DC Tenant Opportunity to
Purchase Act
Single Family Home
| 1. |
Put house on the market. |
| 2. |
Enter into a contract of sale. |
| 3. |
Provide tenant with form "Offer of Sale & Tenant Opportunity to
Purchase with a Third Party Contract” (certified mail, return receipt
requested and regular mail, and include copy of sales contract.) |
| 4. |
Tenant has 30 days from date form is received to provide a written
statement indicating interest in purchasing property. |
| 5. |
Tenant then has 60 days to negotiate a sales contract with owner,
who must negotiate in good faith. |
| 6. |
If agreement reached, must execute another contract with tenant.
Earnest money deposit cannot exceed 5% of selling price. |
| 7. |
Tenant then has 60 days to secure financing; an additional 30 day
extension must be extended if lender states need. |
| 8. |
Even at the end of this period, if tenant is able to match the
third-party contract term-for-term, tenant retains right to purchase. |
| 9. |
If financing fails, tenant still has 90 days to quit premises. |
Example:
|
January |
February |
March |
April |
May |
June |
July |
August |
September |
|
House on
the market |
Tenant election to purchase |
Negotiate sale |
Negotiate sale |
Secure financing |
Secure financing |
Possible extension to secure financing |
|
|
|
Contract
of sale |
|
|
|
|
|
Tenant retains absolute right to purchase |
|
|
|
Notice to tenants |
|
|
|
|
|
Notice to quit if deal falls through* |
|
Tenant must move out at end of month |
*Must
be accompanied by affidavit that potential purchaser will use property as
personal residence.
+As laws can change, do make sure you keep apprised of any
changes to laws. This was written in 2005. |
