FAQ



FAQ for property Auction

1. How do I register?

Select a one-word bidder name without any spaces. Provide contact information and check the box that you agree to the rules. The applicant or entity registered will be the sole purchaser.


2. I can’t complete my registration, and the site will not allow me to choose State or Region.

If you are using Internet Explorer, you must use version 10.0 or higher, or use another web browser. Internet Explorer 11.0 can be used with Windows XP, Windows Vista, Windows 7, or Windows 8.

Download the Google Chrome Borwser here


3. How can I view the property?

You may browse properties online for at least a week before the bidding opens. You can also see the properties in person at the scheduled Open House events.


4. Who is eligible to bid?

All applicants must meet the same eligibility requirements to buy Auction homes as you must to buy Own It Now homes.

  • You 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.
  • You, or any legal entity in which you 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. To pay or check taxes due please visit, Wayne County Treasurer   
  • You, or any legal entity in which you have an ownership interest, cannot have material unresolved blight or code violations in the City of Detroit. To pay or check tickets due please visit, City of Detroit Department of Administrative Hearings
  • A Purchaser 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. 
  • A Purchaser 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.

5. How does the bidding process work?

Each property will be open for sale for only one day. Bidding will be open from 9:00 a.m. until 5:00 p.m. If any bid is made within the last 5 minutes that bidding is open, the closing time will be extended by 5 minutes, and extended another 5 minutes each time a bid is made until no further bids are made. The bidding will open at $1,000.00. All bids must go up in increments of at least $100. To bid, click on the property that you want and then click on “Bid Now”. If this is your first bid you will be prompted to provide your credit card information. The amount of each bid submitted will be posted immediately on the screen, so that the public knows the current bid at all times, together with the Bidder Name of the current bidder.  Bidders are encouraged to refresh their browser screen frequently to ensure that current bid amounts are reflected. The DLBA reserves the right to reject any and all bids and either remove a property from auction, or reopen bidding on it at a later date.


6. Is there an automatic bidding system?

If you know the maximum amount that you want to bid and don't want to sit at the computer all day, you can enter an automatic bid with a preset maximum amount that is hidden on the website. The computer will then automatically enter bids for you in $100 increments only as needed to top other bidders. For example, at 10:00 a.m., you are the winning bidder at $5,000, but you need to go out. You can enter an automatic bid with a hidden maximum of $20,000. When someone else bids $5,100, the computer will automatically enter a bid from you at $5,200. The computer will only enter bids for you as necessary to keep your place as the winning bidder, up to your maximum bid price. NOTE: Be sure to double check your bid amount. Once you enter a maximum bid, it cannot be deleted!


7. What credit cards are accepted?

Only MasterCard, Visa, and Discover credit cards are accepted at this time. Only one card per sale may be used. Split tenders cannot be performed.


8. When will I have to enter my credit card information?

Credit Card information will be required for all bidders upon registration. There is no authorization or charge upon registration. When you bid, the credit card will be authorized for $1,000.00 but will not be charged. If you do not have at least a $1,000 available balance on your credit card, you will not be able to place a bid.

Only winning bidders’ credit card will be charged a nonrefundable $1,000.00. If your credit card is denied for any reason, you will have until noon the next business day to process another credit card, or to provide a certified check for the $1,000.00 winning deposit. If it is not received by this deadline date, you will lose your right to purchase the property.


9. How much is the nonrefundable deposit and when is it due?

The required deposit is 10% of the winning bid price, or $1,000.00, whichever is greater. The deposit amount is due within three (3) days of winning the bid. If the winning bidder does not provide the balance of the 10% deposit within 3 days of winning the bid, the $1,000 that was charged to the credit card will be retained as a penalty charge, the bidder will lose the right to purchase the property, the bidder account will be deactivated, and they will not be allowed to make future auction bids.


10. What happens to the credit card authorization for losing bidders?

All losing bidder credit card authorizations are immediately released by the Land Bank’s merchant account provider. However, the Bidder’s credit card issuer often will take 2-3 business days to release the $1,000 authorization. This may restrict bidders who do not have an additional $1,000 available balance from bidding until the authorization is released by the credit card issuer.


11. Are there any discounts?

Eligible City of Detroit employees may receive an one time 50% discount on an auction property. Applicants must be approved by their Human Resources department prior to bidding. The discount will be applied at the time of closing.

More information can be found here.


12. What happens after I win a bid?

The next business day after you win a property bid, you will receive an email notifying you that you are the winning bidder. The sales and program team will review your eligibility and you will hear back within 3-5 business days.


13. What happens after I am found eligible to complete the purchase?

Three to five business days after you win a property bid, you will receive an email notifying you that you are eligible along with a link that will take you to a form for inputting your purchaser information for the preparation of your Purchase Agreement. Once you have completed inputting all your purchaser information, your Purchase Agreement will be generated electronically and downloaded to your computer for printing. In addition, you will receive an invoice showing any balance of down payment due, and a Closing Tasks and Timeline. A web link will be included in the email taking you to a secure site where you can pay by credit card any remaining down payment that may be due. Winning bidders will need to sign the Purchase Agreement in front of a notary and have them notarize the document. You can do this at your bank or have it notarized at the Land Bank office if you sign in person. The signed and notarized Purchase Agreement must then be submitted along with a copy of government issued ID for all listed purchasers within three business days of the winning bid along with any unpaid deposit.

