PRM-015: Transferring Responsibility for Real Property Assets
Academic Division, the Medical Center, and the College at Wise.
The University is committed to preserving the value of its real property assets through responsible stewardship. This policy establishes requirements for, and the process to, transfer the responsibility for a real property asset from one unit of the University to another with the goal of preventing deterioration of the asset.
- Real Property Asset:Land and any improvements to the land such as buildings or parking lots.
- Receiving Unit:A unit of the University which proposes to accept the transfer of a real property asset and ongoing responsibility for such real property asset from a responsible property management unit.
- Responsible Property Management Unit:A school/department/unit of the University with financial and operating responsibility for a real property asset. Units with this responsibility are:
- Facilities Management, for Educational and General real property (except Darden and Law)
- Darden School of Business
- School of Law
- Auxiliaries (Athletics, Business Operations, Student Affairs, etc.)
- Medical Center
- College at Wise
Responsible property management units must preserve the value of the asset through responsible stewardship. Responsibility for a real property asset includes control over its occupancy and use, as well as the costs of operation, maintenance, and repair of the real property asset. If a real property asset is no longer needed or cost effective to maintain by the responsible property management unit, that unit may request approval to transfer responsibility for the real property asset to a receiving unit, or otherwise relinquish responsibility for a real property asset, in accordance with the terms of this policy. Where applicable, the responsible property management unit must have sufficient resources available to stabilize the condition of the real property asset when transferred or vacated.
A responsible property management unit may request to transfer or otherwise dispose of a real property asset by notifying the Real Estate and Leasing Services (REALS) and providing a justification for the transfer or other disposition. Include in the justification: (1) an analysis of options for the real property asset including transfer, vacancy, and demolition; and (2) evidence of sufficient funds to cover expenses required for the transfer or other disposition. Collectively, REALS, Space Management (SM), Financial Planning & Analysis (FP&A), and the responsible property management unit will undertake the analysis including coordination and review by interested parties including the Office of the Architect for the University, which is responsible for the University’s Grounds Plan.
Compliance with Policy:
Failure to comply with the requirements of this policy may result in disciplinary action up to and including termination in accordance with relevant University policies.
Direct questions about this policy to Real Estate and Leasing Services.
- Notification and Justification:
SAs soon as a transfer or other disposition is being considered, notify REALS, the vice president (or equivalent) of the responsible real property unit, and the vice president (or equivalent) of the receiving unit (if known). Submission of a Request to Transfer Responsibility for a Real Property Asset is required. The request to transfer or otherwise dispose of a real property asset must identify a plan for the real property asset, whether it is to be transferred to Facilities Management (FM) or another receiving unit, vacated, or demolished. REALS and SM will work closely with the responsible property management unit and FP&A on this portion of the request. REALS will coordinate the preparation of the justification and analysis and request an inspection of the real property asset by FM to determine its condition if one is needed. Transfer, Vacation, and Demolition:
- If the real property asset is suitable for transfer to a receiving unit, all parties will work to identify the costs associated with the transfer and the sources of funds.
- If another use for the real property asset is not identified, the cost to prepare the asset to be vacated will be determined. The scope of work, sources of funds and responsibility for costs will be negotiated by the parties on a case-by-case basis.
- If a proposal is made to demolish the real property asset, REALS and the Office of the Architect for the University will coordinate the necessary State and University approvals. FM will provide a cost estimate for the demolition. The responsible property management unit may be responsible for some or all the demolition cost.
Once the parties agree on the request to transfer or vacate the real property asset, this information will be provided to, and concurrence will be obtained from, the vice presidents (or equivalent) of both the responsible real property unit and the receiving unit. REALS will submit the request to the Senior Vice President for Operations (SVPO) for approval. Once approved by the SVPO, SM will communicate with the responsible property management unit and the receiving unit (if any) and initiate the appropriate actions.
Updated position and department titles; Added Compliance section 7/21/21.
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