Utah Admin. Code 651-700-5

Current through Bulletin 2024-23, December 1, 2024

Section R651-700-5 - Obtaining an Opinion of Value

(1) When acquiring, exchanging, or selling division land, the division may determine the value of real property using one or more of the following methods:

(a) a broker's estimate:

(b) a market analysis, including an appraisal, broker's estimate, market conditions analysis, and market demand analysis; and

(c) an appraisal.

(2) An appraisal, broker's estimate, or market analysis may not be required if:

(a) the transaction involves a water right;

(b) the transaction involves federal lands or federal funding, if federal law or regulations mandate another method of valuation;

(c) the division estimates the market value of the subject property interest is less than $100,000;

(d) the division estimates the asking price for the property interest is considerably below prevailing market conditions;

(e) the division determines it will lose the opportunity to purchase the property if time is taken to conduct an appraisal, market analysis, or acquire a broker's estimate before making an offer and the division estimates the asking price for the property interest is reasonable based upon prevailing market conditions;

(f) an appraisal has been conducted on the subject property interest within the past 12 months;

(g) the subject property interest is being conveyed through an auction;

(h) the real property interest is a gift, contribution, or donation to the division; or

(i) the real property interest will be transferred to or exchanged with another state agency or political subdivision and that agency will keep the public's right to use the property for public recreation;

(j) the real property interest is a less than fee interest or is otherwise not perpetual; or

(k) where the director has determined, through a written finding, that the cost of obtaining the appraisal is not justified or in the best interest of the state.

(3) The division shall create and keep a memo-to-file describing the division's rationale in the consideration of the proposed price and other terms of the purchase, sale, or exchange when:

(a) the division considers values other than market value in addition to or in place of an appraisal; or

(b) the division considers values other than market value in addition to, or in place of, an opinion of value provided by a broker or sales agent.

Utah Admin. Code R651-700-5

Amended by Utah State Bulletin Number 2023-21, effective 10/24/2023