CAPLA SUMMIT NOV. 13, 2018 Complications with Conveyancing
[email protected] COMPLICATIONS WITH CONVEYANCING THREE THINGS THAT WILL ALWAYS EXIST: DEATH, TAXES & A&D. AS OUR INDUSTRY EVOLVES WE FIND NEW SOLUTIONS IN A&D 2 CAPLA Complications with Conveyancing 1. NON CONSENT on a Transaction (Land Contract) 2. AER STATEMENT OF CONCERN (SOC) 3. WELLS ABANDONED/STATE OF SUSPENSION 4. DELINQUENT PARTIES 5. NEW AER DIRECTIVE 067 3 COMPLICATIONS WITH CONVEYANCING NON CONSENT (LAND CONTRACT) BACKGROUND: IMPROVEMENTS IN LAND ADMINISTRATION Since the Assignment Procedure in 1993 was adopted by Industry with the use of the Notice of Assignment (NOA), the Assignment and Novation (A&N) has been nearly taken out of the equation in our Land Agreements. Accounting records that were a nightmare were eventually aligned with Land contractual records. UNSIGNED A&Ns CAUSED A BACKLOG AND THE ACCOUNTING NIGHTMARE WAS EASED WITH NOAS PAVING THE WAY. NOTICE OF ASSIGNMENT TOOK THE INDUSTRY BY STORM TIME CERTAINTY WITH BINDING DATE AND NO THIRD PARTY SIGNATURES 4 NOTICE OF ASSIGNMENT - CONSENT: ASSIGNOR – TRUSTEE AND ASSIGNEE – BENEFICIARY TO AGENT FOR ASSIGNEE FROM THE ASSIGNOR FROM THE EFFECTIVE EFFECTIVE DATE TO BINDING DATE DATE TO BINDING DATE AND AND REMAINS THE RECOGNIZED BECOMES RECOGNIZED INTO THE PARTY OF THE MASTER AGREEMENT MASTER AGREEMENT AS OF THE UNTIL THE BINDING DATE BINDING DATE EFFECTIVE BINDING DATE INTERESTS, DATE OBLIGATIONS, LIABILITIES THIRD PARTY – AGREES/CONSENTS TO RECOGNIZE AND ACCEPT ASSIGNOR AS TRUSTEE AND AGENT FOR ASSIGNEE. 5 COMPLICATIONS WITH CONVEYANCING A&N NOAS THIRD PARTY THIRD PARTY NON CONSENT - A&N PROBLEMATIC UNEXECUTED - PROBLEMATIC NOAS ASSIGNMENT CONSENT PROCEDURE 6 COMPLICATIONS WITH CONVEYANCING NON CONSENT (REFUSAL TO NOVATE) SENIOR, INTERMEDIATE, JUNIOR, START-UP COMPANIES ARE ALL AFFECTED UNTIL NOVATION OCCURS, THE VENDOR/ASSIGNOR REMAINS RECOGNIZED AND NOT THE PURCHASER/ASSIGNEE.