Surplus Land Disposition

A simplified flow chart showing the surplus land disposition process.

A simplified flow chart showing the surplus land disposition process.

The disposition of surplus real property provides for the disposition of properties determined to be surplus to public use. Subject to a strict process, they can be sold to a public agency, an adjacent property owner, or the party who submits the highest bid. 

Surplus government land -- land owned by an agency of the state, or any local agency that is no longer necessary for the agency’s use -- must be first made available for housing for persons and families of low and moderate income or recreational or open space purposes. The sales price will be based on the appraised fair market value or less if it is determined to be in the best interest to sell the property for a negotiated amount.

During the course of implementing various programs and providing services to the public, agencies acquire real property for various uses. As public needs change, agencies may identify properties as surplus.

This option, provided by the California Department of Real Estate, is a useful tool for a municipality to dispose of its own, underutilized real property. It is a multi-step process that ultimately can lead to financial and economic benefits for the community.

RSG is well-versed in handling surplus property, in addition to having extensive experience in real estate acquisition and disposition. For more details, please contact Nathan Gunderman at (714) 316-2104.

Written by Nate Gunderman, an Associate at RSG