(a) To be eligible for sale, the property must be fully paid for and free of liens incurred in connection with the acquisition and construction of the property. For purposes of this section, a federal debt is not considered a lien. However, any debt or obligation may be satisfied at the time of sale. If title insurance is provided, it may serve notice that any debt or obligation is satisfied. Finally, to be eligible for sale, the Adjutant General declares the property surplus.

(b) The real property shall be advertised for sale to the highest bidder.

(c) The advertisement shall be published in such a way to ensure the public has notice of the department's intent to sell a particular property. The notice must be included in at least one newspaper of general circulation including, if possible, the county in which the real property is located and/or published in an online-advertisement and published in the Texas Electronic Business Daily.

(d) The advertisement shall notify bidders of the following:

(1) Whether bids will be taken openly, through a sealed bid process or public auction;

(2) That all bids must be in written form if conducted by sealed bid;

(3) That bids are due at a specified time, place and date;

(4) That the real property interests shall be conveyed by Special Warranty Deed or Deed Without Warranty;

(5) That the agency shall retain all mineral interest. The agency may retain water and other energy sources that may be deemed in the best interest of the agency; and

(6) The department may reject any and all bids.

(e) If the original grantor or donor is a governmental entity, the department may convey to the original grantor or donor, at fair market value based on an independent appraisal, the real property, and any improvements existing on the land at the time of divestiture, including those made to the land by the department. If the original grantor or donor declines to purchase the real property and improvements at a fair market value based on an independent appraisal, the department will initiate a sealed bidding or auction process.

Source Note: The provisions of this §132.1 adopted to be effective July 3, 2018, 43 TexReg 4470