 SCOPE is a program set up by Baltimore City to sell city-owned vacant buildings and promote homeownership in Baltimore City. SCOPE properties are released periodically and are listed through various listing brokers in the Baltimore area. The properties are generally released in a “scattered site” fashion.
Investors or Homeowners may purchase SCOPE Properties to either live in, or to rehab and resell or rent. (NOTE: if a SCOPE property falls within a neighborhood with homeownership stipulations it must be resold to a homeowner) SCOPE properties must be rehabbed and sold or rented within an 18 month timeframe from the date of settlement.
Since the SCOPE properties are listed in the multiple listing system, you will need a real estate agent to submit your offer. You can choose any licensed real estate agent to assist you and do not have to use only the listing agent. A Hold Harmless Right of Entry form must be signed by anyone entering any of the SCOPE Properties.
Financial Information and Background checks will be reviewed for each Buyer . Buyers will need to complete a Financial Information Sheet and the Buyer's Disclosure & Certification form and understand that the Community Law Center will perform a basic background check on Buyers to be sure they have no existing housing issues the city may want to address before considering their offer.
In an effort to standardize the financial pre-qualification process, Buyers will be required to either show proof of funds or provide “LP Accept” letter from a lender indicating they have been accepted based on an automated underwriting submission. A typical “pre-qual letter” will NOT be sufficient.
You can expect that it may take 2-4 weeks for your offer to be evaluated and accepted by the city and an additional 2-4 weeks to get signed contracts back from the city. You will have 60 days from the date the city signs your contract to complete settlement. You may choose to begin your property inspections and/or feasibility study upon verbal acceptance of your offer. You may choose any settlement company to handle this transaction and you will have 60 days, from the date the city signs your contract, to complete settlement. You will have 30 days, from the date the city signs your contract, to perform any inspections and/or feasibility study you need. If you want to cancel the contract for any reason, you may do so during this 30-day period and expect to get e refund of your earnest money deposit. If you cancel AFTER this 30-day period for any reason (including denial of financing) you will NOT get a refund of your earnest money deposit – you will forfeit your deposit.
Some Suggestions:
- Walk through the property with a contractor as early in the process as possible;
- Do NOT under-estimate the cost to complete your project;
- Shop for financing early;
- Shop for insurance early;
- Attend a Workshop at the Baltimore Board of Realtors as they are available;
- Find a real estate agent committed to understanding the process;
- Visit www.LiveBaltimore.com for a description of many city incentives and a list of real estate agents and other service providers familiar with city programs;
- Use common sense, take your time and make good decisions.
Downloadable SCOPE Contract of Sale Forms
The following documents must also be included with any SCOPE Contract:
- Lead Paint Disclosure (can be obtained from the listing agent for the property)
- Pre-qualification Letter stating that the buyer is getting "Purchase Rehab" Financing
- Copy of Earnest Money Deposit Check
These forms are available in pdf format. You will need Adobe Acrobat Reader.
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