DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Title in a Minute with Shawn Tidwell

State Library

District of Columbia

Mechanics' liens, recording formalities, future advances, subdivision rules, title premiums and recording taxes in District of Columbia, in plain English with statute cites. Last researched Oct 2026.

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Title in a Minute · www.titleinaminute.com/library/states/district-of-columbia · Printed reference copy.

DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Key quirkA 2.9% recordation tax applies to transfers of controlling interests in entities that own real property.

District of Columbia at a Glance

Topic D.C. answer Where it comes from
Where to record Recorder of Deeds (part of the Office of Tax and Revenue) D.C. Code § 42-401
Recording act Deed effective between the parties on delivery; against creditors and later BFPs only from delivery to the Recorder D.C. Code § 42-401
Lien notice of intent Recorded during construction or within 90 days after completion or termination; copy to the owner within 5 business days D.C. Code § 40-301.02
Lien suit Within 180 days after recording the notice; lis pendens within 10 days of suit D.C. Code § 40-303.13
Subs Limited to what the owner still owes the original contractor D.C. Code § 40-303.02
Deed transfer tax Recordation tax (parties jointly liable) 1.1% plus transfer tax (seller) 1.1% for residential under $400,000; otherwise 1.45% each (2.9% total); controlling economic-interest transfers 2.9% recordation; first-time buyers 0.725% recordation D.C. Code §§ 42-1103(a), (a-4), (e); 47-903
Mortgage/indebtedness tax Recordation tax on deeds of trust: 1.1% of the debt under § 42-1103(a)(3)(A), which cross-references the 0.35% add-on; purchase-money exempt; refinance and modification taxed only on new money; Class 1A/1B residential with 5 or fewer units exempt with an owner's affidavit D.C. Code §§ 42-1102(5), (21), 42-1103
First-time buyers Reduced recordation rate (0.725% for a deed) for eligible D.C. first-time buyers D.C. Code § 42-1103(e)
Economic interest transfers 2.9% recordation tax on transfers of controlling interests D.C. Code § 42-1103(a)(2)

1. Mechanic's Lien Rules

Plain English

In D.C., a contractor protects its lien by recording a notice of intent in the land records during construction or within 90 days after the project is completed or terminated, and mailing the owner a copy by certified mail within 5 business days (or posting it on the property if the mail comes back). The claimant then has 180 days after recording the notice to sue, and must record a notice of pendency within 10 days of filing. Miss either step and the lien terminates. Subcontractors' liens are limited to what the owner still owes the original contractor; if the owner paid the contractor in full in good faith, subs have no lien. A lien is ahead of mortgages, deeds of trust and other liens that attach after work begins, except a purchase-money deed of trust recorded within 10 days of its acknowledgment; on a construction loan, the lien beats advances made after the notice of lien is filed (D.C. Code § 40-303.07).

Key Rules

Lien (D.C. Code § 40-301.01). Contractor's lien for the contract price or reasonable value, enforceable only by recording a notice of intent.

Notice of intent (D.C. Code § 40-301.02). Recorded during construction or within 90 days after the earlier of completion or termination; copy to the owner by certified mail within 5 business days; required contents (including D.C. license and good-standing documents where applicable).

Subcontractors (D.C. Code § 40-303.02). Limited to the unpaid balance owed to the original contractor; good-faith full payment defeats the sub's lien.

Enforcement (D.C. Code § 40-303.13). Suit within 180 days after recording the notice; lis pendens within 10 days; otherwise the lien terminates.

Priority (D.C. Code § 40-303.07). Preferred to judgments, mortgages, deeds of trust and liens attaching after work began, and to earlier unrecorded conveyances; a purchase-money mortgage or deed of trust recorded within 10 days of acknowledgment keeps priority; construction-loan advances made after the notice of lien is filed are behind the lien.

Practice Points

  1. Check the 180-day clock on any recorded notice of intent and look for a lis pendens.
  2. Get proof of payment to the GC; it can defeat sub liens.
  3. Get lien waivers and an owner's affidavit covering the last 90 days.

