Agreement or Contract for Deed for Sale and Purchase of Real Estate a/k/a Land or Executory Contract
District of Columbia Statutes
DIVISION VII PROPERTY.
TITLE 42 REAL PROPERTY
SUBTITLE I GENERAL
CHAPTER 13 RESIDENTIAL REAL PROPERTY SELLER DISCLOSURES.
42-1301. Applicability and exceptions.
(a)(1)The provisions of this chapter shall apply only to the transfer or sale of real estate located in the District of Columbia consisting of not less than one nor more than 4 residential dwelling units, whether by sale, exchange, installment land contract, lease with an option to purchase, or any other option to purchase.
(2)This chapter shall apply only where the purchaser expresses, in writing, an intent to reside in the property to be transferred.
(b)The provisions of this chapter shall not apply to any of the following:
(1)Transfers pursuant to court order, including, but not limited to, transfers ordered by a probate court in administration of an estate, transfers pursuant to a writ of execution, transfers by any foreclosure sale, transfers by a trustee in bankruptcy, transfers by eminent domain, and transfers resulting from a decree for specific performance;
(2)Transfers to a mortgagee by a mortgagor or successor in interest who is in default, or transfers to a beneficiary of a deed of trust by a trustor or successor in interest who is in default;
(3)Transfers by a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a mortgage or deed of trust or secured by any other instrument containing a power of sale, or transfers by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure;
(4)Transfers by a nonoccupant fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust;
(5)Transfers from one cotenant to one or more other co-tenants;
(6)Transfers made to the transferor's spouse, domestic partner, parent, grandparent, child, grandchild or sibling or any combination of the foregoing;
(7)Transfers between spouses or domestic partners resulting from a judgment of divorce or a judgment of separate maintenance or from a property settlement agreement incidental to such a judgment;
(8)Transfers or exchanges to or from any governmental entity; and
(9)Transfers made by a person of newly constructed residential property that has not been inhabited.
(c)For the purposes of this section, the term domestic partner shall have the same meaning as provided in 32-701(3).
History
(Apr. 20, 1999, D.C. Law 12-263, 2, 46 DCR 2111; Sept. 12, 2008, D.C. Law 17-231, 35, 55 DCR 6758.)
Section References
This section is referenced in 42-1302.
Prior Codifications
1981 Ed., 45-951.
Effect of Amendments
D.C. Law 17-231, in subsec. (b)(6), substituted spouse, domestic partner for spouse; in subsec. (b)(7), substituted spouses or domestic partners for spouses; and added subsec. (c).
Legislative History of Law 12-263
Law 12-263, the Residential Real Property Seller Disclosure, Funeral Services Date Change, and Public Service Commission Independent Procurement Authority Act of 1998, was introduced in Council and assigned Bill No. 12-648, which was referred to the Committee on Consumer and Regulatory Affairs. The Bill was adopted on first, amended first and second readings on October 6 1998, November 10, 1998, and December 1, 1998, respectively. Bill 12-648 was vetoed by the Mayor on December 29, 1998, and the Council overrode the veto on January 5, 1999, whereupon the Bill was assigned Act No. 12-625 and transmitted to both Houses of Congress for its review. D.C. Law 12-263 became effective on April 20, 1999.
Legislative History of Law 17-231
For Law 17-231, see notes following 42-516.
DIVISION VII PROPERTY.
TITLE 42 REAL PROPERTY
SUBTITLE I GENERAL
CHAPTER 13 RESIDENTIAL REAL PROPERTY SELLER DISCLOSURES.
42-1302. Written statement; written indication of compliance.
(a)The transferor of any real property described in 42-1301(a) shall deliver to the prospective transferee a real property disclosure statement on a form to be approved by the Mayor. The written statement shall be signed by the transferor and shall be delivered to the prospective transferee within the following time limits:
(1)In the case of a sale, before or at the time the prospective transferee executes a purchase agreement with the transferor; or
(2)In the case of a sale by an installment sales contract where a binding purchase agreement has not been executed, or in the case of a lease together with an option to purchase, before or at the time the prospective transferee executes the installment sales contract, or lease, as the case may be, with the transferor.
