No Real Way to Automate House Renovations (CFFL 521)
Transcript:
Jack Butala: Jack Butala with Jill DeWitt
Jill DeWitt: Hi!
Jack Butala: Welcome to the show today. In this episode, Jill and I talk about how there's really no way to automate a house renovation. And I feel qualified that Jill understands, and has a lot to say about this.
Jill DeWitt: Oh my goodness.
Jack Butala: Before we get into it, let's take a question posted by one of our members on the LandInvestors.com online community, it's free.
Jill DeWitt: Okay, Sean asked, "I have a seller with a deed in his name from 1958." Which is very normal for us, this is cool. "In it the previous owner wrote a very long, wordy exception to retain mineral rights. Can anyone tell me if I need to include the mineral rights in the verbiage, in the new vesting deed I'm creating? I can send a picture of the deed, if it would be helpful to anyone. Thanks for your time."
Jack Butala: Do you wanna answer?
No matter what you do, that person ... Well the person before, the person that you're buying it from, will retain the mineral rights to that property forever. Regardless if they're deceased or not. And to undo that, I mean it takes a team of lawyers. As you can imagine, petroleum companies and mining companies are experts at this. So they have whole teams that specialize in that.
But here's the real deal, from a big picture concept. Along the chain of title, after the homestead, from the government. Somebody retained the mineral rights usually. Sometimes it could be you! If you do a lot of research, you might end up with the mineral rights. If nobody said right in the deed document, "I'm getting you the property, but with the exception of the mineral rights." You could very well own mineral rights. Like I said, it's a whole different career, however; you should exclude that when you convey the property.
The mineral rights portion of this, and to do that, it's real simple. If you look at any of the deeds that we do all over the internet. You'll find a deed from us, and it quite simply says, "We're getting you the property with the exception of the mineral rights." It doesn't say, "We don't 'em," or, "We're keeping 'em for ourselves," or anything, we're just saying ... The verbiage just says, "We don't really know who owns mineral rights, but we're pretty confident it's not you."
Jill DeWitt: Well you know what, here's another ... I personally ... Jack, you can tell me if you disagree, but ... If you goof up, and you do what we've said in the past, which is verbatim, copy the legal description and don't change a word, you will be fine.
Jack Butala: Right, so-
Jill DeWitt: So-
Jack Butala: I beg to differ.
Jill DeWitt: Well-
Jack Butala: In the end Jill, you're right. But go ahead.
Jill DeWitt: Well I guess let me explain this, please. So, if you copy it, verbatim, all you're doing is reiterating to the next person what's already happened. Are you going to get in trouble for that? Heck no. Do you have to do that? No, you don't. But, I mean I think it's a personal preference if you will. And if you're worried about taking it out, and doing it the right way, then I might leave it in.
Jack Butala: Yeah I mean, if you're brand new, Jill's right, you're not going to get into any trouble for doing it this way. But I'll tell you, at our level, I would just leave it out entirely, and say, "We're not conveying mineral rights." And it's as simple as that.
So, mineral rights is a big issue. It can make property really more valuable, or less valuable.