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Rental Property Escrow

What is Rental Escrow?

Real estate escrow means putting something, such as rent money, in the custody of a neutral third party until certain conditions are met.

The City of Detroit tenants are legally entitled to rental property that meets basic structural, health, and safety standards and is in good repair. If a landlord fails to take care of important maintenance, such as a leaky roof or a broken heater, you have several important legal rights.

Steps to the escrow process:

Step 1. To enroll in escrow, the applicant must complete an application and attach the necessary documents (rental documents, utility bills, and photo ID) online. Please accept the terms and conditions below.

Step 2. Submission, the application is reviewed by BSEED for approval.

Step 3. Upon approval, an email is generated to ODFS for sub-account creation.

PLEASE CLICK ON THE "ACCEPT" LINK, WHICH SIGNIFIES THAT YOU HAVE READ, UNDERSTOOD, AND AGREE TO THE TERMS AND CONDITIONS BELOW.

Application for Rental Escrow Program Disclaimer-Please read carefully

 

CITY OF DETROIT RENTAL ESCROW PROGRAM TERMS AND CONDITIONS OF USE

Your access to and use of the City of Detroit Rental Escrow Program (REP) and the DivDat Kiosk is subject to the following terms and conditions, as well as all applicable laws. Your access to REP is in consideration for your agreement to these Terms and Conditions of Use, whether or not you are a registered user. By using the REP, you accept, without limitation or qualification, these Terms and Conditions of Use. The use of the terms “you” and “your” throughout these Terms and Conditions of Use means you and other parties who access the REP using your account.

 

MODIFICATION OF THE AGREEMENT

The City of Detroit retains the right to modify these Terms and Conditions of Use and may do so by posting such modifications on this website page or DivDat Kiosk. Any modification is effective immediately. Your continued use of the REP following the posting of any modification signifies your acceptance of such modification.

 

ESCROW ACCOUNT

It shall take a minimum of five (5) business days to establish a rent escrow account. In order to be enrolled and receive the protection of the REP, you must submit the full monthly rent amount for each month that the rent is due, by the due date and in accordance with the terms of your specific rental agreement. Should you fail to timely submit the full monthly rent amount due for any given month while under the program, the protection provided by the REP will terminate.

Money deposited into the rent escrow account cannot be withdrawn and will only be paid out, subject to the conditions and time intervals (whether a certificate of compliance is obtained within the first ninety days and thereafter, whether a certificate of compliance is obtained at the end of every sixty days), pursuant to Detroit Ordinance No. 33-17. All rent money deposited into the rent escrow account will be paid out less applicable administrative fees allowed by the Detroit City Code. Personal checks deposited into the rent escrow account will not be available for disbursement up to fifteen (15) business days after deposit.

The City of Detroit, in its sole discretion, may terminate or suspend access and use of the REP without notice and for any reason, including but not limited to:

  • violation of these Terms and Conditions of Use;
  • false information was used;
  • inappropriate actions;
  • counterfeit money was used to pay rent amount due;
  • if more than four (4) invalid checks have been returned for non-sufficient funds (NSF);
  • other conduct by you which the City of Detroit, in its sole discretion, believes is unlawful or harmful to others.

 

INDEMNITY

You agree to defend, indemnify, and hold harmless the City of Detroit and its employees from any and all liabilities and costs incurred by them in connection with any claim arising from any breach by you of these Terms and Conditions of Use, including reasonable attorneys’ fees and costs. You agree to cooperate as fully as may be reasonably possible in the defense of any such claim. The City of Detroit reserves the right to assume, at its own expense, the exclusive defense and control of any matter otherwise subject to indemnification by you. You in turn shall not settle any matter without the written consent of the City of Detroit.

DISCLAIMER OF WARRANTY

You expressly understand and agree that your use of the REP and the DivDat Kiosk, or any material available through the REP and the DivDat Kiosk, is at your own risk. Neither the City of Detroit nor its employees warrant that the REP and the DivDat Kiosk will be uninterrupted, problem-free, free of omissions, or error-free; nor do they make any warranty as to the results that may be obtained from the use of the REP and the DivDat Kiosk. The content and function of the REP and the DivDat Kiosk are provided to you “as is,” without warranties of any kind, either express or implied, including, but not limited to, warranties of title, merchantability, fitness for a particular purpose or use, non-infringement, compatibility, security or accuracy.

LIMITATION OF LIABILITY

In no event will the City of Detroit or its employees be liable for any incidental, indirect, special, punitive, exemplary, or consequential damages, arising out of your use of or inability to use the REP and the DivDat Kiosk, including without limitation, any loss, loss of revenue or anticipated profits, loss of goodwill, loss of business, loss of data, computer failure or malfunction, or any and all other damages.

 

To Accept Click Here