An oil and gas lease can have a significant impact on your property value and mortgage. Make sure you talk with your bank about the potential risks before signing a lease – and check the terms of your homeowners insurance as well. This is just another reason to consult with a lawyer before even considering a lease, no matter how attractive a signing bonus might be.
Important questions to ask either a lawyer, mortgage officer or bank about the impact of leasing on your mortgage:
- Will your property be devalued?
- Is your home insurance tied to value?
- How does this impact your ability to refinance or sell your property?
There are some great resources available to learn about mortgage and other property value concerns;
- Integrity and accountability : Mortgage Impacts
- New York Times: Mortgages and Gas Leases
- Duke University Housing Impacts Study
- National Association of Realtors: A White Paper Report on "Framing the Fracking Frenzy”