All real estate sales require Board approval. Under Board policy contracts to buy or sell real property must be approved by the President or Chief Financial Officer, after review by the Office of General Counsel. The following guidelines should be used for real estate sales.
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’s 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 in advance.
- 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?
- 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 or unit obtains at least one, but preferably two, appraisals.
3. 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.
4. If the campus has already received an acceptable offer, the offer is reduced to writing and signed by the buyer. The offer is reviewed by the Office of General Counsel and submitted to the Board of Trustees for approval.
5. 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.
- 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.
6. 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.
7. After Board approval the signed agreement is returned to the buyer.
8. The buyer begins pre-closing activities such as ordering title insurance and arranging for inspections.
9. If all inspections and the title commitment are satisfactory to buyer, and all other conditions are met, closing is arranged.
1o. Proposed deed is submitted to General Counsel for review.
11. Closing is conducted.
12. After closing, the sale is reported to General Counsel, to the State Land Commissioner and to the Arkansas Legislature.