A Seller’s Guide to the Maryland Right of First Refusal (ROFR) Process
Disclaimer: This page provides implementation guidance based on real-world experience, not legal advice. I am not an attorney. Laws and portals change; always consult with a qualified legal professional or the Maryland Department of Housing and Community Development (DHCD) for official regulations.
Introduction: Selling Tenant-Occupied Property in Maryland
If you are a landlord in Maryland looking to sell a property that is currently tenant-occupied, you likely need to navigate the Tenant Opportunity to Purchase Act or Right of First Refusal (ROFR). This process ensures tenants have a fair chance to purchase the home they live in before it is sold to a third party.
While the process can seem daunting, breaking it down into steps makes it manageable. Below is a guide based on recent experiences helping sellers navigate the Maryland DHCD portal and compliance requirements.
Does This Apply to My Property?
Before diving into the portal, it is important to confirm if your property falls under these regulations. According to current guidelines, this process generally applies to:
- Tenant-Occupied Properties: The unit must currently have a tenant.
- 1-3 Unit Residential Properties: This includes Single Family Homes, Duplexes, and Triplexes.
- Condos: Yes, this process applies to individually owned condominium units as well.
Step-by-Step Implementation Guide
Step 1: Access the ROFR Portal
The entire process is managed through the state’s dedicated online system.
- Portal URL: https://rofr.powerappsportals.us/
- DHCD Info Page: Maryland DHCD Tenant-Landlord Affairs
Step 2: Account Setup
Visit the portal link above. You will need to sign up for a new account. If you are a returning user, simply follow the “ROFR Sign in Instructions” to access your dashboard.
Step 3: Create the Property Profile
Once logged in, you must add the specific property you intend to sell.
Pro Tip regarding Tax IDs: This is a common sticking point for many sellers. When inputting your Tax ID:
- Place the County Code at the very front of the Tax ID.
- Eliminate any leading zeros or letters.
- Troubleshooting: If the system rejects the ID, try slight variations of the format. If you are stuck, contact the DHCD help desk.
Step 4: Download Required Forms
The portal will provide the specific forms required for your jurisdiction and property type. Download these immediately.
Step 5: Prepare the Forms for Tenants
You must fill out the forms to present a “bona fide offer” or terms of sale to the tenant.
- Asking Price: This does not strictly have to match an appraised value, but it must be reasonable and reflective of market value.
- Terms: You may request specific terms, such as a specific down payment or inspection timeline. However, these requests must be reasonable and you cannot ask a tenant to waive their inspection rights.
Step 6: Mail Forms to Tenants
Do not simply hand the forms to the tenant or tape them to the door. You need proof of delivery to start the clock legally.
- Recommended Methods: Certified Mail, Priority Mail with Tracking, or a professional Courier Service.
- Goal: You need a timestamped confirmation that the forms were sent.
Step 7: The 30-Day Response Window
Once the tenant receives the forms, the timeline begins.
- If the tenant wants to buy: They must respond within 30 days. If they do, they are granted a 30-day exclusive negotiation window.
- If the tenant does NOT respond: After 30 days pass with no response, they automatically waive their right to buy.
- If the tenant declines immediately: You do not need to wait out the full 30 days; you may proceed with listing/selling the property.
Handling Offers and Rejections
Navigating the negotiation phase requires careful attention to the “10% Rule.”
What if I reject the Tenant’s Offer?
If the tenant makes an offer that you reject, and you decide to accept a third-party offer from the open market, you must compare the two prices.
The 10% Rule: If the third-party offer is 10% (or more) lower than the offer previously made by or negotiated with the tenant, you MUST return to the tenant and give them a 30-day window to match that lower price.
Note: Once an offer is matched or countered, you are generally not legally forced to sell, but if you do choose to move forward, you should honor the matched offer.
Looking to Sell? We Can Make You An Offer Today
Selling a tenant-occupied home involves extra paperwork and strict timelines, but you don’t have to navigate it alone.
If you are ready to sell your property and need help with the ROFR process, reach out today! We can make you an offer as well as walk you through the process.
It is a no-obligation offer, meaning you are not committed to accepting it. Whether you need assistance with the DHCD portal, communicating with tenants, or just want to see what your property is worth, we are here to help.
Fill out the form below to get started:
Important Resources & Contacts
The system is designed to be self-service, but issues do arise. Once you create a property in the system, it exists there permanently—you can log in anytime to update the status (e.g., if the tenant decides not to sell or moves out).
Always keep hard copies of all mailed forms and receipts for your records.
Main Contact for Assistance:
Email: emily.button@maryland.gov
Name: Emily Button
Phone: 301-429-7598