PMM 4.9 Disposal of Real Property

Last Revised Date:	November 30, 2017
Last Reviewed Date:	July 1, 2026
Responsible Unit(s):	Property Management
Responsible Unit Email(s):	FNSV-PropertyManagement@arizona.edu
Manual:	Property Management Manual
Status:	Active

Purpose and Summary

To provide a process for recording the financial aspects of the retirement of University-owned real property, which consists of land, buildings, and infrastructure.

Scope

This policy applies to all University locations and units, including all University extensions, satellite locations, and off-site campus units, both domestic and international.

Policy

The Sr. Vice President for Business Affairs shall authorize the sale or exchange of University-owned land, buildings, and infrastructure according to ABOR policies and procedures.
The Sr. Vice President for Business Affairs shall authorize the demolition of University-owned buildings and infrastructure.
Real Estate Administration, Planning, Design & Construction, and Facilities Management shall notify Financial Services of the disposal of University-owned land or buildings or infrastructure as follows:
1. Real Estate Administration
  1. Sale or Exchange (or other title conveyance) of land, buildings and infrastructure
  2. Demolition of Buildings
2. Facilities Management and Planning, Design & Construction
  1. Demolition or abandonment of Infrastructure
  2. Demolition of Buildings
Notification by Real Estate Administration, Facilities Management, and Planning, Design & Construction to Financial Services shall be at least quarterly (monthly is preferred), with the final notification for sales, exchanges, and demolitions through the June 30 fiscal year close to be no later than the fifth working day of the month of July.
Financial Services is responsible for recording the removal of the University's ownership in the disposed University-owned land, buildings, and infrastructure in the financial records of the institution, including the detailed asset subsidiary records.

Procedures

SALE OR EXCHANGE OF LAND, BUILDINGS AND INFRASTRUCTURE

Responsibility	Action
Real Estate Administration	If property is held as an investment asset in an endowment (7xxxxxx) Account, notifies Financial Management - Non Operating Funds, (Endowment Accounting) of the sale or exchange. If property is held as a physical plant asset in a net investment in Plant (8xxxxxx) Account, notifies Plant Funds Accounting and Property Management of the sale or exchange. Records sales expenses and sale proceeds in accounts 8400000 (for agriculture farm properties) or 8401000 (for non-farm properties) or other 840xxxx account created for a specific property sale. Forwards copies of sale documentation to Plant Funds Accounting and Property Management such as Settlement Statement, legal description, street address, a location map, appraisal, property description, UA Deed Number, and parcel size.
Financial Services	Records the sale or exchange in the University's asset subsidiary records and accounting records, including recording any gain or loss, by: removing the original asset cost removing any accumulated depreciation and reclassifying the sale revenues and expenses using account 8401900 (Financial Services use only).

Responsibility

Action

Real Estate Administration

If property is held as an investment asset in an endowment (7xxxxxx) Account, notifies Financial Management - Non Operating Funds, (Endowment Accounting) of the sale or exchange.
If property is held as a physical plant asset in a net investment in Plant (8xxxxxx) Account, notifies Plant Funds Accounting and Property Management of the sale or exchange. Records sales expenses and sale proceeds in accounts 8400000 (for agriculture farm properties) or 8401000 (for non-farm properties) or other 840xxxx account created for a specific property sale. Forwards copies of sale documentation to Plant Funds Accounting and Property Management such as Settlement Statement, legal description, street address, a location map, appraisal, property description, UA Deed Number, and parcel size.

Financial Services

Records the sale or exchange in the University's asset subsidiary records and accounting records, including recording any gain or loss, by:
1. removing the original asset cost
2. removing any accumulated depreciation and
3. reclassifying the sale revenues and expenses using account 8401900 (Financial Services use only).

DEMOLITION OF BUILDINGS:

Responsibility	Action
Facilities Management, Planning, Design & Construction	Notifies Real Estate Administration of building demolitions that they have overseen.
Real Estate Administration	Notifies Plant Funds Accounting and Property Management of demolition of buildings, including those demolished by Facilities Management and Planning, Design & Construction as well as Real Estate Administration itself.
Financial Services	Records the disposal of the buildings through demolition in the University's asset subsidiary records and accounting records, including recording any gain or loss on retirement.

DEMOLITION OF INFRASTRUCTURE:

Responsibility	Action
Planning, Design & Construction, Facilities Management	Notifies Plant Funds Accounting and Property Management of the demolition or the abandonment of the infrastructure assets.
Financial Services	Records the disposal of the infrastructure assets through demolition in the University's asset subsidiary records and accounting records, including recording any gain or loss in retirement.

Please note that the following sections are provided solely for the convenience of users and are not part of the official policy.

Sources

Powers and duties of the University President, ABOR Policy 3-801 and 3-802

ABOR Policy Chapter VII - Buildings, Infrastructure and Land

Section 7-204 - Sale of Real Property

Section 7-205 - Exchanges of Real Property

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