Reuters ran an interesting article on October 9, “Special Report: U.S. Builders Hoard Mineral Rights Under New Homes”, an excellent and comprehensive report describing a practice by some developers and homebuilders to reserve the oil, gas and mineral rights underlying the lots and homes they sell. The article mentions a homeowner’s surprise that he did not own the oil, gas and mineral rights beneath his property and his discovery that they’re owned by the developer and homebuilder who built his house. Reuters reports that the practice by developers and homebuilders to reserve and retain the oil, gas and mineral rights is widespread throughout the United States.
Oklahoma homeowners may be surprised to find the same practice here in Oklahoma, and for most people it is nearly impossible ? or, at least, very expensive ? to detect. Almost all, if not all, abstract companies and title/closing companies automatically exclude a search of the ownership of the oil, gas and mineral rights in real estate sale/purchase transactions. Most residential purchases ? especially those with mortgage financing ? are underwritten with title insurance that routinely excepts the oil, gas and mineral rights from coverage. That means that the purchaser has no idea whether the seller even owns the oil, gas and mineral rights.
Please see full article below for more information.
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