I was reading online and certain commentators say that they don't want bank drafts. Another website concurred that this isn't a good idea. Is there a reason why someone leasing their land should not get a bank draft? If not, what are some other options?
KB, I think you hit the nail on the head, with your choice #2: use an escrow agreement, set up thru your attorney, who will release your signed lease to the o/g co, when he /she has their check to you in hand. My family has an attorney in Texas who is negociating our lease with CHK, and when we finally get a decent counteroffer, the attorney will do the escrow thing after looking over the lease for errors, etc.
when i signed my lease i told them i would take a bank draft but it had to be done in 7 days and they said they would get back to me. low and behold they called me that afternoon and said no problem and they added it to the lease agreement i signed it and i had the money in 6 total days. i had no problem. i think alot of the time people dont ask questions and tell the landman what they want and that is how they have problems.people need to speak up and tell these landmen what they want and how they want it. the landmen have alot of room to accomadate people they just take the fastest and easiest way out unless you say something.
The two transactions that I have done lately one a draft was definitely a no took almost 2 months and the second a cashiers check which I was informed is not cash any more and was put on a 2 week hold. When I make the next transaction I will have direct deposit.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More