Mineral Rights

At a closing last month, the purchaser of a small home outside of Middleburg on a couple of acres looked over at me and asked a question I had not heard in a long time, “Do I own the mineral rights?” Not a common question in residential real estate, but an important one for anyone who is purchasing property of any size.

Of course, in this case, he did. As part of the investigation that leads to title commitment, we will discover anything like a sale of rights that would prevent the buyer from having free and clear ownership.

My maternal grandfather’s constant refrain was, “Never sell your mineral rights!” My mother’s family is from southern Mississippi on the northern edge of the oil deposits found in the Gulf of Mexico. Mineral rights are no small thing even if you don’t have a little oil on your land.

There is more than oil, coal or metals when it comes to mineral rights. Even here in Florida exceptional value can be found on and underground. Florida ranks fifth in the nation in mining, with an industrial mineral production value of $1.92 billion. From limestone to rare earth elements, some of the most valuable mining land in the country is in Florida, with active mines in all counties of North and North Central Florida, and elsewhere throughout the state.

Value isn’t just found below the ground, people can also sell their timber rights and air rights. Yes, it is possible to own land but not the trees on it or the air above.

If the owner sells their timber rights, they no longer own the property free and clear. The timber rights include current trees on the property and future trees that will grow, and the owner of the timber rights can take them whenever they want if that is how the rights were conveyed.

In this situation, if a timber company can come on the property, they could take the trees and leave.

Air rights are usually seen in areas where you see things such as ski lifts – so perhaps not a big Florida concern, but it is still a possibility. Each situation is different, but the importance is the same.

In summary, unless you want dredging equipment behind the pool, a forest of stumps, or a zip-line over the front porch, make sure you have free and clear title to your property when you purchase it – something your title company will do for you.


Greg Harris; GRI, CDPE
President,
Watson Title Services of North Florida, Inc.
gregharris@watsontitle.net