Citations

2. Execution and Notarization Requirements for Recording

Plain English

D.C. deeds are recorded with the Recorder of Deeds, which sits inside the Office of Tax and Revenue. A properly acknowledged deed takes effect between the parties on delivery, but against creditors and later buyers or lenders without notice only from its delivery to the Recorder. Two taxes are paid at recording, each with its own return: the recordation tax (D.C. Code § 42-1103) and the transfer tax (D.C. Code § 47-903). Each is 1.1%, plus an extra 0.35% (so 1.45%) unless the property is residential and sells for under $400,000. The transfer tax is imposed on the seller, with the buyer jointly liable if the seller doesn't pay. Deeds of trust pay recordation tax on the debt (1.1% under § 42-1103(a)(3)(A), which cross-references the 0.35% add-on); on a refinance only the new money is taxed, and purchase money loans and most 1-5 unit residential loans are exempt. Eligible D.C. first-time buyers get a reduced recordation rate (0.725% for a deed). Transfers of a controlling economic interest in an entity that owns D.C. real estate are taxed at 2.9%. Notarization follows D.C.'s notary law (Chapter 12A of Title 1, cross-referenced in § 42-401).

Key Rules

  • Recording (D.C. Code § 42-401). Effective against creditors and BFPs from delivery to the Recorder of Deeds.
  • Recordation tax (D.C. Code § 42-1103(a)(1), (a-4)). 1.1% plus 0.35% except residential under $400,000.
  • Transfer tax (D.C. Code § 47-903(a)(1), (a-4), (c)). Same rates; on the transferor, transferee jointly liable.
  • Security instruments (D.C. Code § 42-1103(a)(3)). 1.1% of debt (with the (a-4) cross-reference); refinance taxed on new money only; exemptions in § 42-1102, including Class 1A/1B residential with 5 or fewer units and an owner's affidavit (§ 42-1102(21)).
  • Economic interests (D.C. Code § 42-1103(a)(2)). 2.9%.
  • First-time buyers (D.C. Code § 42-1103(e)). Reduced recordation rate; benefit allocated to the grantee; household income no higher than 180% of Area Median Income, and a purchase price within the indexed ceiling (originally $625,000) in § 42-1101(17).
  • Commercial rates over $2 million. The former higher rate in § 42-1103(a-5) is marked expired in the current Code, and § 47-903(a-5) and (a-6) are repealed or expired.

Practice Points

  1. Compute both taxes and check the $400,000 residential line.
  2. Entity deals: a controlling interest transfer can trigger the 2.9% tax even without a deed.
  3. Refinances: document the prior taxed principal to limit tax to new money.

Citations

3. Securing Future Advances

Plain English

The filed In re Shkor note covers the replacement-of-mortgages doctrine: a refinancing first lender kept priority over an intervening deed of trust (In re Shkor, No. 23-cv-03648 (APM) (D.D.C. Dec. 3, 2025), affirming the bankruptcy court). That is about replacement loans, not a future-advance statute. Recordation tax on amendments that increase debt is covered by § 42-1103(a)(3)(B): an amendment is generally treated as a refinance of the whole debt.

Key Rules

  • Replacement-of-mortgages (In re Shkor, No. 23-cv-03648 (APM) (D.D.C. Dec. 3, 2025)). Refinancing lender can keep priority.
  • Amendments (D.C. Code § 42-1103(a)(3)(B)). Treated as a refinance unless a supplemental deed.

Practice Points

  1. Refinance over a junior lien? Don't rely on replacement doctrine without underwriter approval; get a subordination.
  2. Loan modifications: check recordation tax on the increase.
  3. Credit lines: confirm the maximum in the deed of trust.

Citations

4. Subdivision Statutes and Regulations

Plain English

D.C. lots are created and recorded through the D.C. Surveyor, whose office is the legal office of record for plats and subdivisions (D.C. Code § 1-1305). The Surveyor checks a subdivision plat's dimensions and certifies it to the Mayor, and no plat is recorded without the Mayor's order (§ 1-1321). The District distinguishes record lots (recorded in the Surveyor's office) from tax lots, which OTR creates for tax billing only and which don't change record lots (DOB Surveyor FAQs).

