Rules for Applying to and Purchasing Own It Now Properties
- Browse properties online.
- View the home prior to purchasing by going to the property’s listing page and selecting to Request a Property Viewing.
- Select a username. One word – no spaces may be included (i.e., Bill211.) Offensive usernames will not be allowed to participate.
- Select to purchase as an individual or as an organization.
- Complete remainder of information and check the box to agree to these Rules.
- NOTE: The individual or company who applies must close in the name in which they applied.
Who Can Apply
- Applicant must be a Michigan resident, a non-Michigan resident who will live in the property after rehab, or a company or organization authorized to do business in Michigan.
- Applicant, or any legal entity in which they have an ownership interest, cannot have unpaid delinquent property taxes on properties located in Wayne County, or have lost property to back taxes in Wayne County in the last three years.
- Applicant, or any legal entity in which they have an ownership interest, cannot have material unresolved blight or code violations in the City of Detroit.
- An applicant is ineligible to purchase a property from the Detroit Land Bank Authority if they or the entity that they are purchasing under are currently involved in a Bankruptcy Proceeding.
- An applicant is ineligible to purchase a property from the Detroit Land Bank Authority if they have an IRS lien filed against them or the entity that they are purchasing under.
- Applicants cannot make on offer on more than one property at a time (i.e., bidders cannot bid on an Auction and make an offer on an Own It Now home at the same time.)
- The applicant, and all other legal entities in which the applicant (including any applicant entity) holds an ownership interest, is limited to the purchase of one Auction or Own It Now property until that first purchased property achieved compliance, which includes, the property being brought up to code and being occupied within six months (nine months for homes located in a historic district). Once the purchaser has demonstrated the ability to meet the terms of the purchase agreement by successfully bringing the property up to code and having the property occupied, may be eligible to purchase additional properties. The purchaser can purchase one (1) property per calendar month, up to nine (9) properties in a twelve month period from the last date of transfer. However, the purchaser will not be able to purchase any additional properties if any property that was previously purchased is not in compliance with all requirements outlined in the purchase agreement. Please note that, for purposes of this rule, any property that is purchased may be deemed out of compliance at any time regardless of the 6-month (or 9 month) deadline. This rule shall also apply to all purchasers that have won previous auction bids and have not completed the rehabilitation of at least one property and have failed to get it occupied within the required time period.
- In addition, the Detroit Land Bank Authority (“DLBA”) reserves the right to exclude participants with a history of delinquent taxes or code violations.
How to Apply
- Applicants will submit their highest offer for a property. Once any offer is submitted on a property, a countdown clock of 72 hours will begin. Applicants can increase or decrease their offer price anytime during the offer period. Once the countdown clock has ended, offers cannot be changed.
- The listing page will reflect how many offers have been submitted on a property, but will not display offer prices. The applicant with the highest offer who meets all purchasing requirements will be accepted.
- Applicant’s will receive an email notice immediately after submitting an offer. Applicants will hear back on the final status of their offer via email within 7 business days after the offer period ends.
- The DLBA reserves the right to reject any and all offers and either remove a property from Own it Now, or list it at a later date.
Credit Card Processing
- No credit cards will be charged upon submitting an offer.
- Credit cards are only charged to applicants with the highest offer who meets purchasing requirements.
- If an applicant’s credit card is rejected, the DLBA reserves the right to reject that applicant.
- Please note that the credit card issuing bank needs to support Address Verification System (AVS) and the address information provided by the applicant as part of registration must match the address on file with the credit card issuing bank.
- Within three business days of receiving email confirmation that they meet eligibility requirements, purchasers must pay the balance of the down payment, which is 10% of the offer price, minus the $1,000 that was already paid. This down payment must be made by credit card, while the DLBA, at its sole discretion, may allow for other methods of certified payment. If the purchase price is $10,000 or less, the $1,000 deposit will be the down payment. This deposit is non-refundable.
- Once purchasers have received eligibility confirmation and have paid the deposit, the purchaser will receive an electronic Purchaser Agreement. Purchasers must submit the signed and notarized Purchase Agreement and return to the DLBA within three business days for the Seller’s signature.
- The Purchase Agreement is a contract with the DLBA in which they agree that within 6 months of closing, the property will be brought up to code and occupied. If the property is in an historic district or has historic designation, the purchasers contract will state that they have 9 months to bring it up to code and have it occupied.
- If purchasers fail to meet these deadlines, they forfeit both their purchase price and the property.
- In cases where substantial progress has been made, but the repair work is not complete despite the best efforts of the buyer, the DLBA, at its sole discretion, may extend the 6 month deadline.
- If the down payment and signed and notarized Purchase Agreement is not submitted within three business days, the Land Bank will retain the $1,000.00 as a penalty charge and the buyer will lose the right to purchase the property.
What happens after the Purchase Agreement has been submitted?
- Purchasers will receive an email forwarding a closing timeline showing items needed to complete the purchase.
- At closing, purchasers must pay the offer price in full (minus the down payment) and all closing costs.
- Purchasers will then receive a Quit Claim Deed and become the legal owner of the property. Please note, that the DLBA does not guarantee clear title to the property (see FAQ for more information).
Deadline for Closing
- If the purchaser is not seeking lender financing for the purchase or rehabilitation of the property, they must close on the sale no later than 30 days after receiving their purchase agreement.
- If the purchaser did not select to purchase title services, they will need to close on the purchase no later than 30 days after receiving their purchase agreement.
- If they are seeking lender financing for the purchase or rehabilitation of the property, they must close on the purchase no later than 60 days after being selected buyer. The DLBA will consider requests for closing deadline extensions on a case by case basis with documentation from the lender that all required buyer documentation has been submitted for lender review, and lender requests additional time for loan processing and a final loan decision.
- If the purchaser fails to close by the deadline, he/she will forfeit their down payment and the property. The DLBA may offer the property to the next highest offer, relist it at a later date, or remove from the program.
- If a buyer selected to purchase title services, closing will take place at the offices of the Seller’s title company. Electronic closings are not available.
- If a buyer did not select to purchase title services, closing will take place at the DLBA’s offices. Electronic closings are not available.
Obligation to Promptly Repair and Occupy the Property
- Within 30 days after closing, the purchaser must provide the DLBA an executed copy of a contract to rehab the home. If they can demonstrate to the DLBA they have the skills to rehab the house on their own, within 30 days after closing he/she must provide the DLBA with a plan of work and receipts showing that the necessary materials have been purchased. See following web link Post-Closing Frequently Asked Questions (FAQ):
- Within 6 months after closing (9 months for homes located in a historic district), purchaser must provide the DLBA with a Certificate of Occupancy, or Certificate of Approval for the house and demonstrate that the house has an occupant.
- If the purchaser fails to meet these deadlines, they will forfeit both their purchase price and ownership of the property will return to the DLBA.
- Many of these properties were originally built using lead-based paint, asbestos, or other hazardous materials. It is recommended that homeowners seek professional advice on how to properly address hazardous materials.
NOTICE: The Detroit Land Bank Authority advises all potential applicants that it is selling these properties “as is, where is, with all faults” with no representations or warranties of any kind, including but not limited to any warranty of habitability or fitness for a particular purpose. Applicants are advised to conduct their own careful inspection, particularly with regard to the anticipated cost to make the repairs that will be required under the Purchase Agreement to bring a property up to Code within the required 6 month time frame. Additionally, the DLBA reserves the right to conduct a direct sale through the Own It Now program in necessary circumstances. Any information provided on this website or otherwise, orally or in writing, now or in the future, is for convenience only and the DLBA makes no representation or warranty as to its accuracy or completeness.