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Topic 02 · Conveyancing

Conveyancing & Deeds

Most mineral severances and transfers happen by deed. This topic covers the parts of a deed an examiner reads most closely, and how recording protects a buyer.

Updated September 30, 2026⏱ ~13 min read

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01

Anatomy of a deed

A deed is a document that transfers an interest in real property.

At its core a deed says: the grantor conveys this property to the grantee. The other parts identify the parties, the land, anything held back, and the terms.

Most deeds have the same parts, in the same order.

Captionwhat kind of deed WARRANTY DEED
Parties & recitalswho, and for what That John Doe ("Grantor"), for ten dollars and other good and valuable consideration paid by Jane Roe ("Grantee")…
Granting clausethe action words …has GRANTED, SOLD, and CONVEYED, and by these presents does grant, sell, and convey, unto Grantee…
Descriptionwhat land …the following described property: the NW/4 of Section 14, Township 3 North, Range 2 West of the 6th P.M.…
Reservations & exceptionswhat is held back SAVE AND EXCEPT, and Grantor reserves unto himself an undivided one-half (1/2) of the oil, gas, and other minerals…
Habendumhow long they keep it TO HAVE AND TO HOLD the premises unto Grantee, her heirs and assigns, forever.
Warrantythe grantor's promise …and Grantor binds himself to WARRANT AND FOREVER DEFEND the premises against every person lawfully claiming the same…
Executionsigning and delivery Signed by Grantor and delivered to Grantee. Acknowledged before a notary so it can be recorded in the county records.
Fig. 1 A deed broken into its usual parts.

An examiner reads three parts most closely: the granting clause (what is moving), the description (which land), and the reservations and exceptions (what is held back). Those are the parts that change who owns what.

02

The granting clause & habendum

The granting clause conveys the interest: "grant, bargain, sell, and convey." The granting clause is the language that transfers the interest.

The habendum clause, "to have and to hold," answers a different question: what kind of estate does the grantee take, and for how long? "Unto Grantee, her heirs and assigns, forever" is the classic formula for fee simple: the grantee owns it permanently and can pass it on.

Key term
Habendum clause

The "to have and to hold" clause, defining the duration and extent of the estate granted. In deeds it usually confirms fee simple. In an oil and gas lease, the habendum clause sets the primary and secondary term (see Topic 03).

Usually the granting clause and habendum agree, and you read past them. Problems arise when a deed's clauses conflict, for example when the granting clause states one fraction and a later clause states another. How a court resolves that depends on the state and the wording. For an examiner:

  • Read the whole deed, every time. Don't stop at the granting clause and assume the rest is boilerplate.
  • Flag internal conflicts instead of resolving them in your head. Inconsistent fractions in a deed are a common source of title disputes.

03

Reservations vs. exceptions

A deed can hold something back in two ways. Either one can sever the minerals.

Reservation
The grantor keeps something back.

A reservation keeps a right for the grantor out of what is conveyed. Convey the land, reserve the minerals, and the grantor still owns the minerals. This is a common way minerals get severed.

"Grantor reserves unto himself an undivided 1/2 of the oil, gas, and other minerals."
Exception
Part of the property is left out of the grant.

An exception leaves something out of what is conveyed. If the grantor owned the excepted part, the grantor keeps it, and the deed severs just as a reservation would. If someone else already owned it (a prior reservation, an easement, an outstanding mineral interest), the exception notes that it isn't part of the conveyance.

"SAVE AND EXCEPT the 1/4 mineral interest previously reserved in Volume 89, Page 412."
Fig. 2 Reservation: the grantor keeps something back. Exception: something is left out of the grant. Either can sever the minerals.

An examiner keeps asking where each outstanding interest came from. If a deed reserves or excepts minerals the grantor owned, the severance happened in that deed. If it excepts an interest someone else already owned, as in the example above, the severance happened earlier, and you look further back up the chain.

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Drafters often write "excepting and reserving" together. Courts generally look at what the parties meant, not which label they used, so read the substance. Also check the fractions: a grantor can keep or convey only what the grantor owned. When a deed's fractions add up to more than that, the result depends on state law. The Fraction of what? lesson lets you try this with numbers.

04

Mineral deeds & royalty deeds

Once minerals are severed, they are bought and sold like other property. A mineral deed conveys the minerals. A royalty deed conveys much less.

Mineral deed
conveys the estate itself
Develop
Lease (executive right)
Bonus
Delay rentals
Royalty
▸ grantee can sign leases, collect bonus, and share in royalty
Royalty deed
conveys a share of production revenue only
Develop
Lease (executive right)
Bonus
Delay rentals
Royalty
▸ grantee is paid from production only
Fig. 3 The same five sticks from Topic 01. A mineral deed conveys all five rights; a royalty deed conveys only royalty.

A mineral deed conveys the mineral estate. The grantee becomes a mineral owner who can lease, collect bonus, and receive royalty.

A royalty deed conveys only the right to share in production. The grantee is paid when a well produces, with no right to lease and no bonus.

The hard cases are deeds that blur the line. A grantor conveys "an undivided 1/16 royalty in and to the minerals." Is that a royalty interest or a fractional mineral interest? Drafters have used "mineral" and "royalty" loosely for a long time, and the two readings can differ a lot in value.

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When a deed mixes "mineral" and "royalty" language, read it closely. How it is resolved depends on the state.

06

Recording & constructive notice

An unrecorded deed is not void. Recording gives the world notice of the deed, and in a dispute an unrecorded deed can lose to a later buyer. Exactly whom an unrecorded deed binds varies by state.

Every county keeps public land records. Once a deed is recorded, later buyers are treated as knowing about it. That is constructive notice. A later buyer is treated as knowing what the records show, whether or not the buyer looked.

The standard example is a double sale:

Day 1 Owen deeds his minerals to Anna. Anna puts the deed in a drawer and does not record it.
Day 30 Owen then deeds the same minerals to Ben. Ben pays for them, doesn't know about Anna's deed, and finds nothing in the records.
Day 31 Ben records his deed. Anna records hers on Day 40.
Ben generally wins. He paid value, had no notice of Anna's deed, and recorded first. Anna's deed was good against Owen, but it loses to a later buyer who relied on the records.
Fig. 5 A double sale: two buyers, one grantor, the same minerals.
Key term
Bona fide purchaser

Someone who buys an interest for value, in good faith, without notice of a competing claim. Recording acts generally protect a bona fide purchaser over an earlier buyer who failed to record.

!

States use different kinds of recording acts ("race," "notice," and "race-notice"), which can change the result in close cases. Under any of them, a buyer should record promptly and search the records before buying.

The county records hold most of a tract's ownership history, but not all of it. Heirship, production, state oil and gas commission orders, and federal (BLM) lease records live partly or wholly outside the county records. An examiner reads the chain of title in order and then fills the gaps the county records leave.

07

Review questions

Check yourself. Tap a question to see the answer.

No. The exception points to an interest someone else already owned. That 1/2 was severed in 1965, and this deed only notes it. Next, find the 1965 deed and follow where that 1/2 interest went.
Yes, unless the deed says otherwise. That is mineral-interest language: Dana took a fraction of the whole bundle, including the right to lease. If the deed had conveyed "an undivided 1/4 royalty," she would be paid from production but have no power to lease.
False. Recording isn't what makes a deed valid. But an unrecorded deed can lose to a later buyer who had no notice of it, so record promptly. Exactly how that plays out varies by state.
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