First Right Of Refussal-Tenants Rights During Sale In Baltimore

First Right of Refusal

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<BR>This might be Baltimore City specific..

<BR>I thought that I had a done deal. Owner wanted $30k for a turnkey section 8 with a tenant in place. He said that originally he offered the home to the tenant who after two years, got approved for a loan but never followed through. I met with the tenant and inspected the place. I even discussed with the tenant the facts that I was there to inspect the place for purchase and that she would of course have the first chance to buy the place in the future, when it came back on the market. She acknowledged that she had applied for a mortgage loan, had been approved but never followed through.

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<BR> The seller and I negotiated a deal for $23k. We signed a contract and I paid a deposit. During the title search the lawyer doing the title search asked the owner for the documents substantiating that the tenant was give the first option to buy the place. There appears to be a law which gives the tenant the first right to buy or decline purchase in Baltimore, MD. The letter of the law appears to be specific in procedure, proscribing that the tenant will be notified in writing via first class mail, and given the option of buying the house at the same terms which I negotiated. (Setting aside the weakness in logic that in effect means that every buyer is actually negotiating for the tenant first, and that the tenant gets to take advantage of your negotiations leaving you, the investor with no rights until the tenant declines...did I get this correct?)

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<BR>Most important question.......

<BR>Can a waiver, signed by the tenant, saying that the home was offered to him/her satisfy the requirements in the law? Is this Baltimore, Maryland specific? In the future is there a way to search real estate law on the Internet?



[ Edited by JohnLocke on Date 11/28/2007 ]

Comments(8)

  • mcl819023rd March, 2004

    Here is the baltimore law

    http://temp.peoples-law.org/housing/ltenant/legal%20info/tenant%20right%20first%20refusal.htm

    Tenant must be notified and given first right of refusal. Must be certified letter.

  • Stockpro9923rd March, 2004

    I am darn glad that I live in the west! That is amazing to me! It smacks of Socialism and California smile

  • xvjim23rd March, 2004

    MCI890
    Thanks for the response!!!!

  • lizzie10987th July, 2005

    Do you happen to have a form for the Right of Refusal? We are in the process of buying a house that has existing non-paying tenants in it. We are due in court tomorrow and just found out we need to bring this form with us. However, I can not find it anywhere. Please help!!!

  • MissHelen8th July, 2005

    The right of first refusal should be done when the property is listed via certified mail. If the tenant is on section 8 how do they propose to qualify for a mortgage? This always amuses me

  • chap8th July, 2005

    My wife Lizzie above was mitaken . We did not need a first right of refusal for court . It was for a deal that we are selling.

  • chap8th July, 2005

    My wife Lizzie above was mitaken . We did not need a first right of refusal for court . It was for a deal that we are selling.

  • sonjac9th July, 2005

    A Section 8 tenants voucher allows them to purchase property with the voucher if they can qualify for a loan, sec 8 pays the amount that they allow for how ever many bedrooms the voucher covers for 15 years and the tenant pays the balance, it can be any number of bedrooms on a purchase, lease with option or equity share and there is no cap on the amount the tenant can pay like there is in some states when the tenant is just renting only. low income dose not mean low credit score. the housing choice voucher becomes a homeownership voucher for 15 years.


    Quote:
    On 2005-07-08 13:02, MissHelen wrote:
    The right of first refusal should be done when the property is listed via certified mail. If the tenant is on section 8 how do they propose to qualify for a mortgage? This always amuses me

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