Legal Question in Real Estate Law in California

mineral rights in California

prospective lender objects to mineral

rights( oil and gas) reservation on

property in region with no history of

same. Preliminary title report did not

show said right. After advising and

providing old deed containing

reservation right, title company

issued commitment letter, then title

company reversed itself next day and

issued new preliminary title policy

without protection against 1/2

undivided interest in oil and gas

rights reserved by previous owner.

Title company had previously issued

lender's policy for current lender

without mention of interest as

exception. After contacting surviving

relative, who said she is holder of

inheirited rights she is refusing to

give up said rights reserved in deed

in 1958 when he conveyed property,

whose only value seems to be

imediment to clear title. I own as

property owner other i/2 undivided

interest. Is quiet title action remedy

and what should I expect from title

company. Lender has declined to go

ahead with loan unless reservation

right is expunged.


Asked on 2/07/09, 2:44 pm

2 Answers from Attorneys
Daniel Bakondi The Law Office of Daniel Bakondi

Re: mineral rights in California

I have already responded to this briefly in another email. Email me to discuss further.

Best,

Daniel Bakondi, Esq.

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No attorney-client nor confidential relationship is created through this communication. You may not rely in any way on this communication, and nothing herein constitutes legal advice nor legal opinion. Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.

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Answered on 2/09/09, 12:40 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: mineral rights in California

In addition to my previous answer, I should point out that California now has a legal procedure to terminate dormant mineral rights. A party holding mineral rights can oppose the action to terminate, but may capitulate rather than bear the cost to oppose if the rights are truly near-worthless, as is often the case. See Civil Code sections 883.210 to 883.270.

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Answered on 2/07/09, 8:10 pm


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