1. Campus obtains one, and preferably two, appraisals from appraisers who are qualified by licensure and experience to assess the type of property being purchased.

2. Campus prepares an offer on a form approved by General Counsel. A template for a simple offer and acceptance is available here.

• At a minimum, the offer should include the following conditions:
  • Completion of a survey satisfactory to the University.
    • A copy of the most recent survey should always be requested. A new survey is recommended, and should ordinarily be required when the property is described in a “metes and bounds” description or, when existing, a survey or a visual inspection reveals the possibility of encroachments, significant easements or other boundary issues.
  • University has the right to inspect the grounds, structure, mechanical, electrical and other systems, and a corresponding right to reject if these are unsatisfactory.
  • Zoning satisfactory to the University.
  • At the University’s expense, an option to inspect for environmental and similar hazards and to conduct a Phase I environmental assessment, with a right to reject or renegotiate if the outcome is not satisfactory.
    • Although this should be required in the agreement, the campus may, after the agreement is signed, substitute a lesser degree of assessment or inspection if the campus has reason to believe the risk of environmental contamination is low.
  • Closing is subject to availability of funds.
  • Issuance of an American Land Title Association title insurance policy satisfactory to the University, at Seller’s expense.
  • Final approval (by resolution and vote) of the Board of Trustees.
• The offer should also address, at a minimum, the following:
  • Allocation of closing costs between the parties.
  • Taxes, including taxes not yet assessed or due through the date of sale, should be paid by the seller.
  • For property leased to a third party, the terms of the lease or leases should be disclosed to the University, and appropriate provision made in the agreement for sale for terminating or assigning the leases, for allocating the rents and deposits between buyer and seller, and for tenant estoppel certificates.

3. Draft offer and acceptance is forwarded to General Counsel for review before being provided to the seller. If acceptable to General Counsel, the signed offer is forwarded to the seller. Authority to sign the offer is governed by Board Policy 300.1 and UASP 300.1.

4. Any revisions proposed by the seller must be reviewed by General Counsel.

5. Fully executed offer and acceptance is submitted to the Board of Trustees for approval.[1]

• Be prepared to submit to the Board appraisals and a map view of the property, together with any other written material that would assist the Board in understanding the property, its value, the reason for its purchase, the source of the funds to be used to complete the purchase, and any demolition, rehabilitation or construction that is anticipated.

6. After Board approval, the title insurance commitment, survey and inspections are ordered.

7. Title insurance commitment is provided to General Counsel for review.

8. If all inspections and title commitment are satisfactory, and all other conditions are met, closing is arranged.

9. Proposed deed and closing documents are submitted to General Counsel for review.

10. Closing is conducted.

11. After closing, the sale is reported to General Counsel, with copies of the recorded deed and the title insurance policy provided to General Counsel.

12. Campus submits a copy of the deed to the State Land Commissioner as required by Arkansas Code sections 22-5-209 and 22-5-411.

[1] This is the ideal point in the process to submit the purchase for approval. Time constraints or other circumstances may make it appropriate to first submit to the Board a proposal to purchase at a price to be negotiated, based on appraised value, and negotiate the actual contract afterwards. Be aware that the campus can be disadvantaged in negotiating the price or other terms if negotiations occur after the Board has approved a price or price range.