D.C. Code Ann. § 42-1103(b-1)(2) requires the following (in relevant part):
“A purchase money mortgage or purchase money deed of trust submitted to the Mayor for recordation shall:
(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.”
In addition, the D.C. Office of Tax Revenue has issued a notice stipulating that this information is mandatory in order for the security instrument to be recorded (see OTR Notice 2014-10). Due to these requirements, we will be modifying our standard security instruments (Cx315, Cx368, and Cx474) and quasi-standard DC HELOC Deed of Trust (Cx1340) as follows:
- The titles of the documents will change from “Deed of Trust” to “Purchase Money Deed of Trust” when the field entitled “Print ‘Purchase Money’ in Security Instrument Doc Title” (Field 48407) is set to “Yes” (in the case of Cx1340, the title will change from “Credit Line Deed of Trust” to “Credit Line Purchase Money Deed of Trust”).
- Two new paragraphs will appear before the common Recitals of these documents when Field 48407 equals “Yes”:
- The first will state the following: “The amount of the purchase price of the Property that this instrument secures is: $[X.XX]”.
- The second will state the following: “The deed conveying title of the Property to the Borrower is dated [date field] and recorded as Instrument Number ________________.” Clients will need to manually fill out the Instrument Number of the deed of conveyance, once it has been recorded after Closing.
These changes will take effect immediately. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
April 2, 2015