Not legal, tax, or investment advice. Data comes from public sources and may be incomplete or out of date; confirm with the county before bidding.

District of Columbia

DC

The investor buys a lien on the property. The owner keeps title and can redeem by paying the lien plus interest or penalty.

Sale type

Tax lien

Redemption

6 mo

Interest / penalty

Flat rate · 1.5%

Sale timing

Annual

Rules in plain English

Sale type

Tax lien

The investor buys a lien on the property. The owner keeps title and can redeem by paying the lien plus interest or penalty.

D.C. Code § 47-1348 (certificate of sale); § 47-1382(a) (deed only after foreclosure)

“The Mayor shall deliver to the purchaser a certificate of sale under the Mayor’s hand and seal or authorized facsimile signature”
official source ↗

Redemption period

6 mo

6 months

D.C. Code § 47-1360; § 47-1370(a)

“an owner or other person who has an interest in the real property sold by the Mayor may redeem the real property at any time until the foreclosure of the right of redemption is final”
official source ↗

Interest / penalty

Flat rate · 1.5%

1.5% flat per month.

D.C. Code § 47-1334(a)

“The rate of simple interest on all amounts due, owing, or paid for the taxes sold or bid off to the District under this chapter shall be 1.5% per month”
official source ↗

Bid method

Highest bid

The parcel or lien goes to the highest bidder at auction.

D.C. Code § 47-1346(a)(2)

“All sales shall be at public auction to the purchaser who makes the highest bid”
official source ↗

Sale schedule

Annual

Sales are held about once a year.

D.C. Code § 47-1301(b)(3)

“Beginning calendar year 1996 and each year thereafter, the annual real property tax sale shall be held on the third Tuesday in July”
official source ↗

Bidder process

  1. 01Confirm eligibility: you may not bid if you are delinquent in payment of in rem taxes to the District or have been convicted of a felony involving fraud, deceit, moral turpitude, or anti-competitive behavior; certify under oath as to tax arrears and felony history (47-1346(a)(5))
  2. 02If bidding as an entity, establish eligibility by presenting evidence of the entity's legal existence satisfactory to the Mayor (47-1346(a)(4)(A))
  3. 03Have on deposit 20% of the purchase price before making any bid; the deposit guarantees full and final settlement, and if it is insufficient the property is immediately re-auctioned (47-1346(b))
  4. 04Bid at the public auction held by the Mayor at the date and place stated in the public notice; the sale goes to the highest bidder and property is not sold for less than the taxes (47-1346(a), (c))
  5. 05Pay the full amount of the bid, including surplus and costs, within 5 business days after the last day of the sale (47-1347)
  6. 06Receive a certificate of sale from the Mayor; if payment is not received in time, 20% of the deposit is forfeited to the District and the property is deemed purchased by the Mayor in the name of the District (47-1347, 47-1348(a))
  7. 07Bring diligent proceedings to foreclose the right of redemption within one year, or the certificate becomes void and all monies paid are forfeited to the District (47-1348(a)(12))
Registration
Not documented
Registration mode
Not documented
Registration deadline
Not documented
Registration fee
Not documented
Deposit required
Yes
Deposit amount
Not documented
Deposit percent
20%
Deposit refundable
Not documented
Sale format
in_person
Payment deadline
the full amount of the bid, including surplus and costs, within 5 business days after the last day of the sale (47-1347)
Payment methods
unknown
Residency required
Not documented
  • A certification under oath, subject to the penalties of perjury, that the purchaser is not more than one year in arrears in any jurisdiction on in rem taxes not contested in good faith and has no disqualifying felony conviction (47-1346(a)(5)(B))
  • A bidding entity must establish its eligibility by presenting evidence of its legal existence satisfactory to the Mayor (47-1346(a)(4)(A))
  • A potential purchaser delinquent in payment of in rem taxes to the District, or convicted of a felony involving fraud, deceit, moral turpitude, or anti-competitive behavior, may not bid or otherwise acquire an interest in the real property (47-1346(a)(5)(A))
  • The prohibition may not be circumvented through business entities, and it reaches a person owning a 10% or more equity interest in, or an officer of, an entity that owns a 10% or more equity interest in real property on which taxes are delinquent (47-1346(a)(5)(D)-(E))

D.C. Code 47-1346(a)(2)

“All sales shall be at public auction to the purchaser who makes the highest bid.”
official source ↗

D.C. Code 47-1346(b)

“Before making any bid, a potential purchaser shall have on deposit 20% of the purchase price. The deposit shall guarantee full and final settlement for the purchase. If the required deposit is not sufficient, the real property shall be immediately re-auctioned.”
official source ↗

D.C. Code 47-1346(a)(5)(A)

“A potential purchaser, including a natural person or business entity, who is delinquent in payment of in rem taxes to the District or who has been convicted of a felony involving fraud, deceit, moral turpitude, or anti-competitive behavior may not bid on real property offered at a sale held under this chapter or otherwise acquire an interest in real property sold under this chapter.”
official source ↗

D.C. Code 47-1346(a)(5)(B)

“A potential purchaser, including a natural person or business entity, shall certify under oath, subject to the penalties of perjury, that the potential purchaser is not more than one year in arrears in any jurisdiction in payment of in rem taxes not being contested in good faith and has not been convicted in any jurisdiction of a felony involving fraud, deceit, moral turpitude, or anti-competitive behavior.”
official source ↗

D.C. Code 47-1346(a)(4)(A)

“Establish their eligibility for bidding by presenting evidence of the legal existence of the bidding entities that are satisfactory to the Mayor;”
official source ↗

D.C. Code 47-1347

“A purchaser shall pay the full amount of his bid, including surplus and costs, within 5 business days after the last day of the sale. If the payment is not received within the time prescribed, 20% of the deposit of the defaulting purchaser shall be forfeited to the District, and the real property shall be deemed to have been bid off to and purchased by the Mayor in the name of the District.”
official source ↗

D.C. Code 47-1348(a)

“The Mayor shall deliver to the purchaser a certificate of sale under the Mayor’s hand and seal or authorized facsimile signature (or a delegate’s hand and seal).”
official source ↗

D.C. Code 47-1348(a)(12)

“That the certificate shall be void unless diligent proceedings to foreclose the right of redemption are brought within one year from the date of the certificate, and that if the certificate shall become void, all monies paid for the real property by the purchaser shall be forfeited to the District.”
official source ↗

Notes

Prose: lien | 1.5% per month | until foreclosure of the right of redemption is final (6-month wait to file) | highest bid at public auction | July (third Tuesday)