Would you pay extra money for Mineral rights when purchasing land ?

[growalot]

That's too bad..the two properties I bought before that from a different owner...asking 1800 per acre and buyer covering all costs...I talked to them made a few financial points.. 800.00 and they used our lawyer to handle the deal which made it just a bit above what it would have cost us if we didn't have to cover all cost. His lawyer wasn't happy,too bad.

Our sons bank repo They wanted 69,900 Took 36,000 when we said cash ..real estate agents were very ticked.

[growalot]

I take it your getting a title search done,...it will uncover any other " I had no clues" and make sale pending complete and clear title.

[607 HUNTER]

Glad that worked out for you grow, especially your son- what a deal !

Apparently Reise said that because the people I am purchasing it from never paid off paying Reise there name never went on the title. They still owed $19,000 to Reise, they purchased it in 2004. I am very curious what they purchased it for.

Reise says they the title is 100% new and has no prior history or owners on it with it being a new sub division. Would you recommend still doing a title search ? 

Pretty much how it looks like it will work, Reise will sign all the papers to me next week. They file the papers and it takes 6-8 weeks. No lawyers involved

[chas0218]

If you can get the mineral rights cheap enough so you aren't paying more than $2000/acre it might be worth it. It is still a gamble at $2000/acre whether you will make your money back on a 14 acre parcel. Fracking will never happen in NY now that it is illegal to do so (the only good thing Cuomo did). There is too much easily accessible gas in the midwest without as many restrictions as the NE to make it worth going after up here.

My stipulations when buying our current house with the land was, if it was bare land it had to have mineral rights and minimum 20 acres. With a house it had to have minimum 30 acres and house big enough for the family. We settled on 40 acres and a house that needed to be remodeled and added to. All said and done we will have $180,000 invested into a property that will be worth close to $250,000 on the low end.

Have you thought about financing land? Down the street from me there is 100 acres for $100,000 with "motivated seller" I bet you could get it cheaper and that includes mineral rights. This is just north of corning, and if purchasing land and financing you need 20%-30% down and you could get a much larger piece of land than what you are looking at now.

[52 farmer]

Don't buy without a search, could be a major mistake.Also if you go to the county website you should be able to see what the property sold for and what the taxes are .Good luck, cover all your bases.

[607 HUNTER]

17 minutes ago, chas0218 said:

If you can get the mineral rights cheap enough so you aren't paying more than $2000/acre it might be worth it. It is still a gamble at $2000/acre whether you will make your money back on a 14 acre parcel. Fracking will never happen in NY now that it is illegal to do so (the only good thing Cuomo did). There is too much easily accessible gas in the midwest without as many restrictions as the NE to make it worth going after up here.

My stipulations when buying our current house with the land was, if it was bare land it had to have mineral rights and minimum 20 acres. With a house it had to have minimum 30 acres and house big enough for the family. We settled on 40 acres and a house that needed to be remodeled and added to. All said and done we will have $180,000 invested into a property that will be worth close to $250,000 on the low end.

Have you thought about financing land? Down the street from me there is 100 acres for $100,000 with "motivated seller" I bet you could get it cheaper and that includes mineral rights. This is just north of corning, and if purchasing land and financing you need 20%-30% down and you could get a much larger piece of land than what you are looking at now.

Thats great you were able to get such a large piece of land, hopefully the hunting is  phenominal for you this year !

I sure have some deals in the Corning area online before. My heart is stuck in this little town though, the hunting is honestly terrible here. But the friends I have and trails I know all over its what is keeping me here. 100 acres sure would be nice, especially down the road from a fellow hauntingly member, I'm sure we could have some good times out there. 

I am trying to keep taking under 3,500 a year also, so this size property hopefully is large enough for what I need ! There 2 neighboring property are about 15 acres each and have not been used in 2-3 years. So I honestly have my eye on them if the opportunity ever presents it self to purchase them.  

[607 HUNTER]

15 minutes ago, 52 farmer said:

Don't buy without a search, could be a major mistake.Also if you go to the county website you should be able to see what the property sold for and what the taxes are .Good luck, cover all your bases.

Nothing on the county website, not even any of the neighboring properties. Due to no one owning there lots the real estate company subdivided. No on has paid off there property yet.

I have dug and dug, it would be nice to have found it. But it only shows the 150 acres they purchased and subdivided in 2004 so far.

