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What Are Surface Rights in Real Property?
Surface rights in real property refer to the legal rights a property owner has over the surface of their land, also known as the surface estate. These rights allow the owner to use and control the surface of the property, including the natural resources found on or near the surface. Still, what does that mean for you?
Keep reading to learn more about how surface rights in real property work and how they can help you make money.
What Do Surface Rights Include?
Surface rights include the right to build structures, cultivate the land, extract resources such as timber or crops, and enjoy the use and possession of the land. Essentially, surface rights give the owner the ability to make decisions regarding the surface of the property and how it is used.
How Deep Do Land Surface Rights Extend?
The depth to which surface rights extend can vary depending on the jurisdiction and specific legal agreements. In general, surface rights extend to a reasonable depth needed for the reasonable and customary use of the land. However, this depth may not include subsurface resources such as minerals, oil, or gas. Surface rights may extend for dozens of feet below the surface.
Mineral and Surface Rights: What’s the Difference?
Surface and mineral rights are distinct in some key ways. Mineral rights refer to the ownership and control of the minerals, oil, and gas found beneath the surface of the land, while surface rights apply to what you can do with the surface or the property. The mineral estate owner, meaning the owner of the mineral rights, may own rights to the natural gas on the property, the right to set up drilling operations, and other subsurface rights. Only the mineral rights owner has control over the subsurface rights and underground resources on his or her property.
In some cases, the mineral rights holder and surface rights holder may be two different parties. This can lead to complex legal arrangements and potential conflicts between surface owners and mineral owners. Whether you're the mineral owner or the surface owner, we can help you find the path forward to profiting from your land ownership.
How Can You Profit From Surface Rights in Real Estate?
As the surface rights holder, you have certain rights and responsibilities. This includes the right to exclude others from using or trespassing on your land, the right to use and enjoy the surface of the property, and the right to lease or sell the surface rights to others.
However, it is important to note that the property owner's rights may be subject to certain restrictions and regulations imposed by local, state, or federal authorities. These restrictions may relate to zoning, land use, environmental protection, or other factors that aim to balance the rights of property owners with the broader public interest
If you own surface rights to a property that has valuable natural resources, such as oil, gas, or minerals, you may be able to profit from these resources. Below, you can find a few key ways you can profit from surface rights.
Lease Your Property
One option for profiting from surface rights is to lease or sell the mineral rights to a company that specializes in extracting and producing these resources. This can generate income through royalty payments or upfront lease payments.
Start a Joint Venture
Alternatively, to profit from your surface rights, you may choose to enter into a joint venture or partnership with a company that has the expertise and resources to develop the resources on your property. This can allow you to share in the profits while maintaining some level of control over the development process.
How to Get the Most Out of Selling Land With Surface Rights
When selling land with surface rights, there are several strategies you can employ to maximize your profits.
- Conduct an Assessment – First, it is important to conduct a thorough assessment of the property's potential value, taking into account factors such as location, access to infrastructure, and the presence of valuable resources.
- Get Expert Assistance – Next, you may want to consider working with a qualified real estate agent or land broker who specializes in selling properties with surface rights. They can help market the property effectively and identify potential buyers who are interested in the specific attributes of your land.
- Vet Your Buyers – Additionally, it can be beneficial to conduct due diligence on potential buyers to ensure they have the financial resources and expertise to develop the property in a manner that maximizes its value. This may involve requesting proof of funds or references from previous projects.
How to Prevent Surface Damage by the Oil and Gas Company
To prevent surface damage by oil and gas companies, it is important to negotiate and enter into comprehensive surface use agreements with these companies. These agreements should address issues such as compensation for damages, reclamation requirements, environmental protections, and access restrictions. These provisions are meant to account for damage to the property caused by the company while accessing subsurface resources.
We recommend consulting with legal professionals experienced in oil and gas lease concerns and surface use agreements to ensure your rights and interests are protected. Additionally, staying informed about relevant regulations and industry best practices can help you proactively address any potential surface damage concerns.
Make the Most of Your Mineral Rights With The Mineral Auction
Surface rights allow the owner to use and control the surface of a property, but may not include legal ownership of subsurface resources covered by mineral rights. Understanding and effectively managing surface rights can be crucial for property owners to maximize the value of their land and protect their interests.
To learn what rights you have on your property and whether or not you can profit from your mineral rights, get in touch with the real property rights experts here at The Mineral Auction. We can help you make the most out of your mineral estate.
Reach out to The Mineral Auction for help profiting from your mineral estate.
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We’re located in Austin, TX, and because we have connections to thousands of oil and gas royalties and mineral rights buyers, we know that we can get you the best deal if you are looking to sell your mineral rights, whether you’re located in Texas or anywhere else in the U.S.
The Mineral Auction provided me with an invaluable exit strategy when selling a mineral interest that one of my clients had. I’d recommend them to anyone who has the need to create some liquidity.
Blake is excellent. We have used him in numerous family issues and find him always direct and very helpful. He is incredibly informed and our go-to guy.
Blake and I have worked on several deals together and they have always gone off without a hitch. Both parties leave the table satisfied. Highly recommended!
Blake hit it out of the park! He did everything he said he would do, and then some. He far exceeded our expectations within a day! If you are concerned about paying commission or being restricted to a broker – don’t be. He will max out the value of your minerals. I tried to negotiate with several buyers on my own and didn’t come within the same universe.
Blake Bergstrom helped my family negotiate the sale of our mineral rights for our small ranch outside of San Antonio. I found Blake to be very knowledgable about whole process and took the time to answer all our questions. We were very satisified with the transaction and have already recommended Blake and The Mineral Auction to some our friends. Thanks again.
I have mineral rights to natural gas and Blake was excellent in his advice regarding my situation. Thanks a lot for your help!
