D.C. Mun. Regs. tit. 9, r. 9-314

Current through Register Vol. 71, No. 39, September 27, 2024
Rule 9-314 - PRIVATIZED TAX SALE RESEARCH AND NOTIFICATION
314.1

This section shall apply to tax sales conducted under DC Code § 47 -1304.

314.2

For the purposes of this section, the term "research" means research required to locate a person with a legally protected interest in the real property sold at tax sale.

314.3

A tax sale purchaser may submit a request to the Deputy Chief Financial Officer stating that the tax sale purchaser shall conduct research concerning the property which he or she purchased. The request shall be submitted after the expiration of the statutory redemption period; provided that the tax sale purchaser shall not submit the request unless the tax sale purchaser shall have applied for a tax deed within the prescribed period of time; provided further that the application filing date shall precede or be simultaneous to the date of the request.

314.4

The request must identify the Square, Suffix and Lot numbers, or the Parcel and Lot numbers, of the property for which the research shall be conducted. If the property is identified by a parcel number, the letters "PAR" must precede the parcel number. An approved title company to perform the research, including its address and telephone number, shall also be stated in the request.

314.5

Once the request has been made, the Deputy Chief Financial Officer shall review its billing system for redemption payments.

(a) If the property has been redeemed, the request for research shall be denied.
(b) If the property has not been redeemed, the Deputy Chief Financial Officer shall notify the tax sale purchaser that he or she shall initiate the research.
314.6

After the request has been approved by letter from the Deputy Chief Financial Officer, the research shall be performed by the approved title company. An approved title company is one that has:

(a) Been continuously performing title research in the District of Columbia for more than a 1-year period; and
(b) Title insurance in the District of Columbia for liability coverage of $ 100,000 or more.
314.7

The research shall cover a period of at least 60 years, and shall identify all reasonably ascertainable parties with legally protected interests in the property. The title company shall inspect the public record at the Recorder of Deeds, the Superior Court of the District of Columbia, and any United States Bankruptcy Court situated in the District of Columbia metropolitan area, as necessary.

314.8

The party in interest identified through the research shall be promptly notified by the agent of the tax sale purchaser of his or her right to redeem the property before the issuance of a tax deed to the tax sale purchaser. Notification to the party in interest shall be made in substantially the form as the notice in subsection 19 of this section. Notification to each identified party in interest shall be sent by certified mail (return receipt requested) and first class mail.

314.9

The agent shall be either the title company or an attorney-at-law duly licensed to practice law in the District of Columbia.

314.10

The notice shall provide to the party in interest a 30-day period to redeem the property.

314.11

To redeem the property, any party in interest shall contact the Deputy Chief Financial Officer to receive a pay-off for the redemption payment. If the request has been approved, the redemption payment shall include the costs of the research fixed in the amount of $ 350.00.

314.12

Notwithstanding subsection 11 of this section, no costs shall be reimbursed to the tax sale purchaser unless the tax sale purchaser provides the necessary documentation to the satisfaction of the Deputy Chief Financial Officer that the identified parties in interest have been notified. Necessary documentation shall comprise the following:

1) a statement from the title company reflecting the debt incurred;
2) copy of the research;
3) copies of the notices;
4) copies of all returned mail;
5) proof of certified mailings;
6) and return receipts, if any.
314.13

If the party in interest has not redeemed the property within the 30-day period, the Deputy Chief Financial Officer may begin processing the tax deed application.

314.14

The tax sale purchaser shall submit to the Deputy Chief Financial Officer the necessary documentation specified in subsection 12 of this section within 4 months from the date of the letter approving the lax sale purchaser's request under subsection 6 of this section. If the necessary documentation is not so submitted with the prescribed period of time (or as extended by the Deputy Chief Financial Officer), the letter approving the tax sale purchaser's request shall be deemed a letter for payment (hereinafter "bill for tax deed") under DC Code 3 47-1304 wherein the prescribed period of time for payment expired.

314.15

The tax sale purchaser shall receive a bill for tax deed. The bill for tax deed shall be paid in full within 30 days from the date of the bill for tax deed, or as extended by the Deputy Chief Financial Officer. If payment shall not be received by the prescribed date, the tax deed application shall be canceled, the tax sale purchaser shall forfeit the amount paid at tax sale, and the tax sale purchaser shall not receive the costs.

314.16

The redeeming party shall pay the costs if the property is redeemed after the request was approved. If the property is redeemed before the request is approved, the tax sale purchaser shall not be entitled to the costs.

314.17

Failure of the tax sale purchaser to comply in good faith with the provisions of this section may result in the return of the costs to the redeeming party that paid the costs, without recourse against the District.

314.18

The tax sale purchaser that submits the request agrees to hold harmless and reimburse the District for damages incurred as a result of an error or omission in the research or notices.

314.19

The notice for which reference is made in this section shall be in substantially the following form:

[Address of Tax Sale Purchaser's Agent]

[Date]

[Name of Party in Interest]

[Mailing Address of Party in Interest]

Re: Square [Number], Suffix [Letter], Lot [Number] or Parcel [Number], Lot [Number] [Street Address, if any], Washington, DC

Dear Sir or Madam:

You have been identified as a party with a legally protected interest in the above-referenced property. This property was sold at the District of Columbia July [Year] tax sale for delinquent taxes.

Pursuant to District law (DC Code §§ 47 -1304 and 47-1306), the property owner and you had six months to redeem the property from the tax sale. The six months expired in January [Year]. The District's records indicate that the payment of taxes in order to redeem the property was not made.

YOU MAY STILL REDEEM THE PROPERTY BY PAYING ALL PRIOR OUTSTANDING TAX LIABILITIES, WHETHER OR NOT OWNED BY THE DISTRICT OF COLUMBIA, IN ADDITION TO THE TAX LIABILITY FOR THE JULY [YEAR] TAX SALE. IF YOU CHOOSE NOT TO PAY THE ENTIRE AMOUNT, A TAX DEED MAY BE ISSUED TO THE TAX SALE PURCHASER AND YOU WOULD LOSE YOUR INTEREST IN THE PROPERTY.

My client purchased the property at the July [Year] tax sale for $ [Amount]. This amount, plus accrued interest, additional costs of $ 350, and any outstanding liabilities from prior years must be paid on or before [Insert Date 30 Days from Notice Date-Bolded, Increased Font and Underlined]. Payments are applied to the oldest liability first, so a partial payment will not be sufficient to redeem the property. Payments must be made at a First Union Bank with cash, money order, certified check or cashier's check, and payable to the D.C. Treasurer.

Pursuant to an agreement with the District, our office is responsible for notifying you of the information in this letter. This office represents the tax sale purchaser and cannot accept payments.

To determine the total amount which must be paid, or if you have any questions or need additional information regarding this matter, please immediately contact the DC Office of Tax and Revenue at (202) 727-4829, and you may also wish to contact Breen Capital Services Corporation at (202) 543-6361 to determine whether prior years' liabilities have been sold to private parties and payoff information related thereto.

Sincerely,

[Name of Tax Sale Purchaser's Agent]

D.C. Mun. Regs. tit. 9, r. 9-314

Regulation No. 74-35 effective December 12, 1974, 21 DCR 1643 (January 20, 1975), 16 DCRR § 117; as amended by Final Rulemaking published at 48 DCR 6445 (July 20, 2001)