A Texas property has a recorded mineral lease that has been in its primary term for 3 years. The lease states it will terminate if no production occurs by the end of the 5-year primary term. Under Texas law, what happens if no drilling occurs within the primary term?
Correct Answer
B) The lease automatically terminates and mineral rights revert to the mineral owner
Under Texas law, if the lessee does not drill or obtain production by the end of the primary term specified in the lease, the lease automatically terminates. The mineral rights revert to the mineral owner free of the lease.
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More Texas Property Code Disclosures Questions
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Under the Texas Seller's Disclosure Notice, a seller must disclose whether the property is subject to:
In Texas, what does the term 'executive rights' mean in the context of mineral ownership?
A surface owner in Texas experiences property damage from drilling operations conducted by the mineral lessee. Under Texas law, the surface owner may:
Seller Park has owned an investment property for 3 years but has never lived in it. Tenants have reported occasional plumbing issues but Park has not personally verified the problems. On the Seller's Disclosure Notice, Park checks 'unknown' for plumbing condition. Is this appropriate?
- → The Texas Seller's Disclosure Notice requires disclosure of all of the following items EXCEPT:
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- → Seller Adams is a builder selling a newly constructed home. Under Texas Property Code §5.008, must Adams provide a Seller's Disclosure Notice for the new construction?
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- → A Texas seller is completing the Seller’s Disclosure Notice after the property had prior structural repairs and termite treatment. Which condition must be addressed on the notice?
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