This policy outlines the due diligence and approvals required in order for the University of Iowa to accept a gift of real property.
Real Property - Improved or unimproved land, personal residence, farmland, commercial property, rental property, and mineral interests.
Inter-vivos Gift - This is a gift that is donated to the University while the donor is alive.
Testamentary Gift - This is a gift given to the University named as a beneficiary of someone's estate
Criteria for Acceptance
- Market Value – The University must receive a current appraisal of the fair market value of the real property.
- Potential Environmental Risks – The University must complete a Phase 1 Environmental Assessment on the real property.
- Title Information – The donor must furnish to the University an abstract of title or title insurance evidencing marketable title to the real property in the donor.
- Tax Documents – The donor must furnish to the University a completed IRS Form 8283.
- Limitations and Encumbrances - No gift of real property will be accepted until all mortgages and liens have been discharged and the University has determined that it will agree to any easements or restrictions of record affecting the real property.
Approval & Acceptance Process (Inter-vivos Gift)
- Grantor's Responsibility
- Order an appraisal and provide a copy to the University's Business Manager's Office.
- Prepare IRS Form 8283 and provide to the Business Manager's Office for signature of acknowledgement.
- Complete a land valuation and obtain appraisal certification and provide to the University Business Manager's office.
- Obtain University's certification that the University accepts the real property as a gift.
- University Business Manager's Responsibility
- Verify that the real property is free and clear of any encumbrances or liens and that any easements or restrictions of record affecting the real property are acceptable.
- Hire a consultant to conduct a Phase 1 Environmental Assessment and share the results with the University's Deputy Counsel in charge of Environmental Compliance.
- Verify that the University has a need or benefit from accepting the gift.
- Sign IRS Form 8283 to acknowledge that we received the real property as a gift via a deed.
- Ensure that the Board of Regents formally accepts the real property donation.
- Ensure that all real property gifted to the University is titled in the name of the "Board of Regents, State of Iowa, For the Use and Benefit of the University of Iowa."
- Inform and provide the appropriate information to the Controller's Office to ensure proper capitalization of asset in the Asset Management System
Approval & Acceptance Process (Testamentary Gift)
When real property is left to the University through an estate, by law the real property automatically vests in the beneficiary's name as soon as the owner passes away. It is the University Business Manager's responsibility to:
- Present to the Board of Regents to obtain the acceptance of the real property by the Board of Regents.
- Determine that all liens or encumbrances on the property are satisfied and that any easements or restrictions of record affecting the real property are acceptable before legal title to the real property is transferred to the University.
- Obtain legal title to the real property through the probate process.
- Determine if the University will keep the real property or liquidate it, while ensuring that the original intent in the descendant's will is followed.
- Inform and provide the appropriate information to the Controller's Office to ensure proper capitalization of asset in the Asset Management System.