State Foreclosure Law Library

district-of-columbia

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District of Columbia — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-01.

The District of Columbia is a tax-lien-certificate jurisdiction. The Office of Tax and Revenue (OTR), acting for the Mayor, holds an annual public tax sale; the winning bidder receives a certificate of sale, not title (D.C. Code § 47-1348). The owner has a 6-month minimum redemption period and may in fact redeem at any time until a Superior Court judgment forecloses the right of redemption (§§ 47-1360, 47-1370). The redemption rate is 1.5% per month (18%/yr) on the purchase price exclusive of surplus (§ 47-1334, § 47-1361). DC’s modern regime lives in Title 47, Chapter 13A (“Revised Real Property Tax Sales,” §§ 47-1330 et seq.), which governs all sales after December 31, 2000; the older Chapter 13 (§§ 47-1301 et seq.) still appears for legacy/surplus-fund mechanics. After tyler-v-hennepin-county, DC’s exposure is mitigated for owner-occupants by § 47-1382.01 (a 2014 reform that forces a resale and returns surplus equity to the former owner), but non-owner-occupied and higher-debt properties remain at risk; see Module 3.

0. Identity & Classification

  • Recording unit: The District is a single jurisdiction (no counties). Land records are kept by the D.C. Recorder of Deeds; tax collection and sales by the Office of Tax and Revenue (OTR). num_recording_units = 1.
  • Tax sale type: Tax lien certificate (certificate of sale) — D.C. Code § 47-1348. — https://code.dccouncil.gov/us/dc/council/code/sections/47-1348
  • Tax foreclosure process: Judicial — the certificate holder must file a complaint in the Superior Court of the District of Columbia to foreclose the right of redemption (D.C. Code § 47-1370). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1370
  • Mortgage foreclosure process: Non-judicial (power of sale under a deed of trust) is the norm; judicial foreclosure is also available. Governed by D.C. Code § 42-815. — https://code.dccouncil.gov/us/dc/council/code/sections/42-815
  • Selling authority: Mayor / Office of Tax and Revenue (OTR) for tax sales (§ 47-1353(a)); a trustee under the deed of trust for mortgage sales.
  • Statutory home: D.C. Code Title 47, Chapter 13A — Revised Real Property Tax Sales (§§ 47-1330 to 47-1385). Mortgage: Title 42, Chapter 8. — https://code.dccouncil.gov/us/dc/council/code/titles/47/chapters/13A
  • Tyler v. Hennepin compliance: reformed_post_Tyler (partial). For owner-occupied Class 1A/1B residential property with 5 or fewer units, D.C. Code § 47-1382.01 (enacted by the 2014 Residential Real Property Equity and Transparency Act, D.C. Law 20-141) already requires a court-ordered resale and returns surplus equity to the former owner after a capped payment to the purchaser. For other property classes the purchaser/District can still capture equity above the tax debt, leaving residual Tyler exposure. — https://code.dccouncil.gov/us/dc/council/code/sections/47-1382.01

