Tenant Opportunity to Purchase Act (TOPA)
TOPA is one of the most distinctive features of District real estate practice, giving tenants rights when rental housing is sold. This chapter covers the tenant's notice and purchase rights, response periods, and the consequences of noncompliance.
The Tenant's Right to Purchase
Before selling covered rental housing, an owner in the District generally must give qualifying tenants notice of the sale and an opportunity to purchase the property, often as a right of first refusal. TOPA applies to a range of rental properties, and its requirements can significantly affect the timing and structure of a sale. Brokers handling rental or multi-unit sales must build TOPA steps into the transaction.
Response Periods and Assignment
When a tenant receives a valid offer of sale, TOPA provides a statutory period to respond, negotiate a contract, and in some cases assign the purchase right to a third party such as a developer or housing organization. The exact time frames depend on the number of units. TOPA does not grant free occupancy or automatic ownership; it grants a structured, enforceable chance to buy.
Consequences of Noncompliance
Because TOPA rights are enforceable, failing to provide the required notice and opportunity can delay a closing, unwind a completed sale, or lead to tenant litigation. A broker must confirm that the seller issues proper notices and honors the tenants' response windows. Getting TOPA wrong is a leading way DC transactions fail, so the broker exam tests it closely.