Definition of "Landowner's royalty"

Audrey Wiggins real estate agent

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Better Homes & Gardens Real Estate Lifestyle Property Partners

In the mining and petroleum industries, it is a portion of the profit secured from the extracted minerals or oil reserves from the property paid to the property owner. For example, a property owner in Texas and an independent oil company struck oil on the property after signing a contract agreeing to pay a 10% landowner's royalty on all profits secured from the oil recovered.

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