EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0606*
SENATE BILL 606
N1 5lr2237
CF 5lr3253
By: Senator West
Introduced and read first time: January 23, 2025
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Residential Real Property – Tenants’ Right of First Refusal 2
FOR the purpose of clarifying the circumstances under which liability for the failure to 3
comply with certain requirements relating to a tenant’s right of first refusal to 4
purchase a residential property is restricted to the owner of the property and does 5
not attach to the property; and generally relating to tenants’ right of first refusal to 6
purchase residential property. 7
BY repealing and reenacting, without amendments, 8
Article – Real Property 9
Section 8–119(d)(1) through (4) 10
Annotated Code of Maryland 11
(2023 Replacement Volume and 2024 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Real Property 14
Section 8–119(h)(1) 15
Annotated Code of Maryland 16
(2023 Replacement Volume and 2024 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Real Property 20
8–119. 21
(d) (1) (i) Before a voluntary transfer of title to a residential rental 22
property may occur, any tenant or group of tenants of the property, as applicable, shall 23
have the right of first refusal to purchase the property in accordance with the requirements 24
of this subsection. 25 2 SENATE BILL 606
(ii) The right of a third party to purchase any residential rental 1
property to which the requirements of this section apply is subject to the exercise of the 2
right of first refusal by a tenant or group of tenants. 3
(2) A tenant has a right of first refusal to purchase residential rental 4
property if: 5
(i) The owner intends to accept an offer from a third party to 6
purchase the property for an amount that is at least 10% lower than the lowest price offered 7
to the tenant in any previous notice, offer, or counteroffer under subsection (c) of this 8
section; or 9
(ii) The owner, without having offered the property for sale to the 10
public or any third party, receives an offer to purchase the property from a third party. 11
(3) (i) If the owner receives an offer to purchase the property from a 12
third party as described in paragraph (2) of this subsection, the owner may not accept the 13
offer until: 14
1. The owner provides written notice to the tenant of the 15
tenant’s right of first refusal; and 16
2. The tenant has an opportunity to exercise the right of first 17
refusal within 30 days after receipt of the notice specified in paragraph (4)(i) of this 18
subsection. 19
(ii) The written notice of the right of first refusal to the tenant shall: 20
1. Be in the form specified in regulations by the Secretary; 21
2. Be delivered by: 22
A. First class mail with a certificate of mailing; or 23
B. A delivery service providing delivery tracking and 24
confirmation; 25
3. Contain the same sales price as the third–party offer to 26
purchase; 27
4. State, in a conspicuous manner, that the notice is a 28
solicitation of an offer to purchase and is not intended as and may not be construed as a 29
binding contract of sale; and 30
5. State any information regarding deadlines for the tenant 31
to submit an offer to purchase. 32 SENATE BILL 606 3
(iii) The owner shall send a copy of the notice to the Office of Tenant 1
and Landlord Affairs in accordance with regulations established by the Secretary. 2
(4) (i) Within 30 days after receipt of the notice under paragraph (3) of 3
this subsection, the tenant may deliver to the owner a written offer to purchase the 4
property. 5
(ii) If a tenant delivers an offer to purchase at the same sales price 6
as the offer from the third party, the owner shall accept the offer from the tenant and notify 7
the Office of Tenant and Landlord Affairs. 8
(iii) If more than one tenant or group of tenants delivers a timely offer 9
to purchase the property, the owner may select the more favorable offer without liability to 10
any other tenant. 11
(h) (1) Following closing on a contract of sale between an owner and a [tenant] 12
THIRD PARTY, liability for failure to comply with this section is restricted to the owner and 13
may not attach to the residential rental property that is the subject of the contract. 14
SECTION 2. AND BE I T FURTHER ENACTED, That this Act shall take effect 15
October 1, 2025. 16