General Guidelines – Disposal of Real Property

DISPOSAL OF REAL
PROPERTY

Prepared by: The Office of Procurement Regulation

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Developed in accordance with the Trinidad and Tobago Public Procurement and Disposal of Public Property
Act Number 1 of 2015 (as amended) and the attendant Public Procurement and Disposal of Public Property
Regulations 2021

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LIST OF ACRONYMS/ ABBREVIATIONS

ACRONYMS/ EXPLANATION
ABBREVIATION
AO Accounting Officer
AMO Asset Management Officer
DSDC Disposal Strategy Development Committee
EMA Environmental Management Authority
IFB Invitation for Bid
IT Information Technology
ITB Invitation to Bid
JV Joint Venture
NPO “Named” Procurement Officer
OPR The Office of Procurement Regulation
PDAC Procurement and Disposal Advisory Committee
The Act The Public Procurement and Disposal of Public Property Act 2015,
as amended

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TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................................................. 5
1. CONTEXT AND BACKGROUND ................................................................................................. 7
1.1 Purpose of these Guidelines ............................................................................................. 7
1.2 Intended Audience ........................................................................................................... 7
1.3 Legal Context and Alignment ............................................................................................ 7
1.4 Compliance with these General Guidelines .................................................................... 7
1.5 Legislative Framework .................................................................................................... 7
2.0 INTRODUCTION .................................................................................................................... 11
2.1 Recommended Job Positions and Training Requirements/ Competencies ................... 12
3. REAL PROPERTY DISPOSAL PROCESS ....................................................................................... 14
3.1 Disposal Planning ............................................................................................................ 14
3.1.1 Disposal Plan ................................................................................................................ 16
3.2 Initiation of Disposal ....................................................................................................... 17
3.2.1 Initiating the Disposal Process ..................................................................................... 17
3.2.2 Consideration of Investment Prior to Disposal ............................................................ 19
3.2.3 Preparing for Disposal.................................................................................................. 20
3.2.4 Disposal Strategy Development Committee (DSDC) .................................................... 22
3.2.5 Disposal Strategy Development ................................................................................... 22
3.3 Execution ........................................................................................................................ 24
4. METHODS/ TYPES OF REAL PROPERTY DISPOSAL .................................................................... 27
4.1 Disposal by Sale/ Transfer/Concession ........................................................................... 27
4.1.1 Hierarchy of Executing Disposal via Sale ...................................................................... 28
4.2 Other Disposal Methods and or Marketing Options ....................................................... 31
4.2.1 Sale by Private Treaty .................................................................................................. 31
4.2.2 Sale by Public Auction .................................................................................................. 32
4.2.3 Sale by Tender ............................................................................................................. 34
4.2.4 Negotiated Disposal ..................................................................................................... 35
4.3 Considerations for determining the Method of Disposal: .............................................. 35
4.4 Disposal Strategy/ Method Implementation .................................................................. 35
4.4.1 Maximising Disposal Opportunities ............................................................................. 36
4.4.2 Sale and Completion .................................................................................................... 36

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4.5 Post Transaction Monitoring .......................................................................................... 40

4.6 Proceeds from Sale of Real Property .............................................................................. 40
4.7 Review checklist.............................................................................................................. 41
4.8 Disposal/Sale of Long Leasehold Interest ....................................................................... 41
4.8.1 Surrender..................................................................................................................... 41
4.8.2 Merger of Interests ...................................................................................................... 42
4.8.3 Assignment .................................................................................................................. 42
4.9 Disposal by Lease ............................................................................................................ 43
4.10 Other Alienation of Property/ Special Considerations .................................................. 43
4.10.1 Asset Backed Investment Vehicles / Joint Ventures (JV) .................................... 43
4.10.2 Landowner’s Development Agreement / Collaboration Agreements / Land
Promotion ..................................................................................................................... 44
4.11 Conclusion .................................................................................................................... 44
APPENDIX 1 – DISPOSAL OF REAL PROPERTY WORKFLOW CHART ............................................... 45
APPENDIX 2 ............................................................................................................................... 46
Sample Template – Disposal Plan ......................................................................................... 46
APPENDIX 3 ............................................................................................................................... 54
Form A: Request For Real Property Disposal (Sample Form) ................................................ 54
Form B –Due Diligence Checklist .......................................................................................... 55
Form C- Buildings, Structures, Utilities & Miscellaneous Facilities ....................................... 61
Form D - Land ....................................................................................................................... 62
Form E - Related Personal Property (Attached To Land/Building) ........................................ 63
APPENDIX 4 ............................................................................................................................... 64
Notice Of Availability/ Invitation to Bid Information .................................................................... 64
Procedure For Bidding .......................................................................................................... 65
Bid Submission Form ............................................................................................................ 66
APPENDIX 5 ............................................................................................................................... 67
SAMPLE: Conditions of Sale by Public Auction for Real Property ......................................... 67
Glossary of Terms ............................................................................................................................ 69
REFERENCES .................................................................................................................................... 75

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Executive Summary

In Trinidad and Tobago, the disposal of Government-owned real property plays a crucial role
in public asset management. The Office of Procurement Regulation (“the OPR”) has
developed guidelines to promote international and local best practices as it pertains to state
lands, real property owned by the Government, real property owned by State-controlled
enterprises and real property owned by a statutory body, responsibility for which is assigned
to a Minister of Government. Readers will discover globally relevant insights and practical
advice on strategies that address essential aspects of real property disposals. Proper real
property disposal practices can streamline administrative tasks, reduce maintenance costs,
and optimise land use, ultimately promoting economic growth and sustainable development.
Moreover, transparent and accountable disposal processes can build public trust and
confidence in Government operations, thereby enhancing overall governance effectiveness.

Section 1 defines the context and background of this guideline, outlining the legislative
framework that informs such.

Section 2 introduces real property as prescribed in Section 57(A) of the Public Procurement
and Disposal of Public Property Act, 2015 (as amended), hereinafter referred to as “the Act”.
The text classifies different types of real property, their disposal importance and additionally
examines key job functions crucial to the process of real property disposal.

Section 3 outlines the real property disposal process, encompassing planning, initiation, and
execution stages. It highlights the criticality of comprehensive planning and delineates the
fundamental components of a disposal plan. This section also examines the significance of
conducting thorough due diligence prior to property disposal. Additionally, the section
introduces the Disposal Strategy Development Committee and discusses their role in
formulating a suitable disposal strategy for approval by the Accounting Officer. The section
also addresses the execution phase of real property disposal and the necessary steps
involved after developing the disposal strategy.

Section 4 provides for the methods/ types of disposals of real property that can be utilised
by public bodies such as sale, lease or other alienation of property.

Finally, the Appendix Section includes workflow processes, templates/forms and sample
conditions of sale to facilitate the real property disposal process.

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Section 1
Context and Background

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1. CONTEXT AND BACKGROUND

1.1 Purpose of these Guidelines

The Public Procurement and Disposal of Public Property Act 2015, as amended, (“the Act”)
introduces a new paradigm for procurement, retention and disposal of public property in
Trinidad and Tobago. The purpose of these general guidelines is to equip public bodies with
a sound understanding of the requirements to develop and institutionalise an appropriate
operating environment for disposal of real property that would support the achievement of
the objects of the Act. This guideline aims to provide the principles and policies to assist
public bodies in identifying real property that may be underutilised, unneeded, surplus to a
public bodies’ requirement, required to promote a public purpose, etc.

1.2 Intended Audience

These guidelines should be used by all public officers and decision makers of public bodies,
who are responsible for the retention and disposal of public property process.

1.3 Legal Context and Alignment

These guidelines should be read in conjunction with the Act.

1.4 Compliance with these General Guidelines

In accordance with Section 13 (1) (c) (d) of the Act, public bodies shall comply with these
general guidelines issued by the OPR.

1.5 Legislative Framework

The sections in the table below were extracted from the Act and are applied to the areas of
disposal of real property/ State lands.

Sections of the Act Details

Definitions contained “disposal of public property” includes the transfer without value,
in Section 4 sale, lease, concession, or other alienation of property that is
owned by a public body;
“public property” means real or personal property owned by a
public body;

Pursuant to Section 13 (c) issue and review guidelines in relation to public procurement
(1) of the Act, the and the retention and disposal of public property, including model
functions of the OPR guidelines for special guidelines under sections 30(1)(b) and
are to, inter alia: 54(1)(b);
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Sections of the Act Details

(d) prepare, update and issue model handbooks, incorporating
standardized bidding documents, procedural forms and relevant
documents for use in public procurement and the retention and
disposal of public property;
(h) audit and review the system of procurement and disposal of
public property to ensure compliance with the objectives of the
Act;
(l) promote the awareness of public bodies and the public to
issues relating to public procurement and disposal of public
property;
(m) undertake research and surveys with respect to public
procurement and disposal of public property;
(n) investigate, on its own initiative or upon complaint from any
party involved in public procurement or disposal of public
property or any member of the public, any alleged or suspected
breach of this Act;
Section 24 (1) The Regulator shall submit his reports annually to the Speaker of
the House of Representatives, the President of the Senate and the
Minister.
(2) A report under subsection (1) shall include—
(d) a summary of transactions in respect of each public body
concerning the disposal of public property—
(i) in respect of real property, the address and other identifying
details of the property disposed of, including value, to whom it
was disposed, date of disposal, means of disposal and
consideration.
Part VIA Disposal of (1) Notwithstanding the State Lands Act and any other written law
State Lands (Section to the contrary, the Minister may make Regulations in respect of
57A (1) and (2) the disposal of –
(a) State Lands;
(b) real property owned by the Government;
(c) real property owned by State-Controlled enterprises;
and
(d) real property owned by a statutory body, responsibility
for which is assigned to a Minister of Government.
(2) Regulations made under this section shall be subject to
negative resolution of Parliament.

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Sections of the Act Details

Section 61 (2) For the purpose of this Act, a public body shall have a
procurement officer who shall be responsible for public
procurement and the disposal of public property for that body
and shall notify the Office, in writing, of the name and designation
of its procurement officer.

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Section 2
Introduction

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2.0 INTRODUCTION

The Office of Procurement Regulation (“the OPR”) seeks to guide and work together with
public bodies to effectively manage the disposal of real property, ensuring that the objects
of the Act, in particular accountability, transparency and value for money, permeate
throughout the disposal process.

Disposal of real property is guided by the wide parameters of Section 57A of the Act for the
Minister to make Regulations in respect of the disposal of:-
a) State Lands;
b) Real property owned by the Government;
c) Real property owned by State-controlled Enterprises; and
d) Real property owned by a statutory body, responsibility for which is assigned to a
Minister of Government.

Real property can vary widely in type and value, and may include, but not limited to the
following:
• Undeveloped land;
• Office buildings;
• Warehouses;
• Commercial and industrial facilities;
• Military holdings; and
• Single- and multi-family residences.

Disposal is an important asset management function because the cost of maintaining and
managing real property can be substantial. Savings generated from the disposal of real
property can be applied to pressing needs, such as improving building security or repairing
existing facilities, or towards other pressing policy issues, such as reducing debt. Additionally,
disposal of real property is a mechanism by which private parties, non-profit organisations
and businesses may acquire Government property that may be used to provide services to
the public and/or contribute to economic development.

