D.C. Code § 47-1382.01

Current through codified legislation effective October 30, 2024
Section 47-1382.01 - Equity distribution post-judgment - owner-occupant properties
(a) This section shall apply to any Class 1 property with 5 or fewer units in which a record owner (or a person with an interest in the property as heir or beneficiary of the record owner, if deceased), was occupying as his or her principal residence when the complaint to foreclose the right of redemption was filed. The purchaser shall bear the burden of establishing that this section is not applicable to the real property.
(b) Upon issuing a final judgment foreclosing the right of redemption, the Superior Court of the District of Columbia shall appoint a trustee and shall order that the trustee sell the property pursuant to Rule 308 of the Superior Court of the District of Columbia Rules of Civil Procedure, or its equivalent.
(c) The trustee shall sell a fee simple interest in the property, subject to the encumbrances set forth in § 47-1382(a).
(d) The court shall order the trustee to distribute the proceeds of the sale in priority order as follows:
(1) Reasonable compensation and reasonable expenses due to the trustee or to any other person (including an auctioneer) who provided services relating to the sale of the property, and all other payments the court deems to have been necessary to effect the sale of the real property, including recordation and transfer taxes;
(2) Payment to the Mayor of:
(A) All amounts payable to the Mayor for deposit into the General Fund of the District of Columbia under § 47-1361 as of the date of the court's order regarding distribution;
(B) Any promissory note executed pursuant to § 47-1353(a)(3); and
(C) Any lien certified under § 47-1340;
(3) Payment to the purchaser of all amounts provided for in § 47-1377, as fixed by the court; and
(4) Any remaining amounts as follows:
(A) Ten percent or $20,000, whichever is less, to the purchaser; and
(B) The remainder to the person or persons (including, when appropriate, a decedent's estate) entitled to the balance, in proper proportion as determined by the trustee, or, when necessary, a court.
(e)
(1) The trustee shall notify the purchaser once payment is made to the Mayor pursuant to subsection (d)(2) of this section, at which time the purchaser shall surrender the certificate of sale and receive from the Mayor the amount to which the purchaser would have been entitled had redemption occurred in accordance with § 47-1361.
(2) For purposes of calculating the refund due to the purchaser, the date of the court's order providing for distribution or the sale proceeds in accordance with subsection (d) of this section shall be deemed the date of redemption.
(f)
(1) If the trustee in the trustee's best judgment determines that a sale of the real property will not generate proceeds sufficient to fund the distributions required under subsection (d)(1) and (2) of this section, the trustee shall timely inform the court of that determination.
(2) Upon receipt of the trustee's determination as described in paragraph (1) of this subsection, the court shall:
(A) Rescind the trustee's appointment and the order to sell the real property;
(B) Issue a final judgment foreclosing the right of redemption in accordance with the provisions of § 47-1382; and
(C) Require the purchaser to pay such fees and expenses of the trustee as the court determines appropriate.

D.C. Code § 47-1382.01

Dec. 4, 2014, D.C. Law 20-141, § 101(c)(30), 61 DCR 7763; Feb. 26, 2015, D.C. Law 20-155, § 7102(c)(30), 7104, 61 DCR 9990.