R907-80-14. Closings

  1. All auction sales, negotiated sales, or negotiated exchanges must go through this closing process.

  2. Transactions must be closed within 60 days after the date of the contract unless good cause exists to delay the closing. Information intended to show that good cause that warrants delaying a closing exists must be provided in writing to the Director within 30 days after the date of the contract. The Director must determine if good cause to delay exists.

  3. A minimum of 3% security deposit on a negotiated sale will be required to be held in escrow.

  4. If closing does not complete within 60 days after the date of the contract, the deposit money becomes non-refundable if the Director decides good cause to delay does not exist.

  5. If closing is not complete within the 60 days after the date of the contract and the Director determines that good cause to delay does not exist, the buyer still wishes to buy the property, and the Department agrees to allow the buyer more time to complete the purchase, the buyer must provide an additional 7% security deposit to the Department to be held in escrow and the parties will have an additional 30 days after the date of the contract to close.

  6. If the buyer does not provide the additional 7% security deposit required by R907-80-13(5) within 5 business days after the date the Department agrees to allow the buyer more time to complete the purchase, the purchase contract is voidable, and the Department may contact the next highest bidder who will then have an opportunity to purchase the property.

  7. If closing is not complete within the additional 60 days allowed by R907-80-13(5), all deposit money becomes non-refundable, the contract becomes voidable and the Department may provide the next highest bidder an opportunity to purchase the property.

  8. The executive director or designee has authority to extend time frames allowed to close a transaction if he or she determines that doing so serves the best interest of the state.

  9. The closing of a real property transaction may be conducted at a title company provided the buyer pays for all related costs. If a title company is used for closing, the Department will instruct the company to record the deed, and after recording, send it to the Department of Transportation, Director of Right of Way.

  10. Only the Executive Director or designee is authorized to sign closing papers, real property contracts, or deeds.