JULY 2005
Any direct VA lease must be recorded in the
in this section may be instrumental in
documenting that the CO acted within the scope
land records of the jurisdiction in which the
premises are located to protect VA' leasehold
s
of his or her delegated authority.
interests. By recording the lease, the VA'
s
Creating a Space Acceptance/Inspection File.
leasehold interests will forever be established
"first in time" relative to any other legal
This file contains all of the documents that
documents or agreements, which are created
indicate that the Lessor has prepared and
after the lease is recorded and that affect the
delivered the space to VA in a condition that is in
real property which VA occupies.
Such
full compliance with the terms and conditions of
documents include financing agreements and
the lease:
contracts of sale.
Approved construction documents (these
Upon recordation of the lease, the local office of
may be bulky documents and may be
land records in the jurisdiction in which the lease
physically stored in another location with
was recorded will generally provide a printed
other drawing documents);
receipt indicating the date on which the lease
A summary of all substantial changes to the
was recorded as well as the exact location of the
approved construction documents which
lease recordation. In many jurisdictions, this
reference the corresponding Supplemental
location reference is stated as a unique liber and
Lease Agreements;
folio designation. The words "liber" and "folio"
are Latin words which mean "book" and "page,"
Notes and correspondence;
respectively. The CO needs to make sure that
Preliminary and final inspection reports;
the VA receives a copy of this receipt for the file.
Equipment and materials warranties, oper-
ABSTRACTING THE LEASE
ating manuals, and product specifications
(these items may be stored in another
The CO abstracts the lease using a form [Refer
location, perhaps in the local Engineering
to Appendix A for sample Abstract of Offer]
Service office); and
similar to the Abstract of Offer which was part of
the offerer's evaluation process. The difference
Notice of Acceptance of Premises.
between the lease abstract and the Abstract of
Offer is that the lease abstract includes a
OWNERSHIP OF ALTERATIONS AND
synopsis of non-economic, as well as economic,
IMPROVEMENTS
provisions of the lease. Economic provisions
VA may make alterations, attach fixtures, and
are the financial terms and conditions of the
erect additions or signs in or on the premises as
lease. The non-economic provisions are non-
provided in the U. S. Government Lease of Real
financial in nature, such as critical dates,
Property, Standard Form 2, and in the General
quantity of space leased, hours of building
Clauses, GSA Form 3517B [See Part IX of the
operation, and the levels of cleaning service.
Template SFO in Appendix C of this Guide].
The clause notes that any fixture, alteration, or
A lease abstract is a beneficial tool which can be
structure placed on the premises by VA remains
used by the CO to help administer a portfolio of
the property of VA.
leases. The benefits of such a lease database
include:
There should be a provision in the lease giving
the Government the right to either remove
Helping to keep track of critical dates as
equipment, material, or fixtures or to abandon-
stated in the lease, such as notice dates and
in-place without restoration payment. The ACO
expiration dates;
should verify this.
Providing a quick way to produce reports
that assist in the preparation of an annual
RECORDING THE LEASE
report of real property owned or leased by
Per Paragraph 3.11 in Part I of the SFO, the
the Government in compliance with Federal
Lessor shall provide evidence of the recordation
Property Management Regulation (FPMR)
of the lease in the County or political subdivision
Part 101-3, Annual Real Property Inven-
in which the building is located. This is to be
tories; and Assisting with the calculation of
done within 30 days after award.
annual rent projections.
VA DESIGN GUIDE
LEASE BASED OUTPATIENT CLINICS
SECTION 9-3
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