Title 42 — Real Property.

For the purposes of this chapter, the term: (1) “Disbursement of loan funds” means the delivery of loan funds by a lender to a settlement agent in the form of: (A) Cash; (B) Wired funds; (C) Certified checks; (D) Checks issued by the District of Columbia; (E) Cashier’s check or t…

This chapter applies only to transactions involving purchase money loans made by lenders that are secured by first or second deeds of trust or mortgages, excluding second deeds of trust or mortgages for refinancing purposes only, on real estate containing not more than 4 resident…

A lender shall, at or before loan closing, cause disbursement of loan funds to a settlement agent. A lender shall not receive or charge any interest on a loan until disbursement of loan funds and loan closing have occurred, and shall not require payment of any interest in advance…

The owner and real estate broker shall have in place, at or before settlement, all documents, deeds, titles, recordation tax returns, certified checks, and any other monies needed for settlement so that disbursements can be made in a timely manner.

A settlement agent shall cause recordation of the deed, the deed of trust or mortgage, or other documents required to be recorded, and shall cause disbursement of settlement proceeds within 1 business day of settlement. At least 5 days prior to settlement, the settlement agent sh…

Failure to comply with the provisions of this chapter shall not affect the validity or enforceability of any loan documents.

(a) Any person suffering a loss due to the failure of a lender or of a settlement agent to cause disbursement as required by this chapter shall be entitled to recover, in addition to the amount of actual damages, double the amount of any interest collected in violation of this ch…