Washington, DC real estate: buy or sell with a local AXEN agent
Washington, DC charges two taxes when a home sells, one on each side, gives first-time buyers a break on theirs, and lets you cancel within 5 days if the seller's disclosure comes after you sign. Here is how buying and selling works in the District, and where to search homes.
Washington, DC: search homes by city
Tap a city to see the newest homes for sale there.
What every Washington, DC buyer and seller should know
You get the disclosure by the time you sign
The seller of a home with 1 to 4 units must give you a signed disclosure statement on the District's form before or when you sign the purchase agreement (DC Code 42-1302). The law covers buyers who say in writing that they plan to live in the home (DC Code 42-1301).
A late disclosure lets you cancel for 5 days
If the disclosure reaches you after you sign, you can cancel in writing within 5 calendar days and get your deposit back (DC Code 42-1302). The right ends early if you apply for your loan after the lender warns you in writing, or at settlement or move-in.
Some sales skip the disclosure
Court-ordered sales, foreclosures, bankruptcy sales and similar transfers are exempt (DC Code 42-1301). Your inspection matters even more on these.
Two taxes: one for the seller, one for the buyer
DC charges a deed transfer tax and a recordation tax. Each is 1.1% of the price at $400,000 or less, and 1.45% on the whole price above $400,000 (DC Code 47-903 and 47-1103). By custom the seller pays the transfer tax and the buyer pays the recordation tax, but the contract can change that.
First-time buyers can pay a lower recordation tax
Qualifying first-time buyers in the District pay a reduced recordation tax of 0.725% on homes priced under a limit that is reset each year. Ask your title company whether you qualify before you sign, so the savings show on your estimate.
A tenant may have the right to buy first
DC's Tenant Opportunity to Purchase Act gives many tenants the first chance to buy the home they rent. Since July 2018, most single-family homes are exempt, except for some tenants who are 62 or older or disabled and moved in by April 2018 (DC Code 42-3404.09). If the home is rented, ask for the TOPA paperwork early.
Claim the homestead deduction
DC lowers the taxable value of the home you live in through the homestead deduction, and seniors and people with disabilities can get more. You must apply with the Office of Tax and Revenue after you buy.
Condos and co-ops come with building papers
Much of DC is condos and co-ops. Before you commit, read the building's rules, budget, reserves and any planned special charges. A co-op board must also approve you.
Closing costs in Washington, DC: who pays what
Who pays what in Washington, DC. The two taxes are set by law. Who pays them is custom, and the contract can change it.
| Buyer pays | How it works |
|---|---|
| Recordation tax | 1.1% at $400,000 or less, 1.45% above. By custom the buyer pays it. |
| First-time buyer break | Qualifying first-time buyers pay 0.725% recordation tax under a yearly price limit. |
| Lender's title policy | Required with a loan. Usually paid by the buyer. |
| Owner's title policy | Optional but recommended. Usually paid by the buyer. |
| Settlement fee | The title company's or attorney's fee. |
| Loan costs | Origination, appraisal and credit report, if you have a loan. |
| Home inspection | A flat fee, paid during your inspection period. |
| Condo or co-op fees | Move-in, application and first month's fees. |
| Seller pays | How it works |
|---|---|
| Transfer tax | 1.1% at $400,000 or less, 1.45% above. By custom the seller pays it. |
| Mortgage payoff | Your lender's payoff plus the fee to release it. |
| Deed preparation | The fee to draft the deed. |
| Listing agent's commission | Set in your listing agreement. Always negotiable. |
| Condo or HOA resale papers | The association's resale package, if there is one. |
| TOPA notices | Only if the home is rented and not exempt. |
| Tax adjustments | Your share of property taxes for the time you owned the home. |
| Repairs or credits you agree to | Only what you agree to in the contract. |
Both tax rates are set in DC Code 47-903 and 47-1103. The first-time buyer price limit changes every year. Confirm current numbers with your title company.
How a Washington, DC home purchase runs
The order most DC purchases follow. Your contract sets the exact deadlines, so keep a calendar.
Get pre-approved →-
Get pre-approved. Ask about first-time buyer programs and the reduced recordation tax.
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Read the disclosure. You should have it by the time you sign.
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Make an offer. Include inspection, financing and appraisal contingencies.
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Inspect. Book it right away and ask for repairs by your deadline.
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Building papers. For condos and co-ops, review the resale package. Co-ops need board approval.
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TOPA check. If the home is rented, confirm the tenant notices are handled.
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Title and loan approval. The title company clears the title and the lender finishes underwriting.
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Final walk-through and settlement. Check the home, then sign and get the keys.
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Apply for homestead. File with the Office of Tax and Revenue for the home you live in.
AXEN Realty in Washington, DC
Every AXEN agent in Washington, DC works under a licensed managing broker: Rusty Smith (AXEN Realty, LLC, firm license REO40000496). See every state on the state brokers page.
Buying? Start with the home buying guide and get pre-approved.
Selling? Read the home selling guide and get your home value.
Moving here? Read buying in a new state.
Washington, DC real estate questions
What are the transfer and recordation taxes in DC?
Two taxes, each 1.1% at $400,000 or less and 1.45% above $400,000, on the whole price. By custom the seller pays the transfer tax and the buyer pays the recordation tax.
Is there a break for first-time buyers?
Yes. Qualifying first-time buyers pay a reduced recordation tax of 0.725% on homes under a price limit that changes each year. Ask your title company.
When do I get the seller's disclosure in DC?
Before or when you sign the purchase agreement. If it comes after, you have 5 calendar days to cancel and get your deposit back.
What is TOPA?
A DC law that can give tenants the first chance to buy the home they rent. Most single-family homes are exempt since 2018, but condos and multi-unit buildings often are not. Ask for the paperwork early.
How do I lower my DC property taxes?
Apply for the homestead deduction with the Office of Tax and Revenue for the home you live in. Seniors and people with disabilities can get extra relief.
Who closes the sale in DC?
Usually a title company or settlement attorney. They handle the money, the taxes and recording the deed.
Is a home inspection required?
No law requires one, but it is your best protection. Write an inspection contingency into your offer.
What should I check on a condo or co-op?
The building's rules, budget, reserves, recent minutes and any special charges coming up. Co-ops also need board approval.