Real Property Agreements
APBC is responsible for the administration of most real property agreements for ANR. This includes leases, licenses, easements, rights-of-way, researcher's access and other related contracts. Proper Authority for execution of real property agreements is from Delegation of Authority 2629, Capital Project Matters, which has been re-delegated with limited scope to the Associate Vice President, the Associate Vice President – Business Operations, the Controller, and the Vice Provost of Research and Extension.
Below we will briefly outline the different types of real property agreements, the selection and process for real property agreements, provide templates, provide contact information, and include helpful links.
Lease agreements for real property may be executed with the UC as the Lessor or the Lessee. A lease is an agreement in which the landlord agrees to give the tenant the exclusive right to occupy real property, usually for a specific term and, in exchange, the tenant agrees to give the landlord some sort of consideration. A lease transfers to the tenant a leasehold interest in the real property and, unless otherwise provided in the lease, a lease is transferable and irrevocable.
A license gives the permission of the owner to an individual or an entity to use real property for a specific purpose. Unlike a lease, it does not transfer an interest in the real property. It is personal to the licensee and any attempt to transfer the license terminates it. It is (usually) revocable and can be either exclusive or non- exclusive.
Licenses are sometimes included in other agreements, e.g. a memorandum of understanding. It is highly recommended that a separate license be created whenever a right to use another party’s space, usually for a shorter term, is part of a larger relationship. The separate license should be attached as an exhibit to the more general agreement.
Facility Use Agreements
A facility use agreement (FUA) is a short form license for very limited use of a facility.
FUAs are intended for licensing classroom, studio, theater, and other periodic use space for educational, research, and public service purposes where the total term will not exceed one to three years and the user is not making any improvements to the premises. FUAs should be tailored to fit the unique facts of individual arrangements.
There is typically a consideration in dollar amount clearly tied to the appropriate intervals for periodic use, number of rooms or amenities or services required; timing for payment should be specified.
Other Real Property Agreements
An easement, like a license, gives the permission of the owner to use or prevent the use of the owner’s real property. However, unlike a license, it transfers to the easement holder an interest in the real property that encumbers the title record. Easements are classified as either appurtenant (benefiting and transferable with a specific piece of real property) or in gross (personal to the grantee). An easement can be transferred. Unless otherwise specified, an easement is presumed to be permanent and non-exclusive.
For more information about the types of real property agreements you can access the Facilities Manual Volume 2, Chapter 7 – Capital Planning and Real Estate Approvals.
Selection and Process
- If the right to use the property will belong exclusively to the user during the term, even as against the property owner, a LEASE will accomplish that goal.
- If the use/occupancy of the property will be shared with others during the term, then a LICENSE or an EASEMENT is the proper tool. NOTE: For a LICENSE or EASEMENT to convey the right to exclusive use, it must be specified in the document.
- If the use is to be long-term (like the underground installation of fiber optic cable), an EASEMENT is the appropriate form. If the use is to be short-term (like a construction lay down area or a film shoot) or for only part of the time during the term, (like use of a classroom Tuesdays and Thursdays, from 9-10 am, for a semester), a LICENSE is most appropriate. If the use is intermittent, the FUA would be appropriate in the latter example.
- If an owner wants an agreement that his/her view not be blocked by the use of another parcel, such an agreement should be documented with an EASEMENT.
Send to APBC as you would send in an MOU from the process here.
Real Property Templates
Please contact us if you have any questions or concerns regarding an agreement related to real property.
- Licenses, leases and all other real property agreements
Ryan Harms – Principle Analyst
(510) 987-0696 or firstname.lastname@example.org
- Facility Use Agreements
Linda Harris – Risk Services Analyst
(530) 750-1263 or email@example.com