If you’re a rental property owner in Washington, D.C., chances are you’ve heard about TOPA. And if you haven’t, you definitely should.
The Tenant Opportunity to Purchase Act (TOPA) is a D.C. law that gives tenants the right of first refusal when the property they live in is being sold. In plain terms, before you can sell your rental property to someone else, you may be required to offer it to your tenants first.
TOPA has been around since the 1980s and has changed over the years, but it still causes confusion for many owners, especially those selling smaller properties or condos. Here’s what you need to know.
What Does TOPA Actually Mean?
Under TOPA, if you’re planning to sell your property, you must provide your tenants with:
- A written notice of your intent to sell
- A specific window of time to respond
- And, in some cases, time to negotiate and submit an offer
If tenants are interested, they can either buy the property themselves or assign their rights to another buyer such as a nonprofit or developer.
Which Properties Are Affected?
TOPA applies differently depending on the property:
- Single-family homes, condos, and co-ops
Since 2018, most tenants in these units no longer have full TOPA rights. However, if a tenant is over 62 or has a disability, some rights still apply. - Two- to four-unit buildings
Tenants in these properties still have TOPA rights and can organize to make a group purchase. - Five or more units
Full TOPA rights remain in effect. These tenants often work with legal aid or tenant associations.
So, if you’re renting out a condo to a young professional, you may not run into complications. But even if your tenant doesn’t qualify for full rights, notice requirements still apply.
What’s the Timeline?
The steps can vary depending on the type of unit and how many tenants are involved, but the general process looks like this:
- You give formal notice of your intent to sell.
- The tenant has a window to respond with interest, usually between 15 and 30 days.
- If they’re interested, they get time to negotiate and make an offer.
- They may also have the option to match a contract you’ve signed with another buyer.
Skipping or mismanaging any step in this process can lead to delays, legal trouble, or even cancellation of a sale.
Why It Matters to You
Even if your tenant has no interest in buying, you’re still legally required to go through the process. That means preparing notices, waiting out timelines, and potentially extending your closing date.
It’s especially important to work with someone who understands the local laws. Whether you’re using a Realtor or selling the property yourself, you want to make sure everything is done correctly from the start.
How We Help Owners Navigate TOPA
At Eva Realty, we’ve helped many local landlords through this process. If TOPA applies, we can assist with:
- Drafting and delivering the right notices
- Identifying whether your tenant qualifies for an exemption
- Keeping your sale on track without unnecessary delays
We’re not attorneys, but we know the ins and outs of how the law is applied, and we can refer you to the right legal support when needed.
Thinking about selling your rental property? Let’s talk. Whether TOPA affects your situation or not, we’ll help you understand your options and move forward with confidence.