Kovats Real Estate School Practice Test

When a New Jersey farmer sells his property, what happens to the mineral rights?

1. They remain with the seller.

2. They automatically pass to the buyer.

3. They are leased to the buyer.

4. They are auctioned off separately.

The correct answer is: They automatically pass to the buyer.

In New Jersey, when a property is sold, the mineral rights typically transfer to the buyer unless otherwise specified in the transaction. This means that the buyer gains ownership of not only the land but also any minerals that may be found beneath it. This transfer of rights is similar to how other property rights are handled during a sale — they generally pass to the new owner unless stated otherwise in the sale agreement. It's important to note that if the seller has previously severed the mineral rights from the property, or if there are specific clauses in the sales contract that detail otherwise, that would influence the outcome. However, under standard circumstances, the minerals are included in the sale and thus automatically become the buyer's property. This aligns with many real estate practices where rights and ownership of attached and inherent elements of the property follow the title of the land.