(b)With respect to any transfer subject to subsection (a) of this section, the transferor shall indicate compliance with this chapter either on the purchase agreement, the installment sales contract, the lease with an option to purchase, or any addendum attached to the purchase agreement, contract, or lease with an option to purchase, or on a separate document.
(c)Except as provided in subsection (d) of this section, if any disclosure required to be made by this chapter is delivered after the prospective transferee executes a purchase agreement, installment sales contract, or lease with an option to purchase, the prospective transferee may terminate any of the foregoing by delivering written notice of termination to the transferor not later than 5 calendar days after receipt of the disclosure statement by the prospective transferee, and any deposits made by the transferee to the transferor shall be promptly returned to the transferee.
(d)Notwithstanding the provisions of subsection (c) of this section, the right of a transferee to terminate is waived if not exercised before the earliest of:
(1)The making of a written application to a lender for a mortgage loan or financing, provided that the lender discloses in writing at or before the time application is made that the right to rescind terminates on submission of the application;
(2)Settlement or the date of occupancy by the purchaser in the event of a sale; or
(3)Occupancy in the event of a lease with option to purchase.
History
(Apr. 20, 1999, D.C. Law 12-263, 3, 46 DCR 2111.)
Section References
This section is referenced in 42-1308.
Prior Codifications
1981 Ed., 45-952.
Legislative History of Law 12-263
For legislative history of D.C. Law 12-263, see Historical and Statutory Notes following 42-1301.
Delegation of Authority
Delegation of authority under D.C. Act 12-625, the Residential Real Property Seller Disclosure, Funeral Services Date Change, and Public Service Commission Independent Procurement Authority Act of 1998, see Mayor's Order 99-82, May 21, 1999 (46 DCR 5439).
DIVISION VII PROPERTY.
TITLE 42 REAL PROPERTY
SUBTITLE I GENERAL
CHAPTER 13 RESIDENTIAL REAL PROPERTY SELLER DISCLOSURES.
42-1303. Scope of liability; information prepared by third party.
(a)The transferor is not liable for any error, inaccuracy, or omission in any information delivered pursuant to this chapter if the error, inaccuracy, or omission was not within the actual personal knowledge of ththe transferor, or was based entirely on information provided by public agencies or provided by other persons specified in subsection (c) of this section and ordinary care was exercised in transmitting the information. It is not a violation of this chapter if the transferor fails to disclose information that could be obtained only through inspection or observation of inaccessible portions of real estate or could be discovered only by a person with expertise in a science or trade beyond the knowledge of the transferor.
(b)The delivery to a prospective transferee of any information required by this chapter to be disclosed to a prospective transferee by a public agency or other person specified in subsection (c) of this section shall be considered to comply with the requirements of this chapter and relieves the transferor of any further duty or liability under this chapter with respect to that item of information, unless the transferor has actual personal knowledge of a known defect or condition that contradicts the information provided by the public agency or the person specified in subsection (c) of this section and knowingly fails to disclose such known defect or condition.
(c)The delivery to a prospective transferee of a report or opinion prepared by a licensed professional engineer, professional surveyor, home inspector, geologist, structural pest control operator, contractor, or other expert, dealing with matters within the scope of the professional’s license or expertise, is sufficient compliance for application of the exemption provided in subsection (a) of this section if the information is provided upon the request of the prospective transferee (provided that nothing in this chapter shall be construed as imposing on the transferor any obligation to comply with the request), unless the transferor has actual personal knowledge of a known defect or condition that contradicts the information contained in the report or opinion and knowingly fails to disclose the known defect or condition. In responding to a request by a prospective transferee, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of 42-1305 and, if so, shall indicate the required disclosures, or parts of disclosures, to which the information being furnished applies. In furnishing the statement, the expert is not responsible for any items of information other than those expressly set forth in the statement.
