Real Estate Activites
UM Business Services works closely with Real Estate Coordinators (RECs) at each campus to accomplish the following:
- Assist in the determination of how best to meet the need for additional space-- by renovating existing space, leasing space, buying a facility, or constructing new space. See: Factors to Consider in the Decision to Renovate, Lease, Buy or Build
- Acquire, at the lowest cost, real property needed to accomplish the mission of the university. Acquisition may be through purchase, donation, or when necessary, condemnation. Most of these properties will have been identified in campus Master Plans.
- Sell, for maximum value, real property that is not needed by the university. The majority of these properties are received from donors.
- Lease university space/land to others for maximum return/benefit to the university. These leases include retail space in commons areas, houses on university farms, space in a sports or performing arts facilities, land in research parks, communications tower sites, and others.
- Lease space/land from others when needed by the university, at lowest cost. These leases include medical clinics and Extension office space throughout the state, warehouse space, classrooms at off-campus locations, farmland for research, and others.
- Obtain or grant easements needed by the university or other entities. These are primarily easements granted to utility companies when it is necessary for their services to cross university property.
- Maintain the official documents and records for university real estate activities
Real Estate Services Provided by UM Business Services
Review of Appraisals
Two appraisals are required prior to most purchases or sales of real estate. These are arranged by campus RECs. UM Business Services analyzes the appraisals and advises campus RECs on various aspects of obtaining and using appraisals to negotiate university contracts.
Real Estate Contract Preparation and Review
All real estate contracts, with the exception of standard forms delegated to designated campus administrators, require review by UM Business Services, approval as to legal form by the General Counsel's Office, and execution by the Associate Vice President for Management Services or the Vice President for Finance or their designee. They may also be reviewed by Risk and Insurance Management, or administrators whose areas may be affected by the contract, such as Academic Affairs, Information Technology, Procurement, or Human Resources.
UM Business Services consults with the REC and university staff during the preparation and negotiation of contracts. Contracts, whether in draft form or final form should be sent to UM Business Services where they will be logged and tracked as they are routed for review and execution. Contracts may be submitted either electronically to UM Business Services, or in hard copy to Paula Schlager, 1105 Carrie Francke Drive, Columbia. UM Business Services works with the General Counsel's Office staff to prepare, review, and finalize contracts accurately and promptly.
The purposes of the review are to:
- Determine the necessity of a property acquisition or lease from others.
- Assure that cost to the University is minimized, or that revenue or benefit to the University is maximized.
- When necessary, assure that an appropriate business plan is in place.
- Include all necessary terms and conditions, while eliminating unacceptable terms and conditions.
- Verify accuracy of legal descriptions.
- Identify contracts that require Board approval.
Acceptance of Real Estate Donations
Campus Business Services offices and/or campus Development offices are the primary contacts for donations of property. Due diligence must be done by the campus to avoid acceptance of undesirable properties or offers that impose obligations that are not in the best interests of the university. See Business Policy Manual 409, Real Estate Acceptance of Gifts.
The General Counsel's office must be consulted regarding the legal structure of any agreement for the gift of property. UM Business Services serves as a facilitator in communications among Development, General Counsel, and RECs as gift plans are formulated.
Maintenance of Official University Real Estate Records
- Hard Copy Records:
UM Business Services is responsible for obtaining and maintaining final, fully executed, notarized and recorded (when necessary) real estate documents and supplemental information. Official documents consist of sales/purchase contracts, amendments to contracts, leases, deeds, title insurance, easements, court records, wills, use restrictions by donors, and listing agreements. Supplemental information also maintained in the files may include: maps, appraisals, Board of Curators materials, environmental reports, surveys, and correspondence. The files are stored at the Old Alumni Center. A log of all real estate contracts is maintained by UM Business Services which records when contracts are received, reviewed, executed, and to whom copies are distributed. Mineral Rights files are maintained by Investments and Banking in collaboration with UM Business Services.
- Real Estate Data Base:
UM Business Services maintains an Access data base that contains information about all properties ever owned by the university. This data includes information about acquisition, use and disposition of all properties.
Notification of Completed Real Property Actions
UM Business Services receives word from the RECs when closing has occurred on a real estate acquisition or sale, or when a contract for a lease that was approved by the Board is fully executed. UM Business Services prepares and issues a notification which includes the land/building valuation split so this can be included in the PeopleSoft Asset Management database.
Participation in the Association of University Real Estate Officials (AUREO)
AUREO is a national organization created to allow higher education real estate officers to assist each other by sharing their experiences. UM Business Services staff members have been active participants since the inception of AUREO. An annual conference is held at a higher education institution each fall. There is also an AUREO listserv. For additional information see: http://www.aureo.org/