Houston, TX asked in Energy, Oil and Gas, Land Use & Zoning and Real Estate Law for Texas

Q: Is it legal that a company sell land without telling the buyer that an existing oil and gas lease exist

2 Lawyer Answers
Anthony M. Avery
Anthony M. Avery
PREMIUM
Answered
  • Real Estate Law Lawyer
  • Knoxville, TN

A: Certainly... It happens all the time. The buyer needs to do a title search prior to signing the contract, and certainly prior to paying over the price. If it is a warranty deed, check to see if the lease is listed on the face of the deed as an encumbrance.

Aimee Hess
Aimee Hess
PREMIUM
Answered
  • Real Estate Law Lawyer
  • Streetman, TX
  • Licensed in Texas

A: The answer to this question is maybe. It depends on additional facts that are not included in the question. For example, did the purchase take place in a title company and did the title company provide a title commitment and title policy that listed the oil and gas lease in Schedule B? Did the contract and the deed provide that mineral rights were not included in the sale? Were there pump jacks, tanks or other equipment that would be evidence of the lease evident on the property? Does the oil and gas lease provide that there will be no surface use of the property? It's possible that not telling the buyer about the lease is deceptive, but it's going to depend on these and other additional facts.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.