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Warning For Selling Mineral Rights

Planning to sell your mineral rights? Before you do so, it is best to think long and hard. While you can make money from doing so, in the long run you can also get some value from your minerals. Ownership of these rights will vary from one state to another and may be linked to the real estate it is located. So before you sell mineral rights, consider these warnings:

Future Value

Once you sell your mineral rights, you are also risking the potential future value of the minerals. You also lose future benefits such as exploration, excavation, or extraction of the minerals. The future value could be higher than the upfront sales value. So rather than sell your rights, consider leasing the minerals. When somebody leases, you get a bonus.

Estate Planning

Whether or not the mineral is producing or not, mineral rights can be passed from one generation to another. You can divide it among your heirs and they will benefit from future mineral production.

Property Damage

If you sell your mineral rights, it is possible to retain your property. But then again, you might not be able to use the grounds where the minerals are for your own. If you want to use the piece of land that you still legally own, you will have to ask the owner of your mineral rights to grant you an easement.

Cash Opportunity

Whenever you need cash, just extract some minerals and sell it. There might be different industries who will become interested with your minerals and pay you a huge amount of cash.

These are just some of the reasons you should think twice in selling your mineral rights. Look at the pros and cons of selling and retaining your rights and weigh them carefully. When you do decide, make sure that you won’t regret it in the future.

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