1. Tax Sale Mechanics

  • What is sold: A certificate of sale; the Mayor delivers it to the highest bidder, subject to the owner’s right of redemption (§ 47-1348). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1348
  • Bidding method: Highest-bid public auction. “All sales shall be at public auction to the purchaser who makes the highest bid,” and “a real property shall not be sold for less than the amount of the taxes” (D.C. Code § 47-1346). Amounts bid above the taxes/costs become the “surplus” recorded on the certificate. — https://code.dccouncil.gov/us/dc/council/code/sections/47-1346
  • Interest / penalty (redemption rate): 1.5% per month, or portion thereof (= 18% per annum), simple interest on the amount paid by the purchaser exclusive of surplus, running from the first day of the month after the sale until redemption (D.C. Code § 47-1334; § 47-1361). The purchaser earns no interest on the surplus (§ 47-1348(c)). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1334
  • Minimum bid composition: The delinquent taxes (real-property tax, plus any BID tax, vault rents, special assessments, etc.) and costs; the property may not be sold for less than the taxes due (§ 47-1346). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1346
  • Sale frequency / typical month: Annual public tax sale administered by OTR, historically held in July (sometimes spring). An Over-the-Counter (OTC) program lets buyers acquire liens “bid-off to the District” weekday business hours. — https://otr.cfo.dc.gov/page/real-property-tax-sale
  • Venue: In person / OTR-administered public auction (with OTC purchases of District-held liens); confirm each year’s format on the OTR sale page. — https://otr.cfo.dc.gov/page/real-property-tax-sale
  • Platform vendors: OTR-administered (no single fixed third-party auction vendor confirmed from a primary source). (needs_verification.)
  • Registration & deposit: A potential purchaser must have 20% of the purchase price on deposit before bidding (D.C. Code § 47-1346). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1346
  • Subsequent taxes (“subs”): Taxes, penalties, and interest accruing after the sale that the purchaser pays are added to the redemption amount and must be paid by the redeeming party (D.C. Code § 47-1361). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1361

2. Right of Redemption → see right-of-redemption

  • Pre-sale right: The owner can avoid the sale by paying the delinquent taxes (and curing the delinquency) before the sale. The District also withholds certain properties from sale under hardship/exemption programs. (Pre-sale cutoff mechanics — confirm current OTR notice/payoff window — needs_verification.)
  • Post-sale period: At least 6 months after the tax sale before the purchaser may even file to foreclose; the owner may redeem at any time until the Superior Court enters a final judgment foreclosing the right of redemption (D.C. Code §§ 47-1360, 47-1370). There is no fixed outer redemption clock for the owner; instead, redemption ends when foreclosure becomes final. — https://code.dccouncil.gov/us/dc/council/code/sections/47-1370
  • Who may redeem: “The owner of any property sold … or any other person having an interest therein” — owners, heirs, mortgagees, and other lienholders (D.C. Code § 47-1360 / § 47-1361). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1361
  • Redemption amount formula: Amount paid by the purchaser exclusive of surplus
  • Premium to certificate holder: No separate “premium” beyond statutory 18%/yr interest on the (non-surplus) purchase price plus the capped expenses in § 47-1377.
  • Procedure: Redeem by paying OTR (the Collector); upon request OTR issues a certificate of redemption within 60 days, recordable with the Recorder of Deeds to release the certificate-of-sale encumbrance (D.C. Code § 47-1361). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1361
  • Extinguishment: The right of redemption is extinguished only by a final Superior Court judgment foreclosing it (D.C. Code §§ 47-1370, 47-1382). On a cancelled sale, the purchaser is refunded price + interest + taxes + expenses/fees (see Rupsha 2007, LLC v. Kellum, Module 8).
  • Special tolling: Minors/incompetents/SCRA/bankruptcy tolling treatment under Chapter 13A not confirmed against a primary source. (needs_verification.)

