Yes. One of the unique aspects of Texas real estate law is that ownership of the surface estate and the mineral estate can be separated. A seller may transfer the land while reserving some or all of the mineral rights.

This often surprises buyers. Purchasing acreage does not necessarily mean purchasing the oil, gas, or other minerals beneath it.

Whether mineral rights transfer depends almost entirely on the language contained in the deed.

Texas Law Allows Reservations in Conveyances

The Texas Property Code recognizes that an estate in land may be conveyed subject to reservations.

Texas Property Code § 5.001 provides:

"An estate in land that is conveyed or devised is a fee simple unless the estate is limited by express words or unless a lesser estate is conveyed or devised by construction or operation of law."

Because a deed conveys whatever interest the grantor owns unless limited by its own language, parties are free to reserve portions of that ownership—including mineral interests.

What Does a Mineral Reservation Actually Do?

A reservation keeps ownership of specified rights in the seller rather than transferring them to the buyer.

For example, a deed might provide:

"Grantor reserves all oil, gas, and other minerals."

Or it may reserve:

• 100% of the minerals
• One-half of the mineral estate
• Royalty interests only
• Executive leasing rights
• Certain existing lease interests

Each produces a different legal result.

Why Buyers Need to Read the Deed Carefully

Many buyers assume purchasing rural property automatically includes:

• oil rights
• natural gas rights
• royalties
• leasing authority

That assumption is often incorrect.

Texas has decades of oil-and-gas development, and mineral interests may have been divided repeatedly through generations of deeds, wills, and probate proceedings.

A seller cannot convey mineral rights that were previously sold or reserved by an earlier owner.

Surface Ownership Does Not Equal Mineral Ownership

Texas recognizes separate property interests.

Someone may own:

• the surface estate;
• the mineral estate;
• royalty interests;
• executive rights;
• easement rights; or
• combinations of these interests.

As a result, one parcel of land may have numerous owners holding different legal interests.

Why This Matters Financially

The difference can be substantial.

Mineral ownership may allow the owner to:

• negotiate oil and gas leases;
• receive signing bonuses;
• collect royalty payments;
• share in production income; and
• participate in future mineral development.

Conversely, purchasing property without the minerals may significantly affect long-term value depending on the property's location.

Title Companies and Mineral Rights

Title companies routinely review the chain of title to determine what interests appear of record.

However, title commitments often contain numerous exceptions relating to:

• prior reservations;
• recorded leases;
• easements;
• royalty interests; and
• existing mineral conveyances.

Understanding those exceptions before closing is critical.

Common Drafting Mistakes

Disputes frequently arise because deeds use vague language such as:

• "all rights reserved;"
• "subject to prior reservations;"
• inconsistent percentages;
• conflicting granting and reservation clauses.

Even a seemingly small drafting error can create expensive litigation over ownership decades later.

Careful drafting helps reduce the risk of future title disputes.

Final Thoughts

Texas real estate ownership is often far more complicated than simply buying a piece of land. Mineral rights may have been divided many times before the current transaction, and a properly drafted deed can either transfer or reserve valuable interests.

Whether you are buying, selling, or inheriting Texas real estate, understanding exactly what is—and is not—being conveyed is one of the most important parts of the transaction.

If questions arise regarding mineral reservations, deed interpretation, or title disputes, consulting an experienced Texas real estate attorney before closing can prevent significant problems later.

Disclaimer

This article is provided for informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. Every real estate transaction is different, and you should consult a qualified Texas attorney regarding your particular circumstances.

At David C. Barsalou, Attorney at Law, PLLC, we help clients navigate business, family, tax, estate planning, and real estate matters ranging from document drafting to litigation with clarity and confidence. If you’d like guidance on your situation, schedule a consultation today. Call us at (713) 397-4678, email barsalou.law@gmail.com, or reach us through our Contact Page. We’re here to help you take the next step.