For legal entities, winning bidder must submit within 3 business days the following documents along with the items outlined above:

  •  Copy of Certificate of Good Standing obtained from the Michigan Department of Licensing and Regulation showing that purchasing entity is authorized to transact business in the state of Michigan, or for newly formed legal entities in the state of Michigan, a copy of Articles of Incorporation for Corporations or Articles of Organization for Limited Liability Companies.
  • Affidavit listing the owners, or shareholders, (with titles) of the corporation, or limited liability company, percentage of ownership, legal address of the company where deed and future water bills and property taxes are to be mailed, and authorized signer(s) of the legal entity.

If you are ineligible based on the listed eligibility requirements, your deposit will be forfeited and the property will be offered to the next highest bidder.


15. When can I inspect the properties being auctioned?

If you are interested in viewing the property before closing, there is a $35 non-refundable fee per appointment. Three hour appointments are available 9-12pm, 11am-2pm, 1-4pm on Mondays, Wednesdays, Fridays as well as 11am-2pm and 1pm-4pm on Saturdays (depending on staff availability). Only one appointment per purchaser allowed per day. No walk-in appointments are available. Appointments are scheduled on a first come first serve basis. You must arrive within 15 minutes of your appointment time or you will need to schedule another access appointment. Any missed appointments will result in forfeiture of payment.


16. How do I schedule an appointment?

Locate the Purchase Agreement email you received from info@buildingdetroit.org after being deemed eligible. Toward the bottom of this email you will find a link to schedule a Pre-Closing Property Visit. Click on this link and follow the instructions to schedule your property visit. Please do not edit any information that has auto-populated. This information is required by the Detroit Land Bank for scheduling the appointment. Read the terms and conditions of the Pre-Closing Property Visit and note anyone who will be joining you at the property. All attendees will need to complete and sign a waiver at the property. Check the box if you agree to the terms and conditions and proceed with scheduling and paying for your appointment. Visa, MasterCard, and Discover are accepted.


17. How much will my taxes be once I’ve won the bid and met all the requirements?

Property taxes are determined by the City of Detroit Assessor based upon the Taxable Value at the time of sale, which will be equal to the State Equalized Value (SEV) of the property (or half the Fair Market Value of the property).

More information can be found in the following links, or by calling the City of Detroit Assessor at (313) 224-3011.

Neighborhood Enterprise Zone Frequently Asked Questions

Principal Residence Exemption Form 

Office of the Assessor


18. What is the closing time frame?

If you are not seeking lender financing for the sale or rehabilitation of the property, you will need to close on the sale no later than 30 days after the winning bid. If you are seeking lender financing for the sale or rehabilitation of the property, you must close on the sale no later than 60 days after winning the bid. The Land Bank 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 will forfeit your down payment and the property and are forbidden to bid in all future auctions. The Land Bank may offer the property to the next highest bidder, auction it again at a later date or remove it from the auction. Closings will take place at the offices of the Seller’s title company.


19. Can I close electronically since I live out of town?

No. All persons that will sign the purchase agreement and other closing documents must be present in person for the closing at the offices of the Seller’s closing title company.


20. What will be the closing costs charged by the Detroit Land Bank?

Buyer will be responsible for the following estimated closing costs:

  • Title search:  $100 - 150 depending on title company that is closing the sale (more if buyer purchases a title insurance policy)
  • Pre-sale inspection  currently: $295 for single family home, $355 for 2 family home, $175 for 3-family home
  • Closing Fee: $250 for title company expense for closing services (If buyer is obtaining lender financing, buyer will need to obtain additional closing fee charge from Title Company) 
  • Recording Fee for the deed:  $30.00
  • Tax Certification Fee: $25.00

Please note, that if Purchaser is obtaining lender financing, there will be additional closing costs and fees to be determined by the lender, and $500.00 to clear title if desired by buyer.


21. Will I obtain clear title to the property at closing?

The Land Bank will issue a Quit Claim Deed as evidence of title at closing, and does not guarantee clear title to the property all properties are sold “AS IS, WHERE IS, WITH ALL FAULTS”. The Detroit Land Bank makes no warranty or representation, express or implied, or arising by operation of law, including, but not limited to, any warranty of condition, habitability, merchantability or fitness for a particular purpose, with respect to the physical condition or status of the title to this property. The Land Bank will provide a copy of a Title Search Report to the winning bidder for each property (this will be a closing cost to the Buyer). To ensure clear title, the buyer may wish to obtain title insurance at an additional cost to the Buyer, and the cost of the title search report will be credited toward the cost of the title commitment. If desired, the Buyer will need to work with the title company to resolve any identified title issues at the cost of the Buyer.


22. Will I be responsible for any back taxes or water bills owed on the property?

Seller will pay all outstanding water bills, liens, or delinquent property taxes at closing. Purchaser will be responsible for paying all current year real property taxes, as well as property taxes in all future years. Current year taxes will need to be paid at closing along with closing costs.


