Leasing vs. Selling Your Mineral and Royalty Interests Part 1

Technically known as a mineral estate, ownership of mineral rights is a type of real property ownership. Mineral rights grant the possessor the ability to do what they want with the minerals contained in the property, including mining, exploiting, and/or producing them. This means, if you own a piece of property that contains in-demand resources, you can sell, lease, gift or bequest a portion of or all the interest as you see fit. Of course, every person’s situation is different, and when it comes to deciding between selling and leasing your mineral and royalty interests, there are definite advantages and disadvantages to both. Though it can get a little confusing to break down the differences and understand what will be the right course of action for you, personally, we’re here to help. Below, we’ve begun laying out the advantages and disadvantages of selling your rights in order to help ease the process for you.

One of the biggest advantages to selling your rights is that you can receive an immediate cash payment. The future is uncertain, so there is no guarantee what money you will make in the long run in terms of royalty payments when leasing. Selling is also an overall easy and more hassle-free process. Keeping track of mineral interests can be incredibly time consuming and there’s a lot of maintenance necessary if you still own the property. If you sell, you eliminate the need to maintain and have a guaranteed sum upfront which is safe from the not-so-certain future.

Now that you know a little bit more about selling your mineral and royalty interests, the next step is to learn more about your other options. Keep an eye out for an upcoming post in which we’ll outline the plusses and minuses of leasing instead of selling. If you already know your course of action, and you need help with the process, visit EndeavorAcquisitions.com, today. Our professionals have a reputation for excellence and can help you with your interested related needs.