maryland’s Tenant Right of First Refusal
Understanding Maryland’s Right of First Refusal for Tenants
What Landlords Need to Know Before Selling a Rental Property
Maryland law provides tenants in certain situations with a Right of First Refusal when a landlord intends to sell a rental property. For landlords, failing to comply with this requirement can delay a sale, invalidate a transaction, or expose the landlord to legal claims.
Here’s what Maryland landlords should understand.
What Is the Right of First Refusal?
A Right of First Refusal gives a tenant the opportunity to purchase the rental property before it is sold to a third party, under specific conditions and within a defined timeframe.
This right is statutory, meaning it exists by law and must be honored when applicable—regardless of what the lease says.
When Does the Right Apply?
The Right of First Refusal typically applies when:
A landlord intends to sell a residential rental property, and
The property and tenancy fall within the scope of Maryland’s statute
Certain property types, transfers, and circumstances may be excluded, but landlords should never assume an exemption without reviewing the law carefully.
What Is the Landlord Required to Do?
When the Right of First Refusal applies, the landlord must:
Provide the tenant with written notice of intent to sell
Disclose the material terms of the proposed sale
Give the tenant a defined period
