Maryland Renter’s Right and Stabilization Act of 2024 a/k/a Maryland TOPA
Effective October 1, 2024, many Maryland residential tenants will have a statutory right of first refusal when their rental accommodation is put up for sale. The law is similar to the well-intentioned but much-abused Tenant Opportunity to Purchase Act (“TOPA”), which has made life difficult for DC landlords for the last 40+ years. Any Maryland landlord looking to sell a residential property with three or fewer dwelling units will first need to provide notice to the tenants and go through a negotiation process if the tenants express interest in purchasing their unit. There are a variety of exceptions to the statute, which does not apply to transfers arising out of estate proceedings, foreclosures, or bankruptcies, as well as transfers to family members. While failure to comply with the statute will not prevent a sale from being finalized, it can expose a seller to a penalty of $1,000 as well as a civil claim by the former tenant.
If you have any questions concerning how or whether this new law may apply to you, please contact one of our real estate attorneys at McNamee Hosea.