Current through Bulletin 2024-18, September 15, 2024
(1) When
purchasing or disposing of real property or an interest in real property,
except as provided in Subsection (2), the division may determine the value
using one or more of the following methods:
(a) a broker price opinion;
(b) a market analysis, which may include an
appraisal, a broker price opinion, market conditions analysis, or market demand
analysis; or
(c) an
appraisal.
(2) A broker
price opinion, market analysis, or appraisal may not be required if:
(a) the transaction involves a water
right;
(b) the division estimates
the market value of the subject property is less than $100,000;
(c) the asking price for the real property is
considerably below prevailing market conditions, as estimated by the
division;
(d) the asking price for
the real property is reasonably in line with prevailing market values and
conditions, but the division will lose the opportunity to purchase the property
if time is taken to conduct a broker price opinion, market analysis, or
appraisal beforemaking an offer;
(e) an appraisal has been conducted on the
subject property interest within the past 12 months;
(f) the real property interest will be
transferred to or exchanged with another state agency or political subdivision
and that agency or political subdivision will use the property for a public
purpose;
(g) the real property is
being conveyed through an auction;
(h) the real property interest is a
right-of-way, easement, lease, or other less-than-fee interest that is not
perpetual; or
(i) where the
director has determined, through a written finding, that the cost of obtaining
the broker price opinion, market analysis, or appraisal is not justified or in
the best interest of the state.
(3) When values other than monetary market
value are considered in addition to or in place of a broker price opinion,
market analysis, or appraisal, the division shall create and keep a
memo-to-file describing:
(a) the division's
consideration of said values;
(b)
the division's rationale in said consideration relative to the proposed price
and other terms of the purchase, sale, or exchange; and
(c) the acquisition or disposal decision made
by the division.
(4)
Nothing in this rule shall be construed as requiring the division when selling
or disposing of real property or an interest in real property to solicit bids,
advertise its interest in selling, or otherwise use a competitive solicitation
process for finding potential buyers.
