Policy 1213: Authority to Lease, Buy, and Sell Real Estate

Subject Area: Procurement/Disbursements
Responsible Office: Commercial Real Estate Operations
Approval: Trustees
Originally Issued: October 1995
Revised: February 2010, July 2014
Refer Questions To: John Kroll, 773-702-1941

Purpose: To establish authority to buy, lease, and sell real estate.

Background

Article V of the Bylaws states:

"Contracts for the purchase, sale, or disposition of real estate or leaseholds thereof and leases, licenses and deeds of conveyance of real estate and leaseholds thereof authorized by the Board or the Investment Committee, shall be executed and delivered by the President, Vice President, the Secretary or an Associate or Assistant Secretary of the Board who shall affix and attest the corporate seal."

On October 2, 1995, the Executive Committee of the Board of Trustees delegated to "appropriate officers of the University, authority to lease, buy and sell real estate used for University activities, up to a value of $2.5 million."

Policy

  1. Purchase or Sale of Real Estate - The President, Provost, Executive Vice President for Administration and Chief Financial Officer, or Vice President and General Counsel are authorized to approve and execute the purchase or sale of real estate without further action of the Board of Trustees, provided that the purchase or sale amount is $2.5 million or less.
     
  2. Lease of Commercial Real Estate - The following will apply for the leasing of commercial real estate:

    Value Amount Approval Agreement Execution
    $25,000 to $250,000 Respective Dean or Vice President Commercial Real Estate Operations (CREO)      
    $250,000 to $2,500, 000 Respective Dean or Vice President AND Chief Financial Officer       CREO
    Greater than $2,500,000       Board of Trustees or the Executive Committee of the Board of Trustees CREO

     
  3. Lease of University Owned Residential Real Estate - On occasion, University owned real estate may be leased to temporarily house faculty, students, and staff. In such cases, the following will apply:
    • Maximum lease term - one year
    • Approval - Respective Dean or Vice President
    • Execution of Lease - Facilities Services
       
  4. Lease of Non-University Residential Real Estate (Out-side the Chicago area) - On occasion non-University residential real estate may be leased to temporarily house faculty, students, and staff. In such case, the following will apply:
    • Maximum lease term - one year
    • Approval - Respective Dean or Vice President
    • Execution of Lease - Respective individual residing in the property. Reimbursement to the individual will be made upon request.
       
  5. Exceptions – Exceptions to this policy require prior approval from the Associate Vice-President for Finance.