Section R23-21-4 - Requirements for Purchasing or Exchange of Real PropertyUnless exempt under Section 63A-5b-806 or waived under Section R23-21-5, the division shall comply with the following in regard to the purchase, accepting a donation of, or acquisitions effectuated through the exchange, of real property that is subject to this rule:
(1) Selection Process. In accordance with state law, the division shall either perform the selection process or assist the state agency with the selection process. The selection process shall comply with applicable state laws and rules. The division may use the services of a real estate profession in accordance with state law and selected pursuant to the Utah Procurement Code, if applicable, and applicable rules.(2) Financing Requirements. As authorized by the Utah Legislature, the division may assist, as appropriate, with financing requirements, including, coordinating financing requirements through the State Building Ownership Authority, or other authorized bonding authority.(3) Document Preparation and Approvals. In accordance with state law, the division shall negotiate, draft, and execute the applicable Contract for the Purchase of Real Estate and transaction documents with due consideration to the state agency's comments. The state agency may be required by the division to be a signatory to the acquisition contract. Legal documents shall either be on a form approved by the Utah Attorney General or submitted for approval to the Utah Attorney General. Closing documents prepared by a title company shall either be on a form approved by the Utah Attorney General or submitted for approval to the Utah Attorney General.(4) Substantive Requirements. Unless a provision of Section R23-21-4 is waived under Section R23-21-5, the division shall obtain and review the following:(a) Title Insurance. For all real estate acquisition transactions, the division shall obtain a preliminary title report and an Owner's Policy of Title Insurance on the acquired property, however, the director may waive the obtaining of the Policy of Title Insurance for real estate transactions with an estimated value by the division of under $500,000 if the director finds that the circumstances show that there is no potential of title risk or if the transaction is between public entities;(b) Environmental Assessment. A Phase I environmental assessment shall be conducted on the acquired property and a higher level environmental assessment may be performed if the property presents a risk of being contaminated with hazardous materials;(c) Engineering Assessment. The division shall obtain an engineering assessment of mechanical systems and structural integrity of improvements located on the acquired property;(d) A study of available services to the acquired property shall be conducted, which shall include an analysis of any required utilities, including water, sewer, gas, electricity and the like;(e) A geotechnical analysis shall be obtained;(f) A flood plan analysis shall be accomplished;(g) Drainage issues shall be studied;(h) Code Review. The division shall review the real property to be acquired to ascertain its suitability under all applicable codes, including, but not limited to, the Americans with Disabilities Act, guidelines, laws, regulations, and requirements;(i) Appraisal. Except for transactions where state law does not require a certain value to be established or where the division is authorized to estimate the value, the value used by the division in the negotiation shall be based upon an appraisal completed by an appraiser that is a state-certified general appraiser under Section 61-2g-314, and, when determined by the director that it is in the interest of the state, the director may require that the appraiser be a State of Utah licensed MAI appraiser;(j) Maintenance and Operation History. The division shall obtain, if reasonably available, an analysis of past maintenance and operational expenses;(k) Land Use Information. The division shall obtain, if reasonably available, the plat map, zoning, and planning information;(l) Survey. The division shall obtain an ALTA/ACSM Land Title Survey, current revision, of the property to be acquired, provided, however, an ALTA survey shall not be required if an ALTA survey has already been performed within the past 12 months unless otherwise determined by the division;(m) Historic Assessment. The division shall undertake a historic property assessment under Section 9-8-404; and(n) Other. The division shall also comply with other requirements determined necessary by law, rule, regulation, or by the division.Utah Admin. Code R23-21-4
Amended by Utah State Bulletin Number 2023-04, effective 2/8/2023