Property Ownership
A Pennsylvania property sold 'subject to' an oil and gas lease means the buyer:
AGets to renegotiate the lease terms with the energy company
BTakes title subject to the existing lease — the buyer cannot terminate the lease simply by purchasing✓ Correct
CHas the right to cancel the lease within 30 days of closing
DMust pay the seller a royalty on future gas production
Explanation
When a Pennsylvania property is sold subject to an existing oil and gas lease, the buyer takes title with the lease still in effect. The lease runs with the land and the energy company's rights are not affected by the property transfer. Buyers should review any existing leases before closing.
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