mineral rights are reserved by another party. Therefore, it's important for both buyers and sellers to carefully consider and negotiate mineral rights when engaging in real estate transactions in Texas.

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