
Your buyer is ready to close on 200 acres. Beautiful property, perfect for their plans. Then the title search reveals the mineral rights were severed in 1947.
Now you're explaining why someone they've never met could show up next year and start drilling.
Mineral rights are one of the most overlooked—and most consequential—aspects of land ownership. In some deals, they're worth more than the surface. In others, they're a ticking liability. Either way, the broker who understands them is the one who keeps deals together.
Surface Rights vs. Mineral Rights
When someone says they "own land," most people assume that means everything—the surface, the water, the minerals underneath. That's often not true.
In the United States, mineral rights can be legally separated from surface rights. This is called a "severed estate." The surface owner controls what happens above ground. The mineral owner controls what's below—and in most states, the mineral estate is dominant.
Dominant means what it sounds like. If someone owns the minerals under your buyer's property, they typically have the legal right to access the surface to extract them. That could mean drilling rigs, access roads, pipelines, and equipment—all on land your buyer thought they owned free and clear.
This isn't a rare edge case. In states with oil, gas, or mining history—Texas, Oklahoma, Pennsylvania, Colorado, New Mexico, and many others—severed mineral estates are common. Brokers who don't ask about minerals are setting their clients up for surprises.
How Mineral Rights Get Severed
Mineral rights are typically severed in one of three ways:
- Historical reservations. When land was originally sold or granted, the seller reserved the mineral rights. This happened constantly in the late 1800s and early 1900s, especially in areas with known mineral deposits. Those reservations pass down through generations, often fractured among dozens of heirs.
- Separate sales. A landowner sold the mineral rights to a mining or energy company while keeping the surface. This was common during oil booms when companies would pay cash for mineral interests.
- Estate divisions. When land passed through inheritance, heirs sometimes split it—surface to one branch of the family, minerals to another. Over generations, this creates complex ownership situations that are difficult to untangle.
Once severed, mineral rights stay severed unless someone reunites them. They don't automatically come back to the surface owner when a lease expires or when the minerals stop being extracted.
What Buyers Need to Know
Every buyer should understand the mineral status before closing. Here's what to cover:
- Are the mineral rights included? This should be explicit in the purchase agreement. "All of Seller's right, title, and interest in and to the minerals" is what you want to see. If the contract is silent, assume minerals don't convey.
- Were they ever severed? A title search should reveal any historical reservations or transfers. Look for language like "reserving unto grantor all oil, gas, and other minerals." If you find it, dig deeper to understand current ownership.
- Are there active leases? Even if your buyer gets the minerals, they might be leased to an operator. That lease survives the sale. Your buyer inherits it—including its terms, duration, and any surface use provisions.
- What's the development potential? In some areas, the minerals are tapped out or not commercially viable. In others, new drilling techniques have made previously worthless minerals valuable. The mineral status matters more when there's actual activity in the area.
When Minerals Add Value
For some buyers, mineral ownership is a major asset.
Royalty income from active production can be substantial—thousands of dollars per month in productive areas. Even unleased minerals have option value; a buyer who owns them can negotiate their own lease terms if development comes to the area.
Some investors specifically seek properties with mineral rights intact, viewing them as a hedge against surface land values. Agricultural buyers might see minerals as retirement income. Recreational buyers might not care about the income but want control over whether their hunting land gets drilled.
When minerals convey and have value, make it a selling point. Quantify the potential or current income. Highlight the control the buyer will have. This is a feature, not a footnote.
When Minerals Create Problems
Severed minerals can be a significant negative.
A buyer planning to build their dream home doesn't want drilling rigs showing up. A conservation buyer doesn't want surface disturbance. A developer might face complications if mineral owners have access rights across their project.
In these cases, transparency is everything. Don't hide the severance and hope the buyer doesn't notice. Explain what it means practically. In many areas, the likelihood of actual drilling is low—minerals were severed decades ago and nothing has happened since. But the buyer needs to understand the risk and make an informed decision.
Some deals can accommodate severed minerals with price adjustments or surface use agreements negotiated with the mineral owner. Others can't. Know which situation you're in before you're deep in due diligence.
Questions to Ask on Every Listing
Before you price any property, especially in mineral-rich states, get answers:
Does the seller own the mineral rights? Have they ever been leased? Are there active operations or recent activity in the area? Are there any surface use agreements in place? What's the ownership history of the mineral estate?
If the seller doesn't know, find out. Pull title. Contact a landman if the situation is complex. The cost of clarity is nothing compared to a deal collapsing—or worse, a buyer who closes and then discovers what they didn't buy.
Minerals Are Part of the Deal
Too many brokers treat mineral rights as a technicality—something for the attorneys to sort out. That's a mistake.
Minerals affect value. They affect usability. They affect what the buyer is actually purchasing. The broker who understands this—and can explain it clearly—is the one who earns trust and closes deals.
Know the minerals. Know the implications. Own the conversation.
Mineral rights are one of 100 essential terms covered in The Land Broker's Definitive Glossary & Field Handbook—a practical reference for land professionals who want to know more than their competition. Available through Landverse AI.



