But does it belong to you?
There’s been some buzz in the news regarding homeowners and mineral rights, especially here in North Carolina. So, what’s all the hubbub?
Well, it turns out that this is something that is very important for home buyers and sellers to know.
Most real estate transactions here in NC and around the US transfer real property in its entirety. This includes the air above, the surface area, and everything below to the center of the earth (called, “mineral rights”).
For several years, however, some new builders have been including statements in contracts with their buyers that sever their mineral rights. The builder then sells these mineral rights – along with the right to drill, mine, store and explore for them -- to another company. This does not permit them access to the surface of the property, but it does give them rights to anything 500 feet below.
500 feet is not that deep.
If you purchased a home with this type of contract, it means that if there happens to be a treasure of emeralds, diamonds, or other gems 500 feet or more below your house or land, they don’t belong to you. And others can tunnel in to get it, sell it, and profit from it.
Now the odds of this happening are rather slim, but what if natural gas and oil happen to be there? In today’s world, some folks may argue that these are even more valuable than jewels. Have you heard of fracking? Fracking refers to hydraulic fracturing, a process of pumping millions of gallons of water and toxic chemicals under high pressure to break up underground shale rock deep within the earth to release trapped natural gas. Environmentalists are very concerned over this practice because of the widespread and long lasting water pollution and potential for earthquakes (yes, that is not a typo!).
Currently, fracking is not legal in NC, but the North Carolina General Assembly recently passed legislation to study the feasibility of fracking right here in the Triangle. It has been banned in many other states.
So, to make a long (and potentially scary) story short you need to know your rights as a homeowner and have an advocate on your side for any real estate transaction – especially new construction.
I’ve just completed a 30-hour refresher course on real estate contracts to assure that I’m up-to-speed with the best information on the biggest purchase you probably will ever make. If you need legal advice, I have some great attorneys you can speak with. Questions? I’m your Real Estate Resource, give me a call!
PS – If you’re thinking of selling your mineral rights, it is a very involved and lengthy process and there will most likely be problems with your mortgage holder. You definitely will need at least one experienced attorney involved.
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