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Office of General Counsel Policies & Guidelines

Acquisition & Disposal of Real Property : B-025

Policy/Guideline Area

Business and Finance Guidelines

Applicable Divisions

TCATs, Community Colleges, Universities, System Office

Purpose

The purpose of this guideline is to establish procedures for the acquisition and disposal of real property at institutions governed by the Tennessee Board of Regents. 

Policy/Guideline

  1. Introduction
    1. This guideline establishes procedures for the acquisition and disposal of real property in fee interest.
      1. Authorization
        1. Only the Chancellor and Board have the authority, whether by gift or purchase, to acquire and dispose of real property.
      2. Title of Property Acquired
        1. Property that is acquired shall be titled in the name of the Tennessee Board of Regents and for the State University and Community College System of Tennessee for the use and benefit of the institution.
      3. Master Plan
        1. Property that is proposed for acquisition or disposal must be identified in an approved Facilities Master Plan for subject institution prior to taking any action.
        2. The acquisition of gift property does not apply to this condition.
      4. State Building Commission
        1. With the exception in 4c below of gifts of real property, the acquisition and disposal of any interest in real property in fee interest shall be subject to the approval of the State Building Commission Executive Sub-Committee and shall be done in accordance with procedures established by the State Building Commission (Reference T.C.A. §§ 4-15-102, 12-2-112 and 49-8-111).
        2. The following completed documents (five copies each) shall be submitted to the Chancellor to obtain approval to acquire or dispose of real property:
          1. Form RPM 1 Recorded Deed to Property Land Acquisition Questionnaire; or
          2. Land Disposal Questionnaire;
          3. As applicable Survey of property;
          4. If needed, Tax Assessors Map Facilities Evaluation Survey; and, if applicable,
          5. Environmental Identification
        3. Only the Chancellor and Board may accept gifts of real property and may dispose of real property acquired by gift or devise; however, acquisition of any interest in real property by gift or devise that obligates the institution, Tennessee Board of Regents or state of Tennessee to expend state of Tennessee funds for capital improvements or continuing operating expenditures shall be approved by the State Building Commission Executive Sub-committee in accordance with T.C.A. § 4-15- 102(d)(2) prior to acceptance by the Chancellor and Board (see TBR Policy No. 4:01:04:00).
        4. No deed transferring title of property to the Tennessee Board of Regents shall be recorded without the written approval of the Chancellor and in the instance of 4.c. above, State Building Commission approval shall be confirmed by the Chancellor prior to recording the Deed.]
      5. Inspection
        1. Facilities Evaluation
          1. If property to be acquired includes any structures, a facilities evaluation survey shall be conducted of each building.
          2. All required renovations and/or alterations to make the facility(ies) functionally usable in accordance with all applicable codes and current standards of use shall be evaluated with estimated cost to complete and source of funds identified prior to any action to acquire.
        2. Environmental Identification
          1. Prior to any action to acquire real property, the property and all structures, if any, shall be inspected and tested for the identification of any contaminants, including asbestos, PCBs, underground storage tanks, hazardous wastes and other environmental concerns.
          2. If any contaminants are identified, a plan for their disposal or neutralization shall be included with the request to acquire subject property, including estimated costs and identification of responsibility for abatement.
      6. Relocation Assistance
        1. Persons, businesses, farms and non-profit organizations relocated by State real property acquisition projects are eligible for relocation assistance in accordance with the provisions of T.C.A. § 13-11-101 et seq., and the Federal Uniform Relocation Assistance and Land Acquisition Policies Act of 1970, as administered by the Department of Finance and Administration.
      7. Proceeds from Sale of Real Property
        1. The receipts from the sale or conveyance of real property shall be deposited in the capital outlay fund of the selling institution in accordance with TCA 49-8-111.
        2. However, if the receipts are the result of a devise or gift which designated the purpose of the gift for a particular use, any funds from a sale or conveyance of the property may be transferred from the capital outlay fund of the selling institution to the appropriate account in order to effectuate the donor's intent. 

Sources

May 14, 1991 Presidents Meeting; revised May 12, 1992; revised February 13, 2007.

Related Policies

Contact

Mickey Sheen
615-366-4437
mickey.sheen@tbr.edu