Protect Yourself from Fraud and Predatory Tactics
Learn to identify scams, recognize warning signs, and protect yourself when dealing with mineral rights buyers and landmen.
Scammers know mineral owners often receive unexpected letters and aren't sure what their rights are worth.
If you own mineral rights, you've probably received unsolicited letters offering to buy your minerals or lease them. While many are legitimate, some are scams or use predatory tactics. Knowing the difference can save you thousands of dollars—or keep you from losing money entirely.
This guide covers the most common scams and red flags to watch for.
Never send money to sell minerals. Legitimate buyers don't ask sellers for upfront fees, processing costs, or any payment. If someone asks you to pay, it's a scam.
How it works: Someone offers to buy your minerals but says you need to pay "closing costs," "processing fees," or "title search fees" upfront.
Reality: Buyers pay these costs. Never send money to sell your minerals.
How it works: Official-looking letters claim you have "unclaimed royalties" and need to pay a fee or provide personal information to claim them.
Reality: State unclaimed property offices don't charge fees. Check your state's official website directly.
How it works: Buyers send mass letters with very low offers, hoping some uninformed owners will accept without knowing true value.
Reality: Always get multiple offers to understand fair market value before accepting any offer.
How it works: Emails or letters ask for Social Security numbers, bank account information, or other sensitive data before any legitimate transaction.
Reality: SSN and bank info are only needed at closing, through a legitimate title company.
How it works: Landmen misrepresent lease terms, hide unfavorable clauses, pressure you to sign immediately, or claim to represent companies they don't work for.
Reality: Take time to read leases carefully, have an attorney review, and verify who you're dealing with.
How it works: Someone claims you must sign immediately or the offer expires. Creates false urgency to prevent you from doing research.
Reality: Legitimate buyers give you time to decide. Rushed offers are a red flag.
Asks you to pay any money upfront
Pressures you to sign immediately
No verifiable business address or website
Won't explain how they valued your property
Requests sensitive personal info early
Offers significantly above market value
Generic letters with no specific property details
Gmail/Yahoo email instead of business domain
Unable to answer basic questions about your minerals
Avoids putting terms in writing
Wants to close without a title company
No track record or verifiable references
Established business: Verifiable address, professional website, business history
No upfront costs: Buyer pays all closing costs and fees
Transparent valuation: Explains how they arrived at their offer
No pressure: Gives you time to consider and compare offers
Uses title company: Closing through reputable escrow/title company
Answers questions: Willing to explain process and terms clearly
Written offers: Puts everything in writing before closing
Verifiable references: Can provide satisfied seller testimonials
Google the company name, check BBB ratings, look for reviews. Verify their physical address exists. Search for the company name with "scam" or "complaint" to see what comes up.
Never accept the first offer without comparison. Contact 3-5 different buyers to understand fair market value. If one offer is dramatically different from others, find out why.
Legitimate opportunities don't disappear overnight. If someone pressures you to decide immediately, that's a red flag. Real buyers understand you need time to evaluate.
Read everything before signing. Have an attorney review if the transaction is significant. Make sure you understand what you're selling and for how much.
Legitimate sales close through title companies or attorneys with wire transfers or certified checks. Never accept personal checks or unusual payment arrangements.
Stop communication with the suspected scammer
Don't send money under any circumstances
Report to authorities: FTC (ftc.gov), state attorney general, local police
Document everything: Save letters, emails, and records of communication
Warn others: Share your experience on BBB, Google reviews, or online forums
FTC: reportfraud.ftc.gov
State Attorney General
Local law enforcement
Not necessarily. Many legitimate buyers send unsolicited letters—it's a common way to find mineral owners. Check for red flags: Does the letter ask for money? Is there a verifiable business address and website? Does the offer seem reasonable? Research the company before responding. If everything checks out, it may be a legitimate offer worth exploring.
Mineral ownership is public record. Companies search county records to identify mineral owners, then send solicitation letters. If you own minerals in an active drilling area, you may receive many letters because your minerals are valuable. While annoying, it's not inherently scam-like—it's how the industry works.
Yes, this is completely normal and expected. Mineral deeds must be notarized and recorded in the county. Legitimate buyers will send documents to you to sign at a notary of your choice—you don't need to travel anywhere. Just make sure you understand what you're signing before you notarize it.
It's very difficult. Once a deed is signed and recorded, reversing it requires proving fraud in court, which is expensive and uncertain. Prevention is much better than cure. If you signed something under fraudulent circumstances, consult an attorney immediately—time limits may apply.
Buckhead Energy: Transparent, no-pressure, no fees
We never charge sellers any fees. We explain our valuations. We give you time to decide. Request a free valuation and experience how legitimate mineral buying should work.
Disclaimer: This information is provided for educational purposes only. If you believe you've been the victim of fraud, contact your local law enforcement and consult with an attorney.