The FDIC announced last week that it will implement a program to reserve oil, gas and mineral rights in any land it conveys in its capacity as receiver for a failed bank. Effective April 1, 2013, contracts for the sale of Owned Real Estate (ORE) assets will include these mineral reservations.
The mineral reservation will include the right of entry for properties located in rural areas. The right of entry will not be included for properties located within incorporated cities.
The mineral reservation (with and without right of entry) will be included as an addendum to the typical FDIC sales contract. The FDIC has developed a special warranty deed form that includes the reservation.
The mineral interest reservation will not apply to condominiums and properties valued at $50,000 or less.
If you are closing a transaction where FDIC is the seller, you must review the FDIC contract for sale for any reservations in the estate being conveyed, and you must be sure to include the appropriate reservation language in the deed.
If you have any questions concerning this matter, please contact The Fund's Underwriting
Department at 800-4332-9594 or send an email to underwriting@thefund.com.