Real estate sales are governed by Board Policy 300.2 and UASP 300.2. 聽If any part of these guidelines is inconsistent with any Board policies or UASP, the respective policy or UASP controls.
1. Preliminary steps:
- Identify the legal description of the property. This may be a description by lot and block, or by metes and bounds (a surveyor鈥檚 description of the boundary lines), and will be found in the deed that originally conveyed the property to the University.
- Answer the following questions. If any is answered in the affirmative, contact the Office of General Counsel for assistance in resolving the issue before proceeding through the sale process.
- Is the property titled in a name other than the Board of Trustees of the University of Arkansas?
- If the property was purchased or improved with bond financing, is the bond issue outstanding, or was it refinanced with a presently outstanding bond issue?
- Do activities on the property generate revenue pledged to an outstanding bond issue?
- Is the property subject to restrictions or conditions such as deed restrictions, restrictive covenants, conservation or historic preservation easements?
- Is the property part of a horizontal property regime?
- Was the property a gift to the University and, if so, did the gift include restrictions or conditions?
- Are there potential boundary issues or potential encroachments?
- Do the current or historic uses of the property suggest any potential for the presence of hazardous materials?
2. After deciding to proceed the campus, unit or division (campus) provides a detailed notice of intent to sell to the President and the General Counsel.聽 See UASP 300.2 for details.
3. If the General Counsel鈥檚 office does not identify legal impediments to sale, the campus obtains at least one appraisal of the property.
4. If the property to be sold has an estimated value of over $1,000,000, the campus will provide public notice of its intent to sell the property. UASP 300.2 describes the required notice and the publication requirement.
5. If the campus or unit plans to offer the property for sale through a real estate professional, the campus follows the procurement process for professional contracts and must obtain Board approval of the proposed real estate professional contract.
6. If the campus has already received an acceptable offer, the offer is reduced to writing, signed by the buyer, and forwarded to the Office of General Counsel for review. If the buyer has not presented a written offer the campus should contact the Office of General Counsel for assistance in drafting an offer.聽 Signature authority is governed by Board Policy 300.1 and UASP 300.1.
- The offer and acceptance should include the condition that the University retains at least a one-half interest in all oil, gas and other minerals.
- The offer and acceptance must condition the sale on approval of the Board of Trustees.
7. After obtaining a fully signed offer and acceptance the offer is submitted to the Board for approval. If the campus has not yet obtained an acceptable offer it may request Board approval to sell the property for no less than the appraised value, on terms and conditions to be negotiated.
8. When submitting a sale proposal to the Board be prepared to provide the Board with appraisals, photographs and a map or overhead view of the property, together with any other written material that would assist the Board in understanding the property, its current use and condition, its value, and the reason for its sale.
9. After Board approval the buyer begins pre-closing activities, such as ordering title insurance and arranging for inspections.
10. If all inspections and the title commitment are satisfactory to buyer, and all other conditions are met, closing is arranged.
11. Proposed deed and closing documents are submitted to General Counsel for review.
12. Closing is conducted.
13. After closing, the sale is reported to General Counsel, to the State Land Commissioner and to the Legislative Council.