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.
Here is what the process looks like from start to finish:
How Long Does it Take?
One of the most common questions we get is about timing. How long will it take to sell my mineral rights?
Once we list your mineral rights for sale, we will typically have offers on your property within 1 to 3 weeks. Most mineral owner are under contract (PSA) within just a few weeks.
Offer in hand? Does your current offer have a short deadline to accept? This is a common trick mineral buyers will play. Mineral buyers DO NOT want you to get competitive bids. Why? They know that their offer is likely not going to be the best in a competitive market. Mineral buyers put short deadlines on offers in an attempt to buy mineral rights below market value. Don’t fall into this trap!
We understanding that listing is an extra step in the process. However, over 95% of mineral owners who list with us walk away with more money.
PSA – Purchase and Sale Agreement
Once a price has been agreed upon with a standard listing or an auction ends with a winning bidder, the next step is a PSA. The mineral buyer will provide the PSA. The PSA, or purchase and sale agreement, specifies all the terms of the deal. The amount to be paid at closing, terms for adjusting the price, time allotted for due diligence, and other key details about the transaction will be included in the PSA.
At US Mineral Exchange, we specialize in closing mineral rights transactions. We know the red flags to look for on a mineral rights PSA. When we see an issue, we will point it out to you and make a recommendation on how to address it. We will be there to stand beside you and help you understand all the terms of the PSA to ensure a smooth closing process.
Over 90% of our clients do not hire an attorney. However, we would never tell you not to have an attorney review the PSA if that would make you more comfortable. Ultimately, this is a legal agreement between you and the mineral buyer so you are responsible for getting comfortable with the agreement you are signing. If you do hire an attorney to review the PSA, we will provide our feedback on the PSA and then pass it along to your attorney to make further adjustments and give the final approval.
Once the mineral deed has been signed by both you and the mineral buyer the due diligence period will begin.
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 20 days but this is rare. 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. Mineral rights auctions require a 30 day close maximum unless specifically agreed upon between US Mineral Exchange and the mineral owner.
Closing / Escrow
When the mineral buyer has completed their due diligence period, we will move to closing. The closing process works like this:
- A mineral buyer will provide the mineral deed for signature. This mineral deed is the document that will actually transfer the ownership from you to the buyer.
- US Mineral Exchange and/or your attorney will review the mineral deed and make any necessary adjustments or changes.
- You will sign and notarize an original copy of the deed. This mineral deed will then be sent to US Mineral Exchange.
- US Mineral Exchange will hold the deed until the mineral buyer pays the agreed upon price for your mineral rights.
If the mineral buyer never sends the funds, US Mineral Exchange will send the deed back to you and no transaction will have occurred. If the mineral buyer does send the funds, we have the deed in hand so the mineral buyer is comfortable that they will get the deed after payment has been made.
This process protects both the mineral owner and the mineral buyer.
Questions about listing mineral rights?
If you have questions about listing 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.
The more information you can provide about your property the better! We can give you a better idea about the value of selling mineral rights if you provide more information. The most important thing we need is for you to answer the questions and provide your state and county.
If you have the required documents to list, providing those is extremely helpful!
Absolutely not! When you inquire at US Mineral Exchange we will not be putting any pressure on you to sell. We will help answer any questions you have whether you are interested in selling or not.
At US Mineral Exchange, we take privacy very seriously. We will NEVER sell your information or use it without your consent. When you send us documentation or tell us about your property, that information does not go outside our company without your consent. Even when you list a property for sale on our website, we strictly control who has access to the information about your listing so that only legitimate buyers will be able to see property details.
Many mineral owners make the mistake of getting an offer and quickly selling. They then accept an offer far below market value because they felt pressure to sell. There is nearly always a better price available.
Imagine you were selling a home. Would you get the best price from a random person who walks up and makes you an offer? No way! Now imagine you list the home on the MLS where thousands of potential buyers know your house is for sale. The key to getting the best price is competition. Our guide to selling mineral rights explains everything.
The reason that so many mineral owners decide to sell mineral rights at US Mineral Exchange is access to our large network of mineral rights buyers. Our goal is to help you get top dollar for selling mineral rights by getting your property in front of a huge audience of buyers. This allows buyers to compete against one another which ensures you get fair market value for selling mineral rights.
There are absolutely no cost to list your property. When you locate a buyer by listing your property with us, we are paid a commission directly by the buyers closing agent. This means you never have any out of pocket expenses ever. We only get paid if we can get you a better price than the current offer you have in hand.
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