The contract behind the sale — the clauses to understand before you sign.
Get a Free Written OfferQuick Answer A purchase and sale agreement (PSA) is the contract that governs the sale of your minerals: the price, exactly what's conveyed, the effective date, how closing and payment happen, and the warranties each side makes. The mineral deed is what actually transfers title; the PSA is the agreement behind it. Review it carefully — it, not the offer letter, controls the deal.
Offer letter: proposes a price and basic terms — the starting point. See our offer letter guide.
Purchase & sale agreement (PSA): the binding contract with the full terms; it leads to closing.
Mineral deed: the instrument recorded at closing that actually transfers title.
Purchase price & payment: the amount and how/when it's paid (wire or certified funds at closing is preferable to a bank draft).
Interest conveyed: exactly what you're selling — all your minerals, a specific tract, a percentage, or only a wellbore interest — and across what depths.
Effective date: the date from which the buyer is entitled to revenue (can differ from closing — see below).
Title & closing: who performs and pays for title work, and the closing mechanics and timeline.
Warranty of title: what you're guaranteeing about your ownership (see below).
Conditions / contingencies: anything that must happen before closing.
The effective date sets when the buyer starts being entitled to production revenue. Revenue before it generally belongs to the seller; after it, to the buyer. Because it can differ from the closing date, confirm how revenue between signing and closing is handled so nothing is double-counted or lost.
Many mineral sales involve a warranty of title — you warrant you own what you're selling. A broad general warranty can create exposure if a title defect surfaces later; a special or limited ("subject to") warranty narrows what you're guaranteeing.
If you're unsure what warranty you're giving, have an attorney review the language before signing. It's one of the most consequential clauses in the PSA.
Not sure what to ask the buyer? See questions to ask any mineral rights buyer.
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Request Your Free OfferA purchase and sale agreement (PSA) is the contract that governs the sale of your mineral or royalty interest. It states the purchase price, exactly what interest is conveyed, the effective date, how and when closing and payment happen, and the warranties each side makes. The mineral deed is the instrument that actually transfers title; the PSA is the agreement behind it.
An offer letter proposes a price and basic terms; it's the starting point. A purchase and sale agreement is the binding contract that spells out all the terms in detail and leads to closing. Review the PSA carefully — it controls the actual transaction, not the offer letter.
Confirm the purchase price and how it's paid; the exact interest conveyed (all minerals, a tract, a percentage, or only a wellbore — and what depths); the effective date (who keeps revenue before closing); who pays title and closing costs; the warranty of title you're giving; and any conditions. Make sure the legal description matches your ownership.
The effective date sets the point from which the buyer is entitled to production revenue. Revenue before the effective date generally belongs to the seller; revenue after belongs to the buyer. It can differ from the closing date, so confirm how revenue between signing and closing is handled.
Many mineral sales use a general or special warranty of title, meaning you warrant you own what you're selling. Read this carefully — a broad warranty can create exposure if there's a title defect. A 'subject to' or limited warranty narrows what you're guaranteeing. Have an attorney review the warranty language if you're unsure.
Disclaimer: This information is for general educational purposes only and is not legal advice. Purchase and sale agreements are binding contracts with terms that vary; have a qualified attorney review any PSA before you sign.
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