How much money will I need?
Proof of 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 is required. This includes evidence of financial capacity in the form of bank statements and commitment letters from a bank or other financial institution, if the project is financed.
Does my spouse's name have to be on the Special Warranty Deed and Deed of Trust?
An applicant'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 currently owned, the spouse must also be on the Special Warranty Deed for the side lot to be purchased 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 all of the additional documentation listed below.
- 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.
Can I inspect the property before purchasing it?
If the property includes a structure, the applicant is required to attend a showing of the structure, both interior and exterior, before making an offer. All inspections must occur at the showing. Please contact the Land Bank at 816-513-9020 or Landbank@kcmo.org to schedule a visit. If the property is a vacant lot, the Land Bank staff encourages a site visit to view the property from the street.
Can I obtain a Purchase Option Agreement (POA) for properties I am considering for purchase?
Yes, in limited circumstances. Contact the Land Bank office at 816-513-9020 or Landbank@kcmo.org for more information.
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
- Mechanical Permit
- Plumbing Permit
- Building Permit
Before a purchaser starts building, they should contact City Planning and Development at (816) 513-1500 option 1 or cdpermits@kcmo.org, or visit the Permits Division website. Failure to secure permits before beginning work can lead to legal penalties, fines, and stop-work orders that may cause the project to be in violation of the terms of the Land Bank or KCMHA.
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 the purchaser to schedule a compliance inspection appointment after permits have been issued. Additional inspections may be required.
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 compliance with the terms of the Deed of Trust. The City Planning and Development inspectors are responsible for ensuring compliance with City codes and ordinances.
What if I don't get the repairs done in the time given, or I can't complete the repairs?
If progress is not being made on the project and will not be finished by the time provided, contact the Land Bank staff at 816-513-9020 or Landbank@kcmo.org. If the project is abandoned and will not be finished, 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 the purchaser's commitment to complete the 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 can foreclose the deed and forfeit the purchaser's interest in the property.
What happens when I finish constructing a new house?
After completing the project and the certificate of occupancy is issued, contact the Land Bank at 816-513-9020 or Landbank@kcmo.org 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 the 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 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 can foreclose on the Deed to regain control of the property and all parties will lose any interest in the property.
To convey the property to someone else to complete the project, contact the Land Bank. The Land Bank may consent to someone else assuming the purchaser's obligations under the Deed of Trust, provided that party completes an application and agrees to assume said original obligations, and any additional conditions the Land Bank may impose to protect its interest.
