Community Partnership FAQ

Why is knowing your District Important?

The district your organization is headquartered in has a District Manager and Deputy District Manager, through the city’s Department of Neighborhoods.  These individuals can provide additional resources and have knowledge of what’s going on within the communities.  The Community Partnership Program requires that each Community Partner Applicant receive a Letter of Support from their District Manager.

What is a Development Plan?           

Projects requesting 3 or more parcels are required to submit a development plan. The development plan should indicate an overview of the project, and propose a budget and timeline. See the Development Plan Template below for more information.

Click Here to view our Development Plan Template.

What are Performance Dollars?

Projects requesting 3 or more parcels are required to submit performance dollars.  A Community Partner must show evidence of resources to complete the rehabilitation of projects with 3 or more parcels. This evidence can be in the form of:

  • Bank Account
  • Financial Support Letters from Lending/Granting Institutions
  • Donation Letters
  • Others will be reviewed

What is a Corporate Resolution Authorizing Signing Agent?

A Corporate Resolution authorizing signing agent is a document that allows one person, authorized by the board of directors or designated committee, to purchase property on behalf of the organization.

What is a Project Description? 

The Application requests a project description.  This is to better understand where your project may be located as well as what type of project your organization hopes to start.

What are the next steps after submitting an Application? 

You will be contacted shortly by a member of the Community Partnership Team.  They will identify any information still missing to complete the application process.  If and when all necessary documentation is submitted, the Community Partner Office Clerk will call to schedule a Vision Meeting.  This meeting is an opportunity to learn more about the Community Partner’s intended project, as well as begin to identify potential properties.

Once properties are selected and confirmed through the DLBA Inventory Team, and a development plan, performance dollars and a Corporate Resolution are requested.  When these documents are submitted and approved, an appointment can be scheduled to sign a Purchase Agreement. The signed Purchase Agreement will then be sent to the DLBA designated title company to begin the closing process.

Closing Costs and Processes

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

You are required to sign a contract with the Land Bank in which you 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, your contract will state that you 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.

What requirements must I meet when rehabbing the property?

Within 14 days after closing, you must schedule a Pre-Sale Inspection of the property with the City of Detroit’s Building, Safety, Engineering, and Environmental Department (BSEED). The Pre-Sale Inspector must have access to all rooms of the house in order to complete the inspection. You must provide evidence to the Detroit Land Bank within 14 days of closing that the Pre-Sale Inspection has been scheduled.  You 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, 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.

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 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.

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.

What will be the closing costs?

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

  • Closing with Title Services
  • Closing without Title Services

Closing with Title Services:

This includes a title search (cost: $125) and, if needed, quiet title services (cost: $645)*

If you choose to close with title services, you will be charged $770 for these services when you are approved for purchase of the property.

*Additional closing costs will apply:

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

Closing without Title Services:

If you choose to close without title services, you will pay the remainder of the purchaser price, along with the deed recording fee ($30) and water bill fee ($30), at closing.

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 “demo pull” Own It Now properties.

What is a Title Search and Quiet Title action?

The DLBA offers 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, you 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 taxes or non-federal liens on the property.

An action to quiet title is a lawsuit brought by the title holder to grant clear title to a property. A successful action to quiet title will clear the title to the property and eliminate any delinquent water bills, outstanding non-federal liens, or back taxes on the property. You may pursue quiet title action through the Detroit Land Bank.

How do I pursue a Title Search and Quiet Title action through the Detroit Land Bank?

If you would like to pursue a title search and quiet title action through the Detroit land bank, you 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 after you click ‘Buy this Property’.

Note that the 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.

How do I pursue a Title Search and Quiet Title action through the Detroit Land Bank?

If you would like to pursue a title search and quiet title action through the Detroit land bank, you 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 after you click ‘Buy this Property’.

If you select to purchase a title search and quiet title action, your card will automatically add an additional $770 to the $1,000 deposit.

If your application is accepted your card will immediately be charged $1,770 for the deposit and title search and quiet title action. It may take up to 7 business days for your application to be processed. You card will not be charged upon application submission.

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

If you are interested in viewing the property that you purchased before closing on the sale, you 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.

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.

How to schedule an appointment:

  • Locate the purchase confirmation email you received from info@buildingdetroit.org after purchasing the property online. 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.

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.

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

Unless quiet title action is pending, you will need to close on the sale no later than 14 days after purchasing the property online.

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

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?

You can find links to this information on the City of Detroit’s Buildings Safety Engineering and Environmental Department website at the following web link: http://www.detroitmi.gov/Government/Departments

Following are web links for the following items:

Permit Application Procedures: http://www.detroitmi.gov/How-Do-I/Apply-for-Permits/Building-Permit-Information

Building Permit Requirements: http://www.detroitmi.gov/How-Do-I/Apply-for-Permits/Building-Permit-FAQ

Zoning Information, Requirements and Process for obtaining a Certificate of Occupancy: http://www.detroitmi.gov/How-Do-I/Apply-for-Licenses/Business-License-Checklist

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 Assessment Division 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). Following are web links to the following information found at the City of Detroit Assessments Division web site:

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

Or, you can call the City of Detroit Assessor for more information at 313-224-3011.