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Client Reviews

Karnes, TX

Rated 5 out of 5
November 1, 2022

After several months of researching the process of selling mineral rights, as well as researching several land/mineral brokers, I filled out the contact form for Texas Royalty Brokers. I received a reply from Eric Winegar almost immediately. From the start, Eric was easy to work with and I always felt that he was truly working with my best in mind. Throughout our numerous emails and phone calls, he was always courteous and professional and answered every question I asked. Some more than once! I was provided with all the drilling maps and financial information he used to determine the listing price and future drilling potential.

Once I accepted an offer, he handled all of the paperwork and walked me through every part of the process. And, when we ran into a snag (which he had prepared me to expect) and I started to question my decision to sell, he was so respectful of my indecision and provided me with all the information I needed to reassure myself that I was making the right decision. I can’t thank him enough. I wouldn’t hesitate to recommend Texas Royalty Brokers to anyone interested in selling their mineral interests.

Jann R.

Howard, TX

Rated 5 out of 5
September 19, 2022

16 years after inheriting Howard County mineral rights, and recently receiving increasing unsolicited purchase offers, we made the decision to sell. After thoroughly researching brokerage firms we decided to contact Texas Royalty Brokers which was a highly beneficial move. Eric could not have been easier to work with and we felt a strong fiduciary relationship throughout the entire process. Numerous phone calls and discussions were handled in a prompt, professional manner with precise explanations and valuable information offered, all delivered in a stress free environment. We feel that Eric went above and beyond our expectations and was a significant factor in our successful sell. We highly recommend Texas Royalty Brokers and Eric Winegar and would not hesitate to work with them in any future endeavors.

Traci D.

Shelby, TX

Rated 5 out of 5
August 1, 2022

By listing our mineral interests with Texas Royalty Brokers, my husband and I received an offer more than 50% higher than the best offer we received in the mail. And, the expert guidance we received from Eric Winegar through the entire process was just as important.

Eric established value, listed the property, discussed options, vetted and coordinated paperwork, always provided thoughtful and knowledgeable guidance, clearly answered our many questions, and looked after our interests, keeping us informed every step along the way. We are so glad that we listed our property with Texas Royalty Brokers.

Linda, N.

La Salle, TX

Rated 5 out of 5
June 24, 2022

Our family was on the fence about selling mineral rights until we got a really high offer in the mail. We reached out to see if the offer was a fair one. Within just minutes the company responded and walked us through the value of the mineral rights. We decided to list the mineral rights to see if there was a better offer. Sure enough, we got a bid that was even higher. I can’t thank Eric and the team at Texas Royalty enough for helping our family with the sale of these mineral rights. We are truly thankful.

Amy R.

Harrison, TX

Rated 5 out of 5
June 18, 2022

We got an offer from [redacted] in the mail. I knew this offer was a low ball offer, but we hadn’t really thought about selling until the offer came in. My wife and I didn’t want to be greedy, but we also wanted to sell for the best price we could find. I reached out to a few other buyers and then decided to list this at Texas Royalty Brokers. It was the best decision we could have made. We ended up walking away with substantially more money.

Arnold P.W.

Blog Categories

Oil and Gas Mineral Deeds

What is a mineral deed?

A mineral deed is the document that is used to convey ownership of mineral rights from one party to another party.  The mineral deed is the final step in the process of selling mineral rights.  The mineral deed will be recorded at the county as proof that the ownership has transferred from one party to another.

Generally speaking, the mineral rights deed is a standard document.  However, there are some basic things you need to understand about the mineral rights deed.

Important: If you received a mineral deed in the mail, and you want to sell, don’t sell until you get competitive bids.  The reason is that you will be selling far below market value.  Mineral buyers will send you a deed in the mail with an offer.  These offers are rarely a good deal.

If you are going to sell, get a free consultation at Texas Royalty Brokers.  We can help guide you through the process and ensure you get the best price.

Royalty Deed vs Mineral Deed

While there could be differences between a mineral deed and royalty deed, they are effectively the same thing.  Regardless of what you call it, they do the same thing.  A mineral deed and royalty deed each convey your ownership of oil and gas interests.  These interests could be mineral rights ownership (physical ownership of the oil) or they could be overriding royalty interest (no physical ownership, but a right to the money generated).

All that matters is that you understand what your ownership is, and that the mineral deed properly describes what is being conveyed.  Most royalty deeds are all encompassing.  They will include language that covers are mineral ownership, overriding royalty, non-participaing royalty interest, etc etc..

For practical purposes, the terms mineral deed, mineral rights deed, and royalty deed are all interchangeable and mean the same thing.

Example Mineral Rights Deed – Free Download

Do you want to download a free mineral deed?  You can use the link below to download a free mineral deed.   This mineral deed is provided for reference only.

Download

Note that the mineral deed download provided is just for reference.  The mineral deed that was provided to you will look generally similar, but it may be slightly different.

Important Royalty Deed Terms

Use the mineral deed download we provided to follow along.  We have highlighted the text that needs to be changed.  We will walk you through the deed from start to finish pointing out important things to look out for.

After Recording:  This text at the top simply tells the county recorder where to return the mineral rights deed after it has been filed with the county clerk.  This should be the buyer’s information as the final recorded mineral rights deed will be returned to the buyer.

Special Warranty:  The type of warranty you are providing when you selling mineral rights is at the top of the deed.  Ideally, you want a special warranty deed.  A special warranty means you are going to warranty title during the time you owned it and not before.  This important because it means you are only responsible for anything you did to cloud title while you owned it.   A full warranty means you could be responsible for taxes a prior owner owed, etc..

Effective Date:  Note that the effective date is the 1st day of the month in the month prior to when the royalty deed was signed.   This is normal.   Your royalty income is paid out on a lag.  By putting the effective date a little early, this simply removes the question as to whether the buyer gets royalties going forward based on production month or check date.  It’s industry practice that once the buyer completes the purchase, they get all royalties going forward and you keep all royalty checks received prior to closing.

$10 and other good and valuable consideration:  When you sign the royalty deed, the purchase price is not public.  To hide the purchase price, the buyer will place a default dollar amount here, typically $10.  This does not mean that you only received $10 for selling.  You receive the amount agreed to in the PSA (purchase and sale agreement) that you sign with a buyer.    The PSA is an extremely important document.  This document defines how you get paid at closing, adjustments, etc.   When you list mineral rights at Texas Royalty Brokers, we walk you through the PSA and the mineral deed.

Legal Description:  The legal description is important.  You should make sure the deed is conveying only what you intend to convey.   When you list mineral rights for sale at Texas Royalty Brokers, we help walk you through this as well to make sure it’s correct.

The rest of the deed is generally standard.  However, the language will vary a bit from one deed to the next.  If you intend to sell only oil and gas, and not include other mineral rights or land that you may own, be sure you fully understand exactly what is being conveyed.

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Final Disclaimer

The information we have provided here is surface level.  Selling mineral rights is complicated and mineral owners are consistently taken advantage of.  We are providing this information as a basic guide, but we highly recommend working with a professional.

At Texas Royalty Brokers we specialize in high value mineral rights sales exclusively in the state of Texas.   We can help walk you through process.  We’ll be there to review the purchase and sale agreement and mineral deed.  More importantly, we will help ensure you sell for the highest price.

If you are thinking about selling we recommend reaching out for a free consultation.  There is no obligation and no pressure.  Simply fill out the form below.

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