5509714 Tax and Revenue, Office of - Notice of Proposed Rulemaking - Real Property Tax Sale Redemption and Tax Deed Issuance

OFFICE OF TAX AND REVENUE

 

NOTICE OF PROPOSED RULEMAKING

 

The Deputy Chief Financial Officer of the District of Columbia Office of Tax and Revenue (OTR), of the Office of the Chief Financial Officer, pursuant to the authority set forth in D.C. Official Code § 47-1335 (2012 Repl.), Section 201(a) of the 2005 District of Columbia Omnibus Authorization Act, approved October 16, 2006 (120 Stat. 2019; Pub. L. 109-356; D.C. Official Code § 1-204.24d (2014 Repl.)), and the Office of the Chief Financial Officer Financial Management and Control Order No. 00-5, effective June 7, 2000, hereby gives notice of its intent to amend Chapter 3 (Real Property Taxes) of Title 9 (Taxation and Assessments) of the District of Columbia Municipal Regulations (DCMR).

 

The proposed amendments to Section 316 (Real Property Tax Sale Redemption and Tax Deed Issuance Rules) are necessary to be consistent with recent changes to D.C. Official Code §§ 47-1330, et seq., related to the conduct and procedure of real property tax sales in the District. 

 

OTR gives notice of its intent to take final rulemaking action to adopt these regulations in not less than thirty (30) days from the date of publication of this notice in the D.C. Register.

 

Chapter 3, REAL PROPERTY TAXES, of Title 9 DCMR, TAXATION AND ASSESSMENTS, is amended as follows:

 

Section 316, REAL PROPERTY TAX SALE REDEMPTION AND TAX DEED ISSUANCE RULES, is amended by striking the subsection in its entirety and replacing it with the following:

 

316.1               This section shall apply to any tax sale conducted pursuant to Chapter 13A of Title 47 of the D.C. Official Code.

 

316.2               Tax Sale.

 

(a)        A prospective tax sale purchaser shall have on deposit with the Cashier’s Office of the D.C. Treasurer twenty percent (20%) of the total purchase price.

 

(b)        If a prospective tax sale purchaser does not have twenty percent (20%) of the purchase price on deposit, a sale cannot be completed, and the property will be re-auctioned immediately or as soon as possible.

 

(c)        If a prospective tax sale purchaser bids on multiple properties, the deposit on record shall be applied to his or her winning bids in the consecutive order that the bids were placed.  If a prospective tax sale purchaser bids on a property for which the deposit or any remaining deposit is insufficient, the property for which there is insufficient deposit shall be re-auctioned.

 

(d)       Final payment for all properties purchased is due within five (5) business days from the last day of the tax sale.

 

(e)        If final payment is not received within five (5) business days, 20% of the remaining deposit will be forfeited to the District and the sale of the property will be voided.  If a tax sale purchaser purchased multiple properties and can only make a partial payment, the Office of Tax and Revenue will only select as sold to the tax sale purchaser as many of the properties as sold in consecutive order whose combined purchase price does not exceed the amount timely paid by the tax sale purchaser.

 

316.3               Forbearance.

 

A real property owner may apply to forbear a tax amount. Such application shall be submitted to OTR up to thirty (30) days prior to the first day of the tax sale.  OTR shall review and either approve or deny the application within ninety (90) days of receipt of the application.  The application shall be approved if the real property receives a homestead deduction and the tax amount to be sold is less than or equal to seven thousand, five hundred dollars ($7,500).  OTR, in its discretion, may also approve an application that demonstrates hardship even if the real property is not receiving the homestead deduction, or the tax amount to be sold is more than $7,500.  Upon approval of an application for forbearance, OTR shall remove the real property from the tax sale to which the approved forbearance corresponds or, if the tax sale has already occurred, cancel the sale.  Penalties and interest shall continue to accrue on any tax amounts subject to forbearance from tax sale.

 

316.4               Redemption prior to the initiation of a foreclosure action in the Superior Court of the District of Columbia.

