Tenant Right of First Refusal
GenerallyBefore the sale of a single-family residential rental property located in Baltimore City may occur, the tenant of that property shall have the Right of First Refusal to purchase the property. Since this is a Baltimore City Code (Article 13, Subtitle 6) provision, properties in the other Maryland counties are not subject to these Baltimore City Tenant Right of First Refusal Laws.
Written Offer of SalePrior to the voluntary transfer of title to a single-family residential rental property, a written offer of sale shall be made to the tenant in accordance with the Baltimore City Code notice requirements. The tenant has 30 days to decide if the tenant would like to purchase the property. If the tenant would like to purchase the property, the tenant must notify the landlord in accordance with the Baltimore City Code notice requirements.
Tenant ContractIn the event that the tenant does choose to enter into a contract to purchase the property, the law requires that the contract contain certain provisions, including sale price, date of settlement, deposit amount, and financing contingency all within Baltimore City Code guidelines.
WaiversTenants may not waive their right to receive an offer of sale. However, if the tenant has been provided the offer of sale, the tenant may waive his right to the time periods afforded for entering into a sales contract.
ExemptionsThe Right of First Refusal does not apply to the following exempt situations:
- Multi-unit properties
- Tenants who have not resided in the property for at least 6 months
- Tenants who were evicted from the property for non-payment of rent
- Properties listed with a third party licensed real estate broker are exempt provided the broker complies with the notice requirements
- Several other exempt situations