I am interested in some acreage in Columbia County, Fl. In a "Special Warranty Deed" to the current owner;" International Paper Company reserved a passive royalty interest (without right of entry) in 50% of the oil, gas, and other minerals (including clay, sand, and gravel) which were owned by the grantor prior to the delivery of this deed." It also states that the grantor does not have to contribute to the cost of any exploration for the mining, and that "this covenant is to touch, concern and run with the lands." And that the grantee can use without payment to the Grantor any clay sand or gravel for the grantees own construction on the property. This property is selling about $3K an acre below the average price. How much does this covenant reduce the value of the property, and will this royalty interest ever run out, or can they come at any time and exercise their rights? We plan to build and live here permanently, and need to understand the laws. Thank you for your help.
2007-11-30
18:44:34
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3 answers
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asked by
LOkI
1
in
Renting & Real Estate