Under the TREC Farm and Ranch Contract, what are mineral rights?
Correct Answer
A) Ownership of subsurface resources such as oil, gas, coal, and other minerals beneath the property
Mineral rights refer to the ownership of subsurface resources such as oil, gas, coal, and other minerals beneath the property. In Texas, mineral rights can be severed from surface rights and owned separately.
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Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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