Posted by Stamper_WI on 3/2/12 7:00pm
Msg #413775
Has anyone else noticed this?
Most of the loan packages I have been getting have a new disclosure on mining rights. It basically states that the owners may not actually own the mining rights to their land and that whoever does can activate those rights causing potential damage to the property. I assume, in WI, this is a result of all the sand fracking pressure on local communities as well as new mining endeavors. The closing I had today had the borrower going and getting his title committment from when he bought the place and there is no mining rights notice in it. So it's getting to be just standard proceedure to notify them.
HOWEVER, I used to sell real estate in that area and recall several title comittments in one area that the mining rights had be retained by a long defunct company almost 100 yrs ago. Apparently someone did their research and tracked down who held those rights and there is a fracking site going in right next to a new subdivision.
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Reply by A S Johnson on 3/3/12 9:47am
Msg #413813
I don't know about WI law, but in Texas the borrower only owns the suface rights. Mineral rights are a separate contract and you suface rights are supeceeded by mineral rights, so this has been part of the Texas package along. Any lender needs to know their is any type of subsurface mining on the property as it effect thie land value.
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