What are Mineral Rights?
Mineral rights are a landowner's rights regarding natural resources located on his or her land.
How Do Mineral Rights Work?
When an individual buys or owns a piece of land, there is the possibility that the land may contain valuable minerals and or natural resources like precious metals (for example, gold and silver), iron ore or oil. Mineral rights give ownership of these resources to the landowner, as well as the right to gain monetarily (in whole or in part) from the sale of such natural resources.
For example, if a landowner discovers a vein of silver on the land, if he or she also owns the mineral rights associated with the land, the landowner will profit from the sale of the silver.
Why Do Mineral Rights Matter?
Landowners can retain mineral rights in connection with the land, or they can sell them to a third-party, for example, a mining or gas exploration firm. In mineral rich areas, the value of mineral rights should be taken into account when completing a real estate transaction.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Believe it or not, investing can be a lot like putting your wardrobe together. You can mix and...Read More →
If you haven't already felt the pressure to refinance your mortgage, you're probably really feeling it now. Mortgage rates are still hovering near historic lows. But with the economy...Read More →