 

 (a)       A real property owner shall meet the following conditions:

 

(1)                Pay all real property taxes (including amounts certified to OTR pursuant to D.C. Official Code § 47-1340), business improvement district (BID) taxes, and vault rents to bring the real property’s account to current.

 

(2)               Pay the reimbursable Pre-Complaint Legal Expenses the tax sale purchaser has incurred prior to the initiation of a foreclosure action in the Superior Court of the District of Columbia, as provided in D.C. Official Code § 47-1377(a)(1)(A).

 

(3)               Pay all delinquent special assessments owed pursuant to an energy efficient loan agreement under subchapter IX of Chapter 8 of Title 47.

 

 (b)       The real property owner shall make all payments to the District in the manner provided in this section and the tax sale purchaser shall not accept any payment. Pre-Complaint Legal Expenses are collected by the District and reimbursed to the tax sale purchaser.

 

(c)        The real property’s account shall be deemed to have been brought to current for purposes of redemption if the amounts payable to the Mayor, including tax, interest, penalties and expenses falls below one hundred dollars ($100). The remaining balance shall remain due and owing and any remaining expenses shall thereafter be deemed a real property tax.

 

(d)       To stop further adverse actions to enforce collection of the lien sold at tax sale, the property owner shall provide OTR with proof of payment of all outstanding taxes, assessments, fees, costs and expenses in the manner provided below:

 

 (1)       If the real property owner pays the real property tax, vault rent, BID tax or other lien certified pursuant to D.C. Official Code § 47-1340, the property owner shall provide OTR with:

 

(A)       A copy of the bill reflecting the outstanding real property taxes, vault rent, BID tax or other lien certified pursuant to D.C. Official Code § 47-1340, fees and costs; and

 

 (B)      A copy of the paid receipt issued by the bank; or

 

(C)       A copy of the check or money order, remitted in payment of any tax stated in § 316.4(d)(A) if payment is made via US Mail.

 

316.5               Prerequisites to begin the processing of a Tax Sale Refund prior to the initiation of a foreclosure action in the Superior Court of the District of Columbia.

 

(a)        To begin the processing of a Tax Sale Refund, the property’s real property taxes, vault rents, BID taxes and expenses payable to the Mayor shall be current or paid to within one hundred dollars ($100) or the tax sale shall have been cancelled in accordance with the requirements set forth in Subsection 316.11.

 

(b)        Upon notification from OTR or information obtained from OTR records, including information on the OTR website, of payment of all real property taxes, vault rents, BID taxes, liens certified pursuant to D.C. Official Code § 47-1340, fees and charges payable to OTR on account of the real property, the tax sale purchaser shall surrender the original Certificate of Sale to OTR at the address provided on the Certificate of Sale.

 

 (c)       Upon receipt of a copy of the Certificate of Sale, OTR shall process the Tax Sale Refund. 

 

(d)       The Tax Sale Refund shall be comprised of the amount paid at tax sale, including any Surplus, and Statutory Interest.

 

 (e)       Interest payable to the tax sale purchaser shall cease to accrue once the taxes on the real property tax bill, BID taxes and vault rents have been paid to current, subject to the liability threshold of D.C. Official Code § 47-1361(b-2).

 

 (f)       To collect the reimbursable Pre-Complaint Legal Expenses, the tax sale purchaser shall provide the following documentation:

 

(1)        A copy of the Tax Sale Certificate; and

 

(2)        Receipt issued for the rendering of the Pre-Complaint Legal Expenses; or

 

(3)        An affidavit or a declaration from legal counsel attesting to the fact that the Pre-Complaint Legal Expenses were rendered. Such affidavit or declaration shall state when such expenses were incurred.  Pre-Complaint Legal Expenses incurred within four (4) months from the last day of the tax sale shall not be reimbursed.

 

 (g)       The documentation required in Subsection 316.5(f) shall be provided to OTR at the address on the Certificate of Sale.

 

 (h)       Upon receipt of the documentation required in Subsection 316.5(f), OTR shall process the refund of the Pre-Complaint Legal Expenses. Interest shall not be paid on the Pre-Complaint Legal Expenses.

