Approval and Closing Process
Approval and closing information for LRA properties.
ALL OFFERS WILL BE SUBMITTED TO THE LAND REUTILIZATION AUTHORITY COMMISSION FOR APPROVAL
Option to Purchase, option periods and option fees
An Option to Purchase is a contract that removes the property from the active list and gives you site control (not ownership). Typically an option period is for 6-12 months. The amount of the option fee is 10% of the purchase price and is required when the option is signed. This fee is credited to your price at closing. If you do not close, the fee is forfeited. Options are granted to give buyers more time to get their plans, budget and financing together. The commission will also grant a "straight sale" if you are ready to close immediately.
When your offer is accepted you will receive a letter, outlining the contingencies that are required. The contingencies are typically budget, plans and financing and must be approved by the LRA staff. After approval, title insurance will be ordered. You will be responsible for the cost of the title and recording fees. These costs normally do not exceed $350. You may also order your own title insurance.
Right of Re-Entry
This requires the purchaser to complete their renovation or new construction on the property within 12 to 18 months. All LRA property is sold with a Right of Re-Entry clause in the deed. If the property has not been completed as promised within this time frame, LRA may pursue legal action to reclaim the property. The LRA USES AND WILL ENFORCE AN 18 MONTH RIGHT OF RE-ENTRY to encumber property. This prevents speculation and encourages completion of the renovation. Follow-up inspections by staff, 16 months after closing, will determine if the property has been completed.
It is strongly advised to have a sewer inspection before closing on any Agency owned properties. LRA properties are not eligible for the Sewer Lateral Line Insurance.
Purchasers of property requiring environmental remediation will be expected to submit their clean-up plan to the Missouri Department of Natural Resources' Voluntary Clean-up Program, or the Underground Storage Tank Insurance Program. All LRA property is sold in "AS IS/WHERE IS" condition with no representations or warranties as to environmental conditions.
- If the LRA Commission rejects your offer, you must wait 90 days before another offer may be submitted, unless new information is presented.
- LRA board meetings are open to the public. You are encouraged to attend the meeting if you would like to address the Commission about your offer.
- Larger structures are marketed to developers and users that have the resources which will benefit the adjacent community. Many of the structures have nominal prices, and the sale is based on the use and financial ability of the users/developers to complete the project.
- The agency considers a vacant residential building a building that is vacant, and, at a minimum, will need new plumbing, electric, heating and cooling, a new roof and tuck pointing.