Replies to This Discussion

Permalink Reply by shawn on October 15, 2008 at 14:19

their agent signed it

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Permalink Reply by shawn on October 15, 2008 at 16:11

The lease had a notary with him can't really remember about the draft but the bank excepted it

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Permalink Reply by shawn on October 15, 2008 at 14:25

how do I check to see if it's been recorded

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Permalink Reply by shawn on October 15, 2008 at 16:13

Thanks for your help Jim

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Permalink Reply by shawn on October 16, 2008 at 9:33

Jim found out my lease was recorded thanks again for your help

Shawn

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Permalink Reply by Dick Shanor on October 15, 2008 at 15:29

Are the minerals in TX or LA? Have you deposited the draft for collection? What is written in the upper left hand corner of the draft where it says it will be paid in X days?

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Permalink Reply by shawn on October 15, 2008 at 16:08

Minerals in LA I have deposited the draft on Sept 16 suppose to be a 20 day draft

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Permalink Reply by Bobi Carr ("parker") on October 16, 2008 at 10:28

Shawn,

The banks are probably better at handling drafts than they were a year ago, but when I got mine it was two weeks before they presented it to the broker's bank.

The time doesn't start running until it is presented.

GOOD LUCK

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Permalink Reply by shawn on October 16, 2008 at 13:42

Thanks Parker

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Permalink Reply by Grillin' - MmmMmm on October 17, 2008 at 4:30

So if the lease is signed and the bank draft gets denied or is left unfunded, what happens? My non-landman/non-lawyer thoughts are that the lease would be null and void if the company doesn't pay up. But are there terms in the lease (generally) that say if the funding doesn't occur, the lease is void? I know in Purchase/Sale Agreements, even though they are signed, if the money doesn't get to the bank in a certain number of days, the agreement is voided. But what about the lease?

And, if it is null and void, does the landowner have any recourse against the company? Have friends in this situation and I've advised they a) read the lease terms and b) contact a lawyer, not an engineer!!!!

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Permalink Reply by Bobi Carr ("parker") on October 17, 2008 at 4:46

In a Purchase/Sale agreement it is not usually null and void. It usually allows for specific performance. In other words to do what you said you would do or pay for damages. In a Purchase/Sale situation you would need to "prove" damages.

In this non-landman/non-lawyers opinion, you would probably have to do the same with a lease. File suit and prove damages.

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