 

316.6               Payment of subsequent real property taxes by the tax sale purchaser.

 

(a)        The tax sale purchaser shall pay the Tax Sale Purchaser’s Bill at the Cashier’s Office of the DC Treasurer. Once payment has been remitted, the tax sale purchaser shall immediately provide OTR with a copy of the paid receipt issued by the Cashier’s Office of the DC Treasurer and retain a copy of the receipt for the tax sale purchaser’s record.

 

 (b)       Any intended subsequent tax payment made against the Real Property Tax Bill instead of against a Tax Sale Purchaser’s Bill shall be applied to the real property taxes due and owing against the real property as if the payments were made by the property owner. The tax sale purchaser shall not receive credit for any payment of subsequent real property taxes unless payment is made on a Tax Sale Purchaser’s Bill in the manner provided in Subsection 316.6(a).

 

 (c)       Any payments made by a tax sale purchaser pursuant to a Tax Sale Purchaser’s Bill shall be applied to the real property tax account at the time a Tax Deed is issued to the tax sale purchaser.

 

 (d)      The Tax Sale Purchaser’s Bill shall include all interest and penalty due and owing on the real property.  All liabilities on the Tax Sale Purchaser’s Bill shall be paid by the tax sale purchaser.

 

316.7               Notices.

 

(a)        The notices of delinquency required by D.C. Official Code § 47-1341 and the post-sale notice required by D.C. Official Code § 47-1353.01 shall be available on OTR's website.

 

(b)        OTR shall mail a notice of tax delinquency on or before May 1^st to the person who last appears as the owner of the real property on the tax roll, at the last mailing address shown on the tax roll, in accordance with D.C. Official Code § 47-1341(a).  OTR shall mail a second notice at least two (2) weeks before the tax sale to the person who last appears as the owner of the real property on the tax roll, at the last mailing address shown on the tax roll, in accordance with D.C. Official Code § 47-1341(b-1). OTR shall also mail duplicate notices to the premise address if different from the mailing address, addressed to “Property Owner”.

 

(c)        Within thirty (30) days after the date of the tax sale, OTR shall send a post-sale notice to the last known address of the owner in accordance with D.C. Official Code § 47-1353.01. OTR shall also mail a duplicate notice to the premise address if different from the mailing address, addressed to “Property Owner”.  A copy of either version of the notice shall be posted to the property by the tax sale purchaser at least forty-five (45) days before the filing of the Complaint to Foreclose the Right of Redemption.  The post-sale notice cannot be posted to the property until at least four (4) months from the date of the tax sale. 

 

(d)       The tax sale purchaser shall provide notice of the filing of the action to foreclose the right of redemption in the Superior Court of the District of Columbia by filing a notice of the pendency of the action (lis pendens), within thirty (30) days, in the Office of the Recorder of Deeds, pursuant to D.C. Official Code §§ 42-1207, et seq.

 

(e)        The tax sale purchaser shall notify OTR and the Real Property Tax Ombudsman of filing of the Complaint to Foreclose the Right of Redemption within thirty (30) days of the filing.  Such notification shall be by electronic mail to OTR’s Tax Sale Unit at [e-mail] and to the Real Property Tax Ombudsman at [e-mail].  The subject line of such electronic mail shall state: “Foreclosure Action Filed.”  The electronic mail shall contain as attachments copies of the complaint and certificate of sale.  OTR and the Real Property Tax Ombudsman shall provide reply confirmations to the purchaser by electronic mail within five (5) business days of receipt of the notice from the tax sale purchaser. 

 

316.8               Redemption after initiation of an action to foreclose the right of redemption in the Superior Court of the District of Columbia.

 

(a)        To qualify the property for redemption, the real property owner shall pay in full the following:

 

 (1)       Pay all real property taxes (including amounts certified pursuant to D.C. Official Code § 47-1340), BID taxes, and vault rents to bring the real property current.

