Say you’ve found a tract with real oil potential, priced to sell. It feels like a rare opportunity, maybe even a turning point. But the land on the surface and the minerals underneath, including oil and gas, may not belong to the same person. Before you picture royalty checks and long-term returns, pause and ask whether the seller actually owns the rights that make the land valuable.
Confirm what rights come with the sale
The seller may own the surface land but not all the mineral rights below it. Check the deed history to see whether a past owner kept those rights or sold them to someone else. In Texas, mineral owners may also have the right to use part of the surface to reach and produce oil or gas. That can affect what the land is worth and how you can use it after closing.
Search public records for wells and leases
Ownership is only half the story, as past leases and old well records may still affect the land. Texas buyers can search state well records, while Oklahoma buyers can check the Oklahoma Corporation Commission and county clerk records to uncover whether earlier activity still limits what you actually control.
As you review these records, watch for these red flags and what they can mean:
- Active or recently plugged wells: point to recent or ongoing production and potential lingering lease obligations or surface issues
- Leases that appear to still be in effect: imply continued lease rights that may limit your control over mineral development
- Pooling or unitization orders that include the tract: suggest that the land is part of a larger unit affecting royalty distribution and operational control
- Permits issued to operators other than the seller: indicate that a third party may hold exploration or production rights
- Gaps or inconsistencies in production history: hint at possible disputes over lease validity or expiration
- Signs of unpaid royalties or suspended funds: reflect potential title issues or unresolved ownership or payment disputes
These records can show gaps, conflicts or overlapping claims that may lead to a dispute, even if no claim has been filed yet.
Build the risks into the contract
After you understand what the purchase includes, the contract should match those details. The agreement should clearly state which mineral rights the seller includes, disclose any existing leases and explain how those leases affect your use of the land.
It should also address what happens if the mineral interest is smaller than represented or if a title issue appears after closing. Price adjustments, indemnity language and remedies for undisclosed claims can give you options before a disagreement becomes litigation. This is where legal review of a commercial land deal can help match the contract to the records.
Turn your findings into a decision before closing
The main benefit of these checks is leverage, but you hold it only until you sign the deal. After closing, gaps in the title or records may become yours to resolve. Before signing, you can still renegotiate the price, ask for better terms or walk away. Think of reviewing the title and records as the final step before committing, and let what you find guide your decision on whether this oil-rich land is truly a good opportunity.