37-803 - Arizona Statutes

37-803. Disposition of real property by state agency A. Unless another procedure is prescribed by law, the director or other chief administrative officer of a state agency may dispose of real property or any right, title or interest in real property as prescribed by this section if the agency director determines that the real property is no longer needed or used for public purposes by that agency. B. Unless the property is subject to a right of reversion to a previous owner or the previous owner's successors in interest: 1. The agency director may convey the real property to an agency of the federal government, to another agency of this state or to any county, municipality, school district or other political subdivision of this state or charter school in this state without the necessity of a public sale if the agency director considers the conveyance to be in the public interest and if the real property will be used for a specific purpose in the public interest. The transferee agency shall pay the transferor agency for such a conveyance based on an appraisal prepared within the last one hundred eighty days by a certified real estate appraiser establishing the fair market value of the property to be conveyed. 2. The agency director may convey other marketable property to the highest and most responsible bidder at a public auction or by direct sale or exchange after at least thirty days' notice in a newspaper of general circulation in the county in which the property is located. At least two independent appraisals are required for property that is offered and the property shall not be offered or conveyed for less than or the amount of the low appraisal. All purchase offers are public and any person may submit a subsequent offer that matches or exceeds a previous purchase offer. C. The sale shall be for cash or on terms of not less than twenty per cent down payment with the balance payable in annual amortized installments for ten years, the unpaid balance to bear interest at a rate determined by the agency director. D. The agency director may execute all deeds or conveyances necessary to convey any real property or interest in the real property to be conveyed under this section and may assess a fee for the costs of preparing and executing any conveyance under this section. The agency director may insert in any deed or conveyance such conditions, covenants, exceptions and reservations as the agency director considers to be in the public interest or may convey in fee simple absolute. E. A conclusive presumption exists in favor of any purchaser for value and without notice of any real property or interest in the real property conveyed pursuant to this section that the agency acted within its lawful authority in acquiring the property and that the agency director acted under lawful authority in executing any deed, conveyance or lease authorized by this section. F. The agency may adopt rules for using licensed real estate brokers to assist in any disposition of property under this section. The agency director may pay a commission, from proceeds received under this section, to a broker who provides the purchaser unless the broker is the purchaser or lessee or the purchaser is another governmental agency.