Chapter 14. Taxation of Recordation and Transfers of Real Property.
Subchapter I. Definitions.
§ 47–1401. Definitions.
For the purposes of this chapter, unless otherwise indicated:
(1) The term “basis” shall have the same meaning as does that term when determining gain or loss under Subtitle A, Chapter 1, subchapter O, part II of the Internal Revenue Code (§ 1 et seq. of Title 26, United States Code).
(3) The term “Commission” means the Real Estate Commission of the District of Columbia as established in § 42-1739.
(4) The term “consideration” means the amount paid or required to be paid, or the value exchanged or required to be exchanged, by a transferee to acquire real property.
(5) The term “Council” means the Council of the District of Columbia established under § 1-204.01.
(6) The term “dealer in real property” and the term “dealer” means any person who transfers 3 or more real properties within a period of 30 months. The following transfers of real property (as defined by this subchapter) shall not be considered for the purpose of determining whether the transferor is a dealer:
(A) Transfers prior to the effective date;
(B) Transfers of a transferor’s principal residence (as defined by this subchapter);
(C) Transfers to or by a District of Columbia nonprofit organization which is organized and operated for the purpose of constructing, improving, or renovating real property; provided, that such organization is exempt from federal income taxation under § 501(a) (§ 501(a) of Title 26, United States Code) and is described in § 501(c)(3) (§ 501(c)(3) of Title 26, United States Code) of the Internal Revenue Code. Transfers by such organization must be made in furtherance of the organization’s exempt purpose;
(D) Transfers to or by the federal government or the government of the District of Columbia, their agencies and instrumentalities, and the first transfer after the transfer by said governments; provided, that said first transfer after the transfer by said governments is governed by laws and regulations pertaining to a housing or community development program administered by the District or federal government;
(E) Transfers in which the transferee neither gives nor is required to give any consideration in any form (including transfers by gift, deeds of correction, deeds which merely change tenancy, and deeds of trust); provided, that the basis of the property in the hands of the transferee shall be the same as it was in the hands of the transferor;
(F) Transfers where the property being transferred was received by the transferor without giving or being required to give any consideration in any form; provided, that the transferor shall prove by clear and convincing evidence, upon all the facts and circumstances, that the transfer in which the transferor received the property was not made for the purpose of excluding the instant transfer from consideration in determining if the transferor is a dealer (as defined by this subsection). It shall be presumed that the transfer in which the transferor received the property without consideration was made for the purpose of excluding the instant transfer from consideration in determining whether the transferor is a dealer. The regulations prescribed by the Mayor shall set forth the information which will be deemed sufficient to rebut said presumption;
(G) Transfers by devise, or as a result of intestate succession;
(H) Transfers where the property being transferred was received by the transferor by devise or as a result of intestate succession;
(I) Transfers executed by persons in their capacity as court-appointed receivers, referees, administrators, executors, conservators, guardians of the estates of minors, and committees of the estates of persons judicially determined to be mentally incompetent;
(J) The first transfer of property, the construction of which was completed after the effective date (as defined by this subchapter) regardless of when the construction began. The construction of property shall be considered complete at the time such construction is completed to the same extent required for the issuance of a certificate of occupancy, as that term is used in § 6-641.09. This subparagraph applies only to newly-constructed structures and not to rehabilitated structures;
(K) Foreclosure sales, and the first transfer thereafter if said first transfer is made by the mortgagee who instituted the foreclosure proceedings and purchased the property at the foreclosure sale, or obtained title directly from the defaulting party without a foreclosure sale; provided, that said mortgagee is licensed in the District of Columbia as a bank or other financial institution;
(L) Deeds of release of property where the property was security for a debt or other obligation; and
(M) Transfers by a transferor whose holding period (as defined by this subchapter) for the property being transferred was longer than 36 months.
(7) The term “deed recordation tax” means the tax imposed by § 42-1103.
(8) The term “deficiency” shall have the same meaning given to that term by § 47-1801.04(15).
(9) The term “effective date” means the date on which this chapter takes effect according to the provisions of § 1-206.02(c)(1).
(10) The term “equitable title” means a right in a party to have the legal title to a real property (or real property, solely for purposes of subchapter III of this chapter) transferred to such party. The term shall also include any right to receive equitable title by means of an option to purchase or otherwise.
(11) The term “gain” means the excess of the consideration received by a transferor over the transferor’s basis for the property (as defined by this subchapter) transferred.
(12) The term “fair market value” means the price at which a willing seller and a willing buyer will trade or the price which would in all probability have been arrived at between a willing seller and a willing buyer.