 

(2)        Pay the reimbursable Pre-Complaint Legal Expenses the tax sale purchaser has incurred prior to the initiation of a foreclosure action in the Superior Court of the District of Columbia, as provided in D.C. Official Code § 47-1377(a)(1)(A);

 

(3)        Pay all Post-Complaint Legal Expenses to which the tax sale purchaser is entitled to reimbursement under D.C. Official Code § 47-1377(a)(1)(B) where an action to foreclose the right of redemption has been filed;

 

(4)        Pay all delinquent special assessments owed pursuant to an energy efficiency loan agreement under subchapter IX of Chapter 8 of Title 47.

 

(b)        With the exception of Post-Complaint Legal Expenses, the real property owner shall make all payments to the District and the tax sale purchaser shall not accept any payment. Pre-Complaint Legal Expenses are collected by the District and reimbursed to the tax sale purchaser.  The tax sale purchaser shall not include Pre-Complaint Legal Expenses in Post-Complaint Legal Expenses.

 

(c)        Upon notification that the property owner is attempting to Redeem, OTR may request a Payoff Statement from the tax sale purchaser that indicates all allowable, reimbursable Post-Complaint Legal Expenses.

 

(d)       Within fourteen (14) days of a request for a Payoff Statement made by OTR, the tax sale purchaser shall provide the property owner and OTR with a Payoff Statement reflecting the amount necessary to satisfy the Post-Complaint Legal Expenses. If the tax sale purchaser fails to respond to the request for a Payoff Statement, OTR will send by certified mail a request to the tax sale purchaser for a Payoff Statement.

 

(e)        Failure to provide OTR with a copy of the Payoff Statement within fourteen (14) days from the date of the request sent by certified mail may result in the issuance of a Certificate of Redemption to the owner, upon request.

 

 (f)       If there is a dispute regarding the amount required to satisfy the Post-Complaint Legal Expenses, any party shall apply to the Superior Court of the District of Columbia for an order fixing the amount of expenses.

 

 (g)       The property owner shall pay in full the reimbursable Post-Complaint Legal Expenses payable to the tax sale purchaser. All payments of reimbursable Post-Complaint Legal Expenses shall be made to the tax sale purchaser, not to OTR.

 

(h)        The real property’s account shall be deemed to have been brought to current for purposes of redemption if the amounts payable to the Mayor, including tax, interest, penalties and expenses is less than one hundred dollars ($100).  The remaining balance shall remain due and owing and any remaining expenses shall thereafter be deemed a real property tax.

 

(i)         At the time the property owner pays the Post-Complaint Legal Expenses as provided in this section, the tax sale purchaser shall provide to the property owner a receipt showing full satisfaction of said expenses.

 

 (j)        If the tax sale purchaser has filed a Lis Pendens at the Recorder of Deeds, within thirty (30) days from redemption, as provided in Subsection 316.8(a), the tax sale purchaser shall file a Release of Lis Pendens with the Recorder of Deeds.

 

316.9               Collection of the Tax Sale Refund after the initiation of a foreclosure action in the Superior Court of the District of Columbia.

 

 (a)       The tax sale purchaser shall submit the following documentation to begin the processing of a Tax Sale Refund, provided that all amounts required to be paid to OTR under Subsection 316.8 shall have been paid or the tax sale shall have been cancelled in accordance with the requirements set forth in Subsection 316.11:

 

(1)        Copy of Tax Sale Registration Form with D.C. Cashier's receipt documenting payment;

 

(2)        Copy of Tax Sale Certificate, if issued to Purchaser or assignor;

 

(3)        Proof of subsequent tax payments, if applicable, in the form of a copy of the D.C. Cashier's receipt or a copy of the front and back of the cancelled check;

 

(4)        Proof of the incurred Pre-Complaint Legal Expenses in the same manner as provided in Subsection 316.5(f).

 

(b)        Upon receipt of the documentation required in paragraph (a) of this section, OTR shall process the Tax Sale Refund.

 

(c)        The Tax Sale Refund shall be comprised of:

 

(1)        The amount paid for the property sold at tax sale, including Surplus, and Statutory Interest. Statutory Interest shall be paid on the amount for which the property was sold (excluding Surplus). Statutory Interest shall not be paid on the Surplus.

