How will I be paid at closing?
Typically we close transactions via company check, but we are always willing to accommodate requests for wire transfer or cashier’s check in exchange for Mineral Deed at closing. We will never pay an owner via time draft instrument, as this is an unfair practice which does not allow an owner immediate access to the closing funds.
How do I know how much my minerals are worth?
The valuation of oil and gas minerals is a highly subjective process. Estimates of factors such as forecast oil and gas pricing, current market rates, local geology, and potential for development all affect the estimated value of mineral interests. In the most basic sense, minerals are worth what a buyer is willing to pay for them at a given time, and Legacy Royalty strives to give fair market valuations of all prospective mineral purchases.
If I want to sell, do I have to sell all my mineral interests or can I sell only a portion?
Legacy Royalty frequently purchases partial mineral interests. We understand sellers may wish to retain a portion of their mineral rights, and we are willing to accommodate this request.
Can I sell my mineral interests if they are currently under lease?
Leased mineral interests, whether producing or non-producing, may be freely sold. Legacy Royalty purchases both leased and unleased mineral interests.
How will the sale of my minerals be treated for tax purposes?
Generally, the sale of oil and gas mineral interests will be treated as a long-term capital gain, which has far more favorable tax rates than ordinary income. We encourage you to visit with your accountant regarding any detailed tax questions. Click here for more information regarding Long Term Capital Gain taxation
What is the typical process undertaken if I choose to sell my mineral interests?
Once we receive notice that you are interested in selling mineral interests and both parties have agreed to the terms, we will forward a Contract for Sale of Minerals for execution. After receiving the signed contract, we undertake a title examination at our expense to confirm ownership of the minerals. Upon confirmation of ownership, a Mineral Deed will be sent for your execution and return. Once we receive the signed deed, we will promptly mail you a check, at which point the sale process is complete. We strive to complete this process within 15-20 days, though more time may be required in the event of extensive title complexity.
What is the cost of a mineral sale to me?
There is no cost to the owner who wishes to sell oil and gas mineral rights.
* If you have more questions please contact us, click here.