1. (1) For the purposes of this section:

   1. (a) "Local government" means a county or a municipality.
   2. (b) "Government entity" means a state agency, local government, transit district, or any other political subdivision of the state.

2. (2)(a) Before conducting a public auction described in Section R907-80-7, the department shall provide no less than 60 days written notice of the intent to proceed with a public auction to the local government with planning and zoning jurisdiction over the land to be sold at the auction.

   1. (b) The notice described in Subsection (2)(a) shall:

      1. (i) reference this rule;
      2. (ii) provide a general description of the land to be sold at the auction; and
      3. (iii) be sent to the chief executive of the local government.
   2. (c) The department may provide the written notice described in Subsection (2) through email.

   3. (d) The notice requirements of this Subsection (2) do not apply to:

      1. (i) real property that the department exchanges for another real property; or
      2. (ii) real property the department transfers to another government entity.

3. (3)(a) If the local government that received the notice described under Subsection (2) would like to purchase the land identified in the notice, the department and the interested local government may enter into a real estate purchase agreement as provided in this Subsection (3) as long as they enter that agreement within 60 days of the date when the notice described in Subsection (2) was delivered.

   1. (b) As part of the real estate purchase agreement, the local government shall agree to:

      1. (i) provide a refundable earnest money deposit equal to 3% of the agreed-upon sales price of the land;
      2. (ii) subject to Subsection (3)(c), complete all requirements necessary to finalize the purchase of the land within 180 days of signing the agreement;
      3. (iii) pay a purchase price equal to market value established by an appraisal or other means approved by the department; and
      4. (iv) pay for closing costs and other administrative costs associated with purchasing the land.

   2. (c)(i) As determined by the department, the real estate purchase agreement may be extended for up to 180 days if the local government provides a non-refundable earnest money deposit that totals 5% of the agreed-upon sales price of the land.

      1. (ii) A real estate purchase agreement may only be extended once.

   3. (d) If a local government fails to extend the real estate purchase agreement as provided under Subsection (3)(c), the department shall:

      1. (i) void the real estate purchase agreement; and
      2. (ii) refund the earnest money deposit made under Subsection (3)(b)(i)(A).
4. (4) If the department does not enter into a real estate purchase agreement as described in this section or the department voids a real estate purchase agreement as described in Subsection (3)(d), the department may proceed with selling the property at public auction as provided in this rule.

KEY: surplus land, negotiated exchanges, public sales auctions, negotiated sales

Date of Last Change: April 9, 2025

Notice of Continuation: April 21, 2022

Authorizing, and Implemented or Interpreted Law: 72-5-117; 72-5-111; 72-5-404