Qualified Buyer Agreement
The purpose of this agreement is to define the relationship between you, or the entity you represent, and Texas Royalty Brokers when submitting bids and/or purchasing mineral rights listed on our platform.
1. Parties: This agreement is between you, the “buyer”, and Texas Royalty Brokers LLC, the “broker”. Texas Royalty Brokers also works with mineral owners, the “sellers”, who are not a party to the agreement but are referred to throughout the agreement.
2. Legal Authority: You have the authority as an individual, business owner, business representative, or other legal entity to enter into this agreement. You further agree that you have the legal authority to obligate either yourself individually or the entity that you represent to the terms of this agreement.
3. Indemnification: You agree to indemnify and hold harmless Texas Royalty Brokers from any and all demands, claims, lawsuits, arbitrations, market losses, or liabilities of any kind, which includes any costs, fees, expenses, or attorney’s fees as a result of buying, attempting to buy, or costs incurred related to running title and buying mineral rights on our platform. This indemnification includes, but is not limited to, any losses you sustain as a result of sellers deciding to back out of a transaction, title costs, or receiving less ownership than Texas Royalty Brokers represented due to your title not discovering the issue or failure to run title to confirm the ownership.
4. Term: This term of this agreement shall begin on the date it is executed and continue until cancelled in writing by either party. Once cancelled, the terms of this agreement shall survive and remain in effect for any listings that you previously made an offer on, currently have under contract, in due diligence, or in title curative.
5. Offered Agreement: Unless revisions have been made and initialed by the parties, it is understood and agreed that Texas Royalty Brokers LLC has agreed to all terms in our agreement expressly and does not need to counter sign for this agreement to be valid.
6. Electronic Agreement: If this agreement is being signed online, you understand and agree that you are agreeing with a digital signature and that all terms are binding and have the same force and effect as physically signing.
7. Offers: You agree to make all offers to the seller through Texas Royalty Brokers unless all parties agree to let buyer and seller work directly together.
III. Purchase and Sale Agreement
8. Commission: You agree to include Texas Royalty Brokers as a part of your purchase and sale agreement (PSA) or letter of intent (LOI). Our commission, which is 5% by default but may vary based upon the deal, shall be stated in the PSA so that buyer, seller, and Texas Royalty Brokers all know how much of the total purchase price shall be paid to each party. Alternatively, if the commission rate is not included in your PSA or LOI, you agree to create a separate agreement stating the amount of commission owed to Texas Royalty Brokers for the specific deal you are placing under contract, and that agreement shall be signed prior to receiving the fully executed PSA back from the seller.
9. Signature: You understand and agree that you must sign the PSA before the seller signs.
10. Cancelled Contract Fee: We do not work with brokers, flippers, or option contract buyers. You understand and agree that if you place a deal under contract and do not close on the deal for any reason that you, or the entity you represent, will owe a 2.5% cancelled contract fee for placing a deal under contract and then not following through and closing on the contract. The 2.5% cancelled contract fee is based upon the total amount offered in your agreement. The only exceptions are if title shows less than 90% of what was represented is actually owned by the seller OR if the seller breaches the contract. If title shows less than 90% of what was represented is owned, a legitimate full title report must be provided to prove the discrepancy or the cancelled contract fee still applies.
IV. Escrow and Closing
11. Escrow: You agree that Texas Royalty Brokers will hold the fully executed mineral deed from the seller as a form of escrow. If you wish to use any other type of escrow, it shall be at your expense and must be mutually agreeable by all parties.
12. Closing: The following closing steps shall occur unless agreed to in writing prior to placing a deal under contract:
1. Mineral Deed: You will provide a mineral deed, which we will send to the seller to sign and notarize.
2. Mineral Owner Signature: The mineral owner will return the fully executed and notarized mineral deed to Texas Royalty Brokers. We will provide you with a scanned copy of the deed when we receive it.
3. Wire Transfers: All payments should be made via wire transfer unless previously agreed. 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 95% to the mineral owner and 5% 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. You may digitally record the deed prior to receiving the original if the county offers this service and we have confirmed receipt of funds from both parties.