23. What is my obligation to rehab the property?

Within 30 days after closing, you must provide the Land Bank an executed copy of a contract to rehab the home. If you can demonstrate to the Land Bank you have the skills to rehab the house yourself, within 30 days after closing you must provide the Land Bank with a plan of work and receipts showing you have purchased the materials necessary. See following web link Post-Closing Frequently Asked Questions (FAQ): Many of these properties were originally built using lead-based paint, asbestos, or other hazardous materials. If available, environmental reports will be provided to winning bidders. It is recommended that homeowners seek professional advice on how to properly address hazardous materials. Within 6 months after closing (9 months for homes located in a historic district), you must provide the Land Bank with a Certificate of Occupancy, or Certificate of Approval for the house and demonstrate that the house has an occupant. If you fail to meet these deadlines, you will forfeit both your purchase price and the property, and are forbidden to bid in all future auctions.


24. How often should updates to the home be made and submitted to the Detroit Land Bank Authority?

 

Required Regular UpdatesAcceptable proof at each milestone
Agreement signed (0 days)  
Proof Secured (15 days)
  • Photos of all 4 sides of property showing it's secured
  • Photos showing all exterior debris has been removed
  • Photos showing yard/grass is maintained
Rehab 30-day update Proof of progress on property including:
  • Picture of inside (BEFORE and AFTER)
  • Picture of outside (BEFORE and AFTER)
  • Receipts from contractors for work completed
  • Receipts for material used for property
  • Utility Bills
  • Permits/inspections with BSEED
  • Receipts for appliances such as furnaces and water heaters
  • Interior photos of key rooms (kitchen, bath)

These items need to be provided EACH MONTH at 30 days, 60 days, 90 days and 120 days

Rehab 60-day Update
Rehab 90-day Update
Rehab 120-day Update
* Rehab 150-day Update (extension possible)

In addition to the proof provided above provide:

  • Definitive property completion date
  • Move in date
  • Future lease/rental agreement (if applicable)

A short extension is possible if diligence has been shown up to this point.

Certificated of Completion (180 days)
  • Proof property is occupied (Signed lease, photos with furniture, photos with lights on, utility bills etc)
  • or agree to a site visit by DLBA

 

25. Where can I find information on the City of Detroit’s building codes, ordinances, and acts?

Click here for the City of Detroit's building codes, ordinances and acts


26. Where can I find information on the City of Detroit’s Permit Application Procedures, Building Permit Requirements, Zoning Information and Requirements and Process for obtaining a Certificate of Occupancy?

More information can be found on the Departments and Agencies page of the the City of Detroit website. Select Builds, Safety Engineering and Environmental under the Departments header.

 

Following are web links for the following items:

Permit Application Procedures: http://www.detroitmi.gov/How-Do-I/Apply-for-Permits
Building Permit Requirements: http://www.detroitmi.gov/How-Do-I/Construction-Permit-Information
Zoning Information: http://www.detroitmi.gov/How-Do-I/Apply-for-Permits/Zoning-Permit-Information
Requirements and Process for obtaining a Certificate of Occupancy: http://www.detroitmi.gov/Portals/0/docs/Permits/BSEED/Construction/Certificate%20of%20Occupancy%20Process%20-%20Plan%20Review%20-%20NEW.pdf


27. Can I obtain financing to purchase and renovate the home?

Lender financing information can be found at  http://buildingdetroit.org/Financing


28. How many properties can I purchase?

Purchasers are limited to the purchase of one property, which must be brought up to code and be occupied within 6 months (9 months for homes located in a historic district) from the closing date. Then purchasers can purchase and close on one property per calendar month across all DBLA programs up to nine properties per twelve months from the last date of transfer. The approval of the Detroit Land Bank Authority and the Detroit City Council will be required to acquire more than nine properties per year.

If purchasers use a legal entity to purchase the property, they must have an ownership interest in it. This legal entity, and all other legal entities in which they have an ownership interest, cannot purchase more than one property until the first property has been brought up to up to code and occupied within 6 months (9 months for homes located in a historic district). The legal entity can purchase and close on one property per month once it has brought the first property up to code and has it occupied up to nine across all DLBA programs per twelve months from the last date of transfer.

 

FAQ for Rehabbed & Ready

1.  How do I find more information on the Rehabbed & Ready homes?

Information about the homes that are for sale can be found by clicking on the Rehabbed & Ready button on the buildingdetroit.org site, or by calling (866) 918-7874. The homes are also listed on the Multiple Listing Service (MLS), Realtor.com, Zillow, Trulia, and other home search websites.  To receive additional information on a specific home, complete the “Request More Details” request on the individual property page for that home or call (866) 918-7874.

 

 

2.  Can I visit a Rehabbed & Ready home?

Absolutely. Open Houses are held twice a week for every Rehabbed & Ready home that is currently for sale.   Open Houses are held Sundays (noon - 4pm) and Wednesdays (4pm-8pm).  All Open Houses are open to the public.

 

 

3.  How is buying a Rehabbed & Ready home different from winning an auction house from the Land Bank?

Rehabbed and Ready homes are move-in ready and do not require any rehab work. These homes have been updated with brand-new features, including new electrical, plumbing, high efficiency furnaces and water heaters.  In contrast, the Land Bank auction houses are generally properties where no rehab work has been performed, and the buyer is always required as part of the purchase to bring the house up to Code within a set time period.

