Understanding your options for minerals when selling property.
Get Your Free Mineral ValuationIf you're selling land in an oil and gas producing state, one of the most important questions you'll face is: What happens to the mineral rights?
The answer depends on your decisions, your deed language, and your state's laws. Unlike selling a house where everything transfers to the buyer, selling land with mineral rights offers more flexibility—and more complexity.
Under the common law principle, whoever owns the surface also owns everything below it—"from heaven to hell," as the old saying goes. This means:
Default: If your deed says nothing about minerals and you own them, they will transfer to the buyer along with the surface when you sell.
However, this default only applies when the deed is silent on minerals. You have the power to change this outcome by including specific language in your deed.
Sell the land and minerals together to the buyer. This is simplest but may not maximize your total value if the minerals are valuable.
Sell the surface but retain 100% of mineral rights. You continue to own the minerals and can sell them separately, lease them, or pass them to heirs.
Sell the surface and some minerals, but retain a percentage. For example, you might reserve 50% of minerals and convey 50% to the buyer.
Before selling your land, sell the minerals separately to a mineral buyer. Then sell the surface-only to a land buyer. This often maximizes total proceeds.
To reserve minerals when selling land, your deed must contain specific reservation language. Example:
Important: Reservation language must be precise. Work with an attorney experienced in mineral law to ensure your reservation is legally effective in your state.
Minerals may increase in value
Future royalty income potential
Pass assets to heirs
Sell minerals separately for better price
Simpler transaction
Minerals have little value
Buyer requires full ownership
Don't want ongoing management
In areas with active oil and gas development, reserving minerals may reduce what buyers will pay for the surface. This is because:
Buyer won't receive royalty income
Surface may be used for drilling access
Perceived loss of control over property
However, this reduction is often less than the minerals' actual value. By selling minerals separately to a mineral buyer, you may net more total proceeds than selling everything to a land buyer.
Tip: Get a mineral valuation before listing your land. Understanding your minerals' value helps you make informed decisions about reservation vs. sale.
Get a free mineral valuation to understand your options before you sell your property.
Request Your Free ValuationNot automatically. Whether minerals transfer depends on the deed language. If the deed makes no mention of minerals and you own them, they typically convey with the land. However, you can reserve the minerals by including specific reservation language in the deed.
Yes. You can reserve some or all mineral rights when selling your land by including reservation language in the deed. This creates a "split estate" where you retain ownership of subsurface minerals while the buyer gets the surface. Many landowners choose this option to preserve potential future income.
Common reservation language includes: "Grantor hereby reserves unto themselves all oil, gas, and other minerals in and under the above-described land." The specific language should be drafted by an attorney familiar with mineral law in your state to ensure it's legally effective.
Possibly. In areas with significant oil and gas activity, buyers may pay less for surface-only purchases since they won't benefit from mineral development. However, in areas with little mineral potential, the impact may be minimal. The market determines the actual effect.
It depends on your goals. Selling minerals separately allows you to receive fair market value from a mineral buyer while also selling your land. Bundling them together may be simpler but might not maximize total value if your minerals are valuable. Consider consulting with both a real estate agent and mineral buyer.
Disclaimer: This information is for educational purposes only and should not be considered legal advice. Property and mineral laws vary by state. Consult with a qualified attorney for specific questions about selling land with mineral rights.