Before you submit an offer on a listing, please carefully read the information below. We only accept bids from qualified buyers.
Please note that all bids submitted at non-binding until you put a property under contract with the mineral owner.
Please do not submit bids directly to the mineral owner. All listings are exclusive and all bids should be submitted to Texas Royalty Brokers.
How to make an Offer?
To make an offer, simply review the mineral rights for sale. At the bottom of each listing is a contact form. You can submit your bid via the contact form.
Please verify that you are a qualified buyer when submitting a bid. To determine whether you are a qualified buyer, please see below.
Our goal in each transaction is simple.
We want match a qualified buyer who is serious about making a purchase with a qualified seller who is serious about moving forward with a sale.
We DO NOT work with brokers, flippers, or option contract buyers.
When presenting an offer, we need to verify that you are a qualified buyer. There are three ways to verify your status as a qualified buyer:
1. Qualified Buyer Agreement: The easiest and most convenient way to become a qualified buyer on our platform is to sign our qualified buyer agreement. When you sign this agreement, it applies to all listings on our platform for any offer you submit. The contract only needs to be signed once and remains in effect until cancelled in writing. The qualified buyer agreement includes a 2.5% penalty if you fail to follow through after a PSA is signed. There is an exception allowed if title fails by more than 10% and a title report is provided to prove the title failure. Other terms and conditions apply.
2. Deposit: Prior to placing a property under contract you can put a $5,000 deposit down. This deposit is payable to Texas Royalty Brokers and will be held until the transaction is completed. This $5,000 deposit will be credited toward the commission owed, or partially refunded if the amount exceeds the commission owed. The deposit is only refundable if title fails by more than 10% and a title report is provided to prove the title failure.
3. 14 Day Close: If you can close on a transaction within 14 days, we do not require a qualified buyer agreement or a deposit. Please note that your contract must clearly state a 14 day (or less) close with no extensions allowed unless at the sole direction of the seller.
Important: If your due diligence period is over 14 days, you must sign the qualified buyer agreement or make a deposit before the seller fully executes a PSA.
Purchase and Sale Agreement
The winning buyer will be required to provide their own purchase and sale agreement or letter of intent. While this agreement varies from buyer to buyer, there are a few requirements we have:
Offer Amount and Terms: The offer amount and terms must be clearly stated. If you are making an offer based on a 25% royalty at a certain price per acre, this must be clearly defined. The total amount of acres assumed to be owned must be clearly defined. If the offer is based upon the revenue interest listed on the check stubs, this must be defined.
Adjustments: You may adjust the purchase price at closing, but any adjustments must be clearly stated in the contract. These adjustments must also be proportionate so they do not favor either buyer or seller. For example, if more or less acres are owned, the price may adjust accordingly up or down based on what title shows.
Due Diligence and Extensions: The amount of time you have to complete title/due diligence must be clearly stated. Any extensions to the due diligence period due to title issues must be mutually agreeable to the parties. You cannot use “title issues” as a blanket reason to extend your due diligence period without proving to the mineral owner what the issue is and how it will be resolved. If your due diligence period is more than 30 days, it is highly likely your offer will be rejected in favor of another offer with a shorter due diligence.
Commission: The total purchase price being paid should be listed, with 95% being paid to the seller and 5% being paid to Texas Royalty Brokers.
Important: When you provide your purchase and sale agreement, IT MUST BE SIGNED. Mineral buyers add time to contracts by simply holding a half signed contract for days until counter signing. You must send us your signed PSA before we will present it to the seller.
The mineral buyer is required to provide a mineral deed for closing. Below are our requirements for the mineral deed:
Legal Description: The legal description must match what is being sold. You cannot send us a blanket legal description that covers an entire county or entire section. It needs to be specific to the mineral rights being sold.
Net Mineral Acres: If you are purchasing on the basis of net mineral acres owned, the deed should specify the number of net mineral acres being purchased.
We would prefer that buyers provide an example deed at the time they provide the PSA to avoid any last minute issues, but the deed is not required until after the due diligence period is complete and you are ready to move forward with closing.