Texas Royalty Brokers – Buyer Bidding Process

This page defines the buyer bidding process followed by Texas Royalty Brokers on all listings.

The purpose of this process is to create a fair, efficient, and consistent framework that prioritizes buyers who submit timely and competitive bids, while setting clear expectations for all market participants.  This process is followed without exception.

Evaluation Phase

• After a new listing is posted, we provide buyers with a review period which is typically 7 to 10 calendar days.
• During the evaluation phase, we do not present bids to the seller. Any bid submitted during the evaluation phase will be held until the listing officially opens for bids.
• Any bid submitted during the evaluation phase that includes an expiration date which expires before the listing opens for bids will not be presented to the seller.

The evaluation phase exists to allow buyers time to review materials and to ensure a fair and competitive bidding process once bids formally open.

Accepting Offers Phase

Once the listing is open for bids, the next steps in the process are driven by the level of buyer activity and timing.

• All bids must be submitted to Texas Royalty Brokers either on the listing form or via email.
• Any bids submitted with a bid deadline that does not allow other buyers to fairly participate will be automatically rejected and will not be presented to the seller. If a “good for 24 hours” type bid is submitted, the bid will automatically be rejected

Our objective during this phase is to respect and prioritize buyers who step forward with competitive bids. As a result, the structure and pace of the process may vary based on market response.

The following sections describe how the bidding process progresses based on bidding activity.

Path One: Multiple Competitive Bids Received – Best and Final Phase

• If multiple bids are received within approximately three days of opening for bids, we may move the process to a Best and Final round.
• Only buyers who submitted an initial competitive bid will be invited into the Best and Final round.
• Buyers who submit a materially uncompetitive or far below market bid may not be included.
• During the best and final round, we will provide all buyers who submitted competitive bids with general guidance on what it will take to be competitive for your final bid.
• If there are multiple bids, but one buyer is materially higher (20%+) than all other bids, the seller may elect to move forward with the highest offer and no best and final round will occur.
  • Once we notify buyers that the seller is proceeding with a stronger offer, other buyers may submit a revised offer solely to be considered as a backup offer. Revised offers submitted at this stage will not reopen the bidding process or displace the accepted primary offer.
• All best and final bids are required prior to the deadline. Any bid submitted after the deadline will not be considered.
• We do not accept phone calls within 24 hours of the best and final bid deadline. All bids must be submitted in writing prior to the bid deadline.
  • Why? Every buyer wants a last look. We consistently have buyers calling within hours of the best and final deadline attempting to get information about how to win.  To be fair and transparent to all buyers, we cannot accept those calls.

Buyers are strongly encouraged to submit their strongest bid upfront, as participation in a Best and Final round is not guaranteed.

Path Two: No Immediate Bids Received – First Acceptable Offer Phase

• If no bids are received within approximately seven days of opening for bids, the listing may move to a first acceptable offer phase.
• Under this structure, the first bid deemed acceptable by the seller may be accepted immediately.
• We will not notify buyers who have expressed prior interest that the deal is moving forward. We will prioritize the buyer who stepped forward with an offer.

Once a listing reaches this phase, transactions can move quickly and without additional notice.

Process Integrity and Final Notes

• This bidding process applies to all Texas Royalty Brokers listings.
• The process is followed consistently and without exception.
• Our role is to run a disciplined, transparent process that respects sellers and prioritizes serious buyers.
• Buyers who submit timely and competitive bids will be prioritized.