What to Expect After Listing

You sent us your documentation, signed the listing agreement, and our team setup and activated your listing.  Now what?

Our team will immediately get to work actively marketing your mineral rights for sale.  We’ll be researching mineral buyers in the area, making phone calls, sending emails, and working hard to generate as much demand as possible for your mineral rights.

We do not accept offers for approximately 7 to 10 days after listing.  Why?

This gives buyers an equal opportunity to review and analyze your property.  If we began immediately accepting offers, it would exclude certain buyers who haven’t had a chance to review or need more time for analysis.  Giving buyers adequate time is an important part of the process.  This ensures a fair and transparent process for all mineral buyers.

Once your listing moves into the accepting offers phase, we’ll begin collecting those offers and verifying their legitimacy.  We’ll be in constant communication with you to discuss the offers, how to counter, and work hard to negotiate the best possible price.

Note:  Texas Royalty Brokers will handle all communication and negotiation with mineral buyers.

Approximately 10 to 14 days after listing activation, most listings have a verbally agreed price.

Skipping over all the steps listed below, the total time it takes to complete the process from listing activation to closing is approximately 1.5 months from start to finish.  In some cases deals can close in 1 month and in some cases it can take longer depending on the demand / starting bid prices.

Once a purchase price has been verbally agreed to, the mineral buyer will put together a purchase and sale agreement (PSA).  The purchase and sale agreement will define the purchase price and the applicable terms and conditions of the offer.

This document is important because it defines how long the buyer has for due diligence and under what circumstances the price can adjust.   Our team has extensive experience reviewing purchase and sale agreements.  We’ll guide you through the document and help you understand all of the important items. We’ll also continue to negotiate the terms of the PSA with the mineral buyer if there are any issues.

It’s important to point out that you may hire an attorney to review the purchase and sale agreement if you wish.  If you need a recommendation, we can provide one.

While our team will be there to guide you through the document, it is ultimately your responsibility to understand what you are signing.  Having an attorney review is never a bad decision.  The majority of mineral owners feel comfortable moving forward without an attorney after reviewing with us, but it is entirely your decision.

Once the PSA is finalized and signed, you are now legally obligated to sell the mineral rights per the terms of the contract.  Until you sign the PSA, there is no obligation to sell when listing at Texas Royalty Brokers.  Once you sign the PSA you have contractually agreed to sell.

Once the PSA has been signed, the due diligence period defined in the PSA will begin.

When selling mineral rights in Texas, the typical due diligence period is 30 days.  In some cases, buyers can close in 14 days after a PSA is signed if they already have title.

What is the purpose of due diligence? Mineral buyers need to verify your ownership.

When we list mineral rights for sale in Texas, an estimate the number of net mineral acres owned or net decimal interest owned based on the information available to us.  This estimate is truly an estimate as it’s impossible to know your ownership until title confirms it.  Mineral buyers will pay a landman, at their expense, to run title and confirm your ownership.

At closing you will be paid based on what you actually own.

Once title has been confirmed and the buyer is ready to close, the mineral buyer will prepare a mineral deed.

A lot of mineral owners are concerned they don’t have a mineral deed.  This is not a problem.  A new mineral deed will be prepared by the mineral buyer.

We will help you review the deed and ensure there are no issues.  Once again, you may use an attorney to review the deed.

After title is complete and the mineral deed has been provided by the buyer, we will move into closing.  Unlike selling a house, you do not need to be physically present to close on the sale.

The closing process works as follows:

1. Deed Signature:  You will sign and notarize the mineral deed provided by the buyer.  You will then Fedex / UPS overnight a copy of the mineral deed to our office. Our company will hold the deed as a form of escrow.  This protects both the seller and the buyer.  If the buyer does not pay for any reason, we have your deed and we can send it back to you. When you send us the deed, you will also send us your wiring instructions.

2. Payment:  Once we receive your deed, we will let the buyer know to initiate payment via wire transfer.  We’ll wait until you have confirmed receipt of funds and we have also confirmed our commission has been received before releasing the deed to the buyer.

3. Deed Recording:  After confirming payment, the deed will be sent to the mineral buyer who will record the deed. The mineral buyer will also be responsible for notifying the county clerk that they are responsible for taxes going forward.  This completes the sale process.

In total, the time it takes to complete the process from listing activation to closing is approximately 1.5 months from start to finish.  In some cases deals can close in 1 month and in some cases it can take longer depending on the demand / starting bid prices.

If you have any questions or concerns about what to expect after listing mineral rights at Texas Royalty Brokers, please contact us using the form below.  Our team will quickly reach out and answer your questions.