Know Before You Close: Washington DC

The United States capital has its fair share of LE challenges, particularly concerning transfer taxes and recording fees.

Transfer Tax🔗

In D.C., transfer tax amounts are based on which class the property is designated as . There are four classes of real property in Washington DC:

• Class 1: Residential real property including multifamily (1-5 units) used exclusively for nontransient residential dwelling purposes
• Class 2: Commercial and industrial real property
• Class 3: Vacant real property
• Class 4: Vacant blighted property

Recording Fees🔗

In Washington, D.C., recording fees are calculated at a flat rate. There is no price scaling per number of pages. There is, however, a surcharge of $6.50 per page. Also, if any document is filed electronically, it is subject to a $5 surcharge.

Deed Tax🔗

Deed tax is calculated based on whichever is higher, the purchase price or assessed value. Deed tax is also tiered per the property’s consideration amount. For first-time homebuyers, these tiers are assessed differently, so that the tax is discounted per tier.

Recordation Tax🔗

In Washington, D.C., there is no mortgage tax charged. There is mortgage recordation tax charged, however. If the mortgage and the deed are filed simultaneously (simultaneity is subject to a 30-day grace period), the recordation tax is discounted.