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Bid Sales Procedures

PROCEDURES  FOR  PROPOSAL  SUBMISSIONS

The prospective purchaser(s) or their representative with an original notarized power of attorney must submit proposals.

Complete the Surplus Property Sale Proposal Form, which is attached.

    *  Incomplete forms will be disqualified.  (Forms are available upon request from the Real Estate Development Division-65 Cadillac Square, 20th Floor)
      
    *  ALL proposals must contain a VALID HOME STREET ADDRESS.  NO P.O. BOX ADDRESSES WILL BE ACCEPTED.
      
    *  Full payment is required for properties with bid amounts of  $1,000.00 or less by cashiers check or money order which is payable to the Treasurer, City of Detroit.
      
    *  A deposit of 10% of the bid amount for properties on the Public Bid Sales List is required, however the FULL bid amount is required for properties listed on the First Come Sales List by cashiers check or money order which is payable to the Treasurer, City of Detroit.
      
    *  Failure to remit required deposits and bidding below the minimum advertised bid will result in disqualification of submitted bids.
      
    *  Proposals must be submitted in a sealed envelope and plainly marked with the ADDRESS OF THE PROPERTY. ONLY ONE PROPOSAL PER ENVELOPE.
       
Deposits will be held until the Planning & Development Department makes a determination as to the acceptance or the rejection of all proposals.
      
    *  Please note: Deposits will not be returned in the event the prospective purchasers(s) fail to proceed with the purchase.


TERMS OF SALE:

PURCHASER (S) ARE PROHIBITED FROM ENTERING ANY CITY OWNED PROPERTY WITHOUT ISSUANCE OF A DEED OR WRITTEN PERMISSION FROM THE CITY OF DETROIT

OCCUPIED PROPERTY WILL BE SOLD ON AN “AS IS” BASIS. THEY WILL NOT BE AVAILABLE FOR “OPEN INSPECTION."  PURCHASER (S) WILL NOT HAVE ACCESS TO THE PROPERTY PRIOR TO OWNERSHIP. ALL APPLICABLE FEDERAL, STATE, LOCAL STATUES AND LAWS MUST BE FOLLOWED IN REGARDS TO THE EVICTION PROCESS.


    *  Cash “AS IS”; Properties are subject to correction of code violations.
      
    *  Full payment for all Bid Sale properties listed and the Deed Recording fee are due at closing.
      
    *  Properties located in “Historical designated areas” require that all exterior work must meet historic standards and must be approved by the Detroit Historic District Commission. For more information call (313) 224-6536 or visit the City of Detroit web site at;  www.detroitmi.gov/historic
      
    *  Development restrictions may apply for bided property.  After a determination has been made based on your proposed use, you will be notified of any further steps you must take in order to successfully obtain the property.
            
    *  The City of Detroit makes no warranty or representation as to the marketability of the title on any property.  Purchasers are strongly urged to obtain a title commitment at their own expense.

    *  The purchaser is responsible for all costs associated with replacing the "Water Lead Service Line" from the structure to the main with Copper Piping as required by the Water & Sewerage Department (DWSD), if applicable. 

    *  The purchaser is required to close on the successfully bided property within THIRTY (30) working days. If the closing has not taken place by that deadline or the one specified in the successful bidder notification letter, the sale of the property will be canceled and all monies will be forfeited.
      
    *  Rental properties must be registered with the Buildings, Safety Engineering and Environmental Department.
      
    *  Any Quit Claim Deed issued as a result of this offering will include a reversionary clause, reinvesting interest to the City of Detroit without any reimbursement to the purchaser(s) in the event of default.
      
    *  The purchaser must satisfy himself/herself as to the feasibility of rehabilitating the property.  The City of Detroit does not warrant that the rehabilitation of the property(s) is economically feasible.
      
    *  The City of Detroit reserves the right to remove properties from the advertised list without prior notification.

GENERAL CONDITIONS:

     *  The proposals received on advertised properties are considered as “Offers to Deal,” only and are subject to administrative and legal review by the City. The Planning and Development Department reserves the right to reject any or all bids. All offers are subject to approval by the Detroit City Council and the Detroit Emergency Manager.
      