An overview of the key aspects/components in the disposal of real property will be addressed
in this guideline. The guideline will also explore various disposal methods, including sale,
transfer, lease, concession, and alienation of property, based on the Act's definition of
disposal of public property.

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2.1 Recommended Job Positions and Training Requirements/ Competencies

To successfully execute the disposal of real property process, key roles or job functions are
required to achieve the principles of the Act. These include having an assigned Asset
Management Officer (AMO), a Named Procurement Officer (NPO), Disposal Strategy
Development Committee (DSDC), a Procurement and Disposal Advisory Committee (PDAC)
and an Accounting Officer (AO) to function at each stage of the disposal process. The
following table highlights the required job positions to execute the disposal process with the
associated training requirements/ competencies. The requirements of these positions are
further expounded throughout the guidelines and summarised in Table 2. An illustrated
overview of the real property disposal process is also provided in the workflow process chart
in Appendix 1.

Table 1: Training Standards/ Competencies for Disposal of Real Property

Job Positions/Functions Training/ Competence Requirements

Asset Management Officer Database/Asset Management for Real Property
(AMO)/ Maintenance/ Maintenance/ property management
Property/Real Estate Officers

Named Procurement Officer Asset verification, Site Visits/ Inspection

(NPO) Appraisal/ Valuation of Real Property
Disposal Strategy Development Disposal Strategy Development
Committee Members (DSDC) Sale/ Price/ Contract/ Disposal Negotiation Skills
Procurement & Disposal Contract/ Sales Agreement Terms & Conditions
Advisory Committee Members
(PDAC)
Accounting Officer (AO)
All of the Above functions Real Property Due Diligence
Risk Assessment & Management
Disposal Planning/ Annual Property Surveys
Disposal Strategy Development

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Section 3
Real Property Disposal Process

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3. REAL PROPERTY DISPOSAL PROCESS

The disposal process for real property starts off at the disposal planning phase, towards
initiating the planned process and executing same.

Planning - involves conducting annual surveys of real properties through an ‘Asset

Management Officer’, developing an ‘Asset Management Plan’, monitoring real property
performance and identification for disposal, all documented in a ‘Disposal Plan’ which follows
from a public body’s asset management plan.

Initiation – occurs after planning and identification of property(ies) for disposal and includes
conducting a due diligence exercise, de-risking of property sites in preparation for disposal
and disposal strategy development by a ‘Disposal Strategy Development Committee’ who
would consider all the methods of disposal, conduct risk assessments and valuations to
determine the most feasible method of disposal.

Execution – occurs after the disposal strategy is approved.

1. Plan 2. Initiate 3. Execute

Figure 1: Real Property Disposal Process

The following sections would go into the detailed requirements for each of these areas.
3.1 Disposal Planning
An important aspect of ‘Real Property Disposal’ is the Disposal Planning Stage as it is
imperative to plan for future disposals. The following are some key aspects as it relates to
planning:

• A public body remains responsible for the custody and control of its property,
including its operating costs, until such time as the disposal of real property is
complete. As such, cost for maintenance must be factored into continued
management of said property.

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• Disposal decisions should be well planned, informed by analysis of

performance indicators and present future programme requirements. It is
important to plan for disposal before a given real property reaches
obsolescence so its ability to meet the service requirements of a public body’s
program is compromised. Immediately upon recognising that a property is
underutilised or no longer required in support of a public body’s strategic or
operational needs, said property must be identified for disposal.

• Public bodies should take a proactive planning approach, rather than a

transaction-by-transaction approach to disposal. Processes should be
developed to identify properties for disposal, as part of broader investment
planning strategies.

• At the final stage of the real property disposal process, it is important to assess
the past performance of the property in relation to previous analysis, to assist
with future planning. At a minimum, public bodies should compare the
performance of the real property against standards that were established at
the acquisition phase. Significant variations from planned compared to the
standards should be accounted for.

Public bodies are to conduct an Annual Survey of its real properties and identify property(ies)
requiring disposal. As a public body’s mission or mandate changes, so too do their real
property needs, thereby relegating some properties for disposal. This can be achieved
through the following steps:

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• Assign an Asset Management Officer (AMO), who will be held accountable

Step 1 for the effective management of the public body’s real properties;

• Determine what the public body owns, what it needs, and what's the
Step 2 maintenance costs involved in managing its real properties;

• Develop and implement asset management plans;

Step 3

• Develop and monitor real property performance measures; and

Step 4

• Identify properties for disposal.

Step 5

Figure 2: Steps in Disposal Planning

3.1.1 Disposal Plan

A disposal plan is a document, often within an asset management plan, that defines how an
organisation decides when an asset should be retired or disposed of, and the activities
associated with the disposal process, including sale, transfer, auction etc.
The minimum requirements for asset management plans require a section on disposal that
details the following:
• Proposed timing of asset retirement or disposal. A disposal plan would help
determine this, that is, a document that specifies the proposed timing of future asset
retirements and disposals.
• Estimated residual values at retirement or disposal.
• A cashflow forecast of income/expenditure from asset disposals. That is, an estimate
of the cash that is expected to flow into and out of a business during a period, such
as quarterly or annually.

See Appendix 2 for a Sample “Disposal Plan Template”.

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3.2 Initiation of Disposal

The Asset Management Officer (AMO) shall identify the need for disposal of real property
after the completion of planning.

Properties to be disposed of may be:

• surplus to the public body’s delivery requirements;

• not foreseeably required for future service delivery; and/or

• considered for redevelopment to business delivery or revenue generation.

3.2.1 Initiating the Disposal Process

All important details about a property should be fully known prior to the initiation of disposal
actions. This is a time when information regarding the issues below (security, condition,
environment, heritage, legal obligation etc.) are reviewed and reaffirmed. This would not
normally be a time when it is necessary for new information to be sought or when
unexpected facts are uncovered.

To deliver disposals efficiently, public bodies will need to undertake early due diligence. Title
and boundary issues are common causes of delay and so can be mitigated by taking time at
the start of the process to identify any rights of way, wayleaves, encumbrances, restrictive
covenants, boundary difficulties, and the rights of other occupiers. Any issues identified
should be investigated and either resolved or clarified prior to formally declaring the
property for disposal.

Failure to undertake enough checks at the outset may lead to protracted negotiations,
inflated costs and increased risk of transactions collapsing. Undertaking early due diligence
provides an opportunity to remedy any issues identified before the land and/ or building is
taken to the market, thereby avoiding, as far as might be expected, the potential of a
collapsed transaction.

Therefore, public bodies must complete all due diligence work for identified properties.
See Appendix 3 (Forms B to E) for a sample due diligence checklist for completion.

Under-mentioned are identified areas of focus for due diligence.

1. Security
Occasionally, disposals of certain types of properties may present danger to public safety or
security concerns, and consideration should be given as to whether they should be offered
for sale/ lease to the public or other levels of government. Real property that may fall into

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this category includes, but is not limited to, former National Defence bunkers, specialised
laboratories, former prisons or detention centres, special purpose reinforced structures, etc.

2. Condition
If an asset has been well maintained based on long-term investment plans, then that asset,
at the time of disposal, should be in a condition that befits its age and type of reporting
systems would not reflect the desired standard of prudent ownership, even if disposal of an
asset has been planned for some time. While the ongoing maintenance of assets planned for
disposal constitutes a burden on departmental budgets, deteriorating conditions equate to
health, safety, and environmental risks. The obligations associated with real property custody
end only when an asset fully leaves a public body’s inventory.

3. Environment
The process of disposal must be carried out in an environmentally responsible manner. Public
bodies must ascertain the environmental conditions of the property prior to disposal.
Environmental site assessments during the use and occupancy phase will have identified
contaminants and their sources, so that responsibility for managing them can be assigned,
and any additional remediation can be carried out if required. This determination should be
made in consultation with legal and environmental advisors.
In disposing of property that requires remediation, it may be advantageous to have the party
acquiring the property carry out the remediation. It is important to clearly delineate whether
the public body or the acquiring party will be responsible for paying remediation costs and
to negotiate this in the context of the final sale or transfer price.

4. Heritage
Public bodies should consult with the National Trust of Trinidad and Tobago and other
applicable organisations on heritage conservation measures as early as possible in the
disposal process to allow for due consideration of relevant advice and recommendations.

5. Legal Obligations
Legal due diligence should confirm clean title and discover any relevant legal facts or
constraints pertaining to land. Time should be taken to ensure that the disposal is permissible
under the terms of any lease that might exist. In many cases, there will be restrictions on the
use to which a property may be put, or who might be permitted to occupy accommodation
– referred to as a ‘Third Party Right’.

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Time should be taken to ensure that, when offering property to third parties, that
confirmation of occupation rights is restricted to Government, or to specific entities. There
should not be any debate over the title or the interest, which is subject to disposal, nor
should there be any legal obstacle to undertaking the planned transaction.

6. Physical
Physical due diligence should seek to reconcile the legal position with what is occurring on
site and identify matters such as contamination, party walls etc.

7. Financial
Financial due diligence should include establishing the book value and financial
consequences to a public body if a disposal is undertaken.

The Asset Management Officer (AMO) upon completing the due diligence exercise, shall
initiate the disposal process by forwarding a ‘Request for Disposal Form (Form A)’ along with
Forms B to E (See Appendix 3) through the Property Department (as applicable) to the Named
Procurement Officer (NPO).

3.2.2 Consideration of Investment Prior to Disposal

Investment prior to disposal refers to money being spent to upgrade/ improve or repair
property before posting for sale, which can help to provide more certainty for potential
purchasers for a property and deliver increased interest. The case for investment prior to
disposal should be considered as early as possible and be clearly set out in the Disposal Plan.

Investment activity prior to disposal could include:

Planning 1:
Stakeholder engagement before submission of a formal request for carrying out
development can improve both the efficiency and effectiveness of a public body’s strategy.
The approach should be tailored to the type of development being proposed and the issues
that need to be addressed.

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Planning 2:
Preparing a development brief, securing a planning allocation, or securing outline planning
approval. Any decision on planning investment will be influenced by the size of the site
offered to the market.

Technical:
Producing technical reports and surveys such as ecology, topography, and ground
investigations.

Prior Works:
Works such as remediation, decontamination, and demolition.

Legal:
The resolution of title issues.

Infrastructure:
Providing physical or social infrastructure (e.g., roads or community facilities).

The level of investment should be appropriate to the size and nature of the site and be driven
by the key disposal objectives. Consideration should also be given to whether investment
prior to disposal will reduce the conditionality of bids and increase the certainty of receipt.
The final decision to invest should be based on a robust analysis of the ‘return on investment’
of a range of options and a clear understanding of the site’s viability. Advice should be sought
from professional advisors when considering any investment prior to disposal.

3.2.3 Preparing for Disposal

Public bodies, through their financial or accounting specialists, should be aware of the
implications of disposals in financial reporting. Finance/ Accounting departments should be
advised of real property being identified for disposal, so that correct valuations can be
recorded on balance sheets, asset registers noted, and appropriate accounting entries made
when a sale is initiated and completed to manage and mitigate issues of impairment1.

