A purchase and sale agreement (PSA) is the contract that governs the sale of mineral or royalty rights — it fixes the price, the effective date, exactly what interest is being sold, the title representations, and how closing works, while ownership itself transfers by a separate recorded mineral deed at closing.
A sale involves two distinct instruments. The purchase and sale agreement is the contract: it commits both sides to terms and sets the roadmap to closing. The mineral deed is the conveyance: the recorded instrument that actually moves title from seller to buyer. The PSA comes first and governs the transaction; the deed is signed and recorded at closing to complete it.
Keeping the two straight matters, because the PSA is where a seller's protections live — price, timing, and what each party promises — before any ownership changes hands.
Purchase price — the agreed lump sum, and whether any portion is held in escrow pending title review.
Description of the interest — the specific mineral, royalty, NPRI, or ORRI interest being sold, with its legal description and the net acres or decimal conveyed.
Effective date — the date from which production revenue belongs to the buyer (often earlier than closing; see below).
Title representations and warranties — what the seller affirms about ownership; a special (limited) warranty covers the seller's own period of ownership, a general warranty covers the full chain.
Closing date and mechanics — when and how funds and the signed deed are exchanged, and who pays title and closing costs (Buckhead pays them).
Revenue proration and indemnities — how income between the effective date and closing is allocated, and each party's responsibility for pre- and post-sale liabilities.
These two dates are frequently different, and the gap has real money in it. The closing date is when the deal funds and the deed records. The effective date is when the economic benefit shifts — so royalty revenue produced after the effective date generally belongs to the buyer even if the check arrives during the seller's ownership, and the PSA's proration clause reconciles it at closing. Read both dates carefully; they determine who keeps which checks.
A written agreement is the seller's friend: it puts the price in ink, defines a firm timeline, states plainly what interest is being sold, and assigns the closing costs — removing the "surprises at closing" that an undocumented handshake invites. A legitimate direct buyer's PSA is straightforward and buyer-paid; there is no obligation to sign one, and a seller should always have a qualified oil-and-gas attorney review it. This page is educational information only, not legal advice.
Once you accept a free written offer, the PSA formalizes the terms we already discussed — no moving numbers. Buckhead Energy pays the title work and closing costs, and most sales close in 30-45 days by a recorded deed. See how selling works for the full step-by-step, and mineral rights documents explained for how the PSA fits alongside the deed, division order, and check stub.
Mineral rights documents explained
Lease offer vs. purchase offer
Educational information only — not legal, tax, or investment advice. Consult a qualified attorney, CPA, or landman about your specific situation.
It is the contract that governs the sale — setting the price, effective date, the interest being sold, title representations, and closing terms. Ownership still transfers by a separate recorded mineral deed at closing; the PSA is the agreement that leads to it.
The PSA is the contract that commits both parties to the terms of the sale; the mineral deed is the recorded instrument that actually conveys title. The PSA comes first and governs the deal; the deed is signed at closing to complete it.
The effective date is when production revenue begins belonging to the buyer — often earlier than the closing date. Royalty produced after the effective date generally goes to the buyer, and the PSA's proration clause reconciles any checks received in between.
It is strongly recommended. A qualified oil-and-gas attorney can confirm the interest description, warranties, dates, and closing terms match what you intend. A reputable buyer's PSA is straightforward and there is no obligation to sign.
Yes — Buckhead Energy is a direct buyer of mineral, royalty, NPRI, and ORRI interests across the United States, producing or non-producing. Buckhead Energy makes a free written offer, pays the title and closing costs, and charges no broker commission.
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