BS5709 - Listing and Sale of Student Constructed Houses

1. Institutional Regulation
   
   The Building Trades Program may require the students to construct a house as part of their instructional activities. Upon completion of this construction, the completed house shall be sold in accordance with the provisions of this procedure.
    
2. Procedure
   1. Listing
      1. A realtor shall be selected by the Vice President of Business Services for a period of time to be negotiated.
      2. An appraisal is necessary for the Board to determine an acceptable selling price. The Vice President, Business Services shall request an appraisal of the house’s fair market value from the selected realtor.
      3. The Building Trades Department shall submit to the Vice President, Business Services the following cost estimates and final inspection documentation:
         1. An estimate of total DMACC investment in the house including expenses paid to date and an estimate of total additional outstanding bills. The estimate should also include an allowance for goods or services yet to be completed.
         2. A Certificate of Occupancy or other appropriate and necessary documents.
   2. Board Approval to Sell:
      1. The Vice President, Business Services shall request to place the house on the market and provide the following information to the Board Secretary:
         1. Appraisal
         2. Cost estimate
         3. Recommended listing price
      2. The Board shall set the listing price of the property.
      3. Upon approval of the Board to sell the house the Vice President, Business Services shall:
         1. Insure that the selected Realtor has a key to the house and is furnished all necessary information.
         2. Instruct realtor to contact the Vice President, Business Services when an offer has been received.
   3. Acceptance of Offers to Buy
      1. The Board Secretary shall be authorized to accept, on behalf of the Board, any offer received for amount equal to or exceeding the established listing price.
         1. The Board Secretary in the order shall consider offers in which received. Once an offer is accepted, no other offers shall be considered.
         2. When the Board Secretary has accepted an offer, the Board shall approve a motion at their next regular scheduled meeting specifically approving the sale of the property.
      2. Any offers to buy received by the Board Secretary for an amount less than the listing price may be negotiated by the VP Business Services. If negotiation result in a price believed to be satisfactory by the VP Business Services, the offer may be conditionally accepted and submitted to the Board for consideration at the next regular scheduled meeting.
      3. The Board has sole authority to accept or reject any offer.
   4. Upon successful sale of the property the Vice President, Business Services shall:
      1. Negotiate with the buyer and complete repairs in agreement with a final punch list.
      2. Prepare a Warranty Deed transferring title on the property to buyer signed by the
         1. Board President, College President or any Vice President
         2. and the Board Secretary.
      3. Cancel Builders Risk Insurance on house after warranty deed has been issued.
      4. Credit cash received from the sale of the house to the Building Trades Account. After all expenses against the house have been paid, the net profit or loss shall be transferred into the House Supervision Cost Center in the 3 Fund. At fiscal year end, a positive balance shall be moved into Fund 1 and a negative balance shall be offset by charging the Building Trades Cost center in the 1 Fund.