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DC Recorder of Deeds - Proposed Changes to FP-7, Part J. COMMENTS REQUESTED

September 16, 2014 10:41 AM | Anonymous

The Recorder of Deeds has reached out to DCLTA to get our members input on the proposed revisions to the FP7 Form.

 The main revision will focus on Part J of the FP7 which deals with consideration and its financing.  The current form does not provide for information on what portion of the loan is purchase money.  So, the intent is to have the filers separately show the purchase money amount or other exempt amounts vs. the non-exempt amounts.

 Please see the email below from Ida Williams, Recorder of Deeds, and provide your input by email. Thank you.

The proposed revision aims at revamping Part J of the FP-7.  Currently part J provides fields for Cash, First Mortgage, Second Mortgage; Assumed.  There is Line 1 “Construction loan”; line 2 “Total Consideration”; line 3 “Assessed value if no consideration or nominal”. 

 

DC Code section 42-1103 (b-1)(2) provides for recording requirements of a purchase money deed of trust.  One of the provisions is that a purchase money DOT should recite on its face the amount of purchase money being secured by the instrument.  The industry and ROD practice so far has been to overlook this requirement.  Very rarely do purchase money DOT-s, commercial and residential, conform with this legal requirement.  The current FP7 doesn’t provide for separate fields for the purchase money to be inserted.   

 

 (2) A purchase money mortgage or purchase money deed of trust submitted to the Mayor for recordation shall:
 
         (A) Be executed by the purchaser of the real property as part of a series of transactions conveying title to real property to the purchaser;
 
         (B) Reference the deed conveying title to the purchaser of the real property by date and instrument number;
 
         (C) Recite on the face of the document that it is a purchase money mortgage or purchase money deed of trust; and
 
         (D) Recite on the face of the document the amount of purchase money that it secures.

 

 

The effort at this point is to have part J of the FP-7 contain fields for the purchase money amount and other exempt amounts in cases of refinances, modifications or other partially exempt transactions.  Below is an idea in its very infant stages as to what Part J of FP7 should contain.  Suggestions and ideas are being sought to have a comprehensive and easy to follow part J of FP-7.

 

Part J-Consideration and Financing

 

  • (a)    Acquisition

 

Cash

First Mortgage                 Purchase Money Amount _______                        Non-Exempt Amount ______

Second Mortgage            Purchase Money Amount _______                        Non-Exempt Amount ______

Assumed                             Purchase Money Amount _______                        Non-Exempt Amount ______

Other

 

Total of All Non-Exempt DOT-s                                                                                                                                  _______________

 

  • (b)   Financing NOT Related to Transfer of Title

 

First Deed of Trust                           Exempt Amount ­­­­­­­­­­­ _______________                     Non-Exempt Amount _______

Second Deed of Trust                    Exempt Amount ­­­­­­­­­­­ _______________                     Non-Exempt Amount _______

Other                                                    Exempt Amount ­­­­­­­­­­­ _______________                     Non-Exempt Amount _______

 

Total of all Non-Exempt DOTs                                                                                                                                     ____________________               

 

Line 1.   Total Acquisition Consideration

Line 2.   If no consideration use Assessed Value

Line 3.  Total of all Non-Exempt DOTs (a and b)

 

 Ida Williams, Esq.

Recorder of Deeds

Office of the Recorder of Deeds

Real Property Tax Administration

Office of Tax and Revenue

1101 4th St SW-5W

Washington D.C. 20024

Direct phone: (202) 442-8610

ida.williams@dc.gov

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