[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR28.203-3]

[Page 540-541]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 28_BONDS AND INSURANCE--Table of Contents
 
           Subpart 28.2_Sureties and Other Security for Bonds
 
Sec.  28.203-3  Acceptance of real property.

    (a) Whenever a bond with a security interest in real property is 
submitted, the individual surety shall provide--
    (1) Evidence of title in the form of a certificate of title prepared 
by a title insurance company approved by the United States Department of 
Justice. This list entitled List of Approved Attorneys, Abstracters, and 
Title Companies is available from the Title Unit, Land Acquisition 
Section, Land and

[[Page 541]]

Natural Resource Division, Department of Justice, Washington, DC 20530. 
This title evidence must show fee simple title vested in the surety 
along with any concurrent owners; whether any real estate taxes are due 
and payable; and any recorded encumbrances against the property, 
including the lien filed in favor of the Government under paragraph (d) 
of this subsection;
    (2) Evidence of the amount due under any encumbrance shown in the 
evidence of title;
    (3) A copy of the current real estate tax assessment of the property 
or a current appraisal dated no earlier than 6 months prior to the date 
of the bond, prepared by a professional appraiser who certifies that the 
appraisal has been conducted in accordance with the generally accepted 
appraisal standards as reflected in the Uniform Standards of 
Professional Appraisal Practice as promulgated by the Appraisal 
Foundation, 1029 Vermont Avenue NW., Washington, DC 20005.
    (b) Failure to provide evidence that the lien has been properly 
recorded will render the offeror nonresponsible.
    (c) The individual surety is liable for the payment of all 
administrative costs of the Government, including legal fees, associated 
with the liquidation of pledged real estate.
    (d) The following format, or any document substantially the same, 
shall be used by the surety and recorded in the local recorder's office 
when a surety pledges real estate on Standard Form 28, Affidavit of 
Individual Surety.

                           Lien on Real Estate

    I/we agree that this instrument constitutes a lien in the amount of 
$----- on the property described in this lien. The rights of the United 
States Government shall take precedence over any subsequent lien or 
encumbrance until the lien is formally released by a duly authorized 
representative of the United States. I/we hereby grant the United States 
the power of sale of subject property, including the right to satisfy 
its reasonable administrative costs, including legal fees associated 
with any sale of subject property, in the event of contractor default if 
I/we otherwise fail to satisfy the underlying ( ) bid guarantee, ( ) 
performance bond, ( ) or payment bond obligations as an individual 
surety on solicitation/contract number -----. The lien is upon the real 
estate now owned by me/us described as follows: (legal description, 
street address and other identifying description)
    IN WITNESS HEREOF, I/we have hereunto affixed my/our hand(s) and 
seal(s) this ---- DAY OF ---- 19--.

________________________________________________________________________

WITNESS:

________________________________________________________________________

(SEAL)

    I, ------, a Notary Public in and for the (CITY) ------, (STATE) --
----, do hereby certify that ------, a party or parties to a certain 
Agreement bearing the date ------ day of ------ 19--, and hereunto 
annexed, personally appeared before me, the said ------ being personally 
well known to me as the person(s) who executed said lien, and 
acknowledged the same to be his/her/their act and deed. GIVEN under my 
hand and seal this ------ day of ------ 19--.

________________________________________________________________________

NOTARY PUBLIC, STATE

    My Commission expires:

[54 FR 48987, Nov. 28, 1989]