grant deed and title

What is the name of your state? CA
Prelim title report for the house we are buying showed an oil and gas lease. Per the purchase agreement (REPA and Joint Escrow Instructions) our offer also included Oil Gas and Mineral Rights (if owned by seller).

We have requested Escrow in writing not to close until Oil Gas & mineral rights are also concurrently transferred with the real estate. That does oblige them to do good on this, right?

Sellers agent says that the grant deed has already been signed, without any mention of Oil and Gas, but we told them to have the grant deed drawn up again and resigned.

This is something that can be included on the Grant Deed right? I am being bull ****ted that it cannot.

ALso, once its on the grant deed we can have the title company insure it, right?

Thanks!

[HomeGuru]

[quote]Originally posted by rmulchandani
[b]What is the name of your state? CA
Prelim title report for the house we are buying showed an oil and gas lease. Per the purchase agreement (REPA and Joint Escrow Instructions) our offer also included Oil Gas and Mineral Rights (if owned by seller).

**A: well, who owns the lease as reflected on the title report?
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We have requested Escrow in writing not to close until Oil Gas & mineral rights are also concurrently transferred with the real estate.

**A: depending upon the terms and conditions of the lease, the lease may still remain in effect. Thus there is no lease rights to transfer. The rights that transfer would be the property owner's interest (Lessor's) in the lease.
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That does oblige them to do good on this, right?

**A: it depends on what they can do legally ie. they can't transfer the lessee's interest to you.
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Sellers agent says that the grant deed has already been signed, without any mention of Oil and Gas, but we told them to have the grant deed drawn up again and resigned.

This is something that can be included on the Grant Deed right? I am being bull ****ted that it cannot.

**A: if there is a lease which has not expired, said lease should remain on the legal description on the deed.
**********
ALso, once its on the grant deed we can have the title company insure it, right?

Thanks!

**A: it would depend on the exclusions in the title insurance policy.

CA

**A: well, who owns the lease as reflected on the title report?

Widow who is no more was the lessor mentioned in the lease. The widow is no more but her hiers (trustees of the living trust) are the sellers now. The sellers say they do not know if they can assign the lease, but say that they "have" the lease now.

**A: depending upon the terms and conditions of the lease, the lease may still remain in effect. Thus there is no lease rights to transfer. The rights that transfer would be the property owner's interest (Lessor's) in the lease.

Title/Escrow company say that they will add to the grant deed verbage such as:
"including oil and gas rights as specified in lease .....instrument no xyz, recorded on xxx etc"
This they say I must send to the lessee after close of escrow. Will that transfer the lessors interest to us, the new buyers?

How do we go about finding whether this lease is still in effect? And to whom its in effect.

Prelim title report shows lease as one of the items in schedule B, exceptions.
What must happen before this "encumberance" on title may go away or get superceded?
Our purchase offer explicitly says "including oil, gas mineral rights if owned by seller".

Thanks!

[HomeGuru]

[quote]Originally posted by rmulchandani
[b]CA

**A: well, who owns the lease as reflected on the title report?

Widow who is no more was the lessor mentioned in the lease. The widow is no more but her hiers (trustees of the living trust) are the sellers now. The sellers say they do not know if they can assign the lease, but say that they "have" the lease now.

**AA: I don't understand. The lessor should be the current Seller of the property. Is the current Seller the living trust or ithe living trust the lessee and not the lessor ?
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**A: depending upon the terms and conditions of the lease, the lease may still remain in effect. Thus there is no lease rights to transfer. The rights that transfer would be the property owner's interest (Lessor's) in the lease.

Title/Escrow company say that they will add to the grant deed verbage such as:
"including oil and gas rights as specified in lease .....instrument no xyz, recorded on xxx etc"
This they say I must send to the lessee after close of escrow. Will that transfer the lessors interest to us, the new buyers?

**AA: No. do not wait until escrow closes. Have them find the appropriate parties.
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How do we go about finding whether this lease is still in effect? And to whom its in effect.

**AA: see above.
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Prelim title report shows lease as one of the items in schedule B, exceptions.
What must happen before this "encumberance" on title may go away or get superceded?

**AA: Either the lease is terminated by its own passage of time or other condition or still in effect.
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Our purchase offer explicitly says "including oil, gas mineral rights if owned by seller".

Thanks!

**A: the big question is, does the Seller actually own any of these rights or are the rights encumbered by the lease?
It appears that you need an attorney to help you review the title documents, including the lease, and advise you accordingly.