72-5-111. Disposal of real property.
| (1) |
Terms Used In Utah Code 72-5-111- Commission: means the Transportation Commission created under Section 72-1-301. See Utah Code 72-1-102
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Department: means the Department of Transportation created in Section 72-1-201. See Utah Code 72-1-102
- Executive director: means the executive director of the department appointed under Section 72-1-202. See Utah Code 72-1-102
- Grantor: The person who establishes a trust and places property into it.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- real property: includes :Utah Code 68-3-12.5
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
| (a) |
If the department determines that any real property or interest in real property, acquired for a state transportation purpose, is no longer necessary for the purpose, the department may lease, sell, exchange, or otherwise dispose of the real property or interest in the real property. |
| (b) |
| (i) |
Real property or an interest in real property may be sold at private or public sale. |
| (ii) |
Except as provided in Subsection (1)(c) related to exchanges and Subsection (1)(d) related to the proceeds of any sale of real property from a maintenance facility, proceeds of any sale shall be deposited with the state treasurer and credited to the Transportation Fund. |
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| (c) |
| (i) |
Except as provided in Subsection (1)(c)(ii), if approved by the commission, real property or an interest in real property may be exchanged by the department for other real property or interest in real property, including improvements, for a state transportation purpose. |
| (ii) |
The department may exchange an interest in real property for another interest in real property for a project that is part of a statewide transportation improvement program approved by the commission. |
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| (d) |
Proceeds from the sale of real property or an interest in real property from a maintenance facility may be used by the department for the purchase or improvement of another maintenance facility, including real property. |
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| (2) |
| (a) |
In disposing of real property or an interest in real property described in Subsection (1), the department shall give the right of first refusal for the highest offer, as defined in Section 78B-6-521, to:
| (i) |
for real property, the original grantor if, since the date of the original transfer to the department, the original grantor has owned real property adjacent to the transferred real property; or |
| (ii) |
for an interest in real property that is an easement:
| (A) |
if the original grantor owns the servient estate subject to the easement, the original grantor; or |
| (B) |
if a subsequent bona fide purchaser owns the servient estate subject to the easement, the subsequent bona fide purchaser. |
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| (b) |
Notwithstanding Subsection (2)(a) and Section 78B-6-521, if the department acquires real property or an easement and does not use any portion of the real property or easement for a state transportation purpose, the department shall give the original grantor the opportunity to purchase the real property or easement at the original purchase price if, since the date of the original transfer to the department, the original grantor has owned real property adjacent to the transferred real property or the servient estate subject to the easement. |
| (c) |
In accordance with Section 72-5-404, this Subsection (2) does not apply to property rights acquired in proposed transportation corridors using funds from the Marda Dillree Corridor Preservation Fund created in Section 72-2-117. |
| (d) |
| (i) |
The right of first refusal described in this Subsection (2) is subject to the same terms and may be assigned by the original grantor or subsequent bona fide purchaser in the manner described in Subsection 78B-6-521(3). |
| (ii) |
The original grantor or subsequent bona fide purchaser, or the original grantor’s or subsequent bona fide purchaser’s assignee, shall notify the department of an assignment by certified mail to the current office address of the executive director of the department. |
| (iii) |
An exchange of real property as provided in Subsection (1)(c) or Section 72-5-113 does not entitle the original grantor or subsequent bona fide purchaser to exercise the right of first refusal described in this Subsection (2). |
| (iv) |
The right of first refusal described in this Subsection (2) terminates upon an exchange of the acquired real property as provided in Subsection (1)(c) or Section 72-5-113. |
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| (3) |
| (a) |
Any sale, exchange, or disposal of real property or interest in real property made by the department under this section, is exempt from the mineral reservation provisions of Title 65A, Chapter 6, Mineral Leases. |
| (b) |
Any deed made and delivered by the department under this section without specific reservations in the deed is a conveyance of all the state’s right, title, and interest in the real property or interest in the real property. |
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Amended by Chapter 101, 2022 General Session
