Detroit member Phil Seaver recently shared that Detroit Public Schools are selling their unused sites though the deals are complicated by their purchase agreements and deed restrictions prohibiting properties from be used for charter schools. Although there is legislation making that unenforceable, Phil doesn’t know of any title company that will insure based on the legislation. ATA Title requires the Detroit Public Schools to delete the clause in the documents in order to insure. He cautions everyone not to rely on the statute to protect the deal because of the insurability issues that could lead to a need for litigation. Even with a win, there will be litigation costs and issues in terms of timeframe on the deal.
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