1 Guide for the Disposal of Surplus Land, Cabinet Office, March 2017

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Disposal Objectives

Through the real property disposal planning process, public bodies would have identified and
consulted with affected stakeholders prior to determining real property for disposal. When
property is confirmed and approved for disposal, the NPO should develop and agree on
disposal objectives with the Disposal Strategy Development Committee (DSDC) and initiate
the disposal process. Any single disposal may support multiple strategic and operational
objectives. These objectives should align with the public body’s strategic asset management
plan, broader business strategy and Government policies.

Typical disposal strategic objectives may include:

• Supporting a wider change programme - for example, utilising ‘government hubs’ to

bring several different departments to work alongside each other in one building or
area to encourage greater collaboration and productivity in the process.

• Supporting wider policy objectives - for example, releasing land with capacity for new
homes, schools etc.

• Maximising proceeds from the disposal to achieve value for money. However, this
may not be the sole determinant, other factors to objectively consider:
- Chance of a successful disposal;
- The impact of the disposal on other public sector occupiers; and
- Meeting other Government objectives such as increasing housing supply or
delivering free schools and so on.

Typical disposal operational objectives may include:

• Ensuring that disposal activities are completed within a specified timescale to fit in
with other disposals, acquisitions or relocations.
• Achieving optimal financial returns within policy constraints when disposing of real
property.
• Conducting the disposal in compliance with approved environmental and planning
practices, standards and codes such as the Environment Management Act.

Disposal benefits must be clearly defined at the outset.

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3.2.4 Disposal Strategy Development Committee (DSDC)

Once real property has been assessed as being suitable for disposal and objectives have been
established and signed off by the Accounting Officer (AO), the NPO or DSDC should develop
a strategy to dispose of the property. It is essential that a suitably experienced disposal team
is assembled. The committee should be established at the outset to provide appropriate
departmental, commercial, legal and professional support throughout the disposal process.

The public body’s NPO would have the responsibility for the disposal and oversight of the
DSDC based on approval from the AO, following a recommendation from the Procurement
and Disposal Advisory Committee (PDAC). The DSDC should include representatives from the
public body’s Estates/Property, Facilities Management, Legal and Finance departments.

The DSDC must include the relevant mix of core skills needed to successfully deliver the
objectives of the disposal. The committee may typically include advisors in the fields of real
property commercial, legal, a professional consultancy/subject matter expert and critically
have relevant sales and marketing expertise and an established track record in the market.

3.2.5 Disposal Strategy Development

Once the disposal objectives are understood and Government policy considerations have
been taken into account, a clear strategy for each disposal should be established. This may
rely upon the advice of professional advisors or alternatively may be revised following receipt
of their advice.

Once real property has been assessed as not suitable for reuse or lease within Government
or the wider public sector, then open market sale will be the next approach to consider.
There are various options available, such as private treaty, public tender, and public auction.
Each of these should be considered in the context of the type of property being offered for
sale, the nature of the market for that type of property at the time of sale, and any specific
issues or special characteristics associated with the property.

When formulating the disposal strategy, the DSDC should consider the available disposal
routes and other considerations set out below. These should then be applied to the subject
property as applicable. In consultation with property and legal advisors, a clear and robust
disposal strategy should be developed that is most likely to achieve the goals and objectives
of the disposal.

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The DSDC/ disposal strategy should consider the following:

• The tenure or interest in the property to be sold.

• Characteristics associated with that interest, such as restrictive covenants or length
of term.
• The public body’s situation in respect of the property, such as whether it has sole
occupancy and can offer vacant possession.
• Whether there is, or could be, a special purchaser for the property.
• Any opportunities for realising latent value, perhaps through a merger of interests or
by obtaining planning consent for a change of use.
• Constraints such as planning restrictions or the building’s characteristics (it may be
listed or have an unusual structure).
• Any other considerations that may impact on the timeliness and value for money of
disposal.
• Timing - identifying a desired disposal time and an estimate of lead times required.
• Pricing the market - taking valuation and advice to establish the likely realisation value
achievable.
• Determining whether either of the above (timing and price) could be improved by
undertaking any minor works to the subject property.
• Identifying the most appropriate disposal process (private treaty, tender, auction,
etc.).
• Identifying marketing and advertising avenues.
• Considering the impact on the local (and general) property market if a large number
of
• properties are to be placed on the market at the same time or in close succession.
• Considering whether the public body’s needs to sell the land under certain conditions
(e.g.in a certain timeframe) may impact on the price.
• Ensuring that all concerned understand the disposal strategy and maintain the
momentum to complete the process.

The said strategy would entail the selection of the preferred ‘Method of Disposal’ as
applicable (see Section 2) for a look at the different types and methods of disposal.

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3.3 Execution
The actual execution of the disposal of real property lies with the NPO and DSDC, upon
receipt of approval from the AO on the recommended disposal strategy for said property.
See Appendix 1 for the workflow/process chart which illustrates how to execute the disposal
of real property process along with the responsible officer. The table below outline the steps
as illustrated in the workflow.

Table 2: Steps in the disposal or real property process

Responsible Required Action/Forms for Execution

Individual/
Committee
/Public Body
Asset Identifies Property for Disposal and submits ‘Request for Real Property Disposal
Management Form A’ along with completed ‘Due Diligence Checklist’ (Form B) Appendix 3 to
Officer NPO.
(AMO)
Named Receives forms and initiates DSDC Meeting
Procurement
Officer (NPO)
Disposal Convenes meeting, verifies information on the ‘Due Diligence Checklist’ on
Strategy identified property. Conducts Site Visit, Inspection and Appraisal of said
Development property, completes Forms C to E as applicable. Documents information and
Committee
submits ‘strategy development report’ for Approval to issue Notice of
(DSDC)
Availability (NOA) Appendix 4 to other public bodies through PDAC to AO.
PDAC Receives report, once no objections forwards to AO. Any queries, file is returned
to NPO/ DSDC to provide feedback.
AO Receives Disposal Strategy Report. Once Approved/Accepted, forwards to
DSDC/NPO to execute disposal strategy as Approved. Any queries, file is
returned to PDAC/ NPO/ DSDC to provide feedback accordingly. If proposal
rejected, consults with line Minister and issues written notice of decision
through PDAC to NPO/DSDC. Property should be maintained until further
investigation and decision is made on same.
NPO Prepares and issues NOA/ITB forms, (see sample forms in Appendix 4) to ALL
other public bodies.
- Once Bids received, evaluate accordingly with DSDC.
- If NO Bids received, proceed to offer property on the open
market through examination of all other possible methods of
disposal.
DSDC 1. Convenes meeting to evaluate Bids once received and prepares evaluation
report for approval through PDAC to AO.
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Responsible Required Action/Forms for Execution

Individual/
Committee
/Public Body
2. If no Bids received, prepares strategy report for disposal on the open market
to the General Public.
PDAC Receives either reports as applicable, once no objections, same is forwarded to
AO. Any queries revert to NPO/DSDC for clarification.
AO Once either report is Approved/ Accepted, same is sent back to NPO/DSDC
through PDAC for execution of approved decision. However, if any reports are
REJECTED, Line Minister is consulted and a written notice on decision is issued
to NPO/DSDC through PDAC and to the OPR. At this point, AMO/Public Body
continues to maintain property until further investigation and decision is made.
NPO/DSDC Executes approved disposal strategy; issues letter of award/ letter of regret as
applicable. Upon completion, reports to AO through PDAC and then to the OPR
on executed Disposal Action, 6 weeks upon completion of same.

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Section 4
Methods/ Types of Real Property
Disposal

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4. METHODS/ TYPES OF REAL PROPERTY DISPOSAL

OPTION 1: SALE/ LEASE/ CONCESSION

• Private Sale by Treaty
• Public Auction
• Tender
• Sale of Long Leasehold Interest
• Negotiated Disposal

OPTION 2: LEASE
• Temporary Arrangements
• Short/ Medium/ Long-Term
• Divestment

OPTION 3: OTHER ALIENATION OF PROPERTY

• Asset Back Investment Vehicles/ Joint Ventures
• Landowners Development Agreement/ Collaboration Agreement/ Land Promotion

Each of these different types of property disposal options would be further explained, as well
as the different methods which could be adopted under each area.

4.1 Disposal by Sale/ Transfer/Concession

The AMO of each public body is required to keep a register of all real property owned,
ensuring that records of the following are kept readily accessible to ensure timely provision
of information upon request. Said register should be computer based and a backup hard
copy kept, ensuring information stored include the following:

1) Reference number unique to the public body of each property owned.

2) Data such as: deed, photograph/drawing/ layout/ cadastral /surveys of the property,
value, current tenants if any, property type, etc.
3) Details on identification of a specific real property for disposal.

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Real property is identified for disposal, in writing, by the AO on the advice of the AMO/ NPO.
The NPO may then initiate actions to dispose of interest in such real property by convening
the meeting with DSDC to initiate the first option of disposal via sale, that is, firstly offering
the property to other public bodies to identify any interests.

4.1.1 Hierarchy of Executing Disposal via Sale

Research in different jurisdictions reveals best practice for executing disposal via sale by
firstly notifying other governmental organisations of available property(ies), if no interest,
offer for sale on the open market and if that process fails, consider holding the property or
exploring other uses. Each of these areas would be addressed as follows.

(i) Transfer or share with other public bodies

The public bodies with identified real property for disposal should, in the first instance,
identify if other public bodies have a use for the property. This, at a minimum, is done by
informing/ advertising through issuance of a Notice of Availability (NOA)/ Invitation to Bid
(ITB) (see template in Appendix 4) to all other public bodies. Within this stage there should
be room for possible negotiations and/ or granting of concessions as applicable once there
is interest from other public bodies.

• Negotiated Sale/Concession Conditions

- For negotiated sales only, the advertisement serves as a notification that the
property will be sold by negotiation. As such, public bodies must begin negotiations
at no less than the property’s estimate of value (which can be done internally and
verified externally by an independent approved valuator). If negotiations result in an
amount less than the property’s estimate of value, the AO must approve the
negotiated amount, which will be considered the market value for the property as
proposed by the DSDC.

- If only one interest received, same is evaluated to determine feasibility. If the single
interest requests a negotiation or the property was advertised to be sold by
negotiation, public body can negotiate a sale at appraised fair market value with
another public body, especially if the property will be used for another public
purpose.

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- Real property identified for disposal may also be leased to local public agencies to
assist the homeless, and sales to public agencies may be negotiated at fair market
value without restrictions on use.

- Concessions could also be granted or considered as a part of the negotiation process

through preferential rates or waiver of transfer tax accordingly.

- Public body’s assigned legal officer must ensure that applicable conditions for sale/
transfer are included as a part of the negotiated agreement to monitor the use of the
property after the disposal has been finalised and the property has been transferred.
If the recipient of a conveyed property fails to use the property as agreed—by
building a retail centre on property conveyed for a public park, for example—then
the property may revert to the public body for re-consideration.

(ii) Disposal on the Open Market

If no interest from other public bodies is identified, the public body/property holder will
consider disposal of the property on the open market. This would be accomplished by the
DSDC, who would convene to survey/ analyse the market to determine the most feasible
option for disposal.

