The U. T. System Trust Fund Real Estate Policy Statement was adopted by the U. T. Board of Regents in April 1988 and was amended in August 1991. The policy was subsequently incorporated into the U. T. System Gifts Policy Guidelines that was adopted by the U. T. Board of Regents on August 10, 1995 and amended on November 9, 1995.

Section VIII (Gifts of Real Estate) of the U. T. System Policy Guidelines has now been rescinded, and a separate U. T. System Gift Policy Guidelines for Surface and Mineral Estates in Real Property has been adopted to reflect the authority of the Vice Chancellor for Business Affairs to accept current purpose gifts of real property of any value not processed or administered by the Office of Development and External Relations. The policy also confirms the authority of the Vice Chancellor for Development and External Relations or his/her designee to accept real property gifts of any value for endowments or other planned gifts. The policy states standards for the valuation of gifts of real property and the Real Estate Office and University Lands - West Texas Operations will make an initial determination of qualification of acceptance for all gifts and bequests of real property in accordance with standards set out in the new policy.

Gift policy guidelines for
surface and mineral estates in real property

A. Introduction

These guidelines apply to all gifts of surface and mineral estates in real property regardless of type, location, or designated use of the funds to be derived therefrom. In the absence of guidelines or policies relating to such gifts designated for campus use, these policy guidelines shall apply. The Board of Regents recognizes that the full implementation of these guidelines with respect to surface and mineral estates in real property donated or bequeathed to the U. T. System or any of its component institutions may not be achievable in all cases. The Real Estate Office (REO) and University Lands - West Texas Operations (ULWTO) will evaluate gifts of surface and mineral estates in real property and apply these guidelines to the extent reasonably practicable and in the best interest of the U. T. System.

B. Definitions

1. A "gift" includes conveyances and testamentary transfers, as well as trust distributions to the U. T. System or any of its component institutions.

2. "Real property" means, individually and collectively, the surface estate and the mineral estate.

3. "Surface estate" means any interest in the surface of real property including fee and leased fee interests, together with all appurtenances and improvements attached thereto, and all property interests that do not constitute the mineral estate.

4. "Mineral estate" means mineral rights of gas, oil and minerals, whether joined to or severed from the surface estate and the associated rights as properly conveyed to the U. T. System or component institution. An overriding royalty interest that is not subject to any costs shall also be a "mineral estate."

5. The "Responsible Officer" is the Vice Chancellor for Business Affairs or his/her designee (for current purpose gifts) or the Vice Chancellor for Development and External Relations or his/her designee (for endowments and other planned gifts) and is responsible, based on the recommendations of the REO and ULWTO, for the initiation and completion of the formal acceptance of the gift via administrative approval, the Docket, or the Agenda, as appropriate.

6. A "qualified gift of a surface estate" is:

a. any interest that will net more than $25,000 upon sale; or

b. a property for which there is an effective direct use by a component institution.

C. Procedures for Acceptance of Gifts of Surface Estates

1. Notification of the REO. The component institution (for current purpose gifts) or the Office of Estates and Trusts (OET) (for planned or endowment gifts) will notify the REO upon identification of a potential gift of real property.

2. Information to be submitted to the REO. The component institution or REO will request that the donor provide as much of the following information as possible to allow the REO to evaluate the proposed gift. If not paid by the donor, the benefited component institution shall pay all costs incurred by the REO to evaluate the gift or protect U. T. System’s interests with respect to the gift, including title policy premiums. The Board of Regents strongly encourages the acquisition of a title policy at the time the property is acquired whether the policy premium is paid with funds provided by the donor or the component.

a. Fee Interests in Surface Estates.

i) Map showing location of property

ii) Legal description of property

iii) Proof of ownership (deed)

iv) Survey of subject property and improvements (Category 1A survey preferred)

v) List of improvements

vi) Copies of current leases, if any

vii) Current title commitment and copies of all title exceptions, including deed restrictions or covenants and liens

viii) Copy of the donor's title policy, if any

ix) <