When are mineral rights deemed to be legally transferred?
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When are mineral rights deemed to be legally transferred?
I’m transfering the mineral rights for my property to an LLC. When are the rights legally transferred – when we sign the documents or when they are recorded in the courthouse?
Asked on February 23, 2011 under Real Estate Law, Pennsylvania
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
When the documents are signed, the transfer occurs, but the transfer is not effective until recorded with the County Recorder's office. Recording provides notice as to the rightful owner of the mineral rights. If it is not recorded, notice is not provided and a tenant leasing the mineral rights would not know who the proper owner is and may be dealing with the former instead of the current owner. The same thing would occur if someone purchased the mineral rights from the former owner because the conveyance to the new owner wasn't recorded. A bonified purchaser (one who paid for the mineral rights and took without notice) would be able to assert a claim in the event that the rightful owner subsequently challenged the transfer. The true owner's rights were not protected because the transfer of ownership was not recorded.
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