In addition, the whole purchase process is very different between the two programs.  Rehabbed & Ready properties are sold through a traditional real estate process, with a set listing price and a purchase agreement submitted through a real estate agent.  Land Bank auction houses are sold in an on-line auction, so the final sale price is what the winning bidder is willing to pay and no real estate agents are involved.

 

 

4.  I’m an investor.  Can I purchase a Rehabbed & Ready home even if I don’t plan to live in it?

No, the Rehabbed & Ready program is only available to an owner who will occupy the home that he or she buys.

 

 

5.  How many properties can I purchase?

Each buyer can purchase only one Rehabbed & Ready property.

 

 

6.  Can I use any of the Land Bank discounts toward my purchase price for a Rehabbed & Ready home?

None of the Land Bank discounts can be used in the Rehabbed & Ready Program. This includes discounts provided to city employees, those recommended by nonprofit partners, those having completed housing counseling, and any other discount programs that may be added in the future.

 

 

7.  How do I make an offer to purchase a Rehabbed & Ready home?

You make an offer on a Rehabbed & Ready home just as you would to buy any other home – with the help of a real estate agent.  You can choose any licensed agent, or if you don’t have one already, you can call (877) 912-6278, or email rehabbedandready@inhouserealty.com, and they can refer you to a real estate agent who will assist you in making your offer.  The Land Bank will pay your agent the standard agent fee of 3% of the purchase price.

 

 

8.  How do I find out if my offer is accepted, and what happens next?

Your real estate agent will generally be notified of the Land Bank's response within 3 business days of the day your completed offer was received - if it was accepted, rejected, or if the Land Bank wants to make a counter-offer to the price or other terms that you proposed.

 

 

9.  What happens if my offer to buy the home is accepted?

  • You will have the right to have the home inspected, if you asked to do so.
  • As the seller, the Land Bank will pay all outstanding water bills, liens, and any delinquent property taxes at closing. In the future, you 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.
  • At closing, you must pay the purchase price or cause your lender to do so, and down payment if any, plus closing costs, and the current year property taxes prorated to the date of closing.
  • At closing, you will receive a Quit Claim Deed and become the legal owner of the property.

 

 

10.  Can I have an inspection on the home once my offer has been accepted?

Inspections may be performed after the Land Bank has accepted your offer and both parties have signed the purchase agreement.  Your real estate agent and a Land Bank representative will coordinate to set a date and time to gain entry to the home to perform the inspection.

 

 

11.  What is the timeline for closing?

If you are seeking lender financing for the purchase of the property, you must close on the purchase no later than 60 days after the purchase agreement has been fully executed. The Land Bank 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 that lender requests additional time for loan processing and a final loan decision.

If you are not seeking lender financing for the purchase of the property, you will need to close on the purchase no later than 14 days after the purchase agreement has been fully executed.

If you fail to close by the deadline, you may forfeit both your earnest money deposit AND your right to purchase the property. The Land Bank may immediately offer the property to other potential purchasers or place it back on the market.

 

 

12.  Can I close electronically since I live out of town?

Michigan does not allow electronic closings. Some of the documents the buyer executes require a notary which is not possible electronically. However, we will facilitate a “mail away” closing where the documents are mailed to the Buyers and their agent in advance and a closing agent will come to you.

 

 

13.  What will be the closing costs charged by the Land Bank?

The Land Bank does not charge any fee for purchasing or closing on a property sold under the Rehabbed & Ready Program.  However, you will be responsible for paying certain third-party closing costs, which are estimated to be in the range of charges set forth below.    

  • Any lender financing fees (there will be additional fees and costs to be determined by lender)
  • Title search fee – $100 - $150 depending on the title company that is closing the sale
  • Cost of title insurance if the you decide to purchase it (the cost of title insurance is based on the purchase price of the home)
  • Closing fee – $250 to the title company for its closing services. If you are obtaining lender financing, you will need to ask about any additional closing fees from the title company.  
  • Recording fee for the deed – $30 (if a mortgage is also being recorded, there will be an additional fee)
  • Tax certification fee – $25
  • You will also have to prepay the taxes in Michigan, since they are paid in advance not in arrears.

 

 

14.  Will I obtain clear title to the property at closing?

The Land Bank will provide you with a copy of a Title Search Report, which confirms the current status of the title, at the time of closing.  The Land Bank will issue a Quit Claim Deed as evidence of transfer of ownership at closing..  The Land Bank sells all properties "AS IS, WHERE IS, WITH ALL FAULTS."  The Land Bank makes no warranty or representation, express or implied, or arising by operation of law, including but not limited to, any warranty of condition, habitability, merchantability or fitness for a particular purpose, with respect to the physical condition or status of the title to this property.

 

 

15.  Will I be responsible for any back taxes or water bills owed on the property?

No, the Land Bank will pay all outstanding water bills, liens, or delinquent property taxes at closing.  Purchaser will be responsible for paying all current year property taxes prorated to the date of closing, as well as property taxes in future years.

 

 

16.  How much will my taxes be once I own the Rehabbed & Ready home?

Property taxes are determined by the City of Detroit Assessor based upon the Taxable Value at the time of sale, which will be equal to the State Equalized Value (SEV) of the property (or half the Fair Market Value of the property). More information can be found at the following links, or by calling the City of Detroit Assessor at (313) 224-3011.