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

  • Belongs to: Split regime.
    • Owner-occupied Class 1A/1B residential (≤ 5 units): the former owner gets the surplus equity. On final foreclosure judgment, the court appoints a trustee to resell the property; proceeds are distributed in a statutory waterfall and the remainder goes to the former owner/estate (D.C. Code § 47-1382.01). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1382.01
    • Tax-sale “surplus” at auction (bid over taxes): historically credited so that any surplus paid by the purchaser is applied against other taxes/expenses to obtain the deed, and overpayments are refunded to the person who made them; the Mayor holds disputed overpayments until a court determines distribution (D.C. Code § 47-1382). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1382
  • Claim waterfall (§ 47-1382.01 owner-occupant resale):
    1. Trustee compensation + reasonable sale expenses + recordation/transfer taxes;
    2. Amounts payable to the Mayor (taxes, certified liens) → General Fund;
    3. Purchaser reimbursement for court-fixed § 47-1377 expenses (treated as a redemption refund, with the distribution-order date deemed the redemption date);
    4. Of remaining equity, the lesser of 10% or $20,000 to the purchaser;
    5. Balance → former owner / estate. — https://code.dccouncil.gov/us/dc/council/code/sections/47-1382.01
  • Filing venue: The Superior Court foreclosure action (the trustee-resale and distribution happen within that case); historic auction overpayments are claimed from OTR (Mayor), with disputes resolved by a court (§ 47-1382). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1382
  • Claim deadline / escheat: No Chapter 13A-specific surplus-claim deadline located; under the legacy Chapter 13 surplus-fund mechanism (§ 47-1304/§ 47-1307) surplus was deposited to a Surplus Fund to be paid to the owner. The interaction with the D.C. unclaimed-property regime for unclaimed balances is not confirmed against a primary source. (needs_verification.) — https://code.dccouncil.gov/us/dc/council/code/sections/47-1307
  • Third-party recovery (CRITICAL for recovery agents):
    • fee_cap_pct: No tax-sale-specific statutory percentage fee cap on surplus recovery located in Title 47, Chapter 13A. (needs_verification — DC has not been confirmed to have a tax-surplus finder fee cap statute.)
    • licensing_required: Not confirmed. No tax-surplus-finder licensing statute located. (needs_verification.)
    • assignment_of_claim_allowed: Not confirmed by a Chapter 13A provision. (needs_verification.)
    • cooling_off_period / contract_disclosure_rules / prohibited_practices: Not located in a tax-sale-specific statute. (needs_verification — check DC consumer protection / CPPA for finder agreements.)
    • Bottom line for operators: DC’s main equity-return mechanism (§ 47-1382.01) runs inside the Superior Court foreclosure and pays the former owner directly via the trustee for qualifying owner-occupied homes — there is little “unclaimed surplus” to chase for that class. For other classes, the equity may have been captured by the purchaser/District, so confirm there is a claimable balance before contracting. The presence/absence of a finder fee cap is unverified.
  • Notice to former owner: Yes — the foreclosure complaint and process require service/notice to the owner and interested parties (§§ 47-1370, 47-1374), and the § 47-1382.01 trustee distributes the balance to the former owner. (Specific surplus-notice mechanics — needs_verification.)

4. Mortgage Foreclosure

  • Process: Predominantly non-judicial power-of-sale under a deed of trust; judicial foreclosure also available. The lender records a notice of default and must send a Notice of Intention to Foreclose to the borrower and a copy to the Mayor at least 30 days before the sale; the 30 days run from the Mayor’s receipt (D.C. Code § 42-815). — https://code.dccouncil.gov/us/dc/council/code/sections/42-815
  • Timeline (residential): Notice of default recorded → 30-day NOI period → advertised trustee sale. Owner-occupied residential foreclosures are subject to mediation (D.C. Code § 42-815.02) and a right to cure (§ 42-815.01). — https://code.dccouncil.gov/us/dc/council/code/sections/42-815.02
  • Reinstatement right: Yes — residential borrowers have a statutory right to cure the default before sale (D.C. Code § 42-815.01). — https://code.dccouncil.gov/us/dc/council/code/sections/42-815.01
  • Redemption after sale: No statutory post-sale redemption period for non-judicial mortgage foreclosure (redemption is pre-sale by cure/payoff). (needs_verification for any judicial-foreclosure equity-of-redemption nuance.)
  • Deficiency judgment: Allowed — the lender may pursue a deficiency after a non-judicial sale or within a judicial foreclosure action. (Fair-value-offset / one-action-rule specifics not confirmed against a primary source — needs_verification.)
  • Surplus distribution: Trustee distributes sale proceeds: costs of sale → secured debt → junior liens → surplus to the borrower/owner. (Exact statutory cite for mortgage surplus distribution — needs_verification.)
  • Sale officer: Trustee named in the deed of trust (or substitute trustee).

