A Texas property owner grants an oil company the right to drill on their land. This is called:
Question & Answer
Review the question and all answer choices
An easement
An easement is incorrect because it grants a right to use another's land for a specific purpose (like crossing or utility lines) but does not grant the right to extract or remove minerals from the property.
A mineral lease
A license
A license is incorrect because it merely grants temporary permission that can be revoked at any time, unlike a mineral lease which creates a more substantial property interest with specific terms and duration.
A deed restriction
A deed restriction is incorrect because it limits how property can be used or developed, rather than granting rights to someone else to use or extract resources from the property.
Why is this correct?
A mineral lease is correct because it creates a landlord-tenant relationship where the mineral owner (landlord) grants the oil company (tenant) the right to explore and extract minerals for a specified period, typically in exchange for royalties and bonus payments.
Continue Learning
Explore this topic in different formats
More Property Ownership Videos
Continue learning with related video lessons
The rights of ownership, including the right to use, possess, enjoy, and dispose of a thing in any legal way so as to exclude everyone else without rights from interfering, are called
3:10 • 0 views
Arizona is a community property state. This means:
2:25 • 0 views
An owner sold a parcel of real estate to a buyer with the stipulation that the buyer was not allowed to sell alcohol from the prem- ises. The buyer sold the property 10 years later to a buyer who converted the build- ing into a convenience store that sold beer. Should the owner or owner’s heirs claim a right of re-entry, what would be the basis for the lawsuit?
2:46 • 0 views
The highest form of property ownership in the United States is:
2:35 • 0 views
In a deed, the clause that defines the nature of the estate being granted is the:
2:45 • 0 views
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.