Washington metro (DMV)

Washington, DC, DC

DC combines a $400,000 transfer-tax cliff, rent control on most pre-1976 rentals and the Tenant Opportunity to Purchase Act (TOPA), which can add months to buying a tenant-occupied property. ADUs are generally allowed by right on single-family lots, but historic districts and the federal Height Act shape what can be built.

💡 Upside tip

If the property has tenants, confirm early whether the sale triggers TOPA, because tenants' right to purchase can delay closing by months; then check DC's zoning map and historic-district status before pricing in an ADU or addition.

Offers & competition

Agents use the regional GCAAR or MAR sales contract with addenda. Typical contingencies are home inspection, financing, appraisal and sometimes the sale of the buyer's home; condo and co-op buyers get 3 business days to rescind after receiving the resale package.

Closing & who pays

Settlement and title companies close the deal, and attorneys are not required. If the home is tenant-occupied, TOPA may give tenants a first right to purchase; the RENTAL Act (effective Dec 31, 2025) reportedly narrowed some TOPA exemptions and procedures.

Transfer taxes

The buyer customarily pays the deed recordation tax and the seller the transfer tax, each 1.1% below $400,000 and 1.45% at $400,000 or more on the full price, so 2.9% combined above the cliff. Eligible first-time buyers can get a reduced 0.725% recordation rate, subject to price and income caps.

Seller disclosures

The Residential Real Property Seller Disclosure Act requires sellers of 1 to 4 unit homes to give a disclosure form before the contract. Sellers must also disclose known lead-based paint hazards under DC law, in addition to the federal pre-1978 lead disclosure.

What you can build

The 2016 Zoning Regulations allow ADUs by right on single-family lots in residential zones, subject to conditions such as lot size; otherwise a BZA special exception is needed. Historic districts such as Capitol Hill, Georgetown and Dupont require historic preservation review (Georgetown also needs the Old Georgetown Board), and the federal Height of Buildings Act caps heights.

Permits & records

The Department of Buildings (split from DCRA in Oct 2022) issues permits through its Citizen Access Portal, and Scout shows property records. Zoning is on the DC Zoning Map, assessments are in MyTax.DC.gov, and deeds are with the Recorder of Deeds; check DOB for current timelines.

Property tax

The Class 1 residential rate is $0.85 per $100 of assessed value. Owner-occupants get a homestead deduction (roughly $90,000+, indexed) and a 10% annual cap on taxable assessment increases, while vacant and blighted properties are taxed at much higher rates.

Rent rules

Rent control covers most units built before 1976, unless the owner is an exempt small landlord with 4 or fewer units who files a claim. Increases are capped at CPI-W plus 2% (max 10%); for May 1, 2026 to April 30, 2027 the cap is 4.1%, or 2.1% for elderly or disabled tenants.

Key risks

Flood risk is concentrated in Federal Triangle and the Watts Branch and Anacostia areas, so check FEMA maps for the address. For investors, TOPA timelines and rent control can materially cap income and resale value.

⚠ Still verifying

Not re-verified: DC recordation and transfer tax rates (believed unchanged), the first-time buyer caps (one June 2026 guide cites a $777,000 price cap), the RENTAL Act's exact effect on TOPA for single-family sales, current ADU conditions after zoning amendments, the 2026 homestead deduction amount, and DC flood ordinance specifics.

Official sources

Updated: 2026-10 · Summaries of public rules as of the date shown. Not legal or tax advice. Always confirm with the official source.