Public bodies can dispose of real property to the public via the following methods:

➢ Open Tender - competitive sale to the public, generally through a sealed bid or
auction or openly seeking buyers through advertisement. The public notice/
advertisement shall contain the following:
1) The assessed value of the property;

2) The amount of taxes, penalties, interest, fees, and the costs of the sale;

3) The name of the Owner;

4) A list of all Interested Parties;

5) The legal description and parcel number identifying the property: a partial or
abbreviated legal description shall be sufficient in the notice if the name of
the Owner and parcel number are listed;

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6) A deadline at which time Bids must be delivered and payment in full must be
received from the purchasers; and

7) Notification that the property will be sold to the leading bidder provided the
Bid is equal to the taxes, penalties, interest, fees, and costs owed on the
property.

➢ Expressions of Interest – Seeking bids for the purchase of property and other assets.
➢ Selective Tender – Seeking tenders from a selected group of persons, companies,
organisations, or other interested parties.
➢ Other means as deemed appropriate by the DSDC upon exploration of the market.

Execution of the above methods would follow the same procedures for procurement/
tendering as developed by the Office of Procurement Regulation for execution of same.

(iii) Hold Property or consider other uses

If market conditions are such that the expected sale price is well below the price that might
be expected in a properly functioning market, a decision may be taken to defer disposal of
property for further review. In those circumstances, property holders may consider other
uses such as:
a) Community use under licence, or
b) Use of the property by start-up businesses, or
c) Subletting to a third party etc.
These alternatives are subject to the receipt by the property holder of an appropriate
business case that demonstrates that the applicant has the means to insure, maintain and
manage the property as well as providing a benefit to the wider community. The practice is
recognised as a means of delivering regeneration, community empowerment and social
enterprise. The property holder must ensure that arrangements are in place to guarantee
the timely return of the property when the license period expires.

The guiding principles governing any decision to allow alternative use by community groups
etc. include:
a) Savings to the State on maintenance, services, insurance and other costs;
b) The benefit to the broader community in terms of local services, activities or
employment/training opportunities to be achieved from the use of the property; and
c) Ownership remaining with the state with a re-entry clause at a time to be decided by
the property holder.
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4.2 Other Disposal Methods and or Marketing Options

When evaluating options to dispose of real property, public bodies should take advice from
their DSDC on the most appropriate disposal method together with advice on costs and
associated lead times. Selecting the most appropriate method of sale is vital to achieving a
successful value for money from the sale. Public bodies should reserve the right not to accept
the highest or any offer if there are good commercial reasons for doing so2.

As such the ‘Open Market’ means of disposal may include sale by private treaty, public
auction, tender, sale of long leasehold interest properties, surrender, assignment of
leasehold interest, disposal and leaseback, break clauses, and subletting to a third party.

4.2.1 Sale by Private Treaty

Public bodies make it known that a property is for sale, usually through agents who circulate
particulars of the property to potential purchasers. Once a potential buyer has expressed
interest, terms of sale are negotiated between buyer and seller until an agreed price is
reached.

Table 3
Pros Cons

The vendor sets the price No market testing

The vendor determines the pace of the May miss out maximising synergistic value
Sale due to special purchaser
Special purchaser may bid higher than the There is no firm contract at the point of offer
market and acceptance
Marketing costs may be lower
Fast private sales can be cheaper because
sellers avoid auctioneer costs.

The main characteristics of a sale by private treaty are:

other uses

● The timescale for completion of the transaction is not fixed until exchange of contract.
● Offers are made ‘subject to contract’.
● Offers are not all received at the same time.
● It is usual for the asking price to be quoted.

2 Guide for the Disposal of Surplus Land, March 2017, Cabinet Office:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/599778/
Guide_for_the_Disposal_of_Surplus_Land.pdf
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Public bodies should ensure that the site/ property is fully exposed to all potential purchasers
throughout the marketing process to ensure genuine competition. Hence, the potential for
private treaty negotiations to extend over a considerable period, either because the
purchaser has valid concerns regarding the physical nature of the property or its legal status,
or for other reasons such as the purchaser also being interested in another property.

The steps involved in a private treaty transaction usually include the following:
other uses
1. Openly advertising the property for sale.
2. Specific markets can be targeted through a choice of advertising media.
3. Taking offers from interested parties.
4. Identifying preferred offers, which may or may not be based on the financial levels of the
offer.
5. Managing offers – keeping all bidders interested and well informed, pending
confirmation of the decision.
6. Negotiating disposal terms.
7. Agreeing terms, obtaining approval, and proceeding with the legal transaction process.

The aim of the process is to maximise interest for as long as is possible before marketing
begins. An example where a private treaty approach might be appropriate would be where
a sitting tenant expresses an interest in purchasing the property and is prepared to pay more
than the market value. In such an instance, a suitably qualified valuer should give written
assurance that the price offered is significantly higher than market value.

In very rare cases, a concessionary sale may be made to a heritage body (such as the National
Trust). In such cases the public body’s AO and line Minister will need to confirm
arrangements and provide the necessary approval.

4.2.2 Sale by Public Auction

Public auctions are a popular way to sell property and at a public auction, bidders decide how
much they are willing to pay for the property. All bidders are given an opportunity to place a
bid and the auction is complete when the highest bid is received. The NPO should ensure
that suitably qualified registered professionals auctioneers/ sale experts are selected from a
pre-qualification database, if pursuing an auction disposal. When preparing for a disposal by
auction, preparation must be meticulous, and conditions of sale should be published with
the auction prospectus, as when the hammer comes down, a contract has been created. It
is vital that the auction is sufficiently advertised (in 2 or 3 newspapers and social media
platforms), and that the property has sufficient exposure to the market. It is important that
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the auction prospectus is accurate, as a sale following incorrect auction particulars or

misstatements may lead to a rescission or price abatement if the purchaser litigates.

Pros Cons
Quick, certain and fair route to sale, Specialist skills required at a cost.
contract is established on the day.
Good for the sale of small, commonplace Potential purchasers may have limited time
investment properties or for secondary or to undertake investigations prior to sale
tertiary properties where traditional which may lead to more cautious bids.
methods of marketing might not attract
sufficient interest.
Interest and competition in the saleroom on Rely on sufficient interest and competition
the day may generate more interest from in the saleroom on the day and may miss
potential purchasers and lead to a price in out on bids from potential special
excess of the estimated market price. purchasers.
Conditions of public accountability are seen Some potential purchasers dislike auctions
to be satisfied. and may be deterred from bidding.
The vendor can be satisfied that, on the Auctions can have high marketing costs.
day, the best possible price was achieved.

The DSDC may decide upon a guide price to assist potential purchasers, through inhouse
estimation/ valuation or an external/ independent valuator(s). The sales agent /property
advisor should indicate whether there should be a reserve price on the land/ property. Any
reserve price should be set close to the time of the auction. This is confidential between
seller and auctioneer. Legal advisors should be instructed to draw up conditions of sale in
advance of advertising the auction, see Appendix 5 for (SAMPLE: Conditions of Sale by Public
Auction for Real Property).

If a bid is accepted during the auction, then the prospective purchaser must lodge a deposit
at the time. Completion follows in accordance with the conditions of the sale issued with the
auction prospectus. Professional property advice should be sought to establish whether an
auction is the most appropriate method of disposal.

The disposal method used should be both transparent and likely to achieve a fair market-
related price. Prior to putting any property on the market, a sales strategy is developed in
partnership with the appointed auctioneer (where applicable).

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4.2.3 Sale by Tender

Tender is a useful method of disposal of real property, but care needs to be taken to ensure
that the property has been given the fullest exposure to the market. Tenders tend to be used
to create certainty in terms of timescales for prospective purchasers. In a tender the
‘Conditions of Sale’ i.e., the contract terms, are sent out with the sales information.
Prospective purchasers must return the entire document, including the conditions of sale,
signed, and enclosing a deposit. The public body then normally has a set period within which
to decide on the bids received.

Procedures for Disposal via Tender:

a) Draft the advertisement/notice.
b) Publish the advertisement (e.g. in local, regional and/ or international newspapers,
trade magazines, appropriate websites and/or via social media).
c) Issue solicitation documents upon request.
d) Receive and evaluate submissions (see General Guidelines: Evaluation of Submissions
and Award of Contract).
e) Award of contract (see General Guidelines: Evaluation of Submissions and Award of
Contract).
Table 4
Pros Cons
Public accountability is self-evident, clearly Time and expense bidders must incur on
demonstrates the sale process has been detailed investigations without certainty
fair, with the highest compliant bid winning of
the process. being successful.
Provides certainty on timing and costs. Can deter potential bidders and may not
be a suitable method in a weak market.
Promotes sale to a wide market, sale The tender procedure can involve large
above the estimated market value may be numbers of interested parties and can
achieved. be
time consuming and expensive.
Could promote a higher bid from a Difficult to include overage in a formal
purchaser with a particular interest (special tender sale.
purchaser).

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Tenders require specific preparation including:

• Property and legal advisors drawing up the ‘Conditions of Sale’ and tender documents.
• The selling agent or property advisor should advise on the reserve price.
• The property is usually sold to the highest bid above the reserve, although consideration
should still be given to lower bids.
• If the highest bid only marginally fails to clear the reserve price, then advice should be
sought as to whether it should be accepted.
• Bidders’ creditworthiness and sources of finance should be thoroughly checked prior to
accepting any bids.

4.2.4 Negotiated Disposal

Where there is a clear case that this will result in a better outcome for the disposing body, it
may be necessary to dispose of an asset on a negotiated basis. This may include:
➢ when there is little interest in an asset;
➢ when bids fail to achieve minimum quality / output levels;
➢ when a complex development is envisaged; or
➢ when there is evidence that bids have not extracted the full potential (in terms of
value, quality or outputs as appropriate) from the asset.

Negotiated disposals should be at market value, in accordance with managing public money.
Advice should be sought from professional and legal advisors.

4.3 Considerations for determining the Method of Disposal:

1. The potential for obtaining the best price.
2. The number of known potential purchasers.
3. The current and possible preferred future use of the property.
4. The existence of local purchasers.
5. The opportunity to promote local economic growth and local industry development.
6. The total estimated value of the sale.
7. Take into consideration accountability, responsibility, and operational efficiency.
8. Compliance with statutory and other obligations etc.

4.4 Disposal Strategy/ Method Implementation

Once a disposal strategy has been approved by AO, the NPO and DSDC will be responsible
for ensuring implementation of the approved strategy. Where a disposal is complex it is
important to appoint professional advisors, who can clearly demonstrate that they have
experience with similar complex transactions.

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The DSDC and legal advisors should be clearly briefed on the objectives, the processes to be
undertaken, and the roles and responsibilities of everyone involved with the disposal. It is
essential that public bodies and their advisors are open and transparent in all their dealings,
including fully documenting all advice provided, decisions taken and reasons for any changes
to the approved process. DSDC should therefore ensure that they report on the progress of
the disposal strategy implementation accordingly.

4.4.1 Maximising Disposal Opportunities

Markets for property may depend upon several factors, including:
● Potential occupants of the property in its present use;
● Potential occupants of the property for a different use;
● Potential investors looking to secure a suitable tenant.