Neighborhood Enterprise Zone Frequently Asked Questions:
http://www.detroitmi.gov/Portals/0/docs/finance/Assessment/Neighborhood%20Enterprise%20Zone%20Homestead%20FAQ%20-%2012.5.16.pdf

Principal Residence Exemption Form:
http://www.detroitmi.gov/Portals/0/docs/Property%20Assessment/August%202016/-L-2368%20Principal%20Residence%20Exemption%20(PRE)%20Affidavit%20Rev%2006-16.pdf

Other information can be obtained at the following web link:
http://www.detroitmi.gov/Government/Departments-and-Agencies/Office-of-the-Chief-Financial-Office/Office-of-the-Assessor

 

 

17.  Can I obtain financing to purchase the home?

Homes can be purchased with cash or through home financing with a lender of your choice. Quicken Loans is offering preapprovals for mortgage financing through its team of Rehabbed & Ready loan experts, who can be reached at (866) 918-7874.  Additional lender financing options and information can be found at http://buildingdetroit.org/Financing

 

 

18.  Is there a warranty for the work done on these homes?

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.

FAQ for Own It Now Properties

 

1. What are Own It Now properties?

Own It Now properties have either been assessed as candidates for Own It Now or have been requested for purchase by a member of the public.

Unlike Auction properties, Own It Now properties have not been cleaned out or secured by the Detroit Land Bank. 

Title to Own It Now properties may not be clear, and a large investment will be required to bring the properties up to code. The Detroit Land Bank makes no warranties or guarantees as to the physical condition or status of the title to the properties. Purchasers are buying properties “as is” and with faults.

 

2. What are “Direct Buy” Own It Now properties?

“Direct Buy” Own It Now properties have been made available for sale per citizen request. Availability standards include but are not limited to requests from the opposite owner of a duplex or a citizen requesting a property be removed from the demolition list. “Direct Buy” properties are marked as such, listed at a set price, and are not subject to being sold to the highest offer submission. The citizen who requested the property will have an allotted time to purchase the property before other applications are considered. 

Unlike Auction properties, Own It Now properties have not been cleaned out or secured by the Detroit Land Bank. “Direct Buy” closing procedures and compliance obligations remain the same as other Own It Now properties. Discounts are not available for “Driect Buy” sales.

Title to “Direct Buy”  Own It Now properties may not be clear and a large investment will be required to bring the properties up to code. The Detroit Land Bank makes no warranties or guarantees as to the physical condition or status of the title to the properties. Purchasers are buying properties “as is” and with faults. The DLBA reserves the right to reject any and all purchases and either remove a property from the Own It Now program, or relist it at a later date.

 

3. How does Own It Now work?

Applicants will submit their highest offers for a property. Once an offer is submitted on the property, a countdown clock of 72-hours will begin. Applicants can adjust 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 not display offer prices. The applicant with the highest offer who meets all eligibility requirements will be accepted. It may take up to 7 business days for an offer to be processed.

 

4. How do I purchase an Own It Now home online?

First login or register by selecting a one-word bidder name without any spaces. Provide contact information and check the box that you agree to the rules. The applicant or entity who applies is expected to close in the sole name in which they registered.

To submit an offer to purchase a property, applicants will select the property they want to buy, read all of the information provided on the listing page, and select to submit their highest offer. Offer must match or exceed the DLBA’s listing price.

The DLBA reserves the right to reject any and all purchases and either remove a property from the Own It Now program, or relist it at a later date.

 

5. Can I get a discount on OIN homes?

OIN applicants are offered the homebuyers counseling discount. For more information, please see our Homebuyer Counseling Discount Rules. 

 

6. There are no Open Houses for Own It Now properties. How can I view the properties before I buy?

To view an Own It Now property in person, an interested buyer must schedule a Private Home Tour. To schedule a Private Home Tour, interested buyers will select the Own It Now listing they are interested in viewing and click ‘Request Property Viewing’ to choose when they would like to view the property. Interested purchasers must be logged into their account to schedule a Private Home Tour. Private Home Tours are 60 minutes long. Interested buyers will be charged a fee of $35 for each Private Showing. 

Interested buyers may schedule a 60-minute appointment between the times of 10:00am-11:00am or 2:00pm-3:00pm, depending on staff availability. All appointments must be canceled or rescheduled within 48 hours of the scheduled appointment time.

Note: if a Private Home Tour is scheduled and the property sells prior to a scheduled visit, the Private Home Tour will be canceled and the interested buyer will receive a full refund.

 

7. Who is eligible to buy Own It Now homes?

  • Applicants 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.
  • Applicants, 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. Click here to pay or check due taxes. 
  • Applicants, or any legal entity in which they have an ownership interest, cannot have material unresolved blight or code violations in the City of Detroit. Click here to pay or check due blight tickets.
  •  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 a state or IRS lien filed against them or the entity that they are purchasing under.

 

8. What will be the closing costs?

Purchasers of Own It Now listings will have two options for closing on sales:

Closing with Title Services:

If an applicant chooses to close with title services, they will be charged $770 for these services upon being approved for the property.

