Breaking the Bundle: How Texas Property Ownership Can Be Divided
By Trey Wilson, Texas Real Estate and Water Lawyer
When people talk about “owning land” in Texas, it’s easy to assume that means they own everything associated with a property —the dirt, the minerals underneath it, the groundwater flowing beneath the surface, and even the wind that passes above. But that assumption often misses a critical truth in Texas property law: land ownership isn’t a single, simple right. It’s a bundle of rights—and that bundle can be broken apart, piece by piece.
The Bundle of Rights: More Than Just Surface Ownership
Property ownership in Texas is often compared to a bundle of sticks. Each stick in that bundle represents a different right—such as the right to possess, lease, sell, exclude others, or extract resources. Some of the most commonly known rights include the surface estate, the mineral estate, and the water estate.
Crucially, each of these rights can be severed—meaning the different estates can be owned by different owners all at the same time. When that happens, surface ownership no longer includes the full set of property rights.
A Common Example: Mineral Estate Severance
The most familiar type of severance in Texas involves mineral rights. Let’s say a landowner sells a tract of land but retains the minerals. Now, the new surface owner can farm or build on the land—but if oil or gas is found beneath it, the mineral owner has the legal right to explore and extract those resources. More importantly, they have a right to be paid if minerals are produced — even if they no longer own the surface.
Things get even more complicated when multiple parties share severed rights. Imagine a scenario where Amy owns 100 acres of land, but the mineral rights for her acreage are split between Brett, Cole, and Dan—each holding a 33.3% undivided interest (while Amy holds none). This kind of fractional mineral ownership is extremely common in Texas and can lead to complex legal and transactional issues, especially when leasing or selling the minerals.
Other Severable Interests: Wind and Water
Texas law allows for the severance of other estates as well, including wind rights and groundwater rights. While wind rights severance remains relatively novel and subject to evolving case law, groundwater has a clearer statutory and judicial history in Texas.
Just like the mineral estate, groundwater rights can be severed and sold separately from the surface. This means a landowner might retain the right to walk the land but not pump the water beneath it.
Water: A Single Stick in the Bundle
The groundwater estate is often overlooked, but it plays a central role in Texas real estate law. As with minerals, groundwater can be reserved or conveyed away during a sale. For example, a rancher might sell off their land but retain all rights to the groundwater below. Or a developer might carve out groundwater rights to sell to a utility.
This creates a dynamic where a person owns the land but has no right to drill a well. Conversely, someone might own the water rights but need permission or easements to access the land and put those rights to use.
Groundwater law in Texas is governed primarily by the Rule of Capture, but that doesn’t mean a water estate is immune from regulation. Many Groundwater Conservation Districts (GCDs) exist across Texas and require landowners to register wells, file reports, or even obtain permits before pumping. Ownership of the water doesn’t always mean free rein to use, sell or lease it unchecked.
How Severance Occurs: Reservation vs. Conveyance
There are two common ways severance takes place: by reservation or by conveyance.
- Reservation: A landowner sells a tract of land but specifically reserves the mineral, groundwater, or wind rights in the deed. This must be clearly stated in the legal documents to be valid.
- Conveyance: The landowner retains the surface estate but sells or gifts the mineral or groundwater estate to someone else. Again, this should be reflected in recorded deeds to have legal effect.
Whether by reservation or conveyance, these transactions should always be handled carefully, with a clear chain of title and proper recording in the county deed records.
Why This Matters for Buyers and Sellers
Severed estates can create serious headaches for buyers who assume they’re getting full ownership of everything beneath and above the land. Buyers should never assume that a deed includes mineral or groundwater rights without verifying it. A title search, thorough due diligence, and clear contract language are essential.
Likewise, landowners looking to sell should think carefully about what rights they’re keeping—and what rights they’re giving up.
Final Thoughts
Texas property law gives landowners tremendous freedom to divide, retain, or sell off parts of their property rights. But with that freedom comes the need for precision. Whether you’re dealing with surface, mineral, water, or wind rights, make sure you understand what you own—and what you don’t.
If you’re navigating a real estate deal that involves severed estates, don’t go it alone. These rights are valuable, and they can be easily lost or misunderstood without proper legal guidance.
About the Author
Trey Wilson is a seasoned Water Lawyer and real estate attorney based in San Antonio. With over 25 years of experience helping Texas landowners understand and protect their property rights, Trey brings deep insight to surface, mineral, and groundwater issues across the state.
