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District of Columbia

D.C. Code § 42-401 et seq.

Contract type

Land contract

Cure period

30 days (contractual)

Recording

Required

DC Recorder of Deeds

Default remedy

Forfeiture or judicial foreclosure

Owner-Finance Land Contracts in the District of Columbia

Overview

The District of Columbia recognizes installment land contracts as a form of seller financing under general contract law. They are uncommon in DC because the District is highly urbanized and conventional mortgage financing dominates; they appear most often in family transactions and small lot sales. There are few installment-contract-specific buyer protections in DC, so the contract terms largely govern.

Governing Law

DC has no installment-land-contract-specific statute. Real-property law is primarily codified in DC Code Title 42 (Real Property), with conveyancing rules at § 42-301 et seq., recording rules at § 42-401 et seq., and foreclosure of deeds of trust at § 42-815 et seq. The Statute of Frauds appears at DC Code § 28-3502. General contract law and the equitable mortgage doctrine round out the framework. DC's Residential Real Property Act and various consumer-protection provisions can be relevant to residential transactions.

Recording the Buyer's Interest

DC is a notice jurisdiction. Recording is optional but advisable. The buyer should record either the contract or a memorandum of contract with the DC Recorder of Deeds to give constructive notice to subsequent purchasers and creditors of the seller. DC charges recordation and transfer taxes, which the parties should anticipate at closing.

Default and Cure Period

No DC statute fixes a cure period for installment land contracts. The contract supplies the cure period — typically 30 days after written notice of default. If the arrangement is reformed into a mortgage, DC's deed-of-trust foreclosure procedure under § 42-815 et seq. provides the applicable notice and sale timelines.

Seller Remedies on Default

In DC, the seller's remedies depend on whether the contract is enforced strictly or treated as a security instrument. Strict enforcement permits forfeiture, damages, specific performance, and acceleration. If a court applies equitable mortgage doctrine — typical where the buyer has accumulated substantial equity — the seller must foreclose under DC's deed-of-trust statute (which permits non-judicial sale subject to § 42-815.02 notice requirements). Self-help forfeiture is risky for any long-term contract.

Vacant Land vs. Residential

DC does not have a dedicated residential installment-contract statute. The same framework applies regardless of property type. Residential transactions face additional protections under DC's consumer-protection and predatory-lending provisions, including the foreclosure-mediation requirements of DC Code § 42-815.02.

Practical Notes for Sellers

  • Record a memorandum of contract with the DC Recorder of Deeds immediately after closing; budget for DC recordation and transfer taxes.
  • For residential properties, prefer a deed-and-deed-of-trust structure to obtain access to non-judicial foreclosure under § 42-815 et seq.
  • Include a clear 30-day written notice-and-cure clause and an acceleration provision.
  • Watch for DC's foreclosure-mediation requirements if the property is owner-occupied residential; these can lengthen the timeline materially.
  • Confirm that DC real-property tax bills route to the buyer and that the buyer registers any homestead deduction promptly.

Disclaimer

This page is a public-law summary for general informational purposes only. It is not legal advice. Owner-finance transactions are state-specific and fact-specific. Engage a licensed attorney in the parcel's state before drafting, signing, or recording any agreement.

Structured data

The legal mechanics of a District of Columbia deal.

Governing statute
medium confidence
D.C. Code § 42-401 et seq.
DC has no dedicated installment-land-contract statute; transactions are governed by general contract law and DC's deed-of-trust foreclosure framework.
Recording instrument
Memorandum of Contract or the contract itself
Filed at the DC Recorder of Deeds. Recording is required to perfect the buyer's interest in the chain of title.
Cure period
30 days (typical contractual)
No statutory cure period unique to land contracts. DC's residential mortgage foreclosure regime imposes specific cure and mediation requirements that do not extend to vacant-land contracts.
Default remedy
Forfeiture or judicial foreclosure
DC supports both non-judicial deed-of-trust foreclosure and judicial proceedings; land-contract defaults typically go to Superior Court.
Notable requirements
  • DC recordation tax and transfer tax must be addressed
  • Acknowledgment for recording
Prohibited or limited
  • Residential foreclosure mediation rules limit summary remedies on owner-occupied dwellings
Vacant land vs. residential
Vacant land is rare in DC and most installment land contracts in the District involve residential or mixed-use parcels.

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Important disclaimer

This page is a public-law summary for general informational purposes only. It is not legal advice. Owner-finance transactions are state-specific and fact-specific. Engage a licensed attorney in District of Columbia before drafting, signing, or recording any agreement. Statute citations and procedural notes may be incomplete or out of date — always verify against the current code.