Property OwnershipIntermediateArizona Exam

In Arizona, mineral rights can be separated from surface rights through a process called:

AA mineral assessment, which the county assessor performs to determine the separate taxable value of subsurface mineral rights when they are owned independently of the surface estate
BSeverance—mineral rights are conveyed or reserved separately from surface rights by deedCorrect
CA mineral variance, which a property owner obtains from the zoning board of adjustment to allow subsurface mineral extraction in areas where mining is not a permitted use
DA split assessment, which the county assessor applies when the surface and mineral rights are owned by different parties, creating separate tax bills for each estate

Why Severance—mineral rights are conveyed or reserved separately from surface rights by deed Is Correct

Answer B: Severance—mineral rights are conveyed or reserved separately from surface rights by deed

Mineral rights can be severed from surface rights by reservation in a deed ('grantor reserves all mineral rights') or by separate conveyance. Once severed, mineral rights and surface rights may be owned by different parties.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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