Frequently Asked Questions About the Tenant Opportunity to Purchase Act (TOPA)
Disclosure: The facts provided in this article are for informational purposes only and are deemed accurate on the publish date. For more information, visit the TOPA web page for your jurisdiction.
What is TOPA?
TOPA (Tenant Opportunity to Purchase Act) is a DC law that gives tenants the right to purchase the property they are renting before the owner can sell it to another party. This law applies to single-family homes, multi-unit buildings, and rental properties, with some exceptions.
Does TOPA apply to all rental properties in DC?
- Owner-occupied single-family homes where the owner shares a bathroom or kitchen with the tenant;
- Single rental units in a condo, co-op or homeowners’ association;
- The most recent annual rent stabilization report filed with the City
- Federally owned properties;
- Short-term rentals (less than 12 months in some cases).
However, most rental properties are subject to TOPA.
What happens if a tenant wants to assign their TOPA rights?
Tenants can sell or assign their rights to a developer or third-party investor. This is common in multi-unit buildings, where tenant associations negotiate on behalf of all residents. Assigning rights can lead to tenant buyouts, where developers compensate tenants in exchange for their rights.
Can tenants delay a sale by holding onto their TOPA rights?
Yes, if not managed properly. Failure to follow the proper notice and response deadlines can lead to significant delays. Sellers and real estate agents must ensure all TOPA notices are correctly delivered and documented to avoid unnecessary holdups.
Can tenants delay a sale by holding onto their TOPA rights?
Yes, if not managed properly. Failure to follow the proper notice and response deadlines can lead to significant delays. Sellers and real estate agents must ensure all TOPA notices are correctly delivered and documented to avoid unnecessary holdups.
What happens if a seller ignores TOPA requirements?
Ignoring TOPA laws can result in legal action, fines, and even the reversal of a property sale. Sellers must comply with all requirements, or the tenant (or an interested third party) may challenge the sale in court.
How can landlords or sellers speed up the TOPA process?
- Offer tenants a buyout early to encourage waiver of rights.
- Ensure all notices are served correctly and on time.
- Work with an experienced title company (like SMART Settlements!) to navigate the process smoothly.
Where can I get help with TOPA transactions?
Title companies like SMART Settlements specialize in handling TOPA compliance, buyouts, and legal considerations. Working with a knowledgeable real estate agent, attorney, or title expert can prevent costly delays and ensure a smooth transaction.
For additional information on this topic contact Evelyn Miller, Partner, at 202-753-7400
