Due Diligence Guidelines: Gifts of Real Property
This guideline is applicable for all proposed donations of real property.
ALL gifts of real property must comply with these guidelines, including gifts within the delegated authority granted to the Presidents by Board Policy.
Pertinent Board Policy: Section 9.9
Request from President to Vice Chancellor for Facilities to accept gift of real property that includes all of the following as attachments:
A. Appraisal of property value (One original, one electronic/digital version)
B. Phase I Environmental Report (Digitally Signed PDF)
C. Hazardous material assessment (Digitally Signed PDF)
D. Facilities condition analysis of all physical improvements (One original & PDF)
E. Recordable survey (Seven recordable surveys)
F. Legal description
G. Color pictures of property
H. Location map
I. Narrative (in the following numerical outline order)
- Size in acres
- Description of physical improvements on property
- Statement indicating conformance with the institution’s Master Plan, including excerpts from Master Plan indicating conformance
- Any known easements, restrictions or reversions on property
- Any restrictions or reversions attached to gift by donor
- Specific reason owner is offering gift of property
- Name of owner and statement that to the best of their knowledge no relationship that might pose a conflict of interest exists between donor and anyone affiliated with the University System
- Justification for acceptance of gift of property
- Specific proposed use of property
- Current location of proposed uses of property
- Tax assessment of property value
- Any tax liabilities associated with the property. Will the BOR be responsible for any property taxes as the result of the acquisition?
- Any other potential tax issues
- Operating or capital costs associated with acceptance of gift
- Any unusual operating costs as the result of the property acquisition
- Expenses that are anticipated as the result of the property acquisition
- Will the property produce an income? If so, through what means and what organization and operating unit will gain the benefit from the income? Will unrelated business taxes be an issue? Will there be any significant operating cost resulting from the need to manage the commercial leases? What impacts could occur if the commercial enterprises vacate the premises and the commercial space lies vacant? What percentage of the building is devoted to revenue-producing commercial enterprises?
- Any potential liabilities associated with the proposed acquisition, e.g., any unusual potential for accident, loss of revenues, or resultant additional costs?
- Any additional information that a prudent person would consider to be relevant or important to understanding and considering the request.
A purchase option should also be provided (purchase price $0). The term of the option should be sufficient to insure adequate time for comprehensive review and all required approvals.