 

 (2)       The Pre-Complaint Legal Expenses; and

 

 (3)       The amount paid pursuant to a Tax Sale Purchaser’s Bill to satisfy the subsequent real property taxes inclusive of interest.

 

 (d)      The Statutory Interest is paid on the amount of the real property tax delinquency sold at tax sale and accrues at a rate of 1 1/2 percent per month or part thereof.

 

(e)        Interest is paid only on the base tax amount paid by the tax sale purchaser for the subsequent real property taxes and accrues at a rate of one and one-half percent (1½ %) per month or part thereof.  No interest shall be paid for penalty and interest paid by the tax sale purchaser, although same shall be paid by the tax sale purchaser in addition to base tax.  The interest shall begin to accrue on the first day of the month following the date the subsequent tax payment was made and shall cease to accrue on the date of cancellation or the Date of Redemption.

 

316.10             Issuance of a Tax Deed.

 

 (a)       To apply for a Tax Deed, the tax sale purchaser shall submit to OTR a certified copy, including an electronically issued copy with the official court date stamp and issuing judge’s electronic signature, of the final judgment issued by the Superior Court of the District of Columbia that forecloses the right of redemption to the real property and orders the issuance of a Tax Deed to the tax sale purchaser upon payment of the amounts specified in a Bill for Tax Deed.

 

 (b)       Upon proper application to OTR for a Tax Deed, the tax sale purchaser shall be issued a Bill for Tax Deed.

 

 (c)       The Bill for Tax Deed shall be satisfied no less than thirty (30) days from the date of issuance and may include the following: (1) a Real Property Tax Bill; (2) BID tax bill; (3) Vault Rent Bill; and (4) Payoff Statements from subsequent and prior year tax sale purchasers.

 

 (d)      Payment of the Bill for Tax Deed may be made in the following ways:

 

 (1)       Any Surplus shall be applied to the outstanding taxes, assessments, fees and other costs due and owing against the real property.  Any remaining surplus shall appear as a credit on the real property tax account and shall be refunded to the party who made the overpayment only upon receipt of a written request for refund that includes proof of payment; or

 

 (2)       If the Surplus (if applicable) is insufficient to pay the total taxes, assessments, fees and other costs due, the amount necessary to pay the total taxes, assessment, fees and other costs shall be paid in the form of cash, certified check, cashier’s check or money order.

 

 (e)       If the payment is made by certified check, cashier’s check or money order, the tax sale purchaser shall provide OTR with:

 

 (1)       A copy of the certified check, cashier’s check or money order remitted in payment of the Bill for Tax Deed;

 

 (2)       A copy of the receipt issued by the bank, the Cashier’s Office of the D.C. Treasurer and/or Third-Party Assignee; and

 

 (3)       A copy of the release showing that the Payoff Statement from the Third-Party Assignee and/or prior years or subsequent years tax sale purchasers has been satisfied.

 

 (f)       If payment is made by cash, the tax sale purchaser shall so indicate on the receipt and provide OTR with:

 

 (1)       A copy of the receipt issued by the bank, Cashier’s Office of the D.C. Treasurer and/or Third-Party Assignee indicating payment by cash;

 

 (2)       A copy of the release showing that the Payoff Statements from any and all Third-Party Assignees and prior years’ and subsequent years’ tax sale purchasers have been satisfied.

 

 (g)       The tax sale purchaser may forfeit all monies paid for the property at tax sale and any payments made toward the subsequent real property taxes if the tax sale purchaser fails to satisfy the Bill for Tax Deed on or before the due date provided on the Bill for Tax Deed.

 

 (h)       The tax sale purchaser shall provide Payoff Statements and receipts from prior years and subsequent years tax sale purchasers. Proof of payment includes:

 

(1)        Copies of certified payments and receipts showing that the prior years and subsequent years tax sale purchasers’ Post-Complaint Legal Expenses were paid; and

 

(2)        If applicable, signed releases from prior years and subsequent years tax sale purchasers or tax sale purchasers’ representatives that all Post-Complaint Legal Expenses were paid.

