Updated oil and gas form released

PAR released the new Oil, Gas and Mineral Rights Disclosure and the Oil, Gas and Mineral Rights Addendum to Agreement of Sale on Monday, Jan. 16, which replaced the previous Oil, Gas and Mineral Rights Addendum to Agreement of Sale.

It was updated to reflect the normal flow of a transaction better. The form is now intended to be used first by the seller, not the buyer. It is designed for the seller to complete it and make it available to potential buyers to review (often in the MLS), as you would with Seller’s Property Disclosure Statement. This disclosure by the seller lets the buyer know whether the seller intends to convey some or all of the oil, gas and mineral rights to the buyer in the transaction. This form does not need to be used if the seller conveys these rights.

The new form can be used immediately. Using the previous version of the form is acceptable if you have some left in your office. If you access your forms electronically, the new form will be the only one available.

The oil, gas and mineral rights language has been updated in the Agreement of Sale to avoid statements in the Agreement conflicting with the OGM Disclosure and Addendum. The new language in the Agreement relies on the OGM Disclosure and Addendum to indicate the status of these rights, avoiding any potential confusion.