How to perform a title search for mineral ownership
A title search takes practice. Start by learning how deeds, probate records, mineral reservations, and Division Orders relate to your mineral records.
What is a Title Search?
A title search involves examining public records to confirm the legal ownership of a property and identify any claims, liens, or encumbrances against it. A title search helps identify recorded ownership and potential gaps or conflicting claims. It does not by itself guarantee ownership, resolve a title defect, or confirm that a royalty payment is correct.
Steps to Perform a Title Search
1. Gather Necessary Information
Before starting the title search, collect the following essential documents and details:
- Legal Description of the Property: This includes the section, township, and range or tax parcel number.
- Deeds: Obtain the most recent deed and any prior deeds that show the chain of ownership. If the mineral rights are severed from the surface rights, ensure you have the deed that documents this severance.
- Survey Information: If the property has been surveyed, obtain a copy of the survey and compare it to the deed description.
- Title History: If available, gather any title reports or historical ownership records.
2. Visit the County Clerk’s Office
Title records are typically maintained at the county clerk’s office where the property is located.
Some counties may offer online access to these records, while others require in-person visits. Because there is some nuance on how to interpret recorded instruments, you may still need help from an attorney or a landman but you can still do the majority of the leg work in terms of providing documents to a professional to help save time and money.
Search for:
- Recorded Deeds: Verify the chain of ownership and ensure your name and address are correctly recorded.
- Easements and Rights-of-Way: Check for any agreements that may affect access or use of the property. An easement for access typically grants a right-of-way, allowing the landlocked owner to cross adjacent property to reach their own land.
- Leases and Assignments: Look for oil and gas leases, pooling agreements, or assignments that may impact your mineral rights. Mineral owners should ensure that where oil and gas leases limit the acreage or depths that operators are allowed to hold from production or pooling, releases are filed of public record so that the relationship of the parties is clear and any potential cloud on the mineral owner’s title is removed.
3. Verify Ownership
Ensure that your name and current address are correctly tied to the legal description of the property. After a name or address change, ask the operator or royalty payer how to update its records. Ask the local recording office about its procedures and an attorney licensed in the property's state which documents, if any, should be recorded.
4. Check for Encumbrances
Search for any liens, mortgages, or other encumbrances that may affect the property.
This is particularly important for mineral rights, as unresolved issues can lead to royalties being held in suspense or escheated to the state. If the records are outdated, an interest can become “lost,” leading to royalties being held in suspense or turned over to the state as unclaimed property.
5. Search for Unclaimed Property
Use resources like MissingMoney.com to check for unclaimed royalties or funds associated with your mineral interests across multiple state databases simultaneously.
Search in all states where you or your relatives have lived or owned property.
6. Consult Professionals
If you encounter complex issues or need assistance interpreting records, consider hiring professionals such as:
- Landmen: They can help with title searches and provide insights into your ownership.
- Attorneys: Especially useful for resolving disputes or clarifying legal rights.
- Geologists or Petroleum Engineers: They can assist with appraisals and understanding the value of your mineral interests.
Tips for Saving Time and Money
- Do Preliminary Research: Many counties have digitized their records, allowing you to perform initial searches online.
- Organize Your Documents: Keep copies of deeds, leases, division orders, and royalty statements in a secure location.
- Ask for Title Opinions: Operators often obtain title opinions before drilling. Contact them to see if they can provide relevant information about your ownership.
Why Perform a Title Search?
- Prevent Suspense Payments: Ensure your ownership is properly documented to avoid royalties being held in suspense. it is commonly the case that a royalty owner’s payments are placed in suspense, but the royalty owner never receives notice that the operator stopped making payments.
- Keep Contact Details Current: Keep your ownership documents and contact information organized, and notify the operator or royalty payer of changes through its official process. Read any pooling notice promptly and record its hearing or election deadlines. Updating records does not itself prevent pooling.
- Protect Your Legacy: Organized records can help heirs and their advisers identify mineral interests and plan the documents needed for a transfer. Probate and other requirements depend on the estate plan, property, and state law.
Additional Resources
- Webinars and Educational Materials: NARO offers webinars on topics like “How Do I Search For My Deeds & Leases Or Other Important Documents?” These resources can provide step-by-step guidance.
- LINK: https://www.youtube.com/watch?v=2eqp5efvKWc
These steps can help you organize title records and identify questions for a qualified professional. A records review does not guarantee ownership, prevent every payment problem, or establish the amount of royalty income you should receive.