Effective Date: 07/01/95
Policy Statement 1: Acquisition/Disposition of Property
In dealing with real property interests, the University is subject to regulations adopted by State statutes, State of North Carolina Department of Administration (State Property Office), the UNC Board of Governors and the ECU Board of Trustees. The Associate Vice Chancellor for Administration and Finance (AVCFA) coordinates all requests for the acquisition and disposition of real property, whether by lease, purchase or sale to insure that the proper procedures and regulations are followed while maximizing the potential for a successful outcome.
ACQUISITION OF PROPERTY
Suggestions for acquisition of real property whether by purchase or gift may be made to the AVCFA by anyone interested in such an acquisition, including property owners or University employees. Proposals for the purchase of real property may be made to the AVCFA by letter, telephone or in person. The AVCFA will research the request to determine that a need exists; that funds are available; that a confilct of interest does not exist; and other due diligence issues before presenting the request to the Vice Chancellor for Administration and Finance (VCFA) and the Chancellor for permission to proceed.
PURCHASE OF PROPERTY BY THE UNIVERSITY - Steps for Approval
- Suggestions for purchase of real property are screened by the AVCFA who secures basic information about the property and makes initial determination of need for the property acquisition.
- The AVCFA submits a Department of Administration Acquisition Form (PO-1) with a memorandum containing pertinent information concerning the property to the VCFA requesting acquisition.
- The VCFA and the Chancellor review the forms and accompanying information. If approved, the request is presented to the ECU Board of Trustees.
- If approved by the Board of Trustees, a request is sent to the SPO (our real estate agency) to obtain two appraisals of the property by local appraisers.
- If the price is less than $50,000 the paperwork is submitted directly to the SPO for processing.
- If the price is greater than $50,000 the request is processed through the UNC Board of Governors, the Joint Legislative Committee on Governmental Operations, and the Council of State before being returned to the SPO.
- From here the request is submitted to the Attorney General's (AG) office for preparation of the closing documents.
- The AG's office will engage the services of a local attorney to close the sale of the property.
See PRO Policy 2: Rental of Space to or from the University for information concerning the acquisition of property by rental or lease.
DISPOSITION OF REAL PROPERTY BY SALE OR EXCHANGE
Recommendations for disposition of real property normally are made by the AVCFA. Input can be made by any University employee by making a recommendation to the AVCFA.
The AVCFA makes an assessment based on the value of the property, the estimated future cost of ownership and the long-range plans of the University.
SALE - Steps for Approval
- Requests for disposition of real property by sale/exchange are submitted by the AVCFA to the VCFA and the Chancellor for review and approval.
- The request is then forwarded to the ECU Board of Trustees for review and approval.
- If approved by the Board of Trustees, the AVCFA submits the request to the Board of Governors in those instances where the disposition price is greater than $50,000. In those instances where the disposition is less than 50,000 the request is submitted directly to the SPO for appraisal and presentation to the Joint Legislative Committee on Governmental Operations and the Council of State.
- Once approved by these bodies the request is submitted to the AG's office for preparation of the appropriate documents for the Governor's signature. Only the Governor can approve the disposition of State owned property.
- Once the sale (disposition) is completed, proceeds will be deposited as follows: (1) Proceeds for property acquired with appropriated funds will be deposited in the State General Fund. (2) Proceeds for property acquired with non-appropriated funds will be deposited in the account from which the property was acquired.
See PRO Policy 2: Rental of Space to or from the University, for more information concerning the disposition of property by rental of lease.