District of Columbia Real Estate Broker Exam — All Questions

The District's Tenant Opportunity to Purchase Act (TOPA) generally requires that, before certain rental housing is sold, the owner must:

• a.Evict all tenants first
• b.Give qualifying tenants notice and an opportunity to purchase the property✓
• c.Pay each tenant a relocation bonus
• d.Sell only to a government agency

TOPA gives tenants of covered rental housing the right to receive notice of a sale and an opportunity to purchase the property, often with a right of first refusal, before the owner can sell to a third party. It is one of the most distinctive features of DC real estate practice. Brokers handling rental or multi-unit sales must account for TOPA notice and timing requirements or the transaction can be delayed or invalidated.

A broker representing the seller of a tenant-occupied DC building should recognize that failing to follow TOPA can:

• a.Only affect the buyer's financing
• b.Be cured after closing with no consequence
• c.Increase the sale price automatically
• d.Delay or invalidate the sale and expose the parties to legal claims✓

Because TOPA gives tenants enforceable rights, skipping the required notice and opportunity-to-purchase steps can delay a closing, unwind a sale, or lead to tenant lawsuits. A broker must ensure the seller provides proper TOPA notices and honors the tenants' response windows. This is a core DC-specific competency the broker exam tests.

Under TOPA, when a tenant receives a valid offer of sale, the tenant typically has:

• a.A statutory time period to respond and negotiate or assign the right to purchase✓
• b.No time to respond at all
• c.The right to occupy the unit rent-free permanently
• d.Automatic ownership of the property

TOPA gives the tenant a defined statutory period to respond to the owner's offer of sale, negotiate a contract, and in some cases assign the purchase right (for example, to a developer or housing organization). The exact time frames depend on the number of units. TOPA does not give free occupancy or automatic ownership; it gives a structured chance to buy that the owner must honor.