What to expect after listing mineral rights
Many mineral owners are curious about what to expect after listing mineral rights for sale. Our goal is to make the process of selling mineral rights extremely transparent. Below is what to expect after listing mineral rights for sale at US Mineral Exchange:
1. Create Listing – One of our listing advisers will review your listing to ensure it’s accurate and complete. If any information or documentation is missing, we will contact you. Once the review is complete we will activate your listing.
2. Listing Activation – Once you property has been fully activated it will be viewed by thousands of buyers around the country. We hand select listings each week to be included in our weekly email to buyers. By creating a single listing, your property will get exposure to thousands of qualified buyers from all over the country.
3. Buyer Inquiry/Offer – When a buyer is interested in your property, they will submit an inquiry form on your listing. One of our listing advisers will contact you to discuss the inquiry or offer. We’ll help you evaluate each inquiry and determine the best way to respond. If an offer is presented, we will help you understand the positives and negatives of the offer and negotiate the best possible price on your behalf.
4. Purchase and Sale Agreement – Once a tentative offer has been agreed upon by both you and the buyer, the buyer will put together a purchase and sale agreement (PSA). This PSA gives the buyer time to complete their due diligence which normally takes around 30 days. The buyer will run title during this time and the buyer is 100% responsible for the cost of running title.
5. Deed Signature – Once the due diligence period is complete, the buyer will provide a deed that you will sign. The deed is the official document that will convey the interest from the seller to the buyer.
6. Escrow – In most cases the original deed will be sent to US Mineral Exchange directly. We will hold onto the deed until the buyer funds the US Mineral Exchange escrow account with the funds necessary to complete the transaction. Once US Mineral Exchange is in receipt of the original deed and the funds, we will send the deed and funds to the respective parties. This process ensures that neither the seller nor the buyer is at risk of not being paid or not receiving the original deed.
How Long the Process Takes
The two main steps in the process are finding a buyer and completing due diligence. The timing varies for each property but you can expect the following:
Locating a Mineral Rights Buyer
Finding the right buyer can take just a few days or it could takes a few weeks. Certain properties that are in high demand will have a lot of initial interest from mineral rights buyers. These properties may get many offers within days. This is common when a mineral owner sells oil and gas royalties.
Non-Producing properties can take time to generate interest because buyers spend more time researching the property up front. Similar to selling a home, a buyer needs to research the area and make sure they are comfortable moving forward before presenting an offer. Mineral owners who are willing to list the property for a few weeks and give buyers time to complete their up front due diligence receive significantly more offers.
The amount of time given to a buyer for due diligence is typically 30 days after the Purchase and Sale Agreement is signed. In some places like Texas and Oklahoma due diligence can be completed in as little as 10 days. In other places such as West Virginia it might take 90 days to close a transaction due to complex title requirements in that area. Before signing anything you will know exactly how long this due diligence period will take. We push for the shortest possible due diligence period while giving the buyer an appropriate amount of time.
As a mineral owner it’s important to realize that selling mineral rights is not an overnight process. Locating the right buyer who can pay you maximum value can take a little time. In addition, the buyer needs time to run title during due diligence. Selling mineral rights is comparable to selling a home. There are simply things that take time to complete before the process is done.
Our goal is make sure the process is taking an appropriate amount of time. If a buyer is taking too long or asking for an unnecessary amount of time we will bring that to your attention and work with the buyer to speed the process up where possible.
Contact US Mineral Exchange:
If you have questions about your mineral rights, we’re here to help! We speak with mineral owners every day and we look forward to hearing from you. Please don’t hesitate to fill out the form below with any questions and our friendly team will respond quickly.
Many mineral owners make the mistake of finding a couple buyers and requesting a quote. They then accept an offer far below market value because the buyers they found weren’t the ones willing to pay the highest price. When you list at US Mineral Exchange, it allows all the buyers to come to you which means more cash in your pocket. We frequently speak with mineral owners who have an offer in hand but want to know if it’s fair. After listing at US Mineral Exchange, they get a higher offer than the one they had almost every time.