(13) The term “holding period” shall have the same meaning as does that term for purposes of § 1223 of the Internal Revenue Code (§ 1223 of Title 26, United States Code).
(14) The term “Internal Revenue Code” means the Internal Revenue Code of 1954 (§ 1 et seq. of Title 26, United States Code) and any amendments thereto.
(15) The term “legal holiday” means any District of Columbia public holiday, including Saturday and Sunday, as designated by § 28-2701.
(16) The term “legal title” means complete and perfect title to real property (or real property, solely for purposes of subchapter III of this chapter) in the party to whom such title belongs so far as regards the apparent right of ownership and possession of the real property (or real property, solely for purposes of subchapter III of this chapter) but which carries no beneficial interest in the property, another person being equitably entitled thereto.
(17) The term “major appliances” shall include the following appliances if a transferor transfers such appliances when transferring real property: Refrigerator, cooking range, oven, dishwasher, garbage disposal, trash compactor, and washer and dryer.
(18) The term “Mayor” means the Mayor of the District of Columbia established under § 1-204.21.
(19) The term “person” means any individual, firm, partnership, copartnership, joint venture, association, corporation (domestic or foreign), trust, trustee of any estate, or court-appointed receiver.
(20) The term “principal residence” shall have the same meaning as does that term for purposes of § 1034 of the Internal Revenue Code (§ 1034 [repealed] of Title 26, United States Code); except, that in determining whether a real property is the principal residence of a transferor, in addition to consideration of all the facts and circumstances as provided by § 1034 of the Internal Revenue Code (§ 1034 [repealed] of Title 26, United States Code), the property must have been the principal residence of the transferor for the 180-day period immediately preceding the transfer.
(21) The term “real covenant” means an agreement between 2 or more persons relating to a property, the terms of which shall be binding on any heir or assign of the promisor under the agreement and which shall be enforceable by the person holding legal title to said property.
(22) The term “real property” means improved as well as unimproved land in the District of Columbia.
(23) The term “residential real property” means improved real property in the District of Columbia which at any time during the 12 months immediately preceding its transfer contained not more than 4 dwelling units. The term “dwelling unit” shall have the same meaning as given to that term in the Zoning Regulations of the District of Columbia (11 DCMR § 199).
(24) The term “solicitation” means any act which would cause a person to come within the definition of solicitor of real property.
(25) The term “solicitor of real property” means a person who, without prior invitation from the holder of legal title to a real property, offers to purchase or expresses a desire to purchase such property, or in any other way attempts to persuade or induce such holder to sell or otherwise transfer such title.
(26) The term “tax,” “excise” or “excise tax” means the tax imposed by this chapter.
(27) The term “3rd party” means all persons who are not parties to a contract, agreement, or instrument of writing by which their interest in the thing conveyed is sought to be effected.
(28) The term “transfer” means a transaction by which real property (or real property, solely for purposes of subchapter III of this chapter), or any title or right to receive any title thereto, or any portion thereof, or any interest therein (except a proprietary lease and a rental lease, unless such rental lease includes an option or right to buy) is either directly or indirectly conveyed, vested, granted, devised, bargained, sold, exchanged or assigned by any document, instrument, writing, agreement, or by any means whatsoever.
(29) The term “transferee” means the person (or persons) to whom a transfer of real property (or real property, solely for purposes of subchapter III of this chapter [§ 47-1431 et seq.]) is made.
(30) The term “transferor” means the person (or persons) who makes a transfer of real property (or real property, solely for purposes of subchapter III of this chapter [§ 47-1431 et seq.]).
(31) The term “vacant” means not occupied by the person having legal title or other title to the property and without other lawful occupants.
Subchapter II. Residential Real Property Transfer Excise Tax.
§ 47–1411. Imposition of excise tax [Expired]
[Expired].
§ 47–1412. Exept transfers [Expired]
[Expired].
§ 47–1413. Determination of excise tax [Expired]
[Expired].
§ 47–1414. Excise tax table [Expired]
[Expired].
§ 47–1415. Mayor Authorized to develop tax return form [Expired]
[Expired].
§ 47–1416. Payment of tax [Expired]
[Expired].
§ 47–1417. Tax return [Expired]
[Expired].
§ 47–1418. Return; assessment and collection; time of payment; penalties and interest; appeal [Expired]
[Expired].
§ 47–1419. Willful breach of warranty [Expired]
[Expired].
§ 47–1420. Report by Mayor [Expired]
[Expired].
§ 47–1421. Authorization to promulgate regulations [Expired]
[Expired].