*Additional closing costs will apply:

  • Remainder of the purchase price
  • Recording fee for the deed - $30
  • Water Bill Fee- $40
  • Closing fee - $250 for title company expense for closing services
  • Tax certification fee $25
  • Current year taxes- Costs may vary

Closing without Title Services:

If a purchaser chooses to close without title services, they will pay:

  • Remainder of the purchase price
  • Recording fee for the deed - $30
  • Water Bill Fee- $40

   

9. Am I guaranteed the home once I submit an offer to purchase the property from the Own It Now website?

No. Sales will be based off the highest submitted offer. If an applicant with the highest offer meets eligibility requirements, other interested applicants will be notified that the property has been sold. If an applicant does not meet eligibility requirements, the   sales team will begin checking the eligibility of the applicant with the next highest offer.

 

10. What happens if multiple applicants have the same offer?

If the DLBA receives offers of the same amount, the property will be sold to the applicant that submitted the highest offer first.

 

11. What does “Pending- Offers Made” mean?

“Pending- Offers Made” reflects how many offers have been submitted for the property. Applicants can still submit an offer to buy this property.

 

12. When will I have to enter my credit card information?

Credit Card information will be required for all applicants upon registration. There is no authorization or charge upon registration. If an applicant’s offer is accepted, their card will immediately charge $1,000. If they selected to purchase title services for $770, their card will be charged $1,770.

It may take up to 7 business days for offers to be processed. Please note that the credit card-issuing bank needs to support Address Verification System (AVS). The address information provided by the applicant as part of the Own It Now registration must match the address on file with the credit card issuing bank.

Any charges declined by the applicant’s credit card company may result in them losing their right to purchase the property.

 

13. What credit cards are accepted?

Only MasterCard, Visa, and Discover credit cards are accepted at this time.

 

14. How much is the deposit and when is it due?

The required deposit is 10% of an applicant’s offer price, or $1,000, whichever is greater. If an applicant’s offer is accepted, their card will immediately charge $1,000 towards their deposit. If an applicant selected to purchase title services, their card will automatically add an additional $770, charging their card $1,770. The title service fee of $770 does not count towards an applicant’s 10% deposit.

The remaining deposit amount is due within 24 hours of an applicant’s offer being accepted. If the accepted applicant does not provide the balance of the10% deposit within 24 hours of their offer being accepted, the $1,000 that was charged to the credit card will be retained and they will lose their right to purchase the property.

 

15. What happens after I confirm my property purchase online?

Applicants will immediately receive an email notifying them that they have successfully submitted an offer to purchase the property. All applicants will be notified within seven business days on the status of the property.

 

16. What do I do after I receive my accepted offer email?

If an applicant’s offer is accepted, they will be notified within seven business days via email with an attached link taking them to a form for inputting their purchaser information for the preparation of their Purchase Agreement.

Once they have completed inputting all their purchaser information, their Purchase Agreement will be generated electronically and downloaded to their computer for printing. In addition, they will receive Closing Tasks and a Timeline.

Purchasers will need to sign the Purchase Agreement in front of a notary and have them notarize the document. The signed and notarized Purchase Agreement must then be submitted along with a copy of government issued ID within three business days being accepted for the property.

For legal entities, the purchaser must submit within three business days the following documents along with the items outlined above:

  • Copy of Certificate of Good Standing obtained from the Michigan Department of Licensing and Regulation showing that purchasing entity is authorized to transact business in the state of Michigan, or for newly formed legal entities in the state of Michigan, a copy of Articles of Incorporation for Corporations or Articles of Organization for Limited Liability Companies.
  • Affidavit listing the owners, or shareholders, (with titles) of the corporation, or limited liability company, percentage of ownership, legal address of the company where deed and future water bills and property taxes are to be mailed, and authorized  signer(s) of the legal entity.

 

17. Can the Land Bank notarize my Purchase Agreement?

The DLBA offers notary services between the hours of 9-12pm and 3-5pm, Monday through Friday.

 

18. What am I required to do after closing on the sale?

Purchasers are required to sign a contract with the Land Bank in which they agree that, within 6 months of closing, the property will be brought up to Code and occupied or the structure(s) on the property will be demolished in accordance with city code. If the property is in an historic district or has historic designation, their contract will state that they have 9 months to bring it up to Code and have it occupied or demolish the structure(s) on the property in accordance with city code.

 

19. What requirements must I meet when rehabbing the property?

Within 14 days after closing, purchasers must schedule a Pre-Sale Inspection of the property with the City of Detroit’s Building, Safety, Engineering, and Environmental Department (BSEED). The cost is $295 for a single-family dwelling and $355 for a two-family dwelling. 

 The Pre-Sale Inspector must have access to all rooms of the house in order to complete the inspection. Purchasers must provide evidence to the Detroit Land Bank within 14 days of closing that the Pre-Sale Inspection has been scheduled. Purchasers must provide a copy of the Pre-Sale Inspection Report to the Detroit Land Bank Authority when it is complete. The property must also be secured and yards maintained and free of debris within 14 days after closing.

Within 30 days after closing, purchasers must provide the Land Bank an executed copy of a contract to rehab the home. If a purchaser can demonstrate to the Land Bank they have the skills to rehab the house themselves, within 30 days after closing they must provide the Land Bank with a plan of work and receipts showing they have purchased the materials necessary.

