|
Due to the many unique
issues pertaining to the purchase and ownership of rural
real estate in Texas, we've developed the following page
to answer many of the questions surrounding oil and gas
interests and other issues that might affect ownership of
property.
-
What are minerals?
-
What are surface rights?
-
Who has control of the surface...the mineral owner or
the surface holder?
-
What is an Executor, when pertaining to mineral rights?
-
What is required from local banks for down payments for
raw land?
-
What are the interest rates?
-
What are the costs to install utilities, water, electric
and septic on properties?
-
What is escrow?
-
What happens to escrow money?
-
What is option money?
-
What is an Execution date?
Minerals are pertaining to
gas and oil deposits found on the estate.
Surface rights are
rights to use the surface of the estate. Surface rights
continue downward to 200 ft.
In the state of Texas,
mineral owners have the right to come on to the surface of
the property for exploration of oil and gas, usually
subject to damages.
The executor has the right
to negotiate for mineral owners, such things as lease per
acre, price per barrel and bonuses, etc.
Most local banks require
20% down plus buyer normal closing costs.
Interest rates are subject
to economic and individual lending institution policies.
It is always a good idea to research for the best interest
rate, however, there are many other banking fees and costs
to factor in.
These costs can vary
subject to distances, depth and connection fees. A
good rule of thumb for these utilities is an estimate of
$12,000.
Escrow is money that the
buyer deposits in an escrow account showing their sincere
intent to purchase.
If all requirements of the
contract have been met, escrow money is applied to the
buyer's closing costs. If all requirements have been
met and the buyer terminates the contract, the escrow
money goes to the seller.
Option money is money put
up by buyers to have the right for inspections for a
period of time. The option money can go toward
buyers closing costs or to the seller for right of Option
Period.
Execution date is the date
that both parties (seller and buyer) have agreed to all
conditions stated in the contract. All dates stated
in the contract survey, option period, financing,
inspections, etc. start from the Execution date.
|
