Great news for first time buyers in Washington DC! Effective October 1, 2017, the DC government will offer a break on the recordation tax for many first time home buyers. It has been years since first time buyers have received a tax break in DC, so this is great news!
• Effective date: Oct 1, 2017
• Recordation Tax will be reduced to .725% of the sales price for first time home buyers
• Includes SFHs, condos and co-ops, under $625,000
A “first-time homebuyer” as defined by the DC government is as an individual purchaser who has never owned eligible property as the individual’s principal residence. (D.C. Official Code § 42-1101(16).) The term also includes an individual who has divorced or separated and who, by a written settlement agreement or court order, did not obtain an ownership interest in a principal residence that had previously been jointly owned. In order for a deed to qualify for the reduced rate, each grantee named in the deed must be a first-time District homebuyer.
When you’re ready to find your perfect home, please give me a call. I can help. 703-963-0142