Within 6 months after closing (9 months for homes located in a historic district), purchasers must provide the Land Bank with a Certificate of Occupancy, or Certificate of Approval for the house and demonstrate that the house has an occupant.

If purchasers fail to meet these deadlines, they will forfeit both their purchase price and the property, and are forbidden to purchase any property from the Detroit Land Bank going forward. In cases where substantial progress has been made, but the repair work is not complete despite the best efforts of the buyer, the Land Bank, at its sole discretion, may extend the 6 month deadline.

 

20. How often should updates be made to the home and submitted to the Detroit Land Bank Authority?

 

   Required Regular Updates

   Acceptable proof at each milestone

   Agreement signed (0 days)

 

   Proof Secured (15 days)

  • Photos of all 4 sides of property showing its secured
  • Photos all showing exterior debris has been removed
  • Photos showing yard/grass is maintained

   Rehab 30-day update

   Proof of progress on property including:

  • Picture of inside (BEFORE and AFTER)
  • Picture of outside (BEFORE and AFTER)
  • Receipts from contractors for work completed
  • Receipts for material used for property
  • Utility Bills
  • Permits/inspections with BSEED
  • Receipts for appliances such as furnaces, water, heaters
  • Interior photos of key room (kitchen, bath)

   These items need to be provided EACH MONTH at 30 days, 60 days, 90 days and 120 days

   Rehab 60-day Update

   Rehab 90-day Update

   Rehab 120-day Update 

  *Rehab 150-day Update (extension possible)

   In addition to the proof provided above provide:

  • Definitive property completion date
  • Move in date
  • Future lease/rental agreement (if applicable)

   If diligence shown until this point, a short extension is possible

   Certificated of Completion(180 days)

  • Proof that property is occupied (Signed lease, photos with furniture, photos with lights on, utility bills etc.)
  • or agree to site visit by DLBA

 

21. Will I be responsible for any back taxes or water bills owed on the property?

The purchaser will be responsible for paying all water bills, outstanding liens, and delinquent property taxes at closing. The purchaser will also be responsible for paying all properly-assessed property taxes not otherwise exempt pursuant to the statutory authority of the Detroit Land Bank and taxes on the property in all future years. Current year taxes will need to be paid at closing along with closing costs.

 

22. Will I obtain clear title to the property at closing

The Land Bank will issue a Quit Claim Deed as evidence of title at closing, and does not guarantee clear title to the property. All properties are sold “AS IS, WHERE IS, WITH ALL FAULTS”. The Detroit Land Bank makes no warranty or representation, express or implied, or arising by operation of law, including, but not limited to, any warranty of condition, habitability, merchantability or fitness for a particular purpose, with respect to the physical condition or status of the title to this property. The Land Bank neither pulls the report nor guarantees clear title to “Direct Buy” Own It Now   properties.

 

23. What are title services?

The DLBA offers title services, which includes a title search (cost: $125) and quiet title action services (cost: $645) for the joined cost of $770.

A title search lists any liens or prior owners’ interest against the property. If the title search indicates that the title to the property is clear, purchasers will proceed with closing. If the title search indicates the title to the property is not clear, quiet title action will be conducted.

An action to quiet title is a lawsuit brought by the title holder to grant clear title to a property against which there may be outstanding claims. Successful quiet title action will eliminate competing interests or claims to the property, along with any delinquent water bills, outstanding non-federal liens, or back taxes on the property.

Applicants may pursue quiet title action through the Detroit Land Bank.

Note: Quiet title process may bring forth competing interest-holders in the property. In such a case that the sale of the property fails to close as a result of pursuing quiet title action, the Detroit Land Bank will not be responsible for refunding the cost of the property or fee for quiet title action.Quiet title may take up to 150 days.

 

24. How do I pursue title services through the Detroit Land Bank?

Applicants who would like to pursue title services through the Detroit Land Bank Authority will need to select ‘yes, I want to pursue a title search and quiet title action through the Detroit Land Bank’ on the purchase confirmation page.

 

25. How can I inspect the property I am purchasing before I close on the sale?

If a purchaser is interested in viewing the property that they purchased before closing on the sale, they may schedule a Pre-Closing Property Visit for a non-refundable fee of $35 per 3-hour appointment. Appointments are available between the times of 9:00am-12:00pm, 11:00am-2:00pm, or 1:00pm-4:00pm on Mondays, Wednesdays, and Fridays and from 11am-2pm Saturdays (pursuant to change based on staff availability). All appointments must be canceled or rescheduled within 48 hours of the scheduled appointment time. Appointments are scheduled on a first come first serve basis.

Purchasers must arrive within 15 minutes of their appointment time or they will need to schedule another access appointment. Any missed appointments will result in forfeiture of payment.

How to schedule an appointment:

• Purchasers should reference the accepted offer email they received from info@buildingdetroit.org after purchasing the property online. Look towards the bottom to find a link to schedule a Pre-Closing Property Visit. Click on this link and follow the instructions to schedule a property visit.

• Please do not edit any information that has auto-populated. This information is required by the Detroit Land Bank for scheduling the appointment.

• Read the terms and conditions of the Pre-Closing Property Visit and note anyone who will be joining the purchaser at the property visit. All attendees will need to complete and sign a waiver at the property.

