DC Underwriting Summary

Search/Exam

• Minimum Search Requirements -- No act
• Plant or other search restrictions -- No
• Additional Requirements for REO Searches -- REO Transactions – serious risk in insuring – ck with underwriter
• Foreclosure Checklist -- N/A
• Special Searches Required (Code, HOA, Utilities)? -- N/A
• Survey Requirements -- Owners – Yes; Loan – NO

UPL

• Both attorney and lay settlement agent closings are permitted in DC. All title insurance producers must be licensed. Only a licensed producer can conduct a closing in which a title insurance policy will be sold.
• Preparation of a deed is considered the practice of law.
• There are no licensing requirements for abstractors in the District of Columbia.

Witness Requirements

No witnesses required. Attestation by notary is

Mortgage/Transfer Tax

• DC Charges both a Deed Recordation Tax DC ST 42-1103 and a Transfer tax. Both at 1.1 % of consideration or fair market value for residential property transfers less than $400,000; or 1.45% of consideration or fair market value on the entire amount, if transfer is $400,000 or greater (recomputed from the first dollar).
• Recordation tax on Security Instruments (Deed of Trust) at 1.1% for residential; 1.45% for commercial or residential $400,000 and over. Offset for amounts refinanced on which tax already paid. Exemption for purchase money mortgage or Deed of Trust recorded at time of taxable conveyance. Special rules on mortgage refi.
• Recordation tax rate is doubled for conveyance of an interest in a real estate owning entity

Spousal Joinder Requirements/Homestead

• DC abolished both dower and curtesy. No requirement for spousal joinder.

Who May Serve As Trustee On Deed Of Trust

Deeds of trust are used almost exclusively. A mortgage would be enforceable but would require court action to enforce. no restrictions as to who may act as a trustee. Trustees do not need to be DC residents and can be an entity or a person.

Time Limitations

• US Judgment Liens -- 20 years
• State Court Judgment Liens -- 12 years
• Federal Tax Liens -- 10 years (+ 30 days)
• State Tax Liens -- 10 years
• Estate Tax Lien -- 10 years
• State Inheritance Tax Liens --
• Mechanics Liens -- The statutory period for filing a ML in the District of Columbia is 90 days from the completion or termination of the project. (40-301.02)

• Financing Statements -- 5 years
• Mortgages --
• HOA Liens --
• Condominium assessments --
• Child Support Liens –

Odd Stuff

• The arbitration provision must be deleted from all policies.
• All policy forms and rates must be filed with the Department of Insurance, Securities and Banking. Discounting of title premiums is not permitted.
• A title agent that paid off a loan may release the lien by recording an affidavit along with the original promissory note. See DC Code 42-818.02.
• Usury endorsement available. Considered an extra hazardous risk, however generally not a major issue. The basic ceiling is 24% but all commercial loans in excess of $2500 are exempt. See DC Code 28-3301.
• DC ST § 47-1433(c) - a $250.00 penalty is due for all Deeds of Title that are submitted for recording later than (30) thirty calendar days from its execution date