Navigating Washington DC’s TOPA for Multi-Unit Sellers

Washington, DC’s Tenant Opportunity to Purchase Act (TOPA) provides tenants in residential buildings the first chance to buy the property if the owner decides to sell. For multi-unit property sellers, understanding TOPA is essential for a smooth transaction. Here’s a quick guide to TOPA for multi-unit sellers, covering the basics, seller requirements, and helpful resources.

What is TOPA?

TOPA grants tenants the "right of first refusal" when the owner of a rental property wants to sell. This means tenants must be given the opportunity to buy the property or assign their rights to a third party. The law applies to all rental units, but requirements differ depending on the size of the property and the number of units involved. 

TOPA’s intent is to empower tenants, especially in DC’s competitive housing market, by enabling them to maintain stability in their homes or secure beneficial deals with new owners.

Key Requirements for Multi-Unit Sellers

For multi-unit buildings (with more than four units), the process can be somewhat complex, with a few key steps to keep in mind:

1. Notice of Intent to Sell: Sellers must notify tenants with a "Notice of Sale" outlining their right to purchase. This notice should also go to the District of Columbia Department of Housing and Community Development (DHCD).

2. Tenant Decision Periods: Tenants are given time to review their rights, which vary by property size:

• 5+ Units**: Tenants have 45 days to respond with a statement of interest.
• 3-4 Units**: Tenants have 30 days to respond.

3. Negotiation Phase: If tenants decide to exercise their rights, they can negotiate a price and terms with the seller. 

4. Assignment of Rights: Tenants can assign their rights to a third-party buyer, potentially expediting the sale for the seller.

5. Closing Period: Once an agreement is in place, tenants typically have an additional 60 days to close the purchase, although this can vary.

Resources for Sellers

Navigating TOPA involves legal and procedural details that sellers must follow precisely to avoid delays or disputes. Here are some useful resources:

• DC Department of Housing and Community Development (DHCD) TOPA Guide: A comprehensive overview of TOPA regulations, forms, and notices.
• TOPA Notice Forms: Access the specific forms required to notify tenants.
• Legal Assistance: Consult a DC real estate attorney familiar with TOPA to ensure compliance and streamline the process.

TOPA compliance doesn’t have to be overwhelming with the right preparation. Understanding tenants’ rights and following the notice and negotiation processes will make your property sale smoother and faster.