TOPA Rights
Author: Susan Isaacs | The Isaacs Team
The Tenant Opportunity to Purchase Act in the District of Columbia (TOPA) affords qualifying tenants unique rights. The homeowner and landlord must comply with all TOPA laws and provide tenants with appropriate disclosures when applicable.
What Is TOPA?
Tenant Opportunity to Purchase Act is a law in the District of Columbia that requires owners of real property to provide tenants first right of refusal.
TOPA Has Changed
Changes In 2025
D.C. Law 26-80. Rebalancing Expectations for Neighbors, Tenants, and Landlords (RENTAL) Amendment Act of 2025
Effective December 31, 2025, the DC Rental Act of 2025 enacts major reforms to the Tenant Opportunity to Purchase Act (TOPA). Key changes include a 15-year exemption for new construction, an exemption for 2-4 unit properties not owned by corporations, and new limitations on tenant compensation for assigned rights.
Details
- New Construction Exemption: Buildings with a certificate of occupancy issued within the last 15 years are exempt from TOPA. This applies retroactively, meaning a 10-year-old building is exempt for another 5 years.
- Small Building Exemption: 2-4 unit buildings are exempt, provided they are not owned in majority by a business corporation.
- Increased Exempt Transfers: Exclusions from TOPA include estate planning, family transfers, certain tax sales, and bona fide foreclosures.
- Negotiation Limits: Tenant negotiated compensation for assigning rights is capped, often at the lesser of one year’s rent or $12,000.
Notice of Transfer: Even when exemptions apply, owners must provide a Notice of Transfer to residents.
This Notice of Transfer is used to notify tenants and the D.C. Department of Housing and Community Development, Rental Conversion and Sale Division (“Rental Conversion and Sale Division”) of the transfer of an ownership interest in a business entity.
Definition Changes: The definition of “tenant” has been explicitly clarified to include those with month-to-month leases and those without written leases.
Changes In 2022
On February 3, 2022, DC Tenant Opportunity to Purchase Act registration and negotiation time periods were tolled retroactively from January 5, 2022, through February 15, 2022.
Changes In 2018
TOPA SINGLE FAMILY HOME EXEMPTION ACT OF 2018
Changes exempting single family dwellings from TOPA, unless occupied by elderly or disabled tenants. Owners of single-family homes are not required to offer tenants TOPA rights, only to comply with notice requirements.
The significant provisions of the TOPA Single-Family Home Exemption Amendment Act of 2017 (Bill 22-0315) are:
- Also exempted from TOPA: Single family dwellings with an Accessory Dwelling Unit and a single rental unit in a condo, co-op or homeowners’ association.
- An owner of exempted units must give tenants notice within three calendar days of receiving an offer of sale.
- Elderly and disabled tenants who signed a lease to occupy an exempted unit by March 31, 2018 and took occupancy by April 15, 2018, will have a limited opportunity to purchase or assign their rights. They must provide documentation verifying their status.
- DHCD’s Rental Conversion and Sale Division (CASD) will determine an elderly or disabled tenant’s status.
TOPA laws and forms can change. As always, check the dc.gov site for the most up to date information and documents.