Selling Your Mineral Rights Can Change Your Life
Investing in mineral rights can be a milestone in your life; it can substantially change the way you live by making you transform your lifestyle completely. There are two aspects to mineral rights: sale and purchase. The sale of mineral rights brings its own trials and tribulations since the trade-off may or may not be of favorable conditions to the seller if he or she is not well informed.
The aspect of investing in mineral rights
When it comes to the aspect of purchasing mineral rights, one firmly needs to be grounded, first in one’s financial condition and then in one’s investment capabilities. If you decided to put all your funds into one mineral rights transaction and that failed after only a small return, it would be a classic case of putting all your eggs in one basket. Thus, it is better to diversify and reduce risk in the portfolio. Ten31 Minerals will provide the right guidance to you.
What is mineral rights transfer?
When a real estate property is found to have gemstones or other minerals under it, such as petrochemicals and gases that are commercially refined into fuels, then the property value becomes much higher due to those minerals and their mining rights becoming included in the property papers. These rights are then either leasable, rentable or commercially negotiable into any other custom understanding in which both parties agree to share profits, with one party mining the minerals and the other allowing the property to be mined.
This mining continues until both parties agree to end it. There is a legal saying that goes, “Cuius est solum, eius est usque ad coelum et ad inferos” (Latin for, "Whoever's is the soil, it is theirs all the way to Heaven and all the way to Hell"). Thus the rights extend all the way up and down.
How is the mineral rights transfer done?
A legal professional will need to judge the land neutrally for both parties, unless the other party brings their own scaling and there is agreement on the scaling. Thereafter, the duration and the pricing of the rights is fixed after consultation among the parties. Here, a crucial step is to understand tax laws and ways to minimize their impact on the transactions. An agreement is then inked, the paper is signed by both parties and the work begins.
Is this a 1031 exchange?
In American law, there is a tax law wherein a certain amount of taxes can be saved by maneuvering the funds between two properties. This is known as Internal Revenue Code Section 1031, and it can be detailed by a tax lawyer. This is also how Ten31 Minerals got its name.
Is there a shorter, better way to sell and buy mineral rights?
Oklahoma-based Ten31 Minerals is a firm that takes over mineral rights and assists the takeover of mineral rights. It saves you time, effort, headache and legal hassles that have to be faced when dealing with investing in mineral rights.
Simply call them and reach an understanding, and they will do the rest.