Title Research & Due Diligence Flashcards

When researching a chain of title, what is the primary purpose of examining a 'root of title'?

Answer: To establish a starting point from which a marketable title can be traced forward

A root of title is a conveyance or other title transaction at least a specified number of years old that is sufficient to start a chain from which marketable title can be traced forward.

Which document type typically transfers mineral rights by operation of law rather than by a written conveyance?

Answer: Intestate succession

Intestate succession transfers property, including mineral rights, by operation of law under state statutes when a person dies without a valid will.

A 'mother hubbard' clause in a deed is designed to:

Answer: Capture small tracts or strips of land adjacent to the described property

A 'mother hubbard' clause (or cover-all clause) is used to capture any small strips, gores, or adjacent tracts that the grantor may own near the specifically described property.

In title research, a 'wild deed' refers to:

Answer: A deed recorded outside the normal grantor-grantee index chain

A wild deed is one that is recorded but outside the chain of title and therefore provides no constructive notice because a searcher would not reasonably find it in the index.

What is the significance of a 'Duhig rule' in mineral title analysis?

Answer: It prevents a grantor from conveying more mineral interest than they own, even with warranty language

The Duhig rule (originating from a Texas Supreme Court case) prevents a grantor who already owns a fractional mineral interest from using warranty language to effectively claim more interest than they own in a subsequent conveyance.

During due diligence, which lien type would NOT typically encumber mineral interests separately from surface interests?

Answer: Federal income tax lien

Federal income tax liens attach to all property of the taxpayer, including mineral interests, so they are not specific to either surface or mineral estates alone, but they do encumber mineral interests.

A 'Pugh clause' in an oil and gas lease serves primarily to:

Answer: Limit the pooling or unitization effect so unleased acreage is released after primary term

A Pugh clause (or Freestone rider) limits the holding effect of pooling or unitization, releasing acreage outside the producing unit or below the producing formation at the end of the primary term.