    *  The prospective purchaser(s) are hereby notified that the Planning and Development Department has not investigated the environmental condition of any properties and makes no warranty or representation regarding the environmental condition of any property offered for sale.
      
    *  Various Federal, State or other City agencies may have information regarding the environmental condition of the properties listed. The prospective purchaser(s) are encouraged to conduct their own investigation regarding the environmental condition of the property. 

    The City will reserve the right to reject any bid from applicants who:

    *  Have defaulted on prior installment agreements with the City.  
    *  Maybe delinquent in Real Property Taxes.
    *  Have not shown substantial progress in the rehabilitation of previously acquired properties from the City of Detroit.
      
    *  If, during the City’s review process, it is found that, in the City’s opinion, a minor modification of a proposal will result in a proposal which better meets the intent of the City’s objectives, the City reserves the right, at its option, to require that said modification be made.
      
    *  The proposals must be received in the Real Estate Development Division prior to or on the date and time specified in the monthly announcements.
      
    *  Deposits will be returned by certified mail within 7-10 days from receipt of proposals.
       

PROPERTY WILL BE SOLD SUBJECT TO REHABILITATION:

    *  The successful bidder must conform to the City of Detroit Building code, which requires rehabilitation of the structure existing on the property being conveyed and obtain a Certificate of Approval within 180 days from receipt of the Quit Claim Deed.
      
    *  Failure to complete the rehabilitation of the structure within twelve (12) months may result in the City of Detroit exercising its right to terminate the sale and repossess the property.
      
    *  If applicable, the sale is subject to purchaser(s) obtaining a “Certificate of Completion” from the “Buildings, Safety Engineering and Environmental Department” according to existing ordinances and upon completion of Rehabilitation, Expansion or Construction of said property within twelve (12) months from receipt of “Quit Claim Deed” from the City of Detroit.

CLOSING PROCESS:

    *  The successful bidder is required to return a copy of the Inspection Report and the original signed Affidavit of Compliance Responsibility within five (5) days of receipt of them from the Buildings, Safety Engineering and Environmental Department.
      
    *  Closings must take place by the time specified in this advertisement and/or the successful bidder notification letter. Closings that have not taken place by the specified date will result in the cancellation of the sale and all monies deposited forfeited. Non-compliance will indicate a lack of interest and the property will become available to other interested parties.
      
    *  At the closing appointment, purchaser(s) will sign closing documents and pay the balance due. (If the purchaser is financing the property, an APPROVAL LETTER {not preapproval} from the financing institution will be accepted). The deed will not be issued until monies have been paid in full.
      
    *  The City of Detroit does not agree to reimburse the purchaser(s) for any improvements made to the property prior to receipt of the Deed. It will take approximately eight (8) to ten (10) months for the “Quit Claim Deed” to be fully executed, recorded and mailed.

PURCHASE OF PROPERTY (S):

    *  Copy of a valid Certificate of Approval Compliance from the Buildings, Safety Engineering and Environmental Department is required to be submitted to this department within six (6) to twelve (12) months from the receipt of the Quit Claim Deed.


PURCHASE OF PROPERTY (S) BY CONTRACTORS:

Contractors who are contracted through the City of Detroit Planning and Development Department - Real Estate Development Division are ineligible to bid on a city owned property.
 

CITY OF DETROIT
Planning and Development Department
Real Estate Development Division
65 Cadillac Square, Suite 2000
(313) 628-0051

Proposal Forms are available on the 20th floor, in the Real Estate Development Division, at 65 Cadillac Square, Suite 2000, Detroit, MI 48226, 8:30 A.M. to 5:00 P.M. Monday through Friday.

All proposal forms are due no later than 2:00 P.M. on the listed due date.  Refer to the public bid list schedule for due dates.

Proposal Forms can also be downloaded on the City of Detroit web site: www.detroitmi.gov

Notice of Non-Discrimination: The City of Detroit does not discriminate on the basis of race, Color, creed, national origin, age, disability, sex or sexual orientation. Complaints may be filed with the Detroit Human Rights Department, 1026 Coleman A. Young Municipal Center, Detroit, Michigan 48226