THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Bulletin: SLS2013009
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Bulletin: SLS2013009
Dear Associates:
This bulletin advises you of a policy implemented by the Federal Deposit Insurance Corporation (“FDIC”) Owned Real Estate Department relating to the reservation of mineral interests, including oil and gas.
Historically, sales of real estate owned by the FDIC have not addressed mineral interests. The FDIC announced that, effective April 1, 2013, the marketing of real estate owned by the FDIC will be primarily for the surface rights only, with the mineral interests normally being withheld from the sale and conveyance. Click here to view a copy of the FDIC’s Memorandum.
The FDIC intends to retain ownership of mineral interests, or include them in the sale only after consideration of their value. The FDIC has stated that it will normally reserve the mineral interests. If mineral interests are to be conveyed by the FDIC, they must be appraised. The FDIC will only sell mineral interests that have title work clearly demonstrating ownership.
The FDIC has stated that mineral interests will be reserved in the conveyance of all types of owned real estate with the exception of individual condominium units, real estate valued at $50,000 or less, or any sale using a quitclaim deed.
For rural properties, the FDIC has stated that it will also retain the right to use the surface of the property for ingress and egress, to search for and develop oil, gas or other minerals, and to remove, transport, and dispose of such products. For properties located within the boundaries of incorporated cities, the FDIC has stated that it will waive its rights to utilize the surface of the property for these purposes.
Company Policy:
1. Review all deeds conveying property owned by the FDIC. Except to the FDIC’s reservation of mineral interests, if any, in all commitments and policies.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
References
- Bulletins Replaced:
- None
- Related Bulletins:
- AL2012001 - Mineral Exception
- AR2013002 - UNDERWRITING - Inclusion of Sand and Gravel in Standard Mineral Exception
- CO000032 - House Bill 1088 - Severed Mineral Estates
- CO2013001 - UNDERWRITING - New Standard Exception for Minerals - REVISED
- FL2012002 - Mineral Exception (Other Than Short Form Policies, Residential Condominiums, 1-4 Family Residential Platted Properties)
- GA2012009 - Mineral Exception
- IL2013002 - UNDERWRITING - Mineral Exception
- IN2014011 - UNDERWRITING - Search Issues in the Marion County, Indiana Clerk’s office
- MU000001 - Mineral Examinations for New Loans
- MU2012002 - Mineral Exception
- MU2012003 - Mineral Exception
- MU2012004 - Mineral Exception
- MU2013001 - UNDERWRITING - Mineral Exception
- MU2013002 - UNDERWRITING - Mineral Exception
- VA2013003 - UNDERWRITING - Mineral Exception - REVISED
- Underwriting Manual:
- None
- Exceptions Manual:
- None
- Forms:
- None