Over the years the TOPA (Tenant Opportunity to Purchase Act) was a rule that hinders the sale of a property in Washington DC. The process was lengthy and cumbersome.
Before an owner can sell their property, tenants have an opportunity to purchase, and a right of first refusal
This year, DCAR had a monumental success in simplifying DC’s Tenant Opportunity To Purchase Act, for single-family homes. Now that the law is in effect -effective July 3rd, 2018, DC government’s Department of Housing and Community Development created new forms.
As Marty Stanton, the attorney and a co-chair of the DC Association of Realtors, TOPA Task Force, and a member of the Greater Capital Area Association of Realtors form committee explain
The new law exempts all single-family dwellings from TOPA. This includes single-family homes with or without an accessory dwelling, rowhouses with or without an accessory dwelling, and any single rental unit in the condo or a co-op. There is simply a limited exception for certain elderly or disabled tenants.
The law for two to four units, or multi-family, has not changed
For single-family homes, within three calendar days of executing a listing agreement, the seller is to complete the new tenant package for each tenant.
Form 1 is the notice to the tenant that the property is being solicited for sale.
Form 2 is the tenant’s ability to let the property owner and DHCD know within 20 days of receipt of form 1, that they are elderly or disabled and they do qualify for limited TOPA rights based on when they took occupancy.
Form 4 is the tenant’s ability to prove just that.
In nearly all cases, the seller will send form 1, 2, and 4, and wait 20 days. The listing agent, the seller, or the title company can then email DHCD for a status letter. DHCD will respond within 7 business days. If they have not received form 2, Listing agent can move forward to settlement. TOPA compliance is done.
If you are looking to buy a Luxury home in Old Town Alexandria, a luxury townhouse in Arlington, or a luxury home in Washington DC, Give me a call at 202-681-1621. With a background in Architecture I can find the perfect home for you in the least amount of time. I am aware of my clients' busy schedules.
Latest posts by Patricia S Harris (see all)
- Alexandria Community Page - October 19, 2018
- New TOPA law in effect, exempting single family dwellings - October 18, 2018
- You DO NOT Need 20% Down to Buy Your Home NOW! - June 25, 2018