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Mineral and Royalty Purchase Letters

Posted by bernell on September 17, 2014

I'm not going to talk bad about anyone in particular, but I will say that you need to understand that you need to be careful when dealing with folks when you sell your minerals and royalties.

Always, get an attorney to review mineral and royalty purchase agreements before signing.

There have been numerous letters sent out over the past few years soliciting the purchase of minerals and royalties in the TMS. 

This is the American Enterprise system at work..

There is nothing wrong with asking you if you want to sell your minerals.

But, for the most part, these companies are wholesalers.  That is, they are looking to buy your property for a cheaper price and then to resale it. 

This is much easier and often folks will take the money and run.  Again, there is nothing wrong with this, though I encourage you to get more than one offer before making a final decision.

A friend of mine who lives in Houston, Texas and owns property in Amite County got one of these offers and it happened to be from a company in Houston, Texas.  So, he rode over to the office to discuss the offer.  After a few minutes the spokesman told him that, honestly, they were trying to buy from folks a little less informed and weren't willing to pay him what the minerals were worth.

I love honesty.

And that isn't always the case.  I got a message from someone this morning that said they had called a number on a mailed solicitation to inquire and, since they only owned a very few acres, they were told they would never receive royalty payments from their minerals.  In essence, "You need to sell your minerals to us.  Otherwise, you won't get anything."

Folks, I'm no attorney, but this is bogus.  I didn't overhear the conversation, but if I had I would name the company and tell you to not deal with them.

As it is, I simply must encourage you to always...always...get an attorney to review your mineral/royalty purchase agreements before signing.

We will unveil our Mineral Market shortly.  I encourage you to use our market as at least one place to attempt to sell your minerals if you want to sell in bulk.

Further, we intend to become a market that the final investing buyers can use to go direct to you, the mineral owner, to make his purchase.  You set the price you want and the buyer agrees or not to the price. 

All of the information on your minerals will be researched and a map of the location of your property will be available for the buyer to see.

The middle man is taken out of the picture...if you have the patience to allow for this process.

Again, in the careful when selling your minerals.

What do you think about it?