 

316.11             These are rules and prerequisites for Cancellation of a Certificate of Sale by OTR.

 

(a)                A Certificate of Sale may be cancelled to prevent an injustice to the real property owner or to a person with an interest in the real property.

 

(b)               A Certificate of Sale shall be canceled where:

 

(1)               The amount set forth in the notice of delinquency in order to avoid the tax sale is timely paid;

 

(2)               A forbearance authorization has been approved in writing for the applicable tax sale, in accordance with the requirements of Subsection 316.3;

 

(3)               The amount of tax sold was less than two thousand, five hundred dollars ($2,500) for improved Class 1 properties;

 

(4)               The property is a Class 1 property that receives the homestead deduction with respect to which there is an outstanding non-void certificate of sale that was issued within three (3) years of the date of the tax sale; or

 

(5)               The property is a Class 1 property with five (5) or fewer units and the record owner or other person with an interest proves:

 

(A)       A failure of OTR to mail any of the notices required by §§ 47-1341(a), 47-1341(b) or 47-1353.01; or

 

(B)       OTR did not correctly or substantively update or change the address of the person who last appears as the record owner as properly updated by the record owner by the filing of a change of address.

 

 (c)       If a Certificate of Sale is cancelled, the tax sale purchaser shall be refunded the following:

 

 (1)       The amount paid for the property sold at tax sale, including Surplus and Statutory Interest;

 

 (2)       The Pre-Complaint Legal Expenses actually paid and properly incurred, with proof of such expenses to be submitted to OTR in the same manner as Subsection 316.5(f);

 

(3)        The amount paid to satisfy the subsequent real property taxes and Statutory Interest;

 

(4)        Post-Complaint Legal Expenses as permitted under D.C. Official Code § 47-1377(a)(1)(B).

 

 (d)      When cancelled, OTR shall provide to the tax sale purchaser a notice of cancellation of the tax sale.

 

 (e)       If the tax sale is cancelled after the initiation of a foreclosure action in the Superior Court of the District of Columbia, the tax sale purchaser shall provide OTR with the following documents upon receiving notification of cancellation of the tax sale:

 

 (1)       A Payoff Statement, signed by the tax sale purchaser’s attorney of record, for the expenses incurred as a result of the initiation of the foreclosure action; or

 

 (2)       A copy of the paid receipt issued for the rendering of services for the initiation of a foreclosure action; and

 

 (3)       An affidavit attesting that services were rendered for the initiation of a foreclosure action.

 

(f)

(1)        Post-Complaint Legal Expenses shall not be reimbursed to the tax sale purchaser when any of the following circumstances would have put the tax sale purchaser on notice to suspend further action to foreclose and to request authorization from OTR to proceed (and OTR timely responded by cancelling the sale within forty-five (45) days or before the complaint was filed, whichever is later):

 

(A)       Errors in ownership obtainable from a title report;

 

(B)       Selling a real property under the threshold;

 

(C)       Property was sold within three (3) years of the date of the Certificate of Sale and there is an outstanding non-void certificate of sale; or

 

(D)       Property was sold in violation of a bankruptcy stay.

 

(2)        Timely disclosure of the foregoing shall be made to the Tax Sale Unit Manager via electronic mail to [e-mail].

 

 (g)       Sales of properties owned by low-income seniors who later deferred taxes pursuant to D.C. Official Code § 47-845.03 shall be cancelled.  Notwithstanding such a cancellation, the amount of accrued attorneys’ fees paid to a tax sale purchaser by the District when a sale is so cancelled shall remain the liability of the property owner. Upon payment of the refund to the tax sale purchaser, OTR shall add the amount representing the legal fees to the real property tax account of the low-income senior.

