Monday, June 11, 2012

Oil that is, black gold, Texas tea.


Do you own the mineral rights of the land that you are purchasing?  I read this disturbing piece from Clark Howard and it seems that there are some developer selling the land but not the mineral rights! 

http://www.clarkhoward.com/news/clark-howard/homes-real-estate/gotchas-new-homebuyers/nNWWQ/

That's right There Will Be Blood a la Daniel Day-Lewis will be in your face:
"Drainage! Drainage, Eli, you boy. Drained dry. I'm so sorry. Here, if you have a milkshake, and I have a milkshake, and I have a straw. There it is, that's a straw, you see? You watching?. And my straw reaches acroooooooss the room, and starts to drink your milkshake... I... drink... your... milkshake!" [sucking sound]

Also what is equally disturbing is that this other developer is charging a 1% fee when ever the home is sold for the next 99 years!

Now before anyone starts forming a mob to go over to the nearest model, I did check my contract and I did not see where I was signing away any mineral rights, or that there would be some fee serfdom for the next 99 years.  I also emailed the SR to get some confirmation and frankly some documentation that Ryan Homes is not pursuing this path.  The SR did confirm that this is not something that they do , and she also confirmed that I was the first crazy one to ask :-)

Kudos to Ryan Homes for not being involved in this lowly practice as far as my relationship with them.  I am certainly glad that I am not working with this other developer!  Still I would say that it may be worth it to take another look to review your own contract.

P.S.
The title is from the Beverly Hillbillies.  If you haven't been graced with the opportunity to watch any of the shows it is well worth it to get some learnenz from Jed Clampett.

Also, there is no progress today on the framing because of rain.  I went by the site and things looked relatively dry so that made me feel better.

9 comments:

  1. We had to give up the mineral rights to our property. My husband works in natural gas drilling and was NOT pleased about it. We went round and round about it, had lawyers look into it and were basically told if we don't like it, we don't have to build there.
    We plan to stay in this house for 5-10 years and it's the exact neighborhood we wanted to be in so I didn't want to walk away, but we will likely go a different route for our "forever" home.

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    1. I must apologize because I thought that it was general Ryan policy not to do this. I am very surprised that they would go this route. Seems like it based on the region you are building in and the likelihood of deposits :-(

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  2. lol @ first crazy one to ask. and now the theme song to the beverly hill billies is stuck in my head!

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    1. Here is the theme song :-)

      http://www.youtube.com/watch?v=NwzaxUF0k18

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  3. Depends on the region I'm sure, most of the land around here had the mineral rights optioned to coal companies a long long time ago, I didn't have the mineral rights on my previous house nor did anyone in the neighborhood and those houses were built in the 50's

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  4. We don't own the mineral rights on our property either. This was the case across our region with all new subdivisions. We are in Pittsburgh, PA.

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  5. Yup. Pretty much what they said. Mineral Rights for the land was taken long ago and most of us do not have a choice in the matter for a small lot in a subdivision plan. Even some larger farm areas with lots of land being sold do not come with mineral rights.

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  6. All very interesting. So it sounds like the previous land owners sold the rights and Ryan bought the land after the fact. Ryan does not have the mineral rights, someone else does, like a coal mine.

    It seems that Kristina + Adam had to still "give up" their rights like the rights were still tied to the land, so I wonder what the full circumstance is there.

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