Subchapter III. Compulsory Recordation of Transfers of Real Property.
§ 47–1431. In general.
(a) Within 30 days after the execution of a deed or other document by which legal title to real property, an estate for life or a lease or ground rent (including renewals) for a term that is at least 30 years, or an economic interest in real property is transferred, or after a security interest in a real property is given pursuant to a construction loan deed of trust or mortgage or a permanent loan deed of trust or mortgage, or by which a security interest in the real property is conveyed, all transferees of, and all holders of the security interest in, real property shall record a fully acknowledged copy of the deed or other document, including the lot and square number of the real property transferred or encumbered, with the Recorder of Deeds of the District of Columbia. If the 30th day is a Saturday, Sunday, or legal holiday, the time limitation for recording shall be extended to include the first day after the 30th day which is not a Saturday, Sunday, or legal holiday.
(b) Whenever any portion of an instrument, which conveys or provides for the conveyance of equitable title to a real property, is transferred by or on behalf of a party to such instrument to a 3rd party, then the party so transferring shall record, at the same time as provided by subsection (a) of this section, a fully-acknowledged copy of said instrument, including the lot and square number of the real property transferred, with the Recorder of Deeds of the District of Columbia, and the 3rd party shall record, at the same time as provided by subsection (a) of this section, with the Recorder of Deeds of the District of Columbia a fully-acknowledged instrument, including the lot and square number of the property transferred, evidencing the transfer to himself (or herself or itself as the case may be). All subsequent transfers of equitable title made prior to the transfer of legal title shall be recorded by each subsequent transferee thereto, in the same manner and at the same time as provided in subsection (a) of this section.
§ 47–1432. Presumptions and burden of proof.
For the purpose of proper administration of this subchapter and to prevent evasion of the recordation requirements, the Mayor shall presume that all transfers, as described in § 47-1431, are required to be recorded. The burden shall be upon the person required to record to prove that a deed or any other document is exempt from the recordation requirement.
§ 47–1433. Violations.
(a) Where a dealer fails to record, as required by § 47-1431, and such failure is due to negligence, there shall be imposed on said dealer, a penalty of $25 for each month or portion thereof that such failure continues, not to exceed $250.
(b) Repealed.
(c) If a person fails to record the deed or other document, as required by § 47-1431, there shall be imposed on the person an additional penalty in the amount of $250. The penalty provided herein shall not be imposed if the deed or other document is a security instrument. The Mayor may waive the penalty in accordance with § 47-4221.
(d) Repealed.
(e) The penalty fees provided under this section shall be collected at the same time and in the same manner and as a part of the deed recordation tax. If the transaction is exempt from the deed recordation tax, then the Mayor shall collect the fees in a manner prescribed by the Mayor.
(f) If the Mayor determines that a person has failed to record or has failed to pay any fee as required by this chapter, the procedures set forth in § 42-1108 [repealed] shall apply.
(g) Nothing in this chapter shall authorize the imposition of a penalty for the failure to record a deed or any instrument that conveys legal title to real property, if failure to record is due solely to the refusal of the Recorder of Deeds to record the deed or other instrument based on the existence of a lien against the property for unpaid water, sanitary sewer, or meter service charges.
Subchapter IV. Licensing of Dealers in Residential Real Property.
§ 47–1441. Definitions. [Repealed]
Repealed.
§ 47–1442. General requirements. [Repealed]
Repealed.
§ 47–1443. Persons prohibited from acquiring license; contents of applications. [Repealed]
Repealed.
§ 47–1444. Issuance and display of license. [Repealed]
Repealed.
§ 47–1445. License expiration, fees and renewals; change in location of principal place of business. [Repealed]
Repealed.
§ 47–1446. Maintenance of place of business; nonresidents. [Repealed]
Repealed.
§ 47–1447. Grounds for suspension or revocation of license. [Repealed]
Repealed.
§ 47–1448. Rescission of contracts or agreements; suspension or revocation procedures. [Repealed]
Repealed.
§ 47–1449. Mayor to report certain violations to Commission. [Repealed]
Repealed.
§ 47–1450. Annual report by Commission. [Repealed]
Repealed.
§ 47–1451. Regulations and violations thereof. [Repealed]
Repealed.
Subchapter V. Miscellaneous Provisions.
§ 47–1461. Annual report of costs and revenues. [Repealed]
Repealed.
§ 47–1462. Regulations. [Repealed]
Repealed.
Subchapter VI. Severability; Effect of Repeal or Amendment of Other Provisions.
