Division of Real Estate - Land Sales Procedures

Division of Real Estate
General Sales Information

Updated 4/14/2011

 

GENERAL PROCEDURES FOR SALE OF SURPLUS CITY OWNED LAND
 
The Director of the Division of Real Estate, the City Charter, the Municipal Code and the Executive Order determine the procedures for the sale of surplus City owned vacant land.

 


1.  When a request is received, either by phone or writing to purchase a parcel of City owned land, an inquiry form is filled out with the name, address and phone number of the potential buyer with information about what that buyer plans to use the parcel for.

 


2. 
The Division of Real Esate staff reviews records to verify ownership and how we took title; either by Tax Title or Fee Title Deed.

 


3.
 The Division of Real Estate staff determines whether other City agencies might need the land.

 


Processing continues only if all agencies approve.  If disapproved, the Division of Real Estate or the prospective buyer has the option to pursue with the individual agency.

4.
 If parcel is released for sale by all the agencies, the Division of Real Estate determines the “Minimum Acceptable Offer” or determines to market the property without a stated minimum price.  The Division of Real Estate reserves the right to reject any or all offers at the sole discretion of the Director of the Division of Real Estate.
 If parcel is released for sale by all the agencies, the Division of Real Estate determines the “Minimum Acceptable Offer” or determines to market the property without a stated minimum price.  The Division of Real Estate reserves the right to reject any or all offers at the sole discretion of the Director of the Division of Real Estate.
 

5.  Auction Date or Sealed Bid Due Date is set.   


6.
 Notification

 

 
a. Letters are sent to adjacent property owners and to registered neighborhood organizations concerning the intent to sell. These letters will be sent out at least thirty (30) days prior to the auction.
b. The Councilperson is notified of the intent to sell.
c. The Division of Real Estate Website is updated with an auction date or sealed bid date for all potential sales.  

7.  If sale is by open auction:  Auctions are typically held on Thursdays at 10:00 AM at the Division of Real Estate office. Attendees must submit a certified check made payable to the Manager of Finance in the amount of 10% of the minimum starting bid or $500, whichever is greater or for the full amount if such bid is less than $500.  The auction procedures will be read prior to the auction. If there are no other bidders, the party that made the original bid is eligible to have the offer presented for approval either to the board of Equalization (for Tax Title land) or to the Mayor/Council (for Fee Title land). An Offer to Purchase Agreement is presented to the bidder for signature. The Division of Real Estate staff member then signs the agreement and puts in file. The deposit is forwarded to the Treasury Department or Department of Finance.


If another party bids higher than the original party, the procedure is followed as above and the deposit checks are returned to the other party or parties.

 


8.  If sale is by sealed bid:  Division of Real Estate determines bid procedures and makes available to prospective buyers; prospective buyers are required to follow the stated procedures.
 
9.  After the Auction or Sealed Bid Process:

 

 
a. For Tax Title property – An approval form is sent to the Mayor. A packet is prepared with forms for the members of the Board of Equalization and delivered to the Board Secretary in the Assessor’s office. This packet consists of the Mayor’s release, map and other general information.
 
       1.   If the sale is approved by the Board, a resolution is prepared by the Assessor’s office and Division of Real Estate 
             staff will complete the Deed for processing.
            
       2.   When the Deed has been completed, it is sent to the City Attorney for approval, to the Mayor for execution and to the
             Clerk and Recorder for attestation.
 
       3.  The Division of Real Estate collects the final payment with certified funds made payable to the Manager of Finance, has 
             the Deed recorded and a Certified Copy is sent to the purchaser along with a copy of the Resolution.
 
       4.  The original Deed will be returned by the City Clerk's Office to the purchaser once internal filming has been completed.
 
b. For Fee Title property – A packet is prepared for presentation to the Mayor/Council
 

 

  1. Division of Real Estate sends an Ordinance Request to Mayor’s liaisons. 
  2. Request is presented to appropriate committee (if required) and then to Mayor/Council.
      3.    When ordinance is completed, the Division of Real Estate will prepare a Quit Claim Deed and deliver it to the City Attorney for approval. After it has been approved, it is sent to the Mayor for execution and to the Clerk and Recorder for attestation. 
      4.   The Division of Real Estate collects the final payment with certified funds made payable to the Manager of Revenue, has 
the Deed recorded and sends a Certified Copy to the purchaser along with a copy of the ordinance. 
      5.   The original Deed is returned to the purchaser by the City Clerk's Office once internal filming has been completed.
 
Notes:   Tax Title property is sold without merchantability of title and the purchaser will receive a Treasurers Deed. The offer is made to purchase the interest that the City and County of Denver has in property, whatever that interest shall be. The Purchaser will covenant to accept title subject to the presence of hazardous substance and materials, including asbestos and will release the City from the consequences of their presence.

Fee Title property
may be sold subject to merchantability of the title and the purchaser will receive a Quit Claim Deed. However, the Purchaser at his own expense must determine the merchantability of title, i.e. the purchaser needs to obtain a title commitment at their own expense. This should be done following the auction and prior to approval of Mayor/Council. The purchaser can obtain a title policy after the deed has been recorded, but at their own expense.
Unusual circumstances may require some variance in the above procedures.

Except as determined by the Charter, the Municipal Code or Executive Order, the Director of Division of Real Estate  reserves the right to modify, waive or reject all or portions of any or all procedures. The Director of the Division of Real Estate may at his/her sole discretion, modify or amend any and all provisions herein.

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