• Check the box if the purchaser agrees to the terms and conditions and proceed with scheduling and paying for their appointment. Visa, MasterCard, and Discover are accepted.

 

26. Can I close electronically since I live out of town?

No. All persons that will sign the Purchase Agreement and other closing documents must be present in person for the closing at the offices of the Land Bank’s closing title company.

 

27. What is the deadline for closing on the sale of the property?

Unless quiet title action is pending, purchasers will need to close on the sale no later than 30 days after purchasing the property online.

 

28. How many properties can I purchase?

Purchasers are limited to the purchase of one property, which must be brought up to code and be occupied within 6 months (9 months for homes located in a historic district) from the closing date. Then purchasers can purchase one property per calendar month across all DBLA programs up to nine properties per twelve months from the last date of transfer. The approval of the Detroit Land Bank Authority and the Detroit City Council will be required to acquire more than nine properties per year.

If purchasers use a legal entity to purchase the property, they must have an ownership interest in it. This legal entity, and all other legal entities in which they have an ownership interest, cannot purchase more than one property until the first property has been brought up to up to code and occupied within 6 months (9 months for homes located in a historic district). The legal entity can purchase one property per month once it has brought the first property up to code and has it occupied up to nine across all DLBA programs per twelve months from the last date of transfer.

Purchasers are limited to the purchase of up to 5 Own It Now properties in total per calendar year.

 

29. I can’t complete my registration, and the site will not allow me to choose State or Region.

If applicants are using Internet Explorer, they must use version 10.0 or higher, or use another web browser. Internet Explorer 10.0 can be used with Windows XP, Windows Vista, Windows 7, or Windows 8, and can be found at the following web link:

http://www.browsersinfo.com/lp/internet-explorer/202/

The Google Chrome browser can be downloaded at the following web site:

https://www.google.com/intl/en/chrome/browser/#&&-ha-na-us-sk&

 

30. Where can I find information on the City of Detroit’s building codes, ordinances and acts?

A copy of the City of Detroit Building Codes, Ordinances and Acts can be found at the following web link:

https://library.municode.com/index.aspx?&&

 

31. Where can I find information on the City of Detroit’s Permit Application Procedures, Building Permit Requirements, Zoning Information and Requirements and Process for obtaining a Certificate of Occupancy? 

Links to this information are on the City of Detroit’s Buildings Safety Engineering and Environmental Department website at the following web link:http://www.detroitmi.gov/DepartmentsandAgencies/BuildingsSafetyEngineeringEnvironmental/Divisions/Construction.aspx


Following are web links for the following items:

Permit Application Procedures:

 http://www.detroitmi.gov/DepartmentsandAgencies/BuildingsSafetyEngineeringEnvironmental/Divisions/Construction/PermitApplicationProcedures.aspx


Building Permit Requirements: 

http://www.detroitmi.gov/DepartmentsandAgencies/BuildingsSafetyEngineeringEnvironmental/Divisions/Construction/BuildingPermitRequirements.aspx


Zoning Information, Requirements and Process for obtaining a Certificate of Occupancy:http://www.detroitmi.gov/DepartmentsandAgencies/BuildingsSafetyEngineeringEnvironmental/Divisions/Zoning.aspx

 

32. How much will my taxes be once I’ve purchased the property and met all the requirements?

Property taxes are determined by the City of Detroit Assessor based upon the Taxable Value at the time of sale, which will be equal to the State Equalized Value (SEV) of the property (or half the Fair Market Value of the property). More information can be found at the following links, or by calling the City of Detroit Assessor at (313) 224-3011.

Neighborhood Enterprise Zone Frequently Asked Questions:
http://www.detroitmi.gov/Portals/0/docs/finance/Assessment/Neighborhood%20Enterprise%20Zone%20Homestead%20FAQ%20-%2012.5.16.pdf

Principal Residence Exemption Form: 
http://www.detroitmi.gov/Portals/0/docs/Property%20Assessment/August%202016/-L-2368%20Principal%20Residence%20Exemption%20(PRE)%20Affidavit%20Rev%2006-16.pdf

Further information can be found at:
http://www.detroitmi.gov/Government/Departments-and-Agencies/Office-of-the-Chief-Financial-Office/Office-of-the-Assessor

 

33. Can I obtain financing to renovate the home?

Lender financing information can be found at http://buildingdetroit.org/Financing

 

34. For answers to frequently asked questions about post-closing rehabilitation and requirements, please view this document:

Link to Post Closing FAQ Document

 

35. Can I demolish the house on the property?

Unlike properties sold in the Auction program, purchasers have the option of demolishing the structure(s) on the property, instead of rehabbing the house and having it occupied. If purchasers plan to demolish the structure, they must provide the following items to the Detroit Land Bank within 30 days after closing:

Copy of an executed contract with a demolition contractor licensed to carry out demolitions in the City of Detroit.

Copy of the contractor’s license. The contractor must be licensed to carry out demolitions in the City of Detroit.

Copy of proof of insurance from the contractor.

Copy of the demolition permit issued by the City of Detroit.

Within 6 months after closing (9 months for homes located in a historic district), purchasers must provide the Detroit Land Bank with a copy of the final inspection report issued by the City of Detroit after the demolition is complete.

The Detroit Land Bank will not be held responsible for any damages that may result from the demolition.