What's the benefit of the DC First Time Homebuyer Recordation Tax Deduction

What's the benefit of the DC First Time Homebuyer Recordation Tax  Deduction

What’s the Benefit?

DC First-Time Recordation Tax is reduced to 0.725% from customary 1.1% or 1.4%.

Qualifications*

  • Homebuyer* has never owned a principal residence in the District of Columbia.
  • Homebuyer must qualify for the DC Homestead Deduction.
  • Purchase price cannot exceed $625,000.
  • Total Household Income cannot exceed defined thresholds listed below:
    • Persons in Households / Income Limits
      • 1 / $139,140
      • 2 / $158,940
      • 3 / $178,740
      • 4 / $198,540
      • 5 / $214,560
      • 6 / $230,400
      • 7 / $246,240
      • 8 / $262,080

What's the Benefit of the Maryland First-time Homebuyer Tax Credit?

What's the Benefit of the Maryland First-time Homebuyer Tax Credit?

What’s the Benefit?

The Maryland First-Time Homebuyer Credit exempts the buyer from paying the State Transfer Tax.

Qualifications*

  • All homebuyers must be individuals (cannot be a trust or other entity) who have never owned in the state of Maryland residential real property that has been the individual(s) principal residence; and
  • The residence will be occupied as the homebuyer’s principal residence.

* There is an exemption that will allow a homebuyer to qualify if a co-buyer is on title solely for the loan qualification and will not occupy the property as a principal residence.

Seller Property Disclosure Requirements in DC

Question from an Agent:  My client, a seller of a DC property, has recently purchased a property and has never occupied it.  Is the seller still required to complete the property disclosure form or is the seller exempt?

Answer from an attorney:  There is no statutory exemption that would preclude the above seller from providing the property disclosure statement.   DC Code § 42-1301 (b), provides guidance and lists certain types of property transfers that are exempt from anyone having to fill out the Disclosure statement.  Some, but not all of these include:  transfers between co-tenants; foreclosure sales; court ordered transfers such as probate, bankruptcy, divorce; and transfers made by a person of a newly constructed residential property that has not been inhabited. 

Close It!™ House of the week: A special Valentine’s Day edition located in Chevy Chase

Close It!™ House of the week: A special Valentine’s Day edition located in Chevy Chase

Featuring a wide side hall brick Colonial house, in the desirable Chevy Chase area, with over 3,300 square feet. The home has four bedrooms and four baths, perfect for a growing family that needs a lot of space and storage. The backyard is BREATHTAKING – a walkout, covered patio area that overlooks a beautiful fenced-in garden. The property also includes a detached garage with a private entrance. It’s listed for $1,149,000.        

Assuming a homebuyer puts down 20 percent, their cash-to-close would be $259,754 and monthly mortgage payments would be approximately $3,421. You’ll also receive a credit of $750 when you choose to use Federal Title & Escrow Company for settlement services when ordered online. For a complete picture of what your cash-to-close figures would be, including seller’s net proceeds from the sale and such, please view the Close It! Web version or download the free Close It! iOS app.  

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  • What are closing costs?

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  • What's title insurance?

    Insure your legal ownership just like you'd insure the building, but for lots cheaper.

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