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ACQUISITION AND DISPOSITION OF REAL PROPERTY

Property Office (PRO)

POLICY 1

Effective Date: 06/17/2002

Last Modified Date: 08/16/2004

Regulations

In dealing with real property interests, the University is subject to regulations adopted by the Board of Governors and the Board of Trustees, as well as to State statutes and regulations of the State of North Carolina Department of Administration. The University Property Office coordinates all requests for the acquisition and disposition of real property, in any manner, and ensures that proper procedures and regulations are followed.

Acquisition of Property

Acquisition Suggestions

Suggestions for acquisition of real property, whether by purchase or gift, may be made to the Property Office by anyone interested in such an acquisition, including property owners or University employees. Proposals for the purchase of real property may be made to the Property Office by letter, telephone call, or personal visit.

See also: DEV Policy 5, Gift of Property

Necessary Information

The Property Office, in collaboration with the Business and Finance Property committee, screens all proposed acquisitions and secures as much information as possible about the property in question. The Property Office works with the Facilities Planning Department in gathering necessary information.

Purchase of Property by the University-Steps for Approval

  1. Suggestions for purchase of real property are screened by the Property Office, which secures basic information about the property and determines the University's needs for purchasing the property.
  2. The Property Office presents the pertinent information about the property to the Business and Finance Property Committee, which makes a recommendation to the Vice Chancellor of Finance and Administration.
  3. The Vice Chancellor for Finance and Administration and the Chancellor review the information. If approved, the request is presented to the Board of Trustees of the University.
  4. If approved by the Board of Trustees, the request is submitted as follows:
    • the State Property Office, if the property cost is less than $50,000
    • the Board of Governors of the University system, prior to submission to the State Property Office, if the cost is more than $50,000.
  5. An appraisal of the value of the property is requested by the University Property Office and secured by the State Property Office. The purchase request is then submitted to the Council of State for approval. The State Property Office and the Attorney General's staff conduct the title examination and close the purchase. The deed is recorded and filed in the State Property Office and the University Property Office.

See also:
PRO Policy 2, Rental of Space to or from the University
PRO Policy 3, Leased Space Policy

Disposition of Real Property

Recommendations for disposition of real property normally are made by the University Property Office or other University administrator.

The Property Office makes an assessment based on the value of the property, the estimated future cost of ownership, and the University's long-range plans.

Sale-Steps for Approval

  1. Requests for disposition of real property by sale or exchange are submitted by the University Property Office to the Business and Finance Property Committee. A recommendation concerning the disposition is made by the committee to the Vice Chancellor of Finance and Administration.
  2. The Vice Chancellor of Finance and Administration and the Chancellor review the recommendation. If approved, the request is forwarded to the University's Board of Trustees for review and approval.
  3. If the request is approved by the University Board of Trustees, the Property Office submits the request as follows:
    • when the value of the property being sold is $50,000 or more, to the Board of Governors of the University system; or
    • when the value of the property being sold is less than $50,000, directly to the State Property Office for approval and presentation to the Council of State.
  4. The State Property Office, together with the University Property Office, will handle all of the details and close the transaction. This includes advertising for bids and making a determination as to whether the high bid should be accepted. If accepted, the deed is drafted, the sale is closed, and the proceeds are deposited in the State General Fund. In those cases where the property was acquired by the University with non-State-appropriated funds, the State Property Office remits the net proceeds to the University.

Additional Information

See also PRO Policy 2, Rental of Space to or from the University, for more information concerning the disposition of property by rental or lease.

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