A California property owner conveys land by grant deed but includes language in the deed retaining all subsurface resources. Several years after the conveyance, oil is discovered beneath the parcel. Under California law, which party holds ownership of the oil?
Correct Answer
C) The grantor, because California law permits severance of the mineral estate from the surface estate
California law recognizes the severance doctrine, which allows the mineral estate — including oil, gas, and other subsurface resources — to be separated from the surface estate and held as a distinct legal interest. When a grantor expressly retains subsurface resources in the conveyance instrument, the mineral estate never passes to the grantee. The grantor continues to hold a separate, legally recognized property interest in all subsurface minerals, including oil discovered after the conveyance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Setback requirements are zoning regulations that specify the minimum distance a building or structure must be set back from property lines, streets, or other boundaries. They ensure adequate light, air, and space between structures.
Spot zoning is an illegal or improper rezoning of a small parcel of land that is inconsistent with the surrounding zoning and the comprehensive plan. It benefits an individual owner rather than the community as a whole.
Subdivision regulations are local government rules that control the division of land into smaller parcels for development or sale. They ensure proper infrastructure, lot sizes, and public improvements are provided.
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