 

316.12             Assignment of the Certificate of Sale.

 

 (a)       The assignee of the Certificate of Sale shall notify OTR’s Tax Sale Unit via electronic mail at [e-mail] of the assignment within thirty (30) days from the assignment of the Certificate of Sale. The assigned Certificate of Sale must meet the following requirements:

 

(1)        A written agreement, executed and acknowledged in the same manner as an absolute deed, that contains the assignee’s name, address, telephone number and taxpayer identification number, notification of an assignment of the interest in the payment of other taxes and liabilities (subsequent taxes), and the legal identification of the property; and

 

(2)        The notice of assignment must be signed and acknowledged by the parties agreeing to the assignment and recorded among the land records in the Recorder of Deeds to be effective as to any person not having actual notice.

 

Recording of the Certificate of Assignment with the Recorder of Deeds shall not constitute notice to OTR. Actual notice shall include a copy of the Certificate of Sale, and be sent to OTR.  An assignee shall be compliant with D.C. Official Code § 47-1346(a)(5) [Clean Hands].

 

(b)        At the time that OTR receives notice of the Assignment of the Certificate of Sale, the assignee of the Certificate of Sale shall submit a completed “Compliance Certification for Tax Sale Assignees.”

 

 (c)       If an assignee of the Certificate of Sale shall be found in violation of D.C. Official Code § 47-1346(a)(5), the assignee shall forfeit at the discretion of OTR all monies paid for the Certificate of Sale and any monies paid toward the subsequent real property taxes.

 

 (d)      Once the Certificate of Sale has been assigned, the assignee becomes the tax sale purchaser of the property associated with the certificate. The assignee shall be bound by all rules and regulations pertaining to a tax sale purchaser, including all rules of forfeiture.

 

316.13             These are rules and prerequisites to be followed for the filing of a Certificate of Redemption or a Praecipe of Dismissal with the Recorder of Deeds.

 

 (a)       After redeeming the property pursuant to Subsection 316.4 or 316.8, as applicable, a property owner may request a Certificate of Redemption or a certified copy of the Praecipe of Dismissal filed in the foreclosure action be filed with the Recorder of Deeds to cause a release of the Certificate of Sale.  If a Praecipe of Dismissal is to be filed, it shall contain the square, suffix, and lot numbers, or parcel and lot numbers of the real property.

 

(b)        OTR will process a Certificate of Redemption within sixty (60) days of receipt of a request.

 

 (c)       Upon issuance, a Certificate of Redemption releases the Certificate of Sale.

 

 316.14            These definitions are essential to clarify the tax sale process.

 

(a)        Assignment of the Certificate of Sale - The act of transferring all rights acquired in the Certificate of Sale.

 

 (b)       Bill For Tax Deed - A special tax bill required to be obtained by the tax sale purchaser, after the Superior Court of the District of Columbia has issued a judgment of foreclosure, to pay all real property taxes (together with penalties and interest), vault rents, BID taxes, liens certified pursuant to D.C. Official Code § 47-1340, fees, costs and expenses due and owing to the District of Columbia or other tax sale purchasers before a tax deed is issued.

 

 (c)       Certificate of Redemption - A document that confirms that all outstanding real property taxes (together with penalties and interest), vault rents, BID taxes, liens certified pursuant to D.C. Official Code § 47-1340, fees, costs and expenses have been paid for purposes of redemption only. This document statutorily releases any encumbrance created by the recordation of a certificate of sale. 

 

(d)       Certificate of Sale - A document issued to a tax sale purchaser that evidences that its holder is the purchaser of a tax lien.

 

 (e)       Date of Cancellation - Date a Certificate of Sale is cancelled.

 

 (f)       Date of Redemption - The date of payment of all real property taxes, penalties, interest, vault rents, BID taxes, liens certified pursuant to D.C. Official Code § 47-1340, costs and expenses.

 

 (g)       OTR - Office of Tax and Revenue.

 

 (h)       Payoff Statement - A document prepared by the tax sale purchaser that itemizes the allowable Post-Complaint Legal Expenses incurred as a result of filing and pursuing a foreclosure action in the Superior Court of the District of Columbia.

 

(i)                 Praecipe of Dismissal - a document submitted to the Superior Court of the District of Columbia by the tax sale purchaser to end all legal action to foreclose the owner’s right of redemption subsequent to the owner having made all payments required to redeem or the tax sale being cancelled under the statute and regulations.

