How much money will I need?
You should have available funds necessary to pay the purchase and closing costs, as well as the cost of the proposed project scope of repairs or new construction. We require evidence of financial capacity in the form of bank statements and commitment letters from a bank of other financial institution, if your project will be financed.
Does my spouse’s name have to be on the Special Warranty Deed and Deed of Trust?
A purchaser’s spouse can be on the Special Warranty Deed and the Deed of Trust, but is not required to be on the deed. If the spouse will not be on the deeds, both applicant and spouse must sign a marital waiver form. For side lot purchases specifically, if the spouse is on the deed for the property you currently own, your spouse must also be on the Special Warranty Deed for the side lot you are purchasing from the Land Bank.
What if I want the title of the property to be transferred to my LLC or Corporation?
The purchaser will be required to provide the following additional documentation:
- Certificate of Good Standing from Missouri Secretary of State
- List of all owners, officers, members or partners of the entity and their primary residences
- A letter on company letterhead designating a local agent authorized to accept notice of code violations and other service of process for the corporate entity. The local agent must have a business or residential address within the City of Kansas City, Missouri.
- Copy of LLC Property Manager Affidavit filed with the Kansas City, Missouri, City Clerk.
- A Board Resolution designating an individual(s) with the authority to sign for the purchase of the property, or all members/partners will have to sign.
- All foreign LLCs must obtain a Certificate of Registration Foreign LLC for Missouri.
Will my property have title defects?
All properties are sold “as is” and “where is” and may have title defects
Although most tax liens are removed from properties acquired by Land Bank, certain liens remain in effect.
Applicants should get a title report prior to buying a Land Bank property. You may also obtain a title insurance policy when you do make a purchase.
You also should examine any records relating to the property.
Can I inspect a property before purchasing?
If a property includes a structure, you are required to inspect the structure, both interior and exterior, before making an offer. Please contact the Land Bank to schedule a visit.
You should examine any property on which you intend to make an offer.
Are permits required before I build or repair?
Permits are needed before beginning rehab or construction for most work, including but not limited to:
- Electrical Permit (Circuit wiring, Electrical panel upgrade or replacement, Service upgrade, repair or replacement);
- Mechanical Permit (Furnace installation, Gas piping installation or repair, Central air condition installation);
- Plumbing Permit (Water heater installation, Water supply installation, Drain, waste or vent piping)
- Building Permit (Construction of a structural foundation, Structural framing, Stairway replacement).
Before a purchaser starts building, they should contact City Planning and Development at (816) 513-1500. Failure to secure permits before beginning work can lead to legal penalties, fines, and stop-work orders that may cause your project to be in violation of the terms of the Land Bank.
How much time do I have to make the repairs or build the structure?
All nuisance violations on the exterior of the property must be abated within 60 days. Other improvements must be completed within 120 days.
How often do I need to schedule inspections by Land Bank Inspectors?
Land Bank staff will contact you to schedule a compliance inspection appointment after permits have been issued. Land Bank Inspectors will inform you how often inspections will need to be scheduled.
Why do Land Bank inspectors and the City Planning and Development Inspectors both need to conduct inspections?
The Land Bank Inspectors and City inspectors perform different functions. The Land Bank inspectors are responsible for verifying you are in compliance with the terms of the Deed of Trust. The City Planning and Development inspectors are responsible for ensuring your work complies with codes.
What if I don’t get the repairs done in the time given, or I can’t complete the repairs?
If you are not making progress on your project and are concerned you will not finish within the time provided, contact the Land Bank staff.
If you can no longer complete your project within the agreed upon timeframe, please contact Land Bank staff to arrange donating the property back to the Land Bank to avoid penalties and legal fees.
What happens if I do not complete my project or if my project fails its compliance inspection(s)?
All transfers are secured by a Deed of Trust, which is your commitment to complete your project under the rules of the Land Bank. If it is determined that the property is not in compliance with the Deed of Trust, the Land Bank will foreclose the Deed and you will forfeit your interest in the property.
What happens when I finish the repairs/construction?
After you have completed your project, you must contact the Land Bank to schedule a final inspection. Upon successfully passing final inspection, Land Bank will draft and record a full Release for the Deed of Trust, which terminates the Land Bank’s remaining property interest.
Will the Deed of Trust automatically “fall off” after 3 years?
The Deed of Trust will remain an enforceable lien, similar to a mortgage, until released by the Land Bank or removed by another operation of law. At the end of the 3 year compliance period, the owner is responsible for contacting the Land Bank to arrange release of the Deed of Trust.
Please be aware, unless Land Bank consents to the sale, the original purchaser is still responsible for the obligations under the Deed of Trust.
If the purchaser sells the property without the permission from Land Bank, Land Bank may foreclose upon the deed of trust. Land Bank is not bound by contracts made between a third party and the purchaser.
Can I sell the property to a third party prior to the repairs being completed?
During the compliance period, a property may not be sold or otherwise conveyed to another party without authorization of the Land Bank. Selling or transferring the property without the Land Bank’s authorization is a violation of the Deed of Trust and will result in automatic default. The Land Bank will foreclose on the Deed to regain control of the property and both you and the other party will lose any interest in the property.
If you think you will not be able to complete your project or you wish to convey the property to someone else to complete the project, contact the Land Bank. The Land Bank may consent to someone else assuming your obligations under the Deed of Trust, provided that party completes an application and agrees to assume your original obligations, and any the Land Bank may impose to protect its interest.
