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Right of First Refusal - State of Maryland
Generally
The State of Maryland has enacted the Renters’ Rights and Stabilization Act of 2024. Effective October 1, 2024, Real Property Article 8-119 provides rights to the tenants of residential rental properties with 3 or fewer units. The Statute pre-empts any local law or ordinance governing the right of first refusal or opportunity to purchase tenant-occupied rental property for residential use with three or fewer individual dwelling units.
The Owner shall provide to the tenant a Notice of Offer of Sale
Before a residential rental property covered by the statute may be offered for sale to the public or a third party (Including through a Realtor), the owner of the property shall send each tenant a written NOTICE OF OFFER TO PURCHASE using the form specified by the Secretary of Housing and Community Development. The statute provides the mechanism for the notice including terms and delivery requirements.
The Owner shall provide to the tenant a Notice of Tenants Right of First Refusal.
When the owner has received a third party contact, where either the contract is materially different (10% lower sale price) from the Notice of Offer of Sale; or where no Offer of Sale was ever issued, the owner of the property shall send each tenant a written NOTICE OF TENANTS RIGHT OF FIRST REFUSAL using the form specified by the Secretary of Housing and Community Development. The statute provides the mechanism for the notice including terms and delivery requirements.
Waivers or Assignments
Tenants may not waive or assign their rights under the statute.
Exemptions
Some of the more common exemptions are below:
- Properties with 4 or more units
- Transfers to certain family members as defined in the statute
- Transfers by a fiduciary while administering an estate
- Transfers pursuant to a court order
- There are several other exempt situations
The Office of Tenant and Landlord affairs contains additional information