Public bodies and their advisors and/ or agents should carefully assess who to target in the
marketing strategy based on the above. For any given property there may be a wide variety
of potential purchasers, and a broad overview of the different possibilities should be
undertaken before focussing on just one target market.

The success of this stage in the process can be tested through an assurance review,
conducted possibly through an independent expert who could provide a strong signal that the
public body’s reports are trustworthy. As such, this should ensure that all avenues have been
explored and the market thoroughly tested for interest. Approval can then be sought from
the AO through the PDAC to proceed to the next stage of identifying preferred buyers and
agreeing terms.

4.4.2 Sale and Completion

In most instances the disposal of real property would be undertaken through direct
negotiation with the purchasing party. The NPO and their DSDC should have the appropriate
experience. Assembling a suitably experienced DSDC with an established track record in
negotiating disposals will ensure that all due consideration is given to the disposal before the
negotiations are entered.

Preparation
The aim of the negotiation phase is to achieve the best consideration for asset disposal terms
reasonably obtainable for the public body. Preparation for negotiations plays an important
role in achieving that goal.

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Key considerations prior to negotiations will include:

• Strengths and weaknesses of the public body’s negotiating position
• An assessment of the parameters within which terms would be acceptable.

Negotiation

DSDC members should consider what the public body negotiating objectives are and this
should be done in consultation with their property advisors. Some examples for
consideration may include:

• Where the purchasers are ‘special purchasers’ such that they would benefit more
from the acquisitions than another purchaser.

• Whether there is a shortage of properties like the subject property such that
potential purchasers may be prepared to pay a premium to secure the purchase than
they might be at other times.

• Where there are other similar properties available on the market such that the
potential purchaser could choose to acquire another similar property on better
terms.

• Where the public body is facing a potentially large backlog maintenance cost or
dilapidations liability if they retain the property.

• Whether the public body should be seeking to surrender a lease that has a long
unexpired term, thus creating a potential problem for the landlord, if they agree, in
terms of a void period and uncertainty as to who would be the next tenant.

• The risks in negotiations or offers and the latest negotiating position is reflected and
documented.

Agreement of Terms

It is important that those? negotiating on the public body’s behalf clearly understand the
parameters within which they must work and are briefed to enable them to plan their

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negotiations accordingly. This should form part of the initial brief given upon appointing
negotiators.

The DSDC members representing the public body must clearly understand the decision-
making process for agreeing terms. This way, the agent will know when proposals can be
agreed in principle and when they cannot. Information is often the negotiator’s key tool and
knowing what can be revealed and when can be important in obtaining the best disposal
terms.

The DSDC needs to be certain about what levels of delegated authority exist in relation to
this disposal so that they know when to refer matters to others (such as through the PDAC
for final decision making by AO). To ensure that offers are passed through to the public body
in an appropriate and timely manner, a reporting and decision-making process with
delegated authorities should be agreed. The legal advisors’ role must also be clear with
instructions given at appropriate times in respect of contract/lease preparation and the
conveyancing process.

DSDC members should also be mindful that final approval from the AO will be required to
complete the agreement of terms for the disposal. Therefore, the report produced should
recommend the terms for acceptance that require final approval by the AO.

It is imperative to note here that there is no guarantee that negotiations with the preferred
purchaser will conclude successfully. Therefore, it will be important to identify opportunities
for keeping other prospective purchasers involved so that a ‘reserved list’ can be created.
Where the public body is letting or subletting property, then their property advisors should
ensure regular reporting and consultation throughout the negotiation of terms. Lease terms
should be drafted with care, as they will bind the parties throughout the term of the lease.

DSDC Members should consider any proposed purchasers, assignees or tenants in terms
of:
• Track records and intentions
• Their commercial standing (including availability of funding for the particular
transaction)
• Risk Assessments
• Socio-economic Implications
• Certainty of success
• Potential implications of their acquisitions

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Once a disposal process reaches the stage of contract negotiation and exchange, it will be
important that there is a high likelihood of a successful conclusion. In addition, any disposal
to purchasers that are found to be taking part in illegal or immoral activities will likely result
in a high level of scrutiny being levelled at the public body.

Sales Due Diligence

Public bodies should expect their DSDC to undertake adequate checks to ensure that the:
• Terms agreed represent value for money;
• Sale meets the objectives outlined out in the brief set by the public body;
• Proposed purchaser can complete the purchase as agreed.

Sales Subject to Conditions

As a rule, sale contracts should be kept as simple as possible. This helps to minimise costs
and reduces the risk of deterring potential purchasers with complex contract terms. In some
cases, however, the sale of property may need to be dependent on certain conditions being
met, e.g., securing planning consent. The most common way of dealing with this situation is
a conditional contract.

Completing the Deal

When a purchaser has been found and terms have been agreed, there are still several
activities to be undertaken in order that the disposal should be successful. Legal advisors
usually handle exchanging of contracts and completing the disposal. A process of reviewing
progress should be put in place to ensure a smooth process.

The DSDC should track progress and ensure key activities are completed on time
including:

• Obtaining the necessary approvals and signatures that will enable exchange to
take place, allowing for the lead times associated with the process.
• Arranging for financial sign off to be obtained and monies to be transferred at
appropriate times.
• If the disposal is a lease assignment or subletting, securing any consent required
from the superior landlord and allowing for the lead time associated with the
process. Ensuring associated costs have been built into the project’s budget.

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A risk assessment of the ‘deal’ should be undertaken, together with a risk management
exercise to identify issues that will require attention for the disposal to conclude
satisfactorily. It would also be prudent at this stage to undertake a due diligence exercise
prior to absolute commitment to a transaction to ensure that the:

• Disposal has followed due process and all matters have been addressed.
• Proposed purchaser, assignee or tenant will be suitable, i.e., that they will be able to
complete the acquisition and meet future commitments and liabilities.
• Disposal represents value for money in terms of the price achieved and benefits
gained.

The success of this stage of the process and readiness to proceed to final completion can be
tested through an ‘assurance review’, that is, a review by an independent expert. This will
help to satisfy the AO that all necessary checks have been completed and that the transaction
delivers value for money.

4.5 Post Transaction Monitoring

Once property has been sold, the public body should:
• Update their asset management database/record to reflect the sale of the property;
Records should be made immediately, as and when disposals occur;
• Make provisions to monitor any sales contracts that include arrangements to share
in any future uplift in the development value of the site (i.e., overage or clawback
mechanisms).

To Note:
➢ All future payments and dates when payments are due.
➢ Any conditions that may trigger a future payment.
➢ Any rights or easements granted to the public body over the property sold, or to the
purchaser, that affect any retained land by the department.

4.6 Proceeds from Sale of Real Property

This should offset the cost of the disposal process and the balance would be deposited into
the Consolidated Fund or assigned Bank Account or even reinvested into managing other
properties in the Government’s portfolio as applicable.

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4.7 Review checklist

a) If regular reporting on the performance of a real property asset indicates
underutilization or under-investment (reflective of poor fit with planned
requirements), it is time to consider disposal of the asset.

b) Preparation for disposal requires full information on the asset being considered for
disposal, including impacts of the disposal upon security; condition of the asset and
environmental degradation of the land; legal issues, including clarity of title and
correct disposition of resource rights and heritage considerations.

c) The disposal of an asset requires that maximum value of the disposal be realised for
the Government. Disposal amounts are deposited as referred in 6.4 above.

4.8 Disposal/Sale of Long Leasehold Interest

Based on best practice, a long leasehold interest can be sold as if it were a freehold interest,
providing it possesses capital value. This exists primarily because of the rent passing under
the lease being significantly lower than the market rent for the premises, with such a
differential continuing for the term of the lease. As with all leasehold interests, a disposal in
the form of assignment to a third party may not completely absolve the public bodies of all
liabilities due to issues of privity of contract3.

4.8.1 Surrender
If a leasehold property is identified for disposal but there is no contract break in the near
future, it may be possible to negotiate a surrender of a lease. This will be more attractive to
a landlord in a strong market where it will be easy to re-let at a higher rent. A surrender
premium including any dilapidations liabilities should be set out in the final settlement.

There may be situations where the value of the freehold interest with vacant possession
exceeds the combined value of the freeholder’s interest and the public body’s leasehold
interest. In those circumstances the unexpired term may hold a special value to the landlord
that will be realised by ‘marrying’ the two interests together and it may be possible to obtain
a premium from the freeholder in return for a surrender. Conversely, there may be a
negative value and the public body may need to pay a ‘reverse premium’ to terminate the
lease prior to its natural expiry. It will be important to obtain valuation advice on this matter.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/599778/
Guide_for_the_Disposal_of_Surplus_Land.pdf

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If the public body needs to pay a ‘reverse premium’ to surrender the lease, it may wish to
consider how best to minimise the level of the premium. Common methods include:
➢ Subletting on the best terms achievable; or
➢ Entering into a lease agreement with another public body prior to negotiating a
surrender. (The other public body should be made fully aware of intentions).

In certain circumstances it may also be possible to combine such activity and negotiations
with the landlord to secure the surrender of the existing lease and the granting of a new
interest to the incoming occupier that better matches the objectives of the parties. This type
of negotiation can assist landlords to maintain income or to facilitate re-development.

Where a public body has difficulty in making a capital payment for surrender, it may be
attractive to both parties for the public body to continue with a series of annual payments
instead. Professional advice from property advisors would be required to negotiate the
correct level of payments and to establish what, if any, liabilities there will be for
dilapidations.

Where a public body has several leaseholds or leases that might be difficult to dispose of
directly, they might wish to consider outsourcing of the disposal of these leasehold liabilities
to a specialist property disposal manager. Such a transaction could result in the transfer of
risk in exchange for a capital payment. Specialist advice should be sought before proceeding.

4.8.2 Merger of Interests

A merger of interests can occur either by a leaseholder acquiring the superior interest
(freehold, head lease etc.) or by a freeholder or superior leaseholder acquiring the interest
below. Although not technically a disposal route, a merger of interests can directly or
indirectly enhance the disposal value.

Acquiring the freehold would also give a public body the flexibility to dispose or sublet part
only of the property, change its use, effect an internal transfer, or undertake improvement
works (prior to either disposal or letting). It may also be used as part of a strategy to release
the public body from an onerous situation and enhance the value of the property interest to
be sold.

4.8.3 Assignment
Assignment is the transfer of the whole leasehold interest to another party and is therefore,
a method of ‘releasing’ property. It is also a method of passing on the responsibilities for the
covenants set out in the lease.
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If the assignment is to occur under strong market conditions where the passing rent is below
the market rent and there is a significant time until the next rent review, a premium can be
charged to a new tenant (assignee) for the benefit of the lease. Conversely, should the
market not be strong, and the current rent is higher than the market level, or the lease terms
are particularly onerous, it may be necessary to offer an inducement to any incoming
assignee by way of a ‘reverse premium’.

Where a ‘special purchaser’ can be found, this should be considered, particularly if the
property being disposed of is accommodation in a multi-let property. In such a situation a
special purchaser may exist amongst the other occupiers. The possibility of obtaining
additional accommodation in the same property might induce a potential assignee to pay a
higher premium than would otherwise have been obtained.