 

(j)         Pre-Complaint Legal Expenses – Pursuant to D.C. Official Code § 47-1377(a)(1)(A), the tax sale purchaser’s reimbursable expenses incurred prior to an action to foreclose the right of redemption being filed, which includes the costs of a title search (limit to three hundred dollars ($300)), posting the notice required by § 47-1353.01 ($50), and the recordation fee charged by the District of Columbia to record the Certificate of Sale at the Recorder of Deeds.

 

 (k)       Post-Complaint Legal Expenses – Pursuant to D.C. Official Code § 47-1377(a)(1)(B), the tax sale purchaser’s reimbursable expenses incurred for filing and pursuing an action to foreclose the right of redemption in the Superior Court of the District of Columbia, including expenses incurred for personal service of process, service of process by publication, for publication, for postage and reasonable attorney’s fees.

 

 (l)        Real Property Owner - An owner of record of real property, or a party with a reasonably ascertainable ownership interest in the real property.

 

 (m)      Real Property Tax Bill - The tax bill mailed to a property owner semi-annually for the collection of real property taxes.

 

 (n)       Redeem - The payment of all outstanding real property taxes, penalties, interest, vault rents, BID taxes, liens certified pursuant to D.C. Official Code § 47-1340, costs and expenses (including Pre-Complaint Legal Expenses and Post-Complaint Legal Expenses) due and owing on the real property.

 

 (o)       Statutory Interest - The monthly simple interest (one and one-half percent (1½ %) that accrues on the amount paid for the purchase of properties sold or bid off at tax sale, excluding surplus, and which begins accruing the first day of the month following the tax sale and ends on the Date of Redemption or Date of Cancellation.

 

 (p)       Surplus - The portion of the bid for the property that exceeds the taxes, penalties, interest and costs for which the property was sold.

 

 (q)       Tax Deed - The document that transfers fee simple interest in real property, as described in the Certificate of Sale, to the tax sale purchaser pursuant to D.C. Official Code § 47-1382 and subject to (a) a lien filed by a taxing agency under D.C. Official Code § 47-1430(c) (tax deeds arising from sales under § 47-1353(a)(3) or (b) excepted); (b) the tenancy of a residential tenant (other than a tenant described in D.C. Official Code § 47-1371(b)(1)(C) and (D)); (c) easements of record and any other easement that can be observed by an inspection of the real property; (d) an instrument securing payment of a promissory note executed under D.C. Official Code § 47-1353(a)(3); (e) an energy efficiency loan agreement under subchapter IX of Chapter 8 of Title 47, and related documents or instruments and the obligation to pay the special assessment; and (f) a ground lease described in D.C. Official Code § 47-1345(b), any recorded covenant, agreement, or other instrument, and any other document incorporated by reference into a recorded covenant, agreement, or other instrument to which a ground lessor as described in D.C. Official Code § 47-1345(b) is a party or beneficiary.

 

 (r)       Tax Sale Purchaser’s Bill - A special tax bill, which includes accrued penalty and interest, requested by the tax sale purchaser to facilitate the payment of current and prior tax liabilities that have not been sold or bid off at tax sale. Payment of these tax liabilities is credited to the Bill for Tax Deed. Interest is tolled for the tax sale purchaser beginning on the first day of the month following the date payment is made. Interest continues to accrue for the owner.

 

 (s)       Tax Sale Refund - Comprises the amount paid at tax sale, Statutory Interest, and the Pre-Complaint Legal Expenses.

 

 

Comments on this proposed rulemaking should be submitted to Robert McKeon, Deputy Chief Counsel, Office of Tax and Revenue, no later than thirty (30) days after publication of this notice in the D.C. Register.  Robert McKeon may be contacted by: mail at DC Office of Tax and Revenue, 1101 4^th Street, SW, Suite 750, Washington, DC 20024; telephone at [phone]; or, email at [e-mail]. Copies of this rule and related information may be obtained by contacting Robert McKeon as stated herein.