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.