How to Sell Mineral Rights
Gather Information & Resources
Don’t let mineral rights confuse you…
We understand how difficult it can be to get started with selling mineral rights. Our team of experts at Ferrari Energy are here to help. Whether you want to sell your mineral rights as soon as possible, or you’re just looking for some quality information, we have you covered. We’re here to answer questions, provide consultations and educate landowners via our Mineral Rights 101.
Keep reading to learn how to sell oil royalties:
You’ll need to determine how much your mineral rights are worth in order to sell oil royalties. A land valuation will determine the value of your mineral rights quantified by what is known as a ‘mineral acre.’ After valuation, landowners can sell oil royalties by mineral acre. For example, selling mineral rights at $500 per net mineral acre.
Choose Between Buyers vs. Brokers
Identify the Positive & Negative Effects
There are two different types of mineral rights buyers: Brokers and End-Buyers. One may be a better fit for your personal goals than the other which is why understanding the difference between the two is a crucial factor for mineral rights sales. Brokers serve as the middle-man between landowners and buyers, whereas buyers – or end-buyers — commonly pay more per mineral acre while cutting out excess third-parties.
Agree on a Good Price
We ensure you sell your mineral rights for the highest possible value!
As with any form of sale, setting a good price is how to sell mineral rights efficiently. A mineral rights valuation is performed in order to adequately assess the value of your mineral rights. Ferrari Energy holds years of experience working closely with landowners to ensure they get the best possible value for their mineral rights. Once our sellers are comfortable with the value, an agreement is drafted. Learn more about valuing mineral royalties here.
Our team develops all necessary contracts:
Develop Contracts Required for Selling Mineral Rights
Purchase and Sale Agreement
A Purchase and Sale Agreement, or a PSA, is a contract required by law to outline each party’s obligations to the transaction. This contract specifically enforces three of the most important aspects of the sale:
1. Purchase Price
The purchase price is either a total sum or a price calculated per mineral acre (see “Sell Oil Royalties by Mineral Acre”, above).
2. Closing Date
The closing date is the second most important aspect of the contract which commonly varies with different buyer preferences or restrictions. Closing dates range from 30 days all the way up to three months.
3. Title Verification
Closing dates are often affected by title verification. When you sell your mineral rights, you’ll need to be sure you are indeed the legal owner. Once verification has confirmed this you may proceed to sell oil royalties — or mineral rights — as detailed in the PSA.
In a time-crunch?
Reputable buyers close in 30 days; however, selling mineral rights may be delayed if the buyers or sellers are not properly prepared. We recommend requesting a consultation from us to ensure everything goes smoothly and to answer remaining questions about how to sell mineral rights.
In conjunction with the PSA, a Mineral Deed is the final paper required to sell your mineral rights. The mineral deed is a document that indicates the transaction has been complete and that the mineral rights now belong to the buyer. This is typically received after the final transfer of funds has been processed, finalized and recorded.
Maximize Your Mineral Rights Value with Ferrari Energy today:
Request a Consultation
Now that you understand how to sell mineral rights, it’s time to get started. As one of the top oil companies in Colorado, Ferrari Energy is your all-in-one resource for mineral rights sales, acquisition and management. Request a consultation or valuation today and sell your mineral rights tomorrow!
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