Drafting royalty deeds manually requires meticulous attention to conveyancing language, precise legal descriptions, and state-specific warranty provisions. Energy attorneys spend hours cross-referencing title documents, ensuring fractional interest calculations are accurate, and formatting notary acknowledgements—all while managing the risk of costly errors that could cloud title or trigger disputes.
Drafting royalty deeds requires meticulous attention to state-specific recording requirements, precise fractional interest calculations, and complex legal descriptions that leave no room for ambiguity. Manual preparation is time-consuming, error-prone, and requires extensive knowledge of property law, mineral rights, and chain of title implications. A single mistake in the granting language or legal description can lead to title defects, disputes, and costly litigation.
CaseMark automates royalty deed preparation by generating comprehensive, state-compliant documents that precisely convey mineral interests while meeting all recording requirements. Our AI ensures accurate granting language, proper warranty provisions, and complete legal descriptions that protect both Grantor and Grantee. Generate professional royalty deeds in minutes with built-in compliance checks for your jurisdiction.
This workflow is applicable across multiple practice areas and use cases
Commercial real estate attorneys regularly draft and review royalty deeds when handling property transactions involving mineral rights, oil and gas interests, and subsurface estate conveyances.
Royalty deeds are fundamentally real estate conveyance documents that transfer property interests. Commercial real estate transactions frequently involve severed mineral estates requiring proper deed documentation.
Asset purchase transactions involving mineral rights, royalty interests, or energy-producing properties require royalty deeds to effectuate the legal transfer of these specific asset classes.
Royalty interests are frequently bought and sold as standalone assets or as part of larger asset purchase agreements, requiring proper conveyancing instruments.
Estate planning attorneys use royalty deeds to transfer mineral rights and royalty interests to trusts, heirs, or beneficiaries as part of comprehensive estate plans and wealth transfer strategies.
Mineral rights and royalty interests are valuable estate assets that require proper conveyancing documentation. Estate planners regularly handle intergenerational transfers of these interests.
M&A attorneys handling energy company acquisitions or asset purchases need royalty deeds to properly convey mineral rights and royalty interests as part of transaction closing documentation.
Energy sector M&A transactions frequently involve the transfer of royalty interests and mineral rights portfolios, requiring compliant deed documentation for asset transfers.
A royalty deed conveys only the right to receive a portion of proceeds from mineral production, without granting executive rights to lease or make decisions about the minerals. A mineral deed, by contrast, typically conveys the full mineral estate or a portion thereof, including executive rights to execute leases, receive bonuses and rentals, and participate in pooling decisions. Royalty deeds are often used when the grantor wants to retain control over leasing while sharing production revenues.
Spousal joinder requirements depend on the state where the property is located and how title is held. In community property states like Texas, Louisiana, and New Mexico, a spouse's signature may be required even if title is in one spouse's name alone. In other states, joinder may be necessary if the property was acquired during marriage or if state marital property laws apply. CaseMark helps identify when spousal signatures are advisable based on your jurisdiction.
A non-participating royalty interest (NPRI) is a royalty interest carved out of the mineral estate that entitles the owner to a share of production revenues but grants no executive rights. The NPRI owner cannot execute leases, receive bonus or delay rental payments, or participate in pooling or unitization decisions. These rights remain with the mineral estate owner. NPRIs are perpetual interests that burden the mineral estate and must be honored by any lessee.
The royalty fraction represents the portion of total production proceeds the grantee will receive. It's typically expressed as a fraction of 8/8ths, such as "1/8th of 8/8ths" meaning 12.5% of all production. This differs from a mineral interest fraction, which represents ownership of the mineral estate itself. The deed must clearly specify whether the fraction applies to existing leases, future leases, or both, and whether it's calculated at the wellhead or after deduction of post-production costs.
The legal description must identify the property with sufficient certainty for recording and title examination purposes. This typically includes the county and state, government survey information (section, township, range), lot and block numbers if platted, metes and bounds descriptions if applicable, and acreage. The description should be taken directly from a current title commitment, prior deed, or survey to ensure accuracy. For complex or lengthy descriptions, attach as an exhibit while incorporating by reference in the deed body.