Michigan Administrative Code › Department - Technology Management and Budget › State Facilities Administration › Real Estate Services › Section R. 18.501 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1. As used in these rules:
(a) "Agreement" means a contract transferring the right, acquired for a consideration, to possession or use of real property on a month-to-month basis for a period not to exceed 1 year.
(b) "Appraisal" means an estimate or opinion as of a given date of the fair market value of real property.
(c) "Bidder" means an individual or other legal entity that submits a sealed bid or bid proposal.
(d) "Bidder list" means a general or geographic list maintained by the department's real estate office which sets forth the names and addresses of potential owner/lessors who have requested that they be provided solicitations for sealed bids or bid proposals. The bidder list is subject to ongoing additions and deletions in response to written requests from owner/lessors and is also formally updated by solicited responses on an annual basis.
(e) "Bid proposal" means an offer submitted in response to the state's solicitation for available space (including major remodeling or new construction, or both, when acceptable multiple locations are available) which meets or exceeds minimum specifications, requirements, and instructions outlined in a solicitation notice, with all exceptions or substitutions noted.
(f) "Department" means the department of technology, management and budget.
(g) "Director" means the director of the department or his or her authorized representative.
(h) "Fair market value" means the highest estimated price which real property will bring if offered for sale on the open market, allowing a reasonable time to find a purchaser who would buy with knowledge of the property's possible uses.
(i) "Financial analysis" means an analysis of the cost or value of the land, the improvements, and construction; amortization; interest; taxes; insurance; and any other pertinent factors included in a proposed rental rate which can be verified and compared to the open market competition.
(j) "Lease" means a contract transferring the right, acquired for a consideration, to possession or use of real property for a definite period of time.
(k) "Lessee" means a tenant or one who rents real property.
(l) "Lessor" means the owner of real property or one who lets the property.
(m) "Market rental analysis" means the conclusion reached through the comparison of rental rates on similar properties taking into account established market costs for differences in services provided.
(n) "Option" means the right, acquired for a consideration, to buy certain property for a fixed price within a specified time.
(o) "Real estate manager" means the manager of the state's central real estate office as designated by the director.
(p) "Real property" means the interests, benefits, and rights inherent in the ownership of the physical real estate, including the land, everything attached to it, and everything under or over it.
(q) "Rental" means a consideration paid by a lessee for the possession or use of real property.
(r) "Sealed bid" means a bid quotation in response to a solicitation where comparable facilities are established by complete plans and specifications which may include a designated site.