History
(Apr. 20, 1999, D.C. Law 12-263, 4, 46 DCR 2111.)
Section References
This section is referenced in 42-1307.
Prior Codifications
1981 Ed., 45-953.
Legislative History of Law 12-263
For legislative history of D.C. Law 12-263, see Historical and Statutory Notes following 42-1301.
DIVISION VII PROPERTY.
TITLE 42 REAL PROPERTY
SUBTITLE I GENERAL
CHAPTER 13 RESIDENTIAL REAL PROPERTY SELLER DISCLOSURES.
42-1304. Change in conditions after delivery.
If information disclosed in accordance with this chapter becomes inaccurate as a result of any action, occurrence, or agreement after the delivery of the required disclosures, the resulting inaccuracy does not constitute a violation of this chapter. If at the time the disclosures are required to be made, an item of information required to be disclosed under this chapter is unknown or unavailable to the transferor, the transferor may comply with this chapter by advising a prospective purchaser of the fact that the information is unknown. The information provided to a prospective purchaser pursuant to this chapter shall be based upon the information available and actually known to the transferor.
(Apr. 20, 1999, D.C. Law 12-263, 5, 46 DCR 2111.)
Prior Codifications
1981 Ed., 45-954.
Legislative History of Law 12-263
For legislative history of D.C. Law 12-263, see Historical and Statutory Notes following 42-1301.
DIVISION VII PROPERTY.
TITLE 42 REAL PROPERTY
SUBTITLE I GENERAL
CHAPTER 13 RESIDENTIAL REAL PROPERTY SELLER DISCLOSURES.
42-1305. Residential disclosure requirements.
The residential real property disclosure statement approved by the Mayor shall contain the following:
(1)A list of actually known defects or information concerning the following:
(A)Water and sewer systems;
(B)Insulation;
(C)Structural systems, including roof, walls, floors, foundation, and basement;
(D)Plumbing, electrical, heating, and air conditioning systems;
(E)History of infestation by rodents or wood-boring insects, if any;
(F)Appliances;
(G)Alarm system and intercom system; and
(H)Garage door opener and remote control; and
(I)Fixtures; and
(2)Any other information required by the Mayor to be published by rulemaking, provided that nothing in this chapter or in any rules shall be deemed to modify or amend 42-1755(f) [repealed].
History
(Apr. 20, 1999, D.C. Law 12-263, 6, 46 DCR 2111.)
Section References
This section is referenced in 42-1303.
Prior Codifications
1981 Ed., 45-955.
Legislative History of Law 12-263
For legislative history of D.C. Law 12-263, see Historical and Statutory Notes following 42-1301.
DIVISION VII PROPERTY.
TITLE 42 REAL PROPERTY
SUBTITLE I GENERAL
CHAPTER 13 RESIDENTIAL REAL PROPERTY SELLER DISCLOSURES.
42-1306. Good faith disclosure.
Each disclosure required by this chapter shall be made in good faith. For the purposes of this chapter, “good faith” means honesty in fact in the making of the disclosure.
(Apr. 20, 1999, D.C. Law 12-263, 7, 46 DCR 2111.)
Prior Codifications
1981 Ed., 45-956.
Legislative History of Law 12-263
For legislative history of D.C. Law 12-263, see Historical and Statutory Notes following 42-1301.
DIVISION VII PROPERTY.
TITLE 42 REAL PROPERTY
SUBTITLE I GENERAL
CHAPTER 13 RESIDENTIAL REAL PROPERTY SELLER DISCLOSURES.
42-1307. Scope of disclosure.
The specification of items for disclosure in this chapter does not limit or abridge any obligation for disclosure created by any other provision of statutory law regarding fraud, misrepresentation, or deceit in transfer transactions. If the transferor provides to the prospective transferee the residential real property disclosure statement required by this chapter (or the other information described 42-1303(b) or (c)), any licensed agent of the transferor shall be deemed to have complied with the licensee’s obligations under 42-1703 to disclose to a customer material adverse facts concerning the physical condition of the property.