5. Sale Procedure Playbooks

  • Tax sale (OTR) — ordered steps → see treasurer-sale:
    1. Taxes become delinquent; OTR sends statutory delinquency/sale notices and advertises the sale (D.C. Code § 47-1341 et seq.).
    2. Annual public auction; bidder must hold 20% deposit; highest bid wins, not below the taxes due (§ 47-1346).
    3. Purchaser receives a certificate of sale stating taxes, purchase price, and surplus (§ 47-1348).
    4. 6-month wait, then purchaser may file a complaint to foreclose the right of redemption in Superior Court (§ 47-1370).
    5. Owner may redeem any time before final judgment by paying price + 1.5%/mo interest + post-sale taxes + § 47-1377 expenses (§ 47-1361).
    6. On final judgment, the purchaser pays the balance/surplus due and receives the deed (§ 47-1382); for qualifying owner-occupants, the court orders a trustee resale returning surplus equity to the former owner (§ 47-1382.01). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1382
  • Sheriff sale — ordered steps → see sheriff-sale: Not used for DC tax or mortgage foreclosure. Tax foreclosure is judicial via Superior Court; mortgage sales are conducted by a trustee.
  • Notice requirements: Pre-sale OTR statutory notices + newspaper advertisement; pre-foreclosure the purchaser must serve the complaint and post the property (D.C. Code § 47-1353.01 / § 47-1370(c)(4) — failure to post forfeits expense recovery absent good cause). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1370
  • Upset bid / confirmation: No North-Carolina-style upset bid. The Superior Court judgment itself is the confirmation step; for owner-occupants the trustee resale under § 47-1382.01 substitutes for a direct deed.
  • Payment terms: 20% deposit to bid; balance/surplus and reimbursable amounts settled at deed delivery per court judgment (§§ 47-1346, 47-1382). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1382
  • Deed issued: Tax deed from the District after final judgment (or trustee’s deed on a § 47-1382.01 resale). Functionally a special/limited conveyance, not a general warranty deed.

6. Due Process & Notice → see due-process-notice

7. Title & Marketability

  • Deed warranty level: Tax deed conveys the District’s interest after a Superior Court foreclosure judgment; functionally special/limited (no general warranty).
  • Marketable immediately? Practically no — title insurers commonly want a clean foreclosure record (and sometimes a quiet-title) before treating tax-deed title as marketable.
  • Quiet title required? Often advisable in practice for marketability/title insurance even after the judicial foreclosure. (needs_verification for DC-specific underwriting norms.)
  • SOL to challenge deed: Challenges to a final foreclosure judgment are limited; exact statute-of-limitations / motion-to-reopen window under Chapter 13A not confirmed against a primary source. (needs_verification.)
  • Title insurance availability: Generally available after the judicial foreclosure with curative review.
  • Common defects: Defective notice/posting; failure to join interested parties; cancelled/void sales of paid-up parcels (cf. Rupsha); residual Tyler surplus exposure for non-owner-occupied classes.

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
aeon-financial-v-district-of-columbia (Aeon Financial, LLC v. District of Columbia, Nos. 12-CV-695 et al., D.C. Court of Appeals)2014redemption / sale_procedureA property is redeemed when the District concludes in good faith that all amounts it levied are paid and the purchaser’s reimbursable § 47-1377 expenses are paid; the District need not refund the purchaser until the purchaser dismisses its foreclosure action. Clarifies the scope of § 47-1377 reimbursable expenses (incl. pre-complaint and post-complaint fees).https://www.dccourts.gov/sites/default/files/2017-09/12-CV-695p.pdf
rupsha-2007-v-kellum (Rupsha 2007, LLC v. Kellum, 32 A.3d 402, D.C.)2011sale_procedure / surplusWhere the District erroneously sold property whose owner had already paid the directed payoff, the sale should be cancelled (not merely void ab initio); the purchaser is entitled to purchase price + statutory interest + post-sale taxes paid + legal expenses and attorney’s fees under §§ 47-1366, 47-1348(c), 47-1361, 47-1377.https://case-law.vlex.com/vid/rupsha-2007-llc-v-887525283
tyler-v-hennepin-county (Tyler v. Hennepin County, 598 U.S. 631)2023surplus / due_processRetaining a former owner’s surplus equity beyond the tax debt is an unconstitutional taking under the Fifth Amendment. (Landmark anchor; governs analysis of DC § 47-1382/§ 47-1382.01.)https://www.supremecourt.gov/opinions/22pdf/22-166_8n59.pdf

