If in Paragraph B(2) is checked, and 50% entered in the Addendum for Reservation of Oil, Gas, and Other Minerals, what does the seller reserve?

The correct answer states that the seller reserves 50% of whatever mineral estate the seller owns as of the closing date. This reflects a fundamental principle in real estate transactions regarding the reservation of mineral rights.

When a seller reserves a portion of the mineral estate, it often means that the reservation is contingent on the seller’s ownership at the time of closing. Therefore, if the seller owns a significant portion of the mineral estate, they are only reserving 50% of what they actually own; if their ownership is less, then 50% of that lesser amount is what will be reserved. This ensures clarity in what the seller retains post-sale, effectively allowing for a more accurate and fair transaction.

Understanding this aspect of property and mineral rights is crucial in real estate transactions, as it lays out the actual ownership and rights being transferred or maintained during the purchase process. The other options misinterpret the nature of this reservation, either suggesting an absolute ownership or a complete transfer of rights, which does not align with the standard practices governing such contracts.