Key Rules

  • Surveyor's subdivision records (D.C. Code §§ 1-1305, 1-1321). Surveyor's office is the office of record; plats certified and recorded on the Mayor's order.
  • Record lots vs. tax lots. A tax lot is for assessment only and doesn't create a record lot; owners can convert a tax lot to a record lot by recorded subdivision.

Practice Points

  1. Insure by record lot where possible, and confirm tax lot descriptions.
  2. Check Surveyor plats for building restriction lines.
  3. Condos and co-ops: confirm the right regime.

Citations

5. Title Premium Rates

Plain English

Title insurance in D.C. is regulated by the Department of Insurance, Securities and Banking (DISB).

Key Rules

Practice Points

  1. Show recordation and transfer taxes separately from premium.
  2. No unfiled discounts.

Citations

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

D.C. has two deed taxes: a recordation tax (the parties are jointly liable) and a transfer tax (seller), each 1.1% on homes under $400,000 and 1.45% otherwise. A deed of trust also pays recordation tax, but a purchase-money deed of trust is exempt and a refinance or modification pays only on new money. Selling a controlling "economic interest" in an entity that owns D.C. property is taxed at 2.9%.

Key Rules

(a) Deed transfer, conveyance or excise tax

  • Recordation tax (§ 42-1103(a)(1), (a-4)): 1.1%, plus an additional 0.35% (1.45% total) except residential property transferred by deed for less than $400,000. The parties are jointly and severally liable (§ 42-1103(c)).
  • Transfer tax (§ 47-903): same rates, on the transferor (seller); the transferee is jointly liable if the seller doesn't pay (§ 47-903(c)).
  • Economic interests. A deed evidencing a transfer of an economic interest in real property is taxed at 2.9% recordation tax (2.2% for some co-op transfers under $400,000) (§ 42-1103(a)(2)).
  • First-time homebuyers. Recordation tax drops to 0.725% on a deed of title for eligible first-time D.C. buyers, with the whole benefit going to the buyer (§ 42-1103(e)); income limit 180% of Area Median Income and an indexed purchase-price ceiling (§ 42-1101(17)).
  • Commercial surcharge expired. The temporary higher rate for commercial deals of $2 million or more (former § 42-1103(a-5)) has expired.

(b) Mortgage, indebtedness or intangible tax

  • Rate. The security-instrument rate is 1.1% of the debt (§ 42-1103(a)(3)(A)), which cross-references the 0.35% add-on in (a-4).
  • Residential exemption. A deed of trust on Class 1A or 1B property with 5 or fewer dwelling units is exempt when the owner's affidavit is attached (§ 42-1102(21)).
  • Purchase money. Exempt (§ 42-1102(5)) if executed by the buyer within 30 days of the deed, recorded within 30 days after the deed, referencing the deed, and reciting on its face that it is purchase money and the amount (§§ 42-1102, 42-1103(b-1)).
  • Refinances. Tax applies only to new principal above the existing balance, if the existing debt was taxed or exempt (§ 42-1103(a)(3)(A)).
  • Modifications. An amendment, modification or restatement is treated as a refinance of the whole debt, taxed only on the increase, counting amounts paid to the borrower in the previous 12 months (§ 42-1103(a)(3)(B)). A supplemental deed is excluded.

(c) Other recording taxes and fees

  • Recorder of Deeds fees (OTR): $150 to record a deed of trust, mortgage, or a modification, amendment or restatement of one; $30 for deeds and all other documents. Deeds and deeds of trust are filed with form FP 7/C.

Practice Points

  1. Worked example. A $600,000 home: recordation $8,700 (buyer) and transfer $8,700 (seller).
  2. Refinances and modifications: document the existing balance and any advances in the last 12 months.
  3. Purchase-money deed of trust: check the face recitals or the exemption is lost.

Citations

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