Utah Admin. Code R23-21-4 - Requirements for Purchasing or Exchange of Real Property
Unless exempt under Section 63A-5b-806 or waived under Section R23-21-6, the division shall comply with the following in regard to the purchase, accepting a donation of, or acquisitions effectuated through the exchange, of real property that is subject to this rule:
(1) Selection Process. In accordance with
state law, the division shall either perform the selection process or assist
the state agency with the selection process. The selection process shall comply
with applicable state laws and rules. The division may use the services of a
real estate professional in accordance with state law and selected pursuant to
the Utah Procurement Code, if applicable, and applicable rules.
(2) Financing Requirements. As authorized by
the Utah Legislature, the division may assist, as appropriate, with financing
requirements, including, coordinating financing requirements through the State
Building Ownership Authority, or other authorized bonding authority.
(3) Document Preparation and Approvals. In
accordance with state law, the division shall negotiate, draft, and execute the
applicable Contract for the Purchase of Real Estate and transaction documents
with due consideration to the state agency's comments. The state agency may be
required by the division to be a signatory to the acquisition contract. Legal
documents shall either be on a form approved by the Utah Attorney General or
submitted for approval to the Utah Attorney General. Closing documents prepared
by a title company shall either be on a form approved by the Utah Attorney
General or submitted for approval to the Utah Attorney General.
(4) Substantive Requirements. Unless a
provision of Section R23-21-4 is waived under Section
R23-21-6, the division shall obtain and review the following:
(a) Title Insurance. For all real estate
acquisition transactions, the division shall obtain a preliminary title report
and an Owner's Policy of Title Insurance on the acquired property, however, the
director may waive the obtaining of the Policy of Title Insurance for real
estate transactions with an estimated value by the division of under $500,000
if the director finds that the circumstances show that there is no potential of
title risk or if the transaction is between public entities;
(b) Environmental Assessment. A Phase I
environmental assessment shall be conducted on the acquired property and a
higher level environmental assessment may be performed if the property presents
a risk of being contaminated with hazardous materials;
(c) Engineering Assessment. The division
shall obtain an engineering assessment of mechanical systems and structural
integrity of improvements located on the acquired property;
(d) A study of available services to the
acquired property shall be conducted, which shall include an analysis of any
required utilities, including water, sewer, gas, electricity and the
like;
(e) A geotechnical analysis
shall be obtained;
(f) A flood plan
analysis shall be accomplished;
(g)
Drainage issues shall be studied;
(h) Code Review. The division shall review
the real property to be acquired to ascertain its suitability under all
applicable codes, including the Americans with Disabilities Act, guidelines,
laws, regulations, and requirements;
(i) Appraisal. Except for transactions where
state law does not require a certain value to be established or where the
division is authorized to estimate the value, and subject to Section
R23-21-5, the value used by the
division in the negotiation shall be based upon an appraisal completed by an
appraiser that is a state-certified general appraiser under Section
61-2g-314, and, when determined by
the director that it is in the interest of the state, the director may require
that the appraiser be a State of Utah licensed MAI appraiser;
(j) Maintenance and Operation History. The
division shall obtain, if reasonably available, an analysis of past maintenance
and operational expenses;
(k) Land
Use Information. The division shall obtain, if reasonably available, the plat
map, zoning, and planning information;
(l) Survey. The division shall obtain an
ALTA/ACSM Land Title Survey, current revision, of the property to be acquired,
provided, however, an ALTA survey shall not be required if an ALTA survey has
already been performed within the past 12 months unless otherwise determined by
the division;
(m) Historic
Assessment. The division shall undertake a historic property assessment under
Section 9-8a-404; and
(n) Other. The division shall also comply
with other requirements determined necessary by law, rule, regulation, or by
the division.
Notes
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