Topic coverage: redemption (Aeon), sale_procedure (Aeon, Rupsha), surplus (Rupsha, Tyler), due_process (Tyler + mullane-v-central-hanover/jones-v-flowers anchors). All four required topic tags are covered by ≥1 verified case.

9. Edge Cases (state-specific notes)

  • bankruptcy-automatic-stay — A Chapter 7/13 filing stays the Superior Court foreclosure of the right of redemption; the redemption window effectively pauses while the stay is in effect. (DC-specific tolling mechanics — needs_verification.)
  • federal-tax-lien-redemption — A recorded federal tax lien gives the IRS a 120-day post-sale right to redeem (26 U.S.C. § 7425); applies in DC as elsewhere.
  • heirs-property — Heirs are “persons having an interest” who may redeem (§ 47-1360/§ 47-1361); the § 47-1382.01 owner-occupant equity-return runs to the former owner or estate. (DC-specific heir protections — needs_verification.)
  • tyler-v-hennepin-county — DC partially reformed pre-Tyler via § 47-1382.01 (2014) for owner-occupied ≤5-unit homes; non-owner-occupied / higher-debt classes still risk equity capture and remain the live Tyler question. — https://code.dccouncil.gov/us/dc/council/code/sections/47-1382.01
  • void-vs-voidable — Improper sales (e.g., already-paid taxes) are cancelled with full purchaser refund (Rupsha); defective-notice/posting judgments are voidable and may be denied/set aside (§ 47-1370(c)(4)).
  • manufactured-homes / hoa-super-priority — No DC-specific super-priority HOA regime confirmed; treatment of manufactured homes under Chapter 13A not confirmed. (needs_verification.)

10. Operations

  • Where records live: Office of Tax and Revenue (OTR) — tax sale, certificates, redemption payoffs; D.C. Recorder of Deeds — certificates of sale, certificates of redemption, deeds; Superior Court of D.C. (Civil Division) — foreclosure of the right of redemption and § 47-1382.01 trustee resales.
  • Public access portals:
  • Typical costs: Redemption = purchase price (ex-surplus) + 1.5%/mo (18%/yr) interest + post-sale taxes + capped § 47-1377 expenses (e.g., title search ≤ 50, **attorney’s fees ≤ 75/ additional hearing, +$300 motion for judgment). — https://code.dccouncil.gov/us/dc/council/code/sections/47-1377
  • Typical timelines: ≥ 6 months before foreclosure may be filed; redemption open until final judgment; certificate of redemption issued within 60 days of request.
  • Key agencies: OTR (Mayor’s tax collector); Recorder of Deeds; Superior Court of the District of Columbia.
  • Useful forms: OTR tax-sale bidder registration & redemption payoff request; Superior Court complaint to foreclose the right of redemption. (Specific form numbers — needs_verification.)

11. Meta

Legal information, not legal advice. This page summarizes District of Columbia law from the cited primary sources as of the last_verified date. Statutes, rates, and case law change. Verify against the current D.C. Code (Title 47, Chapter 13A; Title 42, Chapter 8), the OTR tax-sale materials, and the D.C. Courts, and consult a licensed District of Columbia attorney before acting. Last verified: 2026-06-01.

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