Let's Fix the Problem

Here are ten problems a severed title creates and why it's a good idea to purchase these minerals to clean up the title:

• Problem 1: In Washington, unlike some other states, the law does not require sellers to disclose who owns the mineral title unless you ask the developer, builder, or realtor. As the buyer, you do not know the mineral status unless you ask, preferably in writing.

• Problem 2: In Washington, unlike some other states, title insurance companies can refuse to disclose mineral title and the financial and access encumbrances caused by mineral rights. After sale, the title insurance policy will not protect or defend you against loss of your property, encroachments, or access by third-parties exercising their mineral rights.

• Problem 3: The mineral right owner—and anyone he designates—has complete and perpetual access to your property without notice. As a co-owner with you, the mineral right holder is not a trespasser. In many cases the mineral owner's rights are superior to yours.

• Problem 4: You have no control over who the mineral right owner sells the mineral rights to, or how often the rights are transferred. You have no say in who your co-owner will be, and no right of first refusal to buy back those rights. The next purchaser could be anyone wanting control over your property or you: a neighbor, a competitor, a political group, a lender, a foreign national, an environmental organization, a government entity. You do not have privacy, certainty, or exclusive control of your property.

• Problem 5: You have no control over liens, mortgages, and encumbrances that the mineral right owner can place on your property without your permission. You may not be directly liable for these debts, but they can affect your ability to finance, the costs of financing, the ability to sell, or the timing and complexity of closing.

• Problem 6: According to the Washington Supreme Court, you face liability if you remove minerals from your property without paying the owner of the mineral rights—including treble damages and attorneys' fees, even if you are only moving rock, sand, or gravel. If you are a developer, builder, or homeowner, your liability insurance may not protect you from damages because the movement of minerals is considered an "intentional" act, which is excluded from most commercial and homeowner insurance policies.

• Problem 7: The mineral law in the United States is changing rapidly and in ways that are unpredictable. In the interim, you face uncertainty about (a) your rights; (b) the mineral owner's rights; and (c) new demands and uses for minerals. Home buyers, lenders, and developers cannot afford the uncertainty, delay, litigation, and expense for a problem that is often easy to solve.

• Problem 8: Because severed mineral rights are in the news, the mineral right issues are sending shockwaves through the developer, lender, title insurance, and consumer advocacy groups. Just type "mineral rights for builders and homeowners" into an internet search engine—like Google—to see the growing scope of the problem. If a full disclosure is made, builders and buyers will demand that sellers provide full title when they can, without reserved mineral rights held by a third-party.

• Problem 9: All of these problems are greatly magnified when the mineral right is exceptionally broad and includes common minerals like rock, sand, and gravel along with the right to enter the property and process "by any means," a phrase that legally means the right to destroy the surface. Full disclosure means reading the mineral right and making it available to buyers to read and understand. Without disclosure, your liability increases.

• Problem 10: In fairness, the mineral owner is a property owner who has rights and who needs to defend and promote his property, just like every other owner. Unfortunately, this means a high potential for conflict when both owners often have opposite goals. The solution, however, is simple. In most cases, inactive mineral rights can be purchased from the mineral right owner.

Please contact us using the form below to begin the process of cleaning up the title to your property.