Md. Code Regs. 05.22.01.05

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.22.01.05 - Notice Requirements for Tenant's Right of First Refusal

A. Before accepting an offer to purchase a residential rental property from a third party, the owner of the property shall provide written notice to any tenants of the property of the tenants' right of first refusal, and give the tenant an opportunity to exercise the right of first refusal within 30 days after receipt of the notice, if:

(1) The proposed transfer to the third party is not a transfer listed in Real Property Article, § 8-119(b), Annotated Code of Maryland;

(2) The owner intends to accept an offer from a third party to purchase the property for an amount at least 10 percent lower than the lowest price offered to the tenant in any previous notice, offer, or counteroffer made during the tenant's exclusive negotiation period; or

(3) The owner, without having offered the property for sale to the public or any third party, receives an offer to purchase the property from a third party.

B. A notice sent to a tenant under this chapter shall be delivered by:

(1) First-class U.S. Mail, with a certificate of mailing; or

(2) A delivery service providing delivery tracking and confirmation.

C. The owner shall send a copy of a notice sent to a tenant under this chapter to the Office by a submission form on the Office's website.

D. The owner shall notify the Office by submission form on the Office's website if:

(1) A tenant delivers a timely written offer to purchase at the same sales price as the third-party offer;

(2) A tenant does not deliver a timely offer to purchase the property at the same sales price as the third-party offer; or

(3) The owner accepts an offer to purchase from a tenant and enters into a contract of sale, but the contract of sale is terminated before settlement.

Md. Code Regs. 05.22.01.05

Regulation .05 adopted effective 51:20 Md. R. 898, eff. 10/14/2024.