Rules for Purchasing a Rehabbed & Ready Home

 

General Rules

  • The Detroit Land Bank Authority (DLBA)’s program is for owner occupants only.
  • No discounts apply on the Rehabbed & Ready homes.
  • Rehabbed & Ready homes will be sold through a traditional real estate sales method, utilizing seller’s and buyer’s agents.
  • Purchasers of Rehabbed & Ready homes are limited to one purchase. Purchasers will be required to submit a Principal Residency Exemption Form, confirming the house they purchased is their main residence.

 

General Eligibility

  • The DLBA Rehabbed & Ready program is for owner occupants only.
  • You 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.
  • You cannot have material unresolved blight or code violations in the City of Detroit.
  • You cannot have won a DLBA auction and then failed to make a deposit, close on the purchase, or satisfy any conditions of bringing the property up to code and having it occupied within 6 months (9 months for homes located in a historic district).
  • You are limited to the purchase of one Rehabbed & Ready property.
  • Any purchaser who misrepresents themselves regarding these qualifications is subject to loss of deposits and/or the property.
  • You are ineligible to purchase a property from DLBA if you are currently involved in a bankruptcy proceeding.
  • You are ineligible to purchase a property from the DLBA if you have an IRS lien filed against you.
  • In addition, DLBA reserves the right to exclude offers from prospective buyers with a history of delinquent taxes or code violations.

 

Making an Offer

  • Buyer’s agent is to submit a complete offer package which includes a signed Purchase Agreement, signed Sellers Disclosure, Signed LBP Disclosure, Agency Disclosure, indication of payment method (including pre-approval or proof of funds) and, if you are financing, authorization for your lender to provide financial information to the DLBA. The Purchase Agreement must be complete, which includes the price you are willing to pay, date of closing, date of inspections (if any), type of financing, down payment, earnest money deposit all signed and dated by the appropriate parties making the offer. Once a complete package is assembled, present it to the seller’s agent, In House Realty.
  • The seller’s agent will present the offer to the DLBA and reply with an answer whether the offer was accepted, denied or if there are any changes in terms (a counteroffer) within 3 business days.
  • If the offer is accepted, the online listing will indicate UNDER CONTRACT and Open Houses will no longer be held for the house. If a counteroffer is provided by the seller’s agent, the house listing will indicate ACTIVE and Open Houses may continue until an offer is officially accepted.
  • The Rehabbed & Ready program is for owner occupants only; any offers made by an investor for investment purposes will be denied.
  • If you don’t have an agent and would like one, call (866) 918-7874 or email RehabbedandReady@inhouserealty.com to be referred to a real estate agent who will assist you in making an offer.
  • The DLBA encourages buyers interested in purchasing a Rehabbed & Ready home to work with an agent but does not require it. Any buyers not represented by an agent must submit a complete offer package and will be bound by all terms and conditions outlined by the DLBA.  Neither the DLBA nor its agent will provide advice, legal assistance or otherwise advise or assist buyers in completing, negotiating, presenting, or understanding the documents associated with the buying process. 

 

Before Closing

  • You will have the right to inspect the home if it is included in the purchase agreement included in the submitted offer packet.
  • If you are lender-financing, the closing will be scheduled for 7 days after the "clear to close" is provided by the buyer's lender/agent.
  • The buyer's agent and seller's agent will work together to schedule a pre-closing walkthrough and any other day-of closing requirements, prior to the day of closing.

 

At Closing

  • As the seller, the DLBA will pay all outstanding water bills, encumbrances, or delinquent property taxes at closing. The Purchaser will be responsible for paying all current year real property taxes prorated as of the date of closing, as well as property taxes in all future years.
  • Purchaser must pay the purchase price or cause its lender to do so, all closing costs, and the current year property taxes prorated to the date of closing.
  • Purchaser will receive a title commitment, Quit Claim Deed, keys or other means of access and become the legal owner of the property.

 

Deadline for Closing

  • If you are not seeking lender financing for the sale of the property, you will need to close on the sale no later than 14 days after the purchase agreement has been fully executed.
  • If you are seeking lender financing for the sale of the property, you must close on the sale no later than 60 days after the purchase agreement has been fully executed. 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 you fail to close by the deadline, you may forfeit both your earnest money deposit and  your right to purchase the property. The DLBA may immediately offer the property to the next highest offer or place it back on the market.
  • Closings will take place at the offices of the Seller’s title company. Electronic closings are not available.

 

Condition of Homes

  • The DLBA 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. Bidders are advised to conduct their own careful inspection. 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.
  • The Home Depot warrants the installation services identified in the scope of work, for a period of one year, from the date that the installation services were completed. The Home Depot's warranty does not cover damage caused by abuse, neglect, or improper care/cleaning. Products and materials provided by The Home Depot, as identified in the scope of work, are warranted exclusively by the product manufacturer's warranty, if any/or as applicable. Purchasers may contact DLBA@HomeDepot.com for any warranty questions.

 

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Detroit Land Bank Authority
500 Griswold Street, Suite 1200, Detroit, MI 48226
313.974.6869
Communityrelations@detroitlandbank.org
The Detroit Land Bank is an Equal Housing Opportunity Provider and does not discriminate in the sale, rental, and financing of housing, or in other housing-related transactions, based on race, color, national origin, religion, sex, familial status, age, height, weight, or disability.