4.9 Disposal by Lease

Refer to ‘A New Administration & Distribution Policy for Land, 1992’4 for further guidance in
this area.

4.10 Other Alienation of Property/ Special Considerations

In property law, alienation is the voluntary act of an owner of some property disposing of the
property, while alienability, or being alienable, is the capacity for a piece of property or a
property right to be sold or otherwise transferred from one party to another. This section
therefore considers other possible methods of disposal of real property which could be
utilised by public bodies based on best practices.

4.10.1 Asset Backed Investment Vehicles / Joint Ventures (JV)

Where unfavourable market conditions militate against conventional methods of disposal,

or there is a clear financial advantage to the disposing body, other disposal structures such
as joint development vehicles may be considered. Any such approach would have to provide
the best value for money option and meet standard requirements on propriety and
safeguarding the public interest.

4 https://afraraymond.net/wp-content/uploads/2015/04/state-1992-land-policy-1.pdf
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4.10.2 Landowner’s Development Agreement / Collaboration Agreements / Land

Promotion

It may be appropriate to consider using a different form of contract or arrangement in some

circumstances, for example, where an asset is large or complex, or where there may be
financial or development benefit derived from working with or through another party (such
as an adjacent landowner, developer, or land promoter) to dispose of the asset. This could
include:
• Collaboration Agreement, Joint Venture (contractual or unincorporated),
Collaborative Agreement or Cooperation Agreement where the disposing body
intends to work with another party to dispose of an asset.

• Landowner’s Development Agreement, where the landowner intends to engage a

developer to undertake the development on its behalf.

• Land Promotion Agreement, where a developer or land promoter applies for planning
permission on a landowner's property and then markets that property on the open
market once it has been obtained.

4.11 Conclusion
When a disposal is concluded, public bodies are to ensure the following steps are completed:

• Updating of their asset register;

• Notify relevant authorities of cessation of liability for rates; utility providers and
where appropriate, insurers to be notified of change in ownership;
• Deposit or allocate the proceeds/ revenue received from disposal accordingly.
• Notify or report to the Office of Procurement Regulation on all disposals of real
property within six (6) weeks of completion; that is, upon legally transferring the
property, indicating details of the location, price, method of disposal and the
provision of supporting documents as requested by the OPR from time to time.

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APPENDIX 1 – DISPOSAL OF REAL PROPERTY WORKFLOW CHART

Disposal of Real Property Process Workflow Chart

Asset Management

AMO/PB Continue to
Officer (AMO)

maintain property until

AMO prepares further investigation and
Request for real decision could be made
property
disposal form
RNOR

Report Executed
Officer (NPO)
Procurement

If No Bids
Request for RNOA, Receive & Disposal Action to
Received
Named

real property Prepare NOA/ Open any Bids OPR

ITB & Issue to
proceed to RNOR
disposal Received offer property
received All other PB Issue LOA/LOR
to (2)GP
Letters as
applicable
Disposal Strategy Development

Complete
Convene document/ Convene meeting
meeting due diligence to review &
Committee (DSDC)

checklist Convene Execute Disposal

evaluate Bids
RNOA Meeting to Strategy as
accordingly
develop Approved
Conduct site strategy
visit, inspection report for RNOR
& appraisal of disposal
property Prepare
Disposal
Evaluation
Submit report & Report with KEY
decision
request approval to AMO – Asset Management Officer
issue NOA to (1) PB
NPO- Named Procurement Officer
DSDC – Disposal Strategy Development
Committee
Procurement &

RNOA
Committee

Receive
PDAC – Procurement & Disposal Advisory
Advisory
Disposal

(PDAC)

Report once
RNOR Committee
no objections
forward to AO
AO – Accounting Officer
NOA – Notice of Availability
(1) PB LOA - Letter of Award
Accounting Officer

LOR – Letter of Regret

ACCEPTED (1) PB or (2) GP RNOA – Receive Notice of Acceptance
Receives Disposal PB- Public Bodies
(AO)

Strategy Report
Issue written GP – General Public
Consult Line
REJECTED notice on RNOR-Receive Notice of Rejection
Minister
decision
ITB – Invitation to Bid
OPR – The Office of Procurement Regulation

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APPENDIX 2

[Public Body’s Logo]

[Public Body’s Title]

Sample Template – Disposal Plan

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Review/ Approval

Name/Title Signature Date

Chief Executive Officer/Accounting Officer

Procurement & Disposal Advisory Committee

Members

Named Procurement Officer

Other

Contact Officer (NPO)

Name/Title Email Phone

Version Control

Version Date Status/Action/Change Approved By

Draft 1

Draft 2

Final

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Executive Summary
This section summarises the main results and advice from the plan and lists the
recommendations for which approval is sought from decision-makers. Advice is provided on
the:

• Assets proposed for disposal in the short-term (1-3 years), medium-term (3-5 years)
and long-term (5-10 years);
• Strategic justification and the overall benefits, costs, risks and schedule for the
proposed disposal items; and
• Main risks involved in the disposal action, such as renewed stakeholder engagement
and any improvements to the property prior to sale.

The remainder of the plan provides the necessary backing. In finalising the plan, the best
approach is to summarise the substance of the work done for each section, to articulate the
underlying logic and assumptions, and to answer the key issues and questions provided.

Strategic Justification
This section provides an overview of the disposal items and explains why they would be
consistent with the public body’s future service delivery model.

A strategic asset plan clarifies the asset-related demand drivers, service delivery objectives and
model for an individual public body, and for the public body in cooperation with others over
the next ten years. This provides the point of reference for a strategic approach to the disposal
of assets that will no longer be required.

The disposal plan does not repeat the detail in the strategic asset plan on the public body’s
service delivery model. Instead, advice is provided on the overall reasons and timing for the
disposal action. For example, if a public body intends to dispose of a land block in the next four
years, confirmation is provided that similar land will not be required at higher cost in the next
5-10 years.

To support the proposed disposal action, advice is provided on its consistency with long-term
state plans for urban and regional development; for example, it may be appropriate to dispose
of a facility and land in the short term if they are in locations far removed from future
population and activity centres or transport corridors.

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Questions

How would the disposal of an asset affect the practical service delivery objectives and model
in the strategic asset plan?

Are there assets that are clearly surplus to the service delivery model – and for which there is
no need to further test their relevance or viability?

Evidence

References are provided to the advice in the strategic asset plan which supports the conclusion
that an asset will not be relevant to a public body’s service model.

Analysis
Retain or Dispose Tests
This section provides the results of the analysis on whether an asset should be disposed of or
retained.

Each asset is examined closely on its merits from four perspectives: financial viability; market
failure; stakeholder views; and public interest.

Questions

What value for money would be gained from the retention and continued investment of State
funds in the asset? Which assets would not be retained if financial viability were the only test
to be applied?

Is there potential to retain and reuse the asset for the public body’s purpose, or a shared
purpose with another public body?

Would disposal undermine the State’s or a public body’s future finances, for example, by
resulting in the need to reacquire a similar asset at higher cost?

Why does market failure dictate that the asset should be retained? Are there no options to
deliver priority services through other means such as non-government use of the asset?

Are there stakeholders in the community or in the public and private sectors who are strongly
opposed to the disposal? Should the asset be retained on that basis alone? If not, what
approach should be taken to address stakeholder concerns?

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What risk assessment has been done on the opposition to disposal – for example, how
representative is it, and how long is it likely to last?

What is the compelling public interest that outweighs the conclusion that an asset should be
disposed of because it is not strategically justified or financially viable?

Evidence

The following information is available: financial return and benchmark rates used for the
financial viability test, and the details of the senior officer in Treasury with whom the rates
were agreed; dates and scope of stakeholder consultation, opinion testing and analysis,
including options to address any opposition to disposal; and future market potential and
commercial advice.

Summary
The results of the ‘retain or dispose’ analysis is summarised in a table similar to the following,
for example:

Table A: Retain or Dispose – Summary

Land Block A Heritage Building B

Description/ Large vacant State land in Old two storey museum

Status the vicinity of regional managed by public body B
corporation 15km east of
regional public body C.

Strategic Beyond easy public access Consistent with ten-year delivery

Outlook for future service delivery model for services by owner
by owner public body. public body B.
Public body C has high
interest as part of its long-
term transport strategy.

Financial Low retention costs / low Increasing maintenance costs,

Viability current or future service but high usage rates and
delivery benefit. benefits.

Public No environmental High heritage value.

Interest protection issues.

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Land Block A Heritage Building B

Market Private sector may buy, but Private sector would buy, but
Failure would preclude service would not develop for public
delivery by public body C. service delivery.

Stakeholder No current/established Very strong opposition to

Engagement services. significant structural change.
Low public concern in
favour of retention.

Conclusion Dispose Retain and refurbish

(via transfer to
Public body C at market
value)

Proposals
Section One: Disposal Priority and Sequence
This section provides the shortlist of proposed asset disposals, based on the preceding advice.

The shortlist covers disposal items over the short, medium and long-term. The main
arguments, logic and assumptions that underpin the shortlist are explained.

A simple presentation is used similar to the following table which provides examples for land
and other assets.

Table B: Disposal Shortlist

Proposal/Priority Reasons/Benefits

Short-term
(1-3 years)

1. Land Block A High value for another public body’s service

delivery model.

2. Public body-wide Technology obsolete/not well supported in

video conference four years.
system

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Proposal/Priority Reasons/Benefits

Medium-term
(3-5 years)

3. Truck fleet End of useful life/prohibitive maintenance

costs.

Long-term
(5-10 years)

4. Central offices Decision required in five years on whether to

re-lease/refurbish/dispose/relocate.

Questions

On balance, what is the best timing for the disposal items, based on the advice in the preceding
section of the plan?

What were the main reasons, logic and assumptions on the timing?

Section Two: Transition to Disposal

This section identifies the main action and indicative costs, risks and timing involved in
disposing of the assets listed above.

Key transition to disposal issues include:

• the disposal type envisaged (such as outright sale, lease or partial disposal residual
maintenance or refurbishment activity that may be essential to ensure staff safety and
amenity for the remaining life of the asset, and to obtain the best sale price for the
State (without over investment);
• land preparation, such as to remove contamination and to obtain approvals;
administrative costs, such as for legal services;
• extent of consultation with stakeholders who will be affected, including members of
the public, lobby groups and public or private sector agencies; and
• any other issue that may prevent or delay the disposal action as planned.

Evidence

Copies of the reports that justify the requirements and indicative cost estimates for the
transition to disposal are available.

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Section Three: Sale Proceeds

This section estimates the proceeds that will be obtained from the disposal of real property
over the next ten years.

The proceeds are the entire amount (for land) or the net amount (for other real property).

Concise advice in support of each estimate is also provided; for example, to explain why market
analysis indicates that the best time to sell an asset would be in three years.

Evidence

Information is available to explain the basis for the sale estimates (minus the transition to
disposal costs identified in the preceding section of the plan).

Section Four: Risks and Mitigation

This section identifies the main risks to the successful implementation of the disposal plan and
the mitigation steps envisaged.

Potential risks include that:

• a public body will require the asset after all, for example, due to a change to its service
delivery objectives or model;
• the transition to disposal tasks (such as residual maintenance, management and land
assembly) will not be completed on time and budget; and
• that the sale price will not be achieved, or the transaction completed on schedule.

