How are mineral and royalty interests addressed in the TREC contract forms and the TAR commercial contract forms?
The TREC residential forms and the TAR forms are silent as to the reservation or exception of any mineral interests or royalty interests. Under those forms, the seller has, therefore, agreed to convey all interests in the property, including the mineral interests. If a seller wishes to retain any mineral interests at closing, the Addendum for Reservation of Oil, Gas, and Other Minerals (TREC 44-2) may be used to accomplish this. If a third party owns mineral interests, and the parties are using the TREC Farm and Ranch Contract, a seller may want to include that information in Paragraph 6E, Exception Documents. That way, those third-party interests may not form a basis for objection to title. Exceptions should be referenced by the specific recording data.