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Department of the Treasury
TRANSFER OF REAL PROPERTY BETWEEN STATE AGENCIES

CIRCULAR LETTER: 88-07 (Formerly PFM-07-87)

TO: ALL DEPARTMENTS AND AGENCIES

SUBJECT: TRANSFER OF REAL PROPERTY BETWEEN STATE AGENCIES

Policy and Pertinent Changes

1. Supersedes Circular Letter NO. 81-34, dated May 15, 1981.

2. The formal transfer of jurisdiction of State real property
between two or more State agencies or departments, including the
Department of Transportation, will be coordinated by the Bureau
of Real Property Management (the Bureau), General Services Ad-
ministration (GSA), Department of Treasury.

Procedure

1. A department or agency having jurisdiction over real
property which is surplus to its needs, and can meet the program
needs of another State department or agency, will prepare and
forward to the Bureau an RPR-1 Form providing all pertinent facts
about the property. The Bureau will circulate the notice through
the State Real Property Review System to all departmental Land
Review Officers for review and receive comments back within
thirty (30) days.

2. If issues, problems, or potential conflicts surface during
the 30 day Real Property Review period, the Bureau will conduct
meetings of interested parties to resolve such matters prior to
issuing a clearance letter.

3. The amount of compensation, if any, exchanged between
agencies as a result of inter-agency transfer of real property
will be determined by the State Treasurer, and a debit and credit
issued in accordance with existing procedures.

4. If a parcel of land has already been declared surplus by an
agency and the Bureau believes this land could meet the needs of
another agency seeking to acquire a site, the Bureau will bring
such property to the attention of the acquiring agency. If the
property is suitable, the Bureau will ask the department having
jurisdiction over the property to transfer the property.

5. The Bureau will arrange for necessary details, to effec-
tuate inter-agency transfers. In general, appraisals, surveys,
etc. will be conducted in-house to avoid outside costs to trans-
fer property within State government. Any costs that may be in-
curred (e.g. county recording fees for deeds) will be borne by
the agency receiving the property.

6. The Bureau will forward a package of pertinent information
to the Office of the Attorney General which will complete legal
details to convey title. All inter-agency transfers of real
property will be by property deed which will be filed in the ap-
propriate county court house, as opposed to unrecorded memoran-
dums of understanding or letters of inter-departmental agreement.

7. Normally inter-agency transfer deeds will contain a revers-
ion clause providing for the return of the property to the
original State agency if it is no longer needed by the acquiring
agency, or the property is not used for construction within five
years.

8. Departments and agencies having jurisdiction over State
property to be transferred to another agency will continue to
maintain such property in good order until passage of title.

9. The Bureau will maintain its inventory files of State lands
and buildings by updating records and maps following closing by
the Office of the Attorney General. The deed will be microfilmed
and the original filed in the State Archives. The Bureau will
also notify the Bureau of Risk Management of the change in juris-
diction for insurance purposes.

This Circular Letter is effective on the date hereof.

James B. Kennedy, Administrator
General Services Administration

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