R704, Disposal of Real Property

R704-1  Purpose: To provide guidelines and requirements for institutions to dispose of real property and to establish the approval process.

R710-2  References

2.1. Utah Code 53B-20-101 (Property Rights – Title and Control)

2.2. Utah Code Title 63A, Chapter 5 (State Building Board – Division of Facilities Construction and Management)

2.3. Policy and Procedures R220, Delegation of Responsibilities to the President and Board of Trustees

R704-3  Disposal of Property: Except as provided by subsections 704-6 and 704-7, institutions shall request and obtain Regents approval prior to disposing of real property.

R704-4. Determination of Surplus Property: If the institution determines the real property does not serve its mission and is, therefore, surplus property, the property is eligible for sale or exchange on the open market.

R704-5. Fair Market Value: Unless otherwise justified, surplus real property shall be sold at or above fair market value as determined by an appraisal completed by a State of Utah licensed appraiser.

R704-6. Delegation of Authority to Approve the Disposal of Donated or Gifted Real Property:  The State Board of Regents delegates to the Boards of Trustees the authority to dispose of real property subject to the following conditions:

6.1. The disposal price cannot exceed $500,000.

6.2. The property shall be sold at or above fair market value as determined by an appraisal unless the value of the property does not warrant the cost of the or the gifted property has preexisting conditions that affect the future sales price.

6.3. Reporting of Property Disposals – When an institution disposes of property under this policy, it shall report the transaction at the next regularly scheduled State Board of Regents’ meeting.

R704-7. Delegation of Authority to the University of Utah Board of Trustees for University Health Care System Property Transactions: In accordance with Regents Policy R220, Delegation of Responsibilities to the President and Board of Trustees, the University of Utah Board of Trustees may review and approve all property disposals and transactions for the University of Utah Health Care System.

Adopted January 20, 2017.