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Closing Process
When figuring out how to buy mineral rights or sell oil and gas royalties, one of the most important steps is the closing process.
Our closing process is designed to protect both the mineral buyer and mineral owner.
To learn more about how we close transactions please see the closing steps below. If you have any questions or concerns about this closing process please let us know before you submit a bid.
Closing Steps
Once the due diligence process is completed and you are ready to move forward with closing, here are the next steps:
1. Mineral Deed: Please provide us with a copy of the mineral deed in Word format. We will review the deed and request adjustments if necessary.
2. Mineral Owner Signature: We will send the final mineral deed to the mineral owner for signature. The mineral owner will sign and notarize the deed and return the deed to Texas Royalty Brokers. We hold the deed as a form of escrow. This protects both the mineral buyer and mineral owner. Once we receive the original signed and notarized deed, we will provide you with a scanned copy to verify.
3. Wire Transfers: At closing, all payments should be made via wire transfer. When the scanned copy of the mineral deed is provided, we will also provide you with wiring instructions for the mineral owner as well as Texas Royalty Brokers. Payment should be made 94% to the mineral owner and 6% to Texas Royalty Brokers unless otherwise agreed. We will hold the mineral deed until both the mineral owner and Texas Royalty Brokers have confirmed receipt of funds.
4. Overnight Mineral Deed: Once both wire payments have been confirmed, Texas Royalty Brokers will send the mineral deed via overnight UPS or FedEx at our expense within 2 business days. We will not send the mineral deed the same day that funds are received. We will send the deed in the next 2 business days. Over 99% of the time we will send the deed the next business day and we will make every effort to send the deed as quickly as possible. However, we do not send mineral deeds out the day funds are received. You may digitally record the deed prior to receiving the original if the county offers this service.
Once the deeds have been sent it is up to the buyer to record the mineral deed at their expense. In addition, it also the buyers responsibility to notify the appraisal district of the ownership change for property tax purposes.
