It is the intent and purpose of <cite data-path="|13|6">this subtitle</cite> that before title to any single-family residential rental property is voluntarily transferred, the tenant of that property shall have the opportunity to purchase the property and that residential property owners shall not be unreasonably impeded in selling their properties nor required to accept unreasonable terms of sale.
In this subtitle, the following terms have the meanings stated.
“Commissioner” means the Commissioner of the Department of Housing and Community Development, or the Commissioner’s designee.
“Landlord” means any person who is the owner of a rental single-family dwelling unit.
“Landlord” includes any person authorized to exercise any aspect of the management of the rental single-family dwelling unit, except those persons engaged solely in custodial and maintenance functions.
“Owner” means any person recorded in the official records of the State or City as holding title to a rental single-family dwelling unit.
“Rent” means the consideration, including any bonus, benefit, or gratuity, demanded or received per day, week, month, year, or other period of time, as the case may be, for the use or occupancy of housing accommodations or the transfer of a lease for those accommodations.
“Rent” includes any charge to a tenant under a rent-to-own agreement if the tenant’s acceptance of the agreement is mandatory or if the tenant is not entitled to a refund of the charge if the tenant does not purchase the unit.
“Single-family dwelling unit” has the meaning stated in § 202.2.22.4 of the Baltimore City <cite data-path="|codes|II">Building Code</cite>.
“Statement of interest” means a written and clear expression of interest to a landlord that the person writing the statement is interested in purchasing the landlord’s rental single-family dwelling unit.
“Tenant” means any person who:occupies a rental single-family dwelling unit as a residence with the consent of the landlord; and
has an obligation to pay rent or provide other consideration to the landlor for those accommodations.
The following transfers of title are exempt from the requirements of <cite data-path="|13|6">this subtitle</cite>:
transfer of title to a spouse, child or children, parents, siblings, or in-laws of the landlord;
transfer of title by will or through inheritance under the State Estates and Trusts Article;
a gift to any religious, charitable, or benevolent, tax-exempt donee;
transfer of title in a mortgage or deed of trust;
transfer of title to a government agency;
transfer of, or for the sole purpose of creating, a reversionary (ground rent) interest, if the leasehold is retained by, or was not owned by, the transferor;
transfer of title in lieu of foreclosure of a mortgage or deed of trust;
any sale at public auction of a property individually, if the landlord has offered the property to the persons required under <cite data-path="|13|6">this subtitle</cite>, and those persons have failed to exercise the opportunity to purchase before the auction sale;
any transfer by a personal representative from a decedent’s estate made in the course of the administration of the estate; [and]
a transfer of title by a bona fide gift to a relative of the transferor or relative of the transferor’s spouse, subject to the following:“relatives” means only those relatives set forth in § 267(c)(4) of the Internal Revenue Code and all lineal descendants and spouses of those relatives to the extent not already included in that section;
“ancestors” as defined in § 267(c)(4) are limited to the levels of parents and grandparents; and
“lineal descendants” include all biological children and stepchildren, and full effect shall be given to legal adoption[.] ; and
A tranfer of title by the housing authority of Baltimore City.
In <cite data-path="|13|6">this subtitle</cite>, the following rules of interpretation apply.
The time periods specified in this subtitle are minimum periods. A landlord may provide a tenant with reasonable extensions of time to purchase the rental single-family dwelling unit.
Potential third-party purchasers are presumed to act with full knowledge of the rights and procedures established in <cite data-path="|13|6">this subtitle</cite>.
Unless otherwise expressly stated in <cite data-path="|13|6">this subtitle</cite>, delivery of items required by <cite data-path="|13|6">this subtitle</cite> shall be made either by first-class mail or hand-delivery to the required party.
To the extent possible, any defect or ambiguity in <cite data-path="|13|6">this subtitle</cite> shall be resolved in favor of tenants.
Subject to <cite data-path="|general|4">Title 4 {“Administrative Procedure Act – Regulations”} of the City General Provisions Article</cite>, the Commissioner may adopt rules and regulations to carry out <cite data-path="|13|6">this subtitle</cite>.
Before a landlord may settle on the sale of a rental single-family dwelling unit, the landlord shall give the tenant an opportunity to purchase the rental single-family dwelling unit at a price and under terms that constitute an offer of sale in accordance with the requirements of this subtitle.
Prior to offer the rental single-family dwelling unit for sale to another party, a landlord shall provide a written offer of sale to:the tenant within the rental dwelling unit; and
the Commissioner, on behalf of the Mayor and City Council.
The offer of sale required by this section shall include:the asking price and the material terms of sale; and
a statement that the landlord shall provide the tenant, within 7 calendar days of a request, the following:a complete copy of any third-party contact to purchase the rental single-family dwelling unit, with the purchaser name redacted; and
copies of available licensing inspection reports of the rental single-family dwelling unit for the previous 2 years.
For each calendar day of delay by the landlord to provide the information required by subsection (b)(1)(ii) of this section, the time period for the tenant to express interest in purchasing the rental single-family dwelling unit or to negotiate a contract with the landlord for the purchase of the rental single-family dwelling unit, as the case may be, shall be extended by 1 day.
Additional Information
The landlord shall share the fact sheet regarding tenant rights under this section, which can be obtained from the Department of Housing and Community Development’s office or website.
In this subsection, “material change” means:a change in the purchaser under a third-party contact; or
a reduction in the sales price of 10% or more.
If there is a subsequent third-party contract after the initial offer of sale was transmitted that results in a material change or if the terms of a third-party contract to purchase the rental dwelling unit materially change between the time an offer of sale is made and the settlement, the landlord shall provide the tenant with a new offer of sale reflecting the new terms.
