R23-22-6. Requirements for Purchase, Accepting a Donation, or Exchanges of Real Property

  Unless waived under Rule R23-22-9, DFCM shall comply with the following in regard to the purchase, accepting a donation, or exchange of real property that is subject to this Rule:

  (1) Selection Process. In accordance with State law, DFCM shall either perform the selection process or assist the State agency with the selection process. The selection process must comply with applicable State laws and rules. DFCM may use the services of a real estate professional in accordance with State law and selected pursuant to the Utah Procurement Code and applicable rules.

  (2) Financing Requirements. As authorized by the Utah Legislature, DFCM shall assist, as appropriate with financing requirements, including, but not limited to, coordinating financing requirements through the State Building Ownership Authority, or other authorized bonding authority.

  (3) Document Preparation and Approvals. In accordance with State law, DFCM shall negotiate, draft and execute the applicable Real Estate Contract and transaction documents with due consideration to the State agency's comments. The State agency may be required by DFCM to be a signatory to the Contract. Legal documents shall either be on a form approved by the Utah Attorney General or submitted for approval to the Utah Attorney General. The same requirements shall apply to closing documents prepared by the title company.

  (4) Substantive Requirements. Unless a provision below is waived under Rule R23-22-9, DFCM shall obtain and review the following:

  (a) Title Insurance. For all real estate transactions, DFCM shall obtain a preliminary title report and an Owner's Policy of Title Insurance. The Director may waive the obtaining of the Policy of Title Insurance for real estate transactions with an estimated value by DFCM of under $50,000 if the Director finds that the circumstances indicate that there is no potential title risk or if the transaction is between public entities.

  (b) Environmental Assessment. A Phase I environmental Assessment or higher level environmental assessment is required.

  (c) Engineering Assessment. DFCM shall obtain an engineering assessment of mechanical systems and structural integrity of improvements located on the property.

  (d) A study of available services to the subject property shall be conducted. This includes an analysis of any required utilities, including water, sewer, gas, electricity and the like.

  (e) A geotechnical analysis shall be obtained.

  (f) A flood plain analysis shall be accomplished.

  (g) Drainage issues shall be studied.

  (h) Code Review. DFCM shall review the real property to ascertain its suitability under all applicable codes, including but not limited to, the Americans with Disabilities Act, laws, regulations and requirements.

  (i) Appraisal. Except for transactions where State law does not require a certain value to be established, the value used by DFCM in the negotiation shall be based upon an appraisal completed by an appraiser that is a state-certified general appraiser under Section 61-2B-2 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. DFCM shall obtain, if reasonably available, an analysis of past maintenance and operational expenses.

  (k) Land Use Information. DFCM shall obtain, if reasonably available, the plat map, zoning and planning information.

  (l) Survey. DFCM shall obtain an ALTA/ACSM Land Title Survey, current revision, of the subject property. An ALTA survey shall not be required if an ALTA survey has already been performed within the past 12 months unless otherwise determined by DFCM;

  (m) Historic Assessment. DFCM shall undertake an historic property assessment under Section 9-8-404; and

  (n) Other. DFCM shall also comply with other requirements determined necessary by law, rule, regulation or by DFCM.