Posted by John Merchant on March 11, 2003 at 21:07:12:
First well in PA was by Col Drake, NOT Col. Potter.
Undivided Interest Laws of Texas - Posted by shwig
Posted by shwig on March 11, 2003 at 09:58:52:
If I wanted to sales 20 5% undivided interests in a piece of land I own in Texas I could legally do that, correct? I am not asking if it is a good idea. I simply want to know if it is legal.
Thanks in advance for your help.
Heard of the “awl patch”? - Posted by John Merchant
Posted by John Merchant on March 11, 2003 at 16:10:38:
This has been done in the oil fields since Col. Potter’s first well in PA, and probably in the Gold area of CA long before that.
In the oil field it’s quite common for an owner of an oil interest to own 3/8 of 1/16 of 1/8 of 5/32 of a 1/4 acre, that is underground, between 500’-1,000’ below surface, etc., etc…some oil land probably has 10,000 undivided interest owners.In surface, mineral interest underground, above ground too (as in Big D, Houston, other high rise areas). And any one of them has the right to sell his undivided, fractionalized share by Deed, anytime he/she so desires.
So, is it legal? Obviously so.
However, when it comes to a promoter’s offering multiple interests on RE, it can turn quickly into a securities issue…as how MANY fractionalized shares can you do legally in TX, under their Sec. law, before having to do Sec.offering under TX Civil Statutes? Or how big can the total offering be and yet NOT have to be registered under Sec. law?
And, if it’s time share or condo, or bare land subdivision, or development, there are other laws that might come into play…all regarding giving fair notice to buyers as to exactly what the offering is, details of such.
Sounds to me like you need a lawyer to check out your deal and assure you that you’re in compliance with the law.