If the initial time period to indicate interest has expired, the tenant shall have all rights preserved under this subtitle except that the period to indicate interest in purchasing the rental single-family dwelling unit under the revised terms of sale may not exceed 7 calendar days from the date of receipt of the new offer of sale.
A landlord is not required to provide a new offer of sale if there is an increase in the sale price.
On receipt of the written offer of sale required by <cite data-path="|13|6|2|6-8">§ 6-8 {“Offer of sale”}</cite> of <cite data-path="|13|6">this subtitle</cite>, a tenant shall have 14 calendar days to deliver a written statement of interest to the landlord.
The tenant may accept the offer of sale by submitting a written contract within 14 calendar days from the date of the submission of the statement of interest.
The contract must include substantially the same terms and conditions set forth in the any third-party contract of sale, including any contract term that provides for a reasonable real estate commission.
In order for the tenant to secure financing, any contract of sale shall provide a reasonable period of no less than 30 days between the execution of the contract and settlement.
A landlord shall afford a tenant a reasonable and commensurate extension of time, if:the tenant is obtaining financing through a government or other loan program designed for low- or moderate-income persons or first-time homebuyers; and
the government agency or other lender estimates in writing that a financing decision will be made within 60 calendar days after the date of the contract.
If 6 months elapses from the date the landlord has delivered the written offer of sale required by § 6-8 {“Offer of sale”} to a tenant and the landlord has not gone to settlement on the sale of the rental dwelling unit, the landlord shall send a new written offer of sale to the relevant parties before selling the rental dwelling unit.
The rights of a tenant under this subtitle may not be assigned and anyattempted assignment is void.
If a tenant proposes to use a federal, State, or local program to assist the purchase, for either mortgage insurance, a mortgage guarantee, or a direct mortgage, the required deposit shall not exceed the cash contribution required of the buyer by that program.
If no such program is involved in the tenant purchase, the deposit required for a sales contract shall be at least 1% of the purchase price.
No landlord may refuse to enter into a sales contract with a tenant solely because the tenant proposes to use a federal, State, or local program to assist in the financing of the purchase.
A sales contract shall contain a reasonable financing contingency clause which:shall not require the tenant to obtain financing in less than 60 days from the date a contract is tendered by the landlord; and
shall excuse the tenant from performance of the sales contract if the tenant is unable to obtain adequate financing within said 60-day period.
Unless otherwise expressly stated, a landlord may not request, and the tenant may not grant, a waiver of any requirement under <cite data-path="|13|6">this subtitle</cite> unless the waiver is in exchange for consideration that the tenant, in their sole discretion, find acceptable.
In any transfer of real property subject to <cite data-path="|13|6">this subtitle</cite> to a party other than the tenant, the landlord shall file in the land records of Baltimore City, and with the Commissioner of the Baltimore City Department of Housing and Community Development, an affidavit in the form set forth in subsection (c) of this section, certifying that the requirements of <cite data-path="|13|6">this subtitle</cite> have been met, as a part of the deed conveyance.
Where an affidavit has been filed as required by subsection (a) of this section, the rights and title of a third party transferee and the transferee’s heirs, successors, or assigns shall be free of any restriction or claim arising in favor of the tenant under <cite data-path="|13|6">this subtitle</cite>.
The affidavit affirming compliance with the requirements of <cite data-path="|13|6">this subtitle</cite> described under subsection (a) of this section shall:if the tenant has responded to the offer of sale required under <cite data-path="|13|6">this subtitle</cite>, include the following statement:
“(Name of tenant), being the tenant of the property known as (street address) in Baltimore City, following an offer of sale as required by <cite data-path="|13|§6-7">§ 6-7 of Article 13</cite> of the Baltimore City Code, sent (date of mailing), has failed to enter into a contract to purchase said property in the manner and time provided by Subtitle 6 of <cite data-path="|13">Article 13</cite> of the Baltimore City Code.” (Add if applicable) “Notice pursuant to <cite data-path="|13|§6-7">§ 6-7 of Article 13</cite> of the Baltimore City Code was subsequently sent to said tenant on (date of mailing), and tenant subsequently failed to contract to purchase said property in lieu of (name of third party) within the period of time provided by said § 6-8, that period being 7 days.”; or
if the tenant has waived right of first refusal, include the following statement:
“(Name of tenant), being the tenant of the property known as (street address) in Baltimore City, following an offer of sale as required by <cite data-path="|13|§6-7">§ 6-7 of Article 13</cite> of the Baltimore City Code, sent (date of mailing), has not entered into a contract for sale.
Where a rental single-family dwelling unit subject to this section is owned by a corporation, LLC, or other business organization, the affidavit required by subsection (a) of this section shall be made by a duly authorized officer of the organization or duly authorized representative of the ownership entity.
A landlord shall report each rental single-family dwelling unit transfer subject to <cite data-path="|13|6">this subtitle</cite> to the Commissioner within 30 days of the transfer in the manner required by the Commissioner.
The duty to report under this subsection shall include transfers to a party other than the tenant.
On or before June 30 of the each year, the Commissioner shall submit a report to the Mayor and City Council detailing:disaggregated by zip code, the total number of transfers subject <cite data-path="|13|6">this subtitle</cite>, including:transfers to a tenant; and
transfers to a party other than a tenant;
any recommendations for legislative or policy amendments to better ensure that City tenants are benefitting from <cite data-path="|13|6">this subtitle</cite>.
Any person who violates any provision of <cite data-path="|13|6">this subtitle</cite> shall be guilty of a misdemeanor and, on conviction, shall be subject to a fine of up to $1,000 for each violation.
The criminal penalty described in this section is not intended to preclude any other civil or administrative remedy available at law.