Common Questions & Helpful Answers

Please contact us if you cannot find an answer to your question.

I have a mortgage. Can I still sell my mineral interest?

Yes! Having a mortgage does not automatically prevent you from selling your mineral rights. However, if your mortgage includes a clause that requires lender approval for selling assets tied to the property, you may need to notify or get consent from your lender. It’s always a good idea to review your mortgage documents and speak with your lender or a qualified professional before moving forward.

Can I sell my mineral rights if they are currently under lease if I have minerals that are currently producing?

Yes, you can sell your mineral rights even if they are currently under lease or producing. However, the terms of the existing lease will remain in effect for the new owner. That means any bonuses, royalties, or obligations outlined in the lease will transfer to the buyer.

I am held by production (HBP) from an old lease and I receive very small royalty or shut-in payments. Can I still sell my mineral rights?

Yes, you can still sell your mineral rights even if they are held by production (HBP) from an old lease and you’re receiving small royalties or shut-in payments. Any existing lease terms, including ongoing royalties, will transfer to the buyer. Selling can provide you with a guaranteed upfront payment instead of waiting for uncertain future income.

Take advantage of a tax free 1031 land exchange

A 1031 exchange, named after Section 1031 of the U.S. Internal Revenue Code, allows property owners to defer paying capital gains taxes when they sell certain types of property and reinvest the proceeds into similar property. This can include real estate, mineral rights, or other qualifying assets.

The main benefit of a 1031 exchange is that it lets you preserve more of your investment by delaying taxes, giving you more capital to reinvest in another property. It’s often used by investors and landowners who want to grow or diversify their holdings without losing a large portion of their proceeds to taxes immediately.

It’s important to note that there are specific rules and timelines to follow for a 1031 exchange to qualify, so consulting with a qualified tax advisor or professional is essential before moving forward.

Why Sell?

Oil and gas development depends on many factors, including market prices, location, and timing. Even when a landowner owns oil and gas rights, there’s no guarantee those resources will ever be developed. While many people hope to see production someday, the reality is that most properties are never put into production.

So why take an unnecessary risk? Your property may already be locked into a lease, leaving you waiting and hoping it eventually pays off. Instead, you may choose to secure additional money upfront and remove the uncertainty.

Financial Principles

Lease bonus payments and royalty income are taxed as ordinary income. In contrast, selling mineral rights is typically taxed as capital gains, which are often much lower than ordinary income tax rates.

We also understand that some things are more important than money—like family, quality of life, and the legacy you leave behind. Many people tell us they want to keep their minerals in the family for their children and grandchildren, and we truly respect that decision.

However, it’s worth asking: would you rather leave them the hope of future royalties, or guaranteed money they can use and benefit from today?

Our Mission

We’re here to offer you a fair cash price and make the closing process quick and easy—at no cost to you. Our goal is to build lasting relationships with the landowners we work with, treating every property and every family with respect.

Ready to learn more? Contact us today—we’d love to answer your questions and help you explore your options.

Common Questions & Helpful Answers

Why Sell?

Financial Principles

Our Mission

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