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2C — November 22 - December 12, 2019 — Commercial Office Properties — M id A tlantic
Real Estate Journal
C ommercial O ffice P roperties
By Daniel M. Dixon, Esquire, Kaplin | Stewart Calling All DE Corporations: Are You Complying with Delaware Unclaimed Property Reporting? T he Delaware Esche- ator’s chief enforce- ment tool for compa- unclaimed property “exami- nation”;
letters are not an invitation at all. Rather, the letter is sent to a company that has been identified by the Escheator as a non-filer. Do not ignore this letter. If it’s ignored after 60 days, the company is immediately selected for an unclaimed property examination. The examination is conducted by one of Delaware’s third-party vendors (paid on commis- sion). These examinations can last 2-3 years and can be very burdensome. And as the vendors are paid on commis- sion, they are incentivized to
find liability. Notably, at a recent con- ference in Philadelphia, the Escheator stressed that the automatic examination policy will be strictly enforced if the invitation letter is ignored. As the invitation letters are going to continue rolling out 3 times a year for years to come it’s seemingly only a matter of time before a non-filing com- pany receives one. So whether you’ve received an invitation letter or not, we can help you come forward and participate in the program to get compli- ant now.
Below is a bullet point out- line of some general Delaware Unclaimed Property facts and a summary of the VDA/invita- tion program: • Less than 1% of the $1.3M Delaware companies are com- plying with the State’s Un- claimed Property reporting requirements; • Unclaimed Property is 10% of Delaware’s yearly revenue (third largest single revenue source); • 60 days to respond to in- vitation letter or company is immediately referred to the Delaware Escheator for an
• Last round of letters sent in late May – must respond by late July; •Middle-market companies to Fortune 100 companies— both privately and publicly held are slated to receive this round of letters; • Letters are sent to corpo- rate officers and the Delaware registered agents, or others that may not be aware of what they are or the potential con- sequences of ignoring them; • Letters are sent out three times a year, but not on a spe- cific schedule—so a company organized under Delaware law must be vigilant all year. • The benefits of the VDA program include: ─ Waiver of penalties and interest charges; – Extended “aging” crite- ria for canceled checks (90- days for voided disbursement checks vs. normal 30 days for regular audit); ─ Control over the process via a “self-review” of its own records to identify and re- mediate areas of exposure (instead of a 3 year examina- tion conducted by a commis- sion-compensated third party vendor). Daniel M. Dixon, Esquire is a partner with Kaplin | Stewart. Colliers leases up office building at 3906 Church Rd. MOUNT LAUREL, NJ — Evan Zweben , of Colliers International , has recently concluded a long term lease at 3906 Church Rd. in Mount Laurel on behalf of the owner. When the current owner purchased it in 2011, 3906 Church Rd. was fully leased to American Water. Upon their consolidation and relocation to Camden as part of a New Jersey Grow incentive pack- age in 2019, the property was unexpectedly facing a 27,600 s/f vacancy. A broad market- ing campaign was conducted by Colliers. “With the outstanding loca- tion, efficient floor plate and abundant parking the prop- erty affords, we were confident in our goal of finding a new long-term tenant to consider the site as a headquarters opportunity in amenity-rich Mount Laurel.” said owner Rick Schwartz .
n i e s t h a t don’t comply wi th De l a - ware ’ s Un- claimed Prop- erty reporting requirements are “invita- tion letters.” These letters
Daniel M. Dixon
invite a non-filing company to participate in the Unclaimed Property Voluntary Disclosure Program. Despite the name, these
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Contact: DAN DIXON • ddixon@kaplaw.com • www.kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422 • 610-941-2484 Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120
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