History
(Apr. 20, 1999, D.C. Law 12-263, 8, 46 DCR 2111.)
Prior Codifications
1981 Ed., 45-957.
Legislative History of Law 12-263
For legislative history of D.C. Law 12-263, see Historical and Statutory Notes following 42-1301.
DIVISION VII PROPERTY.
TITLE 42 REAL PROPERTY
SUBTITLE I GENERAL
CHAPTER 13 RESIDENTIAL REAL PROPERTY SELLER DISCLOSURES.
42-1308. Amendment of disclosure.
Any disclosure made pursuant to this chapter may be amended in writing by the transferor, but the amendment is subject to the requirements of 42-1302.
History
(Apr. 20, 1999, D.C. Law 12-263, 9, 46 DCR 2111.)
Prior Codifications
1981 Ed., 45-958.
Legislative History of Law 12-263
For legislative history of D.C. Law 12-263, see Historical and Statutory Notes following 42-1301.
DIVISION VII PROPERTY.
TITLE 42 REAL PROPERTY
SUBTITLE I GENERAL
CHAPTER 13 RESIDENTIAL REAL PROPERTY SELLER DISCLOSURES.
42-1309. Method of delivery.
Delivery of a disclosure statement required by this chapter shall be by personal delivery, facsimile delivery, or by registered mail to the prospective transferee. Execution by the transferor of a facsimile counterpart of the disclosure statement shall be considered to be execution of the original.
History
(Apr. 20, 1999, D.C. Law 12-263, 10, 46 DCR 2111.)
Prior Codifications
1981 Ed., 45-959.
Legislative History of Law 12-263
For legislative history of D.C. Law 12-263, see Historical and Statutory Notes following 42-1301.
DIVISION VII PROPERTY.
TITLE 42 REAL PROPERTY
SUBTITLE I GENERAL
CHAPTER 13 RESIDENTIAL REAL PROPERTY SELLER DISCLOSURES.
42-1310. Failure to comply.
A transfer subject to this chapter shall not be invalidated solely because of the failure of any person to comply with any provisions of this chapter.
History
(Apr. 20, 1999, D.C. Law 12-263, 11, 46 DCR 2111.)
Prior Codifications
1981 Ed., 45-960.
Legislative History of Law 12-263
For legislative history of D.C. Law 12-263, see Historical and Statutory Notes following 42-1301.
DIVISION VII PROPERTY.
TITLE 42 REAL PROPERTY
SUBTITLE I GENERAL
CHAPTER 13 RESIDENTIAL REAL PROPERTY SELLER DISCLOSURES.
42-1311. Duty imposed on transferor only.
The duty to comply with this chapter is imposed on a transferor, and not on any real estate agent or real estate broker of a transferor. A real estate agent or real estate broker of a transferor shall not be liable for any error, inaccuracy or omission in any information delivered to any prospective transferee, or for any failure of a transferor to deliver any information or a real property disclosure statement to the prospective transferee, or for any violation of this chapter by a transferor, unless such real estate agent or real estate broker knowingly acts in concert with such transferor to commit fraud.
History
(Apr. 20, 1999, D.C. Law 12-263, 12, 46 DCR 2111.)
Prior Codifications
1981 Ed., 45-961.
Legislative History of Law 12-263
For legislative history of D.C. Law 12-263, see Historical and Statutory Notes following 42-1301.
District of Columbia Case Law
Williams v. Dudley Trust Foundation, 675 A.2d 45 (D.C. 1996); While the purchaser under an installment land contract is entitled to immediate possession of the property, title is retained by the seller, usually until the full purchase price has been paid. The purchase price is paid in installments. The purchaser usually assumes responsibility for property upkeep, payment of taxes and insurance. Typically such contracts contain a forfeiture or default provision under which the seller may regain possession of the property and keep all monies paid to the date of default. The purchaser is regarded as the equitable owner of the property.
