Myth about DC real estate

I'm sick and tired of black people spreading the erroneous information amongst each other about buying a home in Washington, DC. For at least 10 years, I've heard it said that when you buy any type of property in DC that the owner only owns the building and not the land underneath it.

I don't know how this story started. I can only image that some white guy was trying to scare off a black guy from home ownership with this lie or some black guy was scared off from the home buying process because of all the tedious paper work involved and he gave himself an uneducated excuse to validate his mental defeat.

I, myself am a home owner in DC and Baltimore, MD and can vouch to knock down this lie. At first, I thought it was the rantings of a few ignorant people who were not home owners. But many years later, I'm still hearing this same myth being passed along to the next generation. I've asked many white people have they heard of this and all of them were baffled by the myth. Of all the white people I've asked, they have never heard of it. But, when I ask black people, they all agreed that it's a true statement. This goes back to the historical stigma that black people don't read. The information is now more accessible than ever because of the internet, but black people would rather be defeated by information they don't have. For any home owner, look at the deed of your home. It clearly states how much the government considers the worth of your home and the land underneath it. Usually, the land is worth 25% of the total amount you paid to buy your home.

I recently bought an investment property in MD, but I was searching in DC first. I found a fixer-upper in DC and asked my uncle, a contractor and DC home owner, to estimate a renovation dollar amount on the property for me. As we stood there with the Realtor, my uncle gave me an estimate and a disturbing comment. My uncle said he didn't think it would be a good investment deal because of the large amount of money I would have to put in to it and after that, I still would not own the land under it. I noticed the realtor's eyes bulge and then lower his head. I was stunned while trying to politely thank my uncle for his help. My uncle left and I then turned to the Realtor, a black man, with a question. "Have you heard of not owning land under your house in DC?" He said he's heard this myth ever since he moved to DC 20 years earlier. He also questioned where it started. He said that when it has ever become the topic of a conversation he was in, he'd then ask the person, "If you can't own land in DC, then why is it that its always been bought and sold? You can look at any real estate listing and see land for sale in DC. How can you not own it but you can buy it?"

I then went back to many people who I've had this conversation with years earlier and asked them, "How did you hear about not owning the land under your house in DC?" All these people basically told me the same thing. They heard that the government can take your house if they wanted. OK! people please let me clue you in on the government taking your home. This is not a DC thing. This is a United States thing. The government can take your home anywhere in the U.S. under a clause called eminent domain. (the power of the state to take private property for public use with payment of compensation to the owner). I believe there are 13 rules under eminent domain. One way I do know is that the government can take your home if it lays in the way of building roads or highways. Another way is that it can be taken because your property is so blighted that it brings down the rest of the area and prevents dollars from coming into that area. There are other reasons, but I can't remember them right now. You should look it up. Another way the government can take your property is if you don't pay your taxes. If you don't pay your federal debt, the government will take every asset you have to pay it off.

Please my black people, stop being scared of the home buying process. I admit it is a long and tedious process, but it will be worth it in the end. It is the beginning of our wealth building. Don't buy those $900 rims for your car, buy a house. Stop believing the lie y'all. Do your homework.

Comments

[Brian]

Actually... it is partly true. Look up "Ground rent". After WWII, the seller would attach a ground rent, to make the actual home more affordable, that the new and sucsessive buyers are responsible to pay annually. I belive MD law is to change soon so that owners of ground rent will not be allowed to forclose on property for unpaid ground rent. However if your property is subject to ground rent, one must pay it annually. When buying property with ground rent you are usually offered to puchase the ground rent too. Approx $4000 for an average house. If the house does not have a ground rent, then it is referd to as fee simple. Hope that helps! I'm going to get my Agents license soon, so call me next time!

B

[Penny girl]

The thing about ground rent is true for half or more than half of the states in the U.S. It does not apply in DC. 90% or more of DC property is fee simple. My argument is with DC property.
The government attached ground rents to property for elderly residents for extra income when the home was sold. This applied before social security in the 1940's. Also, ground rents are OWNED by either the current or past owner of the property.