The highest risks are identified and explained, and a mitigation strategy outlined.
Benchmarking and lessons learned from similar disposal action by the public body or by other
agencies are used to develop the risk mitigation.

Questions

What is the overall risk that the disposal plan will not be achieved as proposed: high, medium
or low?

What were the main lessons learned from similar disposal action? How were these lessons
applied in developing the risk profile?

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APPENDIX 3
Form A: Request For Real Property Disposal (Sample
Form)
TO: FROM:
LOCATION/ADDRESS OF PROPERTY:

SPACE DATA LAND DATA

Use No. of Floor No. of Floor Clear Acre/Hectare/SQ.
Buildings Area Floors Load Headroom FT./M2
Capacity
Office Fee
Storage Lease
Other Other
Total Total
Specify “Other”:

Other relevant information:____________________________________________________

Reason for Disposal:________________________________________________________

Received By:________________________
Named Procurement Officer

Encl.: Form B to E

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Form B –Due Diligence Checklist

(Includes Forms C to E)

For All Public bodies

To assist in reporting real property identified for Disposal

Public bodies are required to provide the information in this Due Diligence Checklist with
every Report of Real Property for disposal.

This checklist has been developed to address the specific requirements that should be
included in a title report and should accompany the following forms:

• Form B, Buildings Structures, Utilities, and Miscellaneous Facilities;

• Form C, Land and or Form D Related Personal Property

Instructions

• Check applicable items and provide the required documentation. Attach the completed
checklist to the Disposal Strategy Report of Real Property and submit to the AO through
the PDAC for review and approval.
• Should there be an appraisal report available (any age), please furnish a copy with the
strategy report as well as a revised up to date report from a Registered Appraiser/ Valuator.
• The report on the title must be prepared and signed by a qualified employee of the
disposing body; this would be the assigned officer/property specialist/officer, working in
conjunction with an attorney.

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REAL PROPERTY DISPOSAL DUE DILIGENCE CHECKLIST

1. Checklist Preparation:

It is recommended that input from specific subject matter experts be engaged in the
preparation of this due diligence checklist. Please check which specialist(s) participated
in the completion of this checklist. This due diligence checklist was prepared in
consultation with the following subject matter experts from the reporting landholding/
public body:

Property Manager/Facility/Maintenance Manager

Historic Preservation Officer

Environmental Specialist

Legal Counsel

Other:
_______________________________________________________________

2. The Property is Locally Known As:

Full Address/
Location:_____________________________________________________

Real Property Unique Identifier (if known):

The legal description for the excess area is as follows:

Provide setbacks and boundaries, (ward maps) and range, or block and lot description
as applicable below or on separate page. Attach a legible drawing/assessor’s map with
the excess area outlined. If the property is described by metes and bounds, the courses
and distances should be shown on the drawing. This drawing should also show the
location of any out granted areas (e.g., roadway easements).

Provide copies of available maps/plans depicting buildings, improvements, utility

lines, sidewalks, etc.

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Personal Property

Is there Personal Property located on/in the property that requires disposal separate
and apart from disposal of the excess real property? Yes No

If yes, has the reporting landholding/public body Personal Property coordinator taken
inventory of the property to be disposed of? Yes No

If yes for both, complete Form D

3. How Government Acquired Title:

Title was acquired by deed or Certificate of Title. Provide a copy of the deed or
certificate of title which would include description of the property (map, plan or
diagram), rights of way or other rights affecting the property, restrictions or other
conditions.

Property was set-aside for public purposes

Title was acquired by condemnation. Provide a copy of the recorded declaration,

copy of Notice to the Registrar General and any pertinent title documentation
acquired at the time of taking.

Property was acquired by Government transfer. Attach a memorandum of

transfer; document transferring custody and accountability and original acquisition
documents.

Other. If the property was acquired by other than the above (including leasehold
or license), provide an explanation and pertinent documentation.

Describe here or name attachment:

Attach all other applicable documents for the property, including but not limited to the
following: the duplicate original Certificate of Title; duly executed instruments of
release of all outstanding mortgages on the property; current bills and receipts for
Water and Sewerage Rates, Lands and Buildings Taxes; WASA Clearance Certificate and
so on.

4. Exceptions to Title Acquired: (applies to excess area only)

There are none. There are exceptions to title acquired.

State all exceptions, reservations, conditions, and restrictions and attach legible

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copies of all such easements, permits, licenses, and encumbrances. The areas should
be reflected on the drawing. Include any documentation addressing clouds on title,
legal opinions, reversionary clauses, and reservations of minerals or water rights.

Describe here or name attachment:

5. Actions That Occurred After Acquisition by the Government and or Public Body/ State
That Have or May Have Affected Title:

There were no actions occurring after acquisition of title by the Government that
affect right, title or interest in the excess property.

The following actions occurred which may have affected the Government’s title
interest in the property. List all easements, permits, licenses or other encumbrances
granted and provide copies of the documents. Show applicable areas on drawing. If
applicable, identify on a map, areas where surrounding land development and/or
land use has encroached or appears to have encroached upon the Government’s use
or ownership of the property interest being excessed.

Provide copies of any existing easements, leases, permits or licenses to other parties,
which are being reported with the property.

Provide any easements or reservations the reporting public body is creating or

retaining (if not recorded) over the excess area – including legal descriptions, if
applicable – for rights such as continued access and or utilities; land use controls for
environmental protections and land use restrictions, etc.

Describe here or name attachment:

6. Jurisdiction:

Civil and criminal jurisdiction over the excess area is:

Exclusive Proprietorial Partial Concurrent

Contact your legal counsel for assistance, if needed.

7. Screening of Property:

This property has been screened against the known needs of the public body and
has been determined excess.

8. Protection and Maintenance (P&M):

Attach a breakdown of the planned or current P&M costs of ground maintenance,

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fire protection, and security for the excess property during disposal.

9. Public Body Interest:

There has been interest from public bodies in acquiring all or a portion of the
excess property. List public body interest:

There has not been interest from public bodies in acquiring all or a portion of the
excess property.

Please also include information regarding other community interests in the disposal
or future reuse of property.

10. Cost Savings:

I. Cost savings includes the elimination or reduction of owned and otherwise

managed annual operating and maintenance costs, which consists of the
following: recurring maintenance and repair costs; utilities (includes plant
operation and purchase of energy); cleaning and/or janitorial costs (includes
pest control, refuse collection, and disposal to include recycling operations);
roads/grounds expenses (includes grounds maintenance and landscaping).

II. Estimated annual operating costs $

III. If available, describe the major components of that estimate:

11. Cost Avoidance:

Cost avoidance includes the elimination of future expected costs for capital investment
repair needs, which is the amount necessary to ensure that a constructed asset is
restored to a condition substantially equivalent to the originally intended and designed
capacity, efficiency, or capability. Capital repair needs are larger expenditures in
property operations that address major repairs or replacements, i.e., elevator, HVAC,
electrical, structural/roof, plumbing, and fire and life safety.

Estimate your deferred cost: $

If available, describe the major components of that estimate:

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12. Other Pertinent Information:

________________________________________________________________________
________________________________________________________________________

13. Checklist Preparer/Public Body’s Point of Contact:

By: Date:
(Signature)

Name: Telephone:
(Typed)

Title:

Email Address: _____________________________

Verified By: ________________________________

Title

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1. PUBLIC BODY’s 2. PAGE OF

NAME PAGES
Form C- Buildings, Structures, Utilities & Miscellaneous Facilities
OF THIS SCHEDULE

CONTROL NO.

SCHEDULE A-SUPPLEMENT TO REPORT OF EXCESS REAL PROPERTY ANNUAL RENTAL

PUBLIC BODY FLOOR NO. CLEAR FLOOR RESTRICTIONS ON

USE
LINE BUILDING OUTSIDE AREA OF HEAD- LOAD
OR TRANSFER OF
NO. NO. DESCRIPTION COST DIMENSIONS (Sq. ft.) FLOORS ROOM RANGE
GOVERNMENT
INTEREST
(a) (b) (c) (d) (e) (f) (g) (h)* (i)* (j)

TOTAL

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1. PUBLIC BODY’s NAME 2
Form D - Land PAGE OF
PAGES
OF THIS SCHEDULE
3. GOVERNMENT INTEREST CONTROL NO.
LEASE LICENSE
PERMIT EASEMENT
FEE INFORMAL
SCHEDULE B-SUPPLEMENT TO REPORT OF EXCESS REAL PROPERTY AGREEMENT
EXCESS REAL PROPERTY
LOT/PLOT/ ACRES OR ANNUAL TYPE OF RESTRICTIONS ON USE OR
LINE LOT/PLOT/ NAME OF FORMER PARCEL SQUARE COST RENTAL ACQUISITION TRANSFER OF
NO. PARCEL OWNER OR ACQUIRED FEET GOVERNMENT INTEREST
NO. LESSOR AND ADDRESS (Acres or
(a) sq. ft.) (f) (g) (h) (i)
(b) (c) (d) (e)
1
2
3
4
5
6
7
8
9
10

TOTAL

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1. PUBLIC BODY’s 2
Form E - Related Personal Property (Attached To Land/Building) NAME PAGE OF
PAGES
OF THIS SCHEDULE
3. CONTROL NO.

SCHEDULE C-SUPPLEMENT TO REPORT OF EXCESS REAL PROPERTY

ITEM DESCRIPTION CLASSIFICATION CON-DITION UNIT NUMBER UNIT COST TOTAL COST DO NOT USE
NO. OF UNITS THIS SPACE
(a) (b) (c) (d) (e) (f) (g) (h) (i)

TOTAL

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APPENDIX 4
Disposing Public Body Letter Head

Notice Of Availability/ Invitation to Bid Information

SUBJECT:…………………………………………………….

Notice is hereby given that the subject real property is available for disposal and that public bodies shall be
allowed to submit a formal Bid for the identified real property within 30 calendar days of the date of this notice,
using the Official Bid Form herein.

The property is offered “AS IS” and “WHERE IS” without representation, warranty, or guaranty as to quantity,
quality, title, character, condition, size or kind, or that the same is in condition or fit to be used for the purpose
for which intended.

Date of Notice…………………………………………………
Control No……………………………
Location/ Address…………………………………………………………………………………………………………
Holding Entity………………………………………………………………………………………………………………
Property Type………………………………………………………………………………………………………………
Specifications……………………………………………………………………………………………………………….
Range of Possible Uses…………………………………………………………………………………………………
Expressed Interest:……………………………………………………………………………………………………
Historical Data:………………………………………………………
For Further Information Contact……………………………………………………………………………………
Picture/Drawing/ Layout plan………………………………………………………………………………………
Request for inspection or more information about the property may be obtained by contacting the following
representative:
Contact Name: Phone:
Email:

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Procedure For Bidding

30 Days from Issuance of Notice of Availability. (Bid Form should be completed, stamped with company’s
official stamp, signed by Accounting Officer and deposited in the disposing entities ‘Tender Box’.

Such Bid Submission Form shall:

(1) Disclose the contemplated use of the property.

(2) Authorization to acquire the property.