[land 1]

DO A TITLE SEARCH, and have a lawyer do it, a friend I know kinda did what your doing just him and the seller where did the deal .... He went to sell and found some guy from like 1930 had a claim to it and was a headache but worked out....You already had one surprise with the mineral rights and dont forget mineral rights in no way just includes hydrofracking.... I agree with chas that its unlikly they wil never ever do anything with minerals hes right that there are easier areas to get gas from  but they can sell it to anyone they want and that could change.

[growalot]

Heres the only thing I will pay "extra money" for..and have sale contingent on it being clean:

Quote

Property abstract

From Wikipedia, the free encyclopedia

A property abstract is a collection of legal documents that chronicle transactions associated with a particular parcel of land. Generally included are references to deeds, mortgages, wills, probate records, court litigations, and tax sales—basically, any legal document that affects the property.

The abstract will show the names of all property owners, how long a particular holder owned it, and the price of the land when it was sold. Rarely will an abstract mention capital improvements to the property.

Property abstracts are considered good starting places for research on historical buildings.^[1]

Abstract of title

An abstract of title is the condensed history of the title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate. In the United States, the abstract of title furnishes the raw data for the preparation of a policy of title insurance for the parcel of land in question. In Iowa, commercial title insurance is outlawed, so title insurance policies are issued by Iowa Title Guaranty, an Iowa state government agency.^[2]

An abstract of title should be distinguished from an opinion of title. While an abstract states that all of the public record documents concerning the property in question are contained therein, an opinion states the professional judgment of the person giving the opinion as to the vesting of the title and other matters concerning the chain of title. Many jurisdictions define the giving of an opinion of title as the practice of law, thus making it unlawful for a non-attorney to provide such an opinion.

 

[growalot]

Also did you say no lawyers...hey I have made some deals over the years and never would I go into any land deal with out a lawyer and a damn good property lawyer...unfortunately ours retired right after our son got his place.

Edited September 29, 2017 by growalot

[growalot]

If the "owners haven't paid for it yet thus no record...it's land contracts from what I'm reading..if so...I can not caution you enough...again I can NOT caution you enough...who's idea was it for no attorney???

Edited September 29, 2017 by growalot

[growalot]

Here's another document you could consider...though in most cases it wont cover any loss you could incur on buildings. Just what the land cost you if a claim is made and won..

Quote

Title insurance

From Wikipedia, the free encyclopedia

Title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. The vast majority of title insurance policies are written on land within the United States. Unlike some land registration systems in countries outside the US, the US states' recorder of deeds generally do not guarantee indefeasible title to those recorded titles. Title insurance will defend against a lawsuit attacking the title, or reimburse the insured for the actual monetary loss incurred up to the dollar amount of insurance provided by the policy.

The first title insurance company, the Law Property Assurance and Trust Society, was formed in Pennsylvania in 1853.^[1] Typically the real property interests insured are fee simple ownership or a mortgage. However, title insurance can be purchased to insure any interest in real property, including an easement, lease or life estate.

There are two types of policies – owner and lender. Just as lenders require fire insurance and other types of insurance coverage to protect their investment, nearly all institutional lenders also require title insurance [a loan policy] to protect their interest in the collateral of loans secured by real estate. Some mortgage lenders, especially non-institutional lenders, may not require title insurance. Buyers purchasing properties for cash or with a mortgage lender often want title insurance [an owner policy] as well. A loan policy provides no coverage or benefit for the buyer/owner and so the decision to purchase an owner policy is independent of the lender's decision to require a loan policy.

Title insurance is available in many other countries, such as Canada, Australia, the United Kingdom, Mexico, New Zealand, Japan, China, Korea and throughout Europe. However, while a substantial number of properties located in these countries are insured by U.S. title insurers, they do not constitute a significant share of the real estate transactions in those countries. They also do not constitute a large share of U.S. title insurers' revenues. In many cases these are properties to be used for commercial purposes by U.S. companies doing business abroad, or properties financed by U.S lenders. The U.S. companies involved buy title insurance to obtain the security of a U.S. insurer backing up the evidence of title that they receive from the other country's land registration system, and payment of legal defense costs if the title is challenged.

 

 

 

[left field]

You really need a lawyer. If only for the peace of mind. 

[reeltime]

I would absolutely do a title search and have title insurance also you need to make sure that they did not exercise any of the mineral rights they very well could have a lot of people leased their land rights already to the gas company prior to New York shutting them down so you need to make sure those rights are clean before signing any documents

 

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