Policy 1213: Authority to Lease, Buy, and Sell Real Estate

Subject Area: Procurement/Disbursements
Responsible Office: Commercial Real Estate Operations
Sponsor: Trustees
Originally Issued: October 1995
Revised: February 2010, July 2014, October 2017, January 2021
Refer Questions To: Jennie Huang Bennett

Purpose: To establish authority to buy, lease, and sell real estate. 

Background 

Article V of the Bylaws states: 

“Contracts for the purchase, sale, or disposition of real estate or leaseholds thereof and leases, licenses and deeds of conveyance of real estate and leaseholds thereof authorized by the Board or the Investment Committee, shall be executed and delivered by the President, Vice President, the Secretary or an Associate or Assistant Secretary of the Board who shall affix and attest the corporate seal.” 

On October 2, 1995, the Executive Committee of the Board of Trustees delegated to “appropriate officers of the University, authority to lease, buy and sell real estate used for University activities, up to a value of $2.5 million.” 

On January 20, 2021, the Executive Committee of the Board of Trustees delegated to “appropriate officers of the University, authority to lease, buy and sell real estate used for University activities, up to a value of $5.0 million. 

Policy 

1. Purchase or Sale of Real Estate – The President, Provost, Executive Vice President for Administration and Chief Financial Officer, or Vice President and General Counsel are authorized to approve and execute the purchase or sale of real estate without further action of the Board of Trustees, provided that the purchase or sale amount is $5.0 million or less. 

2. Lease of Commercial Real Estate – The following will apply for the leasing of commercial real estate for University use.  

The value is to be determined by the net present value of lease payments (as determined by the Chief Financial Officer), plus the net cost of any tenant-funded fit out or improvements. Leases requiring Board approval from the Board or Executive Committee will receive a singular approval authorizing the University to execute a lease contract and any tenant funded capital. Capital associated with leases must be identified within capital authorization approved by the Board. 

Leases with a value greater than $10 million should generally be submitted to the Subcommittee on Real Estate for review and recommendations.

3. Lease of University Owned Residential Real Estate – On occasion, University owned real estate may be leased to temporarily house faculty, students, and staff. In such cases, the following will apply:

• Maximum lease term – one year
• Execution of Lease – Facilities Services
• Facilities Services will verify employment or enrollment status of tenants 

4. Lease of Non-University Residential Real Estate – On occasion non-University residential real estate may be leased to temporarily house faculty, students, and staff. In such case, the following will apply:

• Maximum lease term – one year
• Approval – Respective Dean or Vice President
• Execution of Lease – Respective individual residing in the property. Reimbursement to the individual will be made upon request.

5. Exceptions – Exceptions to this policy require prior approval from the Associate Vice-President for Finance.