(Disclaimer: This is a third-party source and some information may have changed. Please consult the Kansas City, MO Land Bank directly for the most recent information and review its policies and procedures.)
Start by searching the map for available properties at KCMO Land Bank “Property Search.” Then, drive by the properties to see what they look like in person. Take time to look around the neighborhood and get a feel for what your neighbors are like. Additional information about the adjacent properties can be found on the City’s website as well.
Think about your intended use. – Where do you want to live? Will this be a business? Consider potential issues that may come up depending on your intended use: zoning restrictions, impact on the community, neighborhood approval, environmental issues, floodplains, or special permits or licenses depending on your proposed use. What incentives are available? Could these impact your financing?
Schedule a time to view the proper – Contact Land Bank directly via telephone or in person.
4400 Blue Parkway,
Kansas City, MO 64130
The purpose of this showing is to gather information about the property. Pay careful attention! Take pictures and/or notes to create your play for rehabilitation. This is your only opportunity to view the inside of the property to create your Scope of Repairs. Use this form as a checklist to make sure you’re considering all aspects of the rehabilitation. If you are not doing the work on your own, bring your contractor or whoever can assist with putting together the Scope of Repairs.
Next Step: Put Together Your Offer:
- Part 1: Price – The purchase price is 2/3 of the Jackson County Assessor’s market value, but this does not need to all be paid in cash. The amount of money you plan to spend on the rehabilitation counts toward your purchase price. So, if the market value is $30,000, you could spend $1,000 on a cash purchase, and then put $29,000 into making repairs.
- Part 2: Figure out the Scope of Repairs (also called “Scope of Work”) – This is an itemized list of anticipated repairs. Because these properties are often left vacant for years, generally assume that all houses will need new H.V.A.C. and roof. Include how long you think it will take to complete the renovations. Keep in mind that the maximum time allowed is typically 120 days. The Scope of Repairs will become part of the Deed of Trust [link to definition – a deed of trust is a security instrument recorded on the property’s title to secure the performance of work. Mortgages are often secured by deeds of trust to ensure that the debts are repaid. In the event that work is not performed on the property, the Land Bank can foreclose on the property and regain ownership. The deed of trust will automatically expire in three (3) years from the date it is signed.]
Submit Your Application – Apply in person and bring the following:
- Proof of funds – You can use a bank statement, line of credit, or a combination of resources—just show how you will pay for the repairs.
- Application fee – $25 plus $10 per additional applicant (your spouse or another person who will own the property with you). This must be paid with a money order or cashier’s check.
- State or federal photo ID
- Completed scope of repairs, as discussed in the last section) (including the total dollar amount and the timeline for completion of the renovations – 120 days is the maximum time limit).
- A description of what you plan to do with the property (Are you going to live in it? Will a family member live in it? Do you plan to rent it out? Are you planning on selling it?)
- Application – the forms can be found on Land Bank’s website, but print them off and bring them with you to avoid potential delay.
- Background check form
- Your completed application (print and bring with you):
- Application for an individual or couple
Application for a business or nonprofit organization
- Are you a business or nonprofit organization? You will need to have your charter number (find this on the Missouri or another state’s Secretary of State website).
- Are you in good standing with the Secretary of State?
- You might need to submit a resolution if you have a board of directors.
Purchase Approved? Next Step: Research the Title
- If you are approved to purchase, consider order a title report or consulting a title company. All Land Bank properties go through the tax title process, which can make getting title insurance difficult. To learn more about researching title on your own, view our basic property research guide. [link to property research guide] This is only for education purposes and is not intended to replace a title report or title insurance.
- Real Estate Sale Contract
- Sign Deed of Trust – a deed of trust is a security instrument recorded on the property’s title to secure the performance of work. Mortgages are often secured by deeds of trust to ensure that the debts are repaid. In the event that work is not performed on the property, the Land Bank can foreclose on the property and regain ownership. The deed of trust will automatically expire in three (3) years from the date it is signed.
- Special Warranty Deed – A special warranty deed is a deed in which the grantor warrants the title against defects in clear title occurring only during their ownership of the property. The grantor of a special warranty deed does not provide a warranty or guarantee against any defects in clear title that existed before their ownership.
- You will be responsible for paying for recording fees. (Fees are determined by the number of pages of each document. See a complete breakdown here.)
Finally, carry out your scope of repairs!
Complete repairs within 120 days or within the time period set forth in your Deed of Trust. Contact Land Bank if you need additional time. The Deed of Trust will expire three years from the date of closing. Contact the Land Bank if you plan to sell the property during this period. If you sell the property before the expiration of the three years, the new purchaser can potentially assume the Deed of Trust.