Before purchasing a property, every buyer weathered expert or novice has to keep in mind several aspects. This includes an array of permits and licenses. Mineral rights are one such essential license for property owners.
You can purchase land with or without mineral rights. Owning this license will allow you to sell minerals extracted from your property and earn more. However, you can also earn high ROI without this document.
For detailed knowledge on how buying land without mineral rights can be great for your finances read till the end.
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What is Mineral Rights?
Mineral rights issued by the US government act as ownership privileges that land owners can exercise on minerals from their property. Such minerals can include oil, coal, gases, and metal resources. Unlike surface land ownership, mineral rights allow landowners to extract, sell, and trade minerals obtained from their soil to a fair market. This helps them earn additional benefits from their land investment. However, it comes with an extra expense that might not fit everyone’s budget.
You can buy properties with or without mineral rights. Buying land with mineral rights allows you to trade and utilize the minerals that are extracted from such properties which you cannot do if you do not have mineral rights.
Nevertheless, even buying land without mineral rights can be a worthy investment. Purchasing land without mineral rights makes the purchase process simpler with comparatively less paperwork.
It is also a cost-efficient process as you invest on the surface land and not on what lies below. Furthermore, owning land without mineral rights also unburdens you from potential risks revolving around environmental and legal issues.
To know how you can generate significant ROI by buying land without mineral rights, keep reading.
How to Benefit from Buying Land without Mineral Rights?
If you are buying land without mineral rights, take a look at the points that can assist you make the best out of the property.
Surface Area Agreements
If there is a mineral rights holder for your property, consider negotiating surface use agreements if they tend to use the land for extraction purposes. The scope of the negotiation process can outline land restoration, compensation, and access route expenses.
Furthermore, it is essential to have clear communication with the mineral rights holder regarding mitigation plans. The scope of this plan must involve strategies to minimize disruption and restore the land after extraction.
Recreational Use
Another way to earn after buying land without mineral rights is by utilizing the property for recreational or outdoor activities. For instance, you can lease the property as hunting land, winery, or fishing ground.
This shall help you earn significantly high returns from the growing tourist industry in your location. You can also utilize the land to set up outdoor facilities like camping, hiking and hunting tours, winemaking, etc.
Agricultural Use
If you own surface rights for a vast land, you can utilize it for agricultural purposes for livestock or crops. This offers a steady source of income and is also compatible with certain types of mineral extraction processes.
For higher returns, you can employ sustainable farming practices that enhance the long-term productivity of the land.
Legal Assistance
This is one of the crucial steps in the land-buying guide to ensure you are not being duped or trapped by the seller into legal loopholes. Very often it might be tough to comprehend the legal terms and clauses of an ownership transfer contract. If you are buying land without mineral rights and are facing such an issue, consider seeking guidance from a legal advisor.
A legal advisor can take you through the terms and nuances of the land ownership contract. This shall help you make an informed decision.
Residential and Commercial Use
Besides the above methods, you can also buy land without mineral rights and utilize the same for residential and commercial purposes.
In such land, you can construct commercial or residential buildings like houses, villa apartments, shopping complexes, or universities. However, you must ensure these infrastructures do not get impacted by mineral extraction processes.
You can also utilize this property to set up and install solar panels or wind turbines to earn high returns. Furthermore, these can also work as a feasible infrastructure even if the land is used for mineral extraction.
You can connect with reputed real estate agents for assistance with land research to make an informed purchase decision. The right agent shall also provide insight and options if you are looking for owner-financed lands.
Bottom Line
Mineral rights are the licenses that can help you explore and earn from the minerals extracted from your land. Besides the above ways to earn a significant amount after buying land without mineral rights, you can use the property as a wildlife conservatory and property landscaping. You can also rent the land for events and education programs to earn passive income.
Your search for the right property ends here. Connect with our real estate experts and make an informed land investment decision.