(3) Means of Purchase

Once Bids/ Offers received the disposing body would open bids officially, evaluate and provide feedback to
bidders within 30 days

In the absence of bids, or in the event a proposal is not accepted, the property can be offered for sale to the
General Public.

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Bid Submission Form

[Date]

To: [Name and address of Public Body]

Re: Notice of Availability of property located………………………… and Invitation to Bid

Ladies/Gentlemen:

We, the undersigned, offer to submit a bid in accordance to captioned dated [Date]
and our Commercial Proposal is as follows:

In Words TT$ - Exclusive of VAT:

In Figures TT$ - Exclusive of VAT:

This amount is exclusive of 12.5% Value Added Tax, which we have calculated as [Amount(s)
in words and figures]. Kindly advise on the following:

(1) Contemplated use of the property…………………………………………………………………………………….

(2) Authorization to acquire the property……………………………………………………………………………….
(3) Means of Purchase…………………………………………………………………………………………………………….

We understand you are not bound to accept any Proposal you receive.

We remain,

Yours sincerely,

Authorised Signature:
Name and Title of Signatory:
Name of Public Body:
Address:

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APPENDIX 5
SAMPLE: Conditions of Sale by Public Auction for Real Property

1. All bidders must be registered.

The Auctioneer may register a person as a bidder only if that person has provided his/her name
and address and there is satisfactory evidence of his/her identity. Once the bidder is successful,
the name on the registration form will be the name of the Buyer on the Contract of Sale, unless
the bidder is bidding on behalf of another person.
2. The highest approved bidder will be the buyer subject to:
1. the reserve price, if any; and
2. the Seller’s approval

3. The buyer acknowledges that the Contract of Sale will not be conditional on any of the
following:
a) Finance; and
b) Building and Pest Inspection Reports.

4. Bids will only be accepted from registered bidders.

5. Bidders must use the numbered identifier provided by the Auctioneer to make a bid during
the auction.
6. The Seller reserves the right to bid, either personally or by a representative. If the Seller or
their representative bids for the property, the Auctioneer must clearly announce to all other
Bidders that the bid is made on behalf of the Seller.
7. The bidder warrants their ability to enter and complete the Contract of Sale in accordance
with its terms.
8. Any person bidding on behalf of another person must provide the Auctioneer with a copy
of their written authority before the Auction; otherwise, the bidder will be taken to acting on
their own behalf. The auctioneer may register a person as a bidder only if the person gives
the Auctioneer the name and address of the other person for whom bids are intended to be
made on instructions given by the person by telephone.
9. If the bidder is authorised to bid on behalf of another person, and is the buyer in
accordance with Condition 2, the bidder warrants the other person’s ability to enter and
complete the Contract of Sale in accordance with its terms.

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10. The Auctioneer has the discretion to refuse to accept a bid from any Bidder. A bid will be
taken to be accepted and irrevocable unless the Auctioneer refuses it. If the Auctioneer
refuses a bid, the Auctioneer must announce to all other bidders that the bid has been
refused.
11. Without affecting Condition 10, if there is any dispute over a bid or the result, the
Auctioneer may:
a) Re-open the bidding; and/or
b) Determine the dispute in any other way the Auctioneer considers appropriate in
his/her absolute discretion.

12. Immediately on the fall of the hammer, the property is sold. The bidder of the highest bid
is accepted in accordance with Condition 2, must sign, as buyer, the Contract of Sale in the
form displayed or circulated with these Conditions of Sale and pay the deposit to the
nominated Deposit Holder.
13. The deposit payable under the Contact of Sale is __% of the successful bid or any other
percentage or figure nominated in Contract of Sale.
14. The seller and buyer agree to sign all documents and do everything else necessary to
transfer the property to the Buyer. The Seller and Buyer each appoint the Auctioneer their
agent to sign the Contract of Sale on their behalf. The appointment is non-revocable.
15. If the buyer does not pay the deposit, at the Seller’s option:
a) The result of the auction will be treated as invalid, and the property may be
resubmitted to public auction at the risk and expense of the buyer or;
b) The Seller may affirm the Contract of Sale and pursue their legal and other remedies
against the buyer as they see it.

16. The decision of the Auctioneer is final in all matters relating to the auction.

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Glossary of Terms

TERMS MEANING
Alienation The transfer of ownership of property
rights.

Appraisal A professional estimate of a property's

market value based upon a market analysis
of recent sales of similar properties in the
area which is normally provided by a Real
Estate Agent.

Assign To transfer property rights from one person

to another.

Auction A public sale of a property that is generally

sold to the highest Bidder on the provision
that the reserve price for the property has
been met or exceeded

Covenant A provision, or promise contained in a deed

of land. A covenant may give landowner
some say over what is permissible on
neighbouring property.

Conveyance Includes a mortgage, charge, lease, assent,

vesting declaration, vesting instrument,
disclaimer, release and every other
assurance of property or of an interest
therein by any instrument.

Concession The right to use land or other property for a

specified purpose, granted by a
government, company or other controlling
body.

Concessionary Sale Where the property is knowingly being

purchased by your client below market
value.

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TERMS MEANING
Condemnation The process by which property of a private
owner is taken for public use, without his
consent, but upon the award and payment
of just compensation, being in the nature of
a forced sale and condemner stands toward
owner as buyer toward seller.

Clawback An act of retrieving money already paid out,

typically by taxation

Decontamination To make (an object or area) safe for

unprotected personnel by removing,
neutralising, or destroying any harmful
substance, as radioactive material or
poisonous gas.

Demolition Means the pulling down or removal of a

building or any material part of it

Divestment The process of selling subsidiary assets,

investments or divisions in order to
maximize the value of the parent company.

Disposal (Public Property) Includes the transfer without value, sale,

lease, concession or other alienation of
property that is owned by a public body.

Disposal Plan A document that defines how an

organisation decides when an asset should
be retired or disposed of, and the activities
associated with the process, including sale,
demolition or relocation.

Easement A right enjoyed by one landowner (the

dominant tenement) over that of another
(the servient tenement), for instance a right
of access or for the passage of water or
electricity.

Encumbrance Includes a mortgage in fee, or for a less

estate, and a trust for securing money, and

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TERMS MEANING
a lien, and a charge of a portion, annuity, or
other capital or annual sum

Excess Real Property Property which is not required for a public

body’s needs and the discharge of its
responsibilities.

Fair Market Value Price at which a willing seller and a willing

buyer will trade.

Formal Tender Means the successful bidder, which may not

be necessarily the highest bidder, is deemed
to have exchanged contracts at the point
the bid is accepted and may require a
deposit.

Freehold Interest Means any fee, life, mineral, coal or oil or

gas interest in real property, whether legal
or equitable, and whether as a joint tenant
or a tenant in common, but shall not include
a leasehold interest (other than a mineral,
coal or oil or gas leasehold interest), a
dower interest, or an interest in a right-of-
way or easement, and the free-hold interest
of a church or other unincorporated
association shall be considered as one
interest and not as an individual interest of
each member thereof.

Informal Tender Involves buyers being invited to submit

competitive bids by a specified date. Bids
are put forward in a sealed envelope, so
buyers are unaware of what their rivals are
bidding.

Land Means the surface of the earth, the airspace

above it, and other things than chattels,
upon or below it including-
a) Buildings and parts of buildings whether
the division is vertical, horizontal or made in
any other way;

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TERMS MEANING
b) Mines and minerals whether or not held
apart from the surface;
c) The surface of the earth covered by
water;
d) A legal interest in land whether or not it
gives a right to possession of the soil; and
e) An equitable interest in land;

Lease Any agreement which gives rise to

relationship of landlord and tenant.

Litigation Contest in a court of justice for the purpose

of enforcing a right.

Long leasehold interest A temporary right to occupy land or

property

Operational Objectives Short-term goals where achievement brings

an organisation closer to long-term goals.

Overage An excess or surplus, especially the amount

by which a sum of money is greater than a
previous estimate.

Price Abatement An abatement cost is a cost borne by firms

when they are required to remove and/or
reduce undesirable nuisances or negative
by products created during production

Real Property Denotes land and things attached to land so

as to become a part of it, and rights in the
land.

Remediation The restoration of environmentally

degraded sites, containment of any wastes,
hazardous substances or other
environmentally dangerous conditions, or
other appropriate precautionary measures

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TERMS MEANING
to prevent significant adverse effects on
human health or the environment

Rescission An equitable remedy which allows a

contractual party to cancel the contract

Return on Investment A performance measure used to evaluate

the efficiency of an investment or compare
the efficiency of a number of different
investments.

Reserve price The price stipulated as the lowest

acceptable by the seller for an item sold at
auction.

Reverse Premium A payment or other benefit received as an

inducement to take on a lease or other
interest in land.

Restrictive covenant A covenant imposing a restriction on the

use of and so that the value and enjoyment
of adjoining land will be preserved.

Special Interest Purchaser A purchaser that is willing to pay a premium

over intrinsic value because they will
receive additional value from the
combination of the acquired business with
their own.

Strategic Objectives Long term organisational goals that help to

convert a mission statement from a broad
vision into more specific plans and projects.

Surplus Real Property Property that is retained by a

state/government but is not currently being
utilised. The property is typically housed in a
facility or kept vacant until the
state/government decides what to do with
the property. It is excess property that has
been declared as surplus by a public body/
Government.

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TERMS MEANING

Surrender Premium Payable to terminate a lease early which are

generally tax-efficient depending on the
length of the lease and whether or not
there is a provision in the agreement for
early termination, the landlord will be taxed
on a capital and/or revenue receipt whilst
the tenant receives neither a capital nor
revenue deduction.

Subletting A leasing by lessee of a whole or part of

premises during a portion of unexpired
balance of his term.

Tax Evasion The illegal non-payment or underpayment

of tax

Wayleaves A right of way granted by a landowner,

generally in exchange for payment and
typically for purposes such as the erection
of telegraph wires or laying of pipes.

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REFERENCES

1. The Real Estate Institute of Queensland Ltd. (n.d.). Conditions of sale – public auction -
explore property cairns. Conditions of Sale - Public Auction.
https://explorepropertycairns.com.au/assets/files/Conditions-of-Sale-Public-
Auction.pdf

2. Guide for the disposal of Surplus Land. Cabinet Office. (2017, March).
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attach
ment_data/file/599778/Guide_for_the_Disposal_of_Surplus_Land.pdf

3. Trinidad & Tobago Land Policy of 1992. AfraRaymond.net - A Thinking Man’s Weblog.
(1992, November).
https://afraraymond.files.wordpress.com/2015/04/state-1992-land-policy-1.pdf

4. Secretariat, Treasury Board of Canada. (2011, October 24). Government of Canada -

Guide to the Management of Real Property. Canada.ca.
https://www.canada.ca/en/treasury-board-secretariat/services/federal-real-
property-management/guide-management-real-property.html

5. LGAM Knowledge Base. Disposal Plan - LGAM Knowledge Base. (n.d.).

http://lgam.wikidot.com/disposal-plan

6. Commissioner of State Lands - Rules 2023 Edition . Commissioner of State Lands – State
of Arkansas Tommy Land, Commissioner. (2023).
https://coslstorage.blob.core.windows.net/web-resources/online-instructions.pdf

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