Quit Claim Deed for Washington, DC

11 Replies

I purchased a SFH as a rental in my name. After extensive renovation - which will be presented in another post at another time - I got the house rented and now wanted to put the property into an LLC. However, I could not find on the forum posts any guidance on how to do a quit claim deed. After a fair amount of research and phone calls, I figured it out and wanted to post it here in case others might find this information useful. As a disclaimer, I am not a lawyer. I suggest that you have a lawyer review your documents. I am simply providing this information as an account of what steps I took with the hope that it may benefit others.

First, I went to Deeds.com and ordered quit claim documents for Washington, DC. It cost $19.95 and was available immediately for download. You get a bunch of forms for $19.95, but the only ones that were relevant for me were the Quit Claim Deed template, the Quit Claim Deed Instructions, the Quit Claim Deed Sample, and the Recordation and Tax Transfer Form. You may need to use other forms depending on your particular circumstance. Note that there is a section of the Quit Claim Deed template that asks for "book number / page number". This is no longer used by the DC Recorder of Deeds Office. They use a 10 digit document number that is found on your original recorded deed. The 10 digit number begins with the year the you purchased the house. If you don't have a copy of your deed, contact your title company or order one from the DC Recorder of Deeds office.

The Recordation and Tax Transfer Form is also known as  and can be found at https://otr.cfo.dc.gov. Click on Recorder of Deeds. Go to Form Center and click on ROD Tax Forms Page 1. Form FP 7/C is the form I needed. Instructions are provided on how to complete the form, including how to calculate the recordation and tax fees. 

Both the Quit Claim Deed and the Recordation of Tax Transfer Form need to be notarized. The notarized documents can be mailed or delivered in person to 1101 4th St SW 5th Floor Suite 500 West between the hours of 8:30 - 3:00. In addition to the recordation and tax fees, one must also pay a recording fee of $31.50. 

I hope you find this useful.

Frustrating in DC that you have to pay transfer and recordation tax for a quit claim deed to an LLC. I think it's not the case in other states no? I think it's amounts to around 3% of tax assessed value in DC.

DC is not friendly with this type of transfer. 

Transfer/rec tax will be based upon assessed value. If less than $400k you will have 2.2% (1.1% each)... if $400k+, 2.9% (1.45% each). 

@Tom Gimer Do you know if in DC if when the LLC is sold to a new owner if transfer/recordation taxes are due? I know a lot of the larger buildings, it is the holding company being sold, and was always curious how that affected the transfer taxes.

@Russell Brazil You're referring to the economic interest transfer of 2.9%.

This tax is triggered by either one of the following two elements:

  1. More than 50% of the controlling interest of the property owner is transferred; and
  2. 80% of the assets of the property owner consists of real property located in DC; or
  3. 3.50% of the property owner’s gross receipts is from property in DC.

The consideration of an economic interest transfer is what is paid for the interest being transferred. If the consideration is nominal, then the tax will be the fair market value of the property owned by the property owner

DC Code Citation: Title 42, Chapter 11.

@Tom Gimer . I was chatting with my sister and she said that when she did a quit claim for her properties in NY, the lawyer indicated the quit claim was in consideration of $1, which eliminated the need for her to pay 2.2% recordation and transfer fees. Isn't is possible to do the same thing in DC?

@Cynthia Hartley Not happening in DC. 

Let me put it this way... buy a house for $300k when it is assessed at $400k and the clerk may say “we’re collecting based upon assessed value.”  And there is no guidance on when they will accept one value or another. 

As the title company we typically collect full and refund in cases like this... better than trying to get $thousands more out of the parties after the deed is rejected. 

I think that you can only skip transfer fees if you transfer the deed to your close relative. For LLC I believe that you have to pay.

Maybe you can skip the transfer fees if you decide to transfer to the trust... Anyone has any info on this to confirm?

Originally posted by @Vasa G. :

I think that you can only skip transfer fees if you transfer the deed to your close relative. For LLC I believe that you have to pay.

Maybe you can skip the transfer fees if you decide to transfer to the trust... Anyone has any info on this to confirm?

Exempt: a transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust

@Shadonna N. DC will tax the transfer from LLC to individual based upon percentage transferred and current assessed value.

The clerk will not care if there is a mortgage on the property... pay transfers and the clerk will accept your quitclaim. Such a transfer would (without lender approval) likely violate the terms of the mortgage.

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