ask george & chuck
Feb. 25, 2008

Earnest money, mineral rights ...
Answers to real estate questions as appearing
in the Houston Chronicle

Dear George: My father owns one third of a 320-acre tract that has been in the family for generations; the three current owners are related. About three years ago, my aunt decided to sell her 106 2/3 acres to an oil and gas operator. The land is good only for its mineral rights. Can she sell her interest without the consent of the other two owners?

Answer: Your aunt is a tenant in common and can sell her undivided one-third interest as she pleases. Drilling, however, is more complicated. Your aunt needs to contact an oil-and-gas lawyer to discuss those issues.

Dear George: I saw a Realtor's Web site that had an online form through which you can submit an offer an a property. If I fill out and submit this form, am I obligated to buy the property?

Answer: Here are some things to look for on the site that may answer your question: Does this Web site state that you are obligating yourself to follow through and purchase the property? Does Realtor who operates the site claim to be the listing broker of the property? Does the site provide you an Information About Brokerage Services Form? Typically, a purchaser submits a signed offer that must be accepted by the owner before either party is committed to anything.

Dear George: I have a signed contract to sell a commercial building. The buyers submitted $1,000 earnest money and had a 14-day window to terminate the contract. Two weeks after the 14-day termination period expired, they backed out of the deal. Since they didn’t notify me in writing within the 14-day period that they were backing out, shouldn't I get the earnest money? The title company won't give it to me, and the buyers want me to sign a release to give it back to them.

Answer: Your entitlement to the earnest money is a contractual agreement between you and the buyer, as are the terms and provisions regarding the unrestricted right to terminate. However, if a title company were to release the earnest money to you without the buyer’s consent, it could be buying a lawsuit. You can seek an alternative dispute resolution, such as mediation or arbitration, or depending upon the amount of earnest money involved, an adjudication by a court of law. In all probability, the amount would qualify for a justice of the peace court.