Selling a mining claim

[Bonaro]

I met a guy online about a year ago. After talking I agreed to let him pan on one of my claims. All went well.
Recently he contacted me and wants to buy the claim on payments. He is offering a contract at a decent price and payments over one year. I would keep ownership until paid in full and if he skipped a payment he would forfeit any money paid forward. He would have use of the claim during the contract.

I have a hard personal rule against taking payments for property but my past experience has been in selling cars. In this case I would hold possession until paid so I am looking at it as a rent to own type thing.

I am considering this because it seems like my risks are low...Opinions?

 

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[Tpmetal]

I met a guy online about a year ago. After talking I agreed to let him pan on one of my claims. All went well.
Recently he contacted me and wants to buy the claim on payments. He is offering a contract at a decent price and payments over one year. I would keep ownership until paid in full and if he skipped a payment he would forfeit any money paid forward. He would have use of the claim during the contract.

I have a hard personal rule against taking payments for property but my past experience has been in selling cars. In this case I would hold possession until paid so I am looking at it as a rent to own type thing.

I am considering this because it seems like my risks are low...Opinions?

talk to a lawyer first, make sure a contract is well written to protect BOTH of your rights.

 

[chub]

is he making payments in gold?

chub

 

[russau]

The potential leaser could possibly be wanting to make monthly payments from to gold they get from your claim. And what about him bringing in lots of people to work your claim? Would you have the right to limit the amount of people working the claim or bring in heavy equipment to strip of the EZ gold out ? That's one way to finance your other claim's ! Good Luck on your decision and their ethic's ! I hope it all works out for BOTH of you guy's !

 

[Underburden]

Don't do it. Unless you transfer ownership, the BLM will have you in their sights if the lease holder decides to go all Parker Schnabel on your claim. Take cash and walk away clean. Let the guy go to a bank and get a personal loan.

 

[Bonaro]

Don't do it. Unless you transfer ownership, the BLM will have you in their sights if the lease holder decides to go all Parker Schnabel on your claim. Take cash and walk away clean. Let the guy go to a bank and get a personal loan.

Local regulations mean this claim will only be legal for non motorized and any violation would void our deal. I would put a stipulation in the contract that he may only use pans and sluices, no equipment and it would only be open to him and his wife. His payments would be in cash, not gold

 

[mytimetoshine]

Don't do it. Unless you transfer ownership, the BLM will have you in their sights if the lease holder decides to go all Parker Schnabel on your claim. Take cash and walk away clean. Let the guy go to a bank and get a personal loan.

Good point.. he probably cant get a loan from a bank (which is pathetically easy these days), because his credit is crap(untrustworthy). RED FLAG,

 

[Underburden]

Can you monitor your claim 24/7? BLM is not a party to your agreement so the local rules and the lease holder's promise to abide by your contract stipulations is all well & good...BUT.

 

[oneguy]

Don't do it. Unless you transfer ownership, the BLM will have you in their sights if the lease holder decides to go all Parker Schnabel on your claim. Take cash and walk away clean. Let the guy go to a bank and get a personal loan.

Ditto Underberden.... Mineral rights are kinda like timber rights. Example: Money down on some nicely timbered acres, log it, then decide to let it go back after you've harvested the timber. That was done a lot years ago when people trusted each other. Nowdays you'd better have a timber clause in your contract. Make him up pony up the dough for the claim outright.....JMHO......

 

[Bonaro]

Ditto Underberden.... Mineral rights are kinda like timber rights. Example: Money down on some nicely timbered acres, log it, then decide to let it go back after you've harvested the timber. That was done a lot years ago when people trusted each other. Nowdays you'd better have a timber clause in your contract. Make him up pony up the dough for the claim outright.....JMHO......

I hear you guys but there are some limiting factors. He has a mortgage and lives 4 hours away so he cant spend all summer up there and mine the guts out of it. Plus the water is all snowmelt and so freaking cold its almost untouchable. The contract will be paid over one year and the amount of work he could do, even if he illegally dredged, is slight over that time. Any violation of the terms means the deal is void and he forfeits any money forward.

I am thinking about maybe getting a down payment to tip the scales in my favor from the beginning...still thinking

 

[russau]

BUT you are still responsible for ANY contamination of the claim untill the names have been changed..... It's still in your name and that's who they would go after first! Enviromental impact could cost way more then the claim itself ! I know you'll do what's best for you! Good Luck !

 

[et1955]

Claims in Washington state are hard to get, all coveted , I ask you are you selling this claim to make money or are you helping a friend, if helping a friend do it but create all the legal safe guards possible but if its for money put it up on the market, I may be interested.

 

[Bonaro]

BUT you are still responsible for ANY contamination of the claim untill the names have been changed..... It's still in your name and that's who they would go after first! Enviromental impact could cost way more then the claim itself ! I know you'll do what's best for you! Good Luck !

I think I disagree with you on this one, Russ
Any regulatory violation would apply to the person who did it. For instance, a claim owner would not be contacted by BLM to clean up trash dumped on his claim by campers.

 

[mikep691]

I think I disagree with you on this one, Russ
Any regulatory violation would apply to the person who did it. For instance, a claim owner would not be contacted by BLM to clean up trash dumped on his claim by campers.

Double edged sword here. If BLM or FS doesn't physically see the infraction, they CAN come after the claim holder.

 

[Reed Lukens]

Yup, the claim is the responsibility of the claim owner in BLM'S eyes. No cash, no claim. It sounds like he can't afford it.

 

[et1955]

I think I disagree with you on this one, Russ
Any regulatory violation would apply to the person who did it. For instance, a claim owner would not be contacted by BLM to clean up trash dumped on his claim by campers.

You are so wrong on this, unless you release the claim to the new guy, you are responsible for any illegal actions he may commit while mining because you gave him your permission to mine your claim. You should know this by now, if there is a problem on a claim the miner will be blamed. They have your name as the claim owner, who else will they go after. As for trash on your claim, report it or do the right thing and clean it up, sad but it is our responsibility as claim owners.