Sale of Rental Housing
SALE OF RENTAL FACILITIES (Chapter 6.28) identifies what information must be provided by a landlord to any interested party prior to the sale of a rental facility. In addition to these notice and disclosure requirements, landlords are required to notify the City within 15 business days of any change in the ownership or management of a rental property, including contact information, as well as when the property is no longer available for rent.
When entering into a contract for the sale of a rental facility, the owner the rental facility is required to provide the prospective purchaser with the following information:
- A Notice of City of Takoma Park rental housing laws. The Notice must be included in or attached to the contract of sale.
- Copies of the annual rent stabilization reports for the rental facility for the previous two years unless the rental facility is exempt from rent stabilization.
- Copies of available licensing inspection reports of the rental facility for the previous two years.
At the time the Notice and the required documents are delivered, each purchaser shall sign and date a written acknowledgment of receipt of the Notice and shall initial each rent stabilization report and licensing inspection report. The Notice and the reports must be attached to the contract of sale.
Disclosure requirements do not apply to
- A sheriff’s sale, tax sale, deed in lieu of foreclosure, or sale by foreclosure, partition, or by court-appointed trustee;
- A transfer of the rental facility by a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship or trust;
- A transfer of the rental facility or any interest therein, to a spouse, former spouse, domestic partner, former domestic partner, parent, sibling, child or grandchild; or
- A transfer of a single-family rental facility to a purchaser who stipulates in the contract of sale that the property will not be used for rental purposes. It will be the responsibility of the purchaser of the single-family rental facility to notify the City, within 15 business days after transfer of title to the property, of the discontinuance of use of the property as a rental facility.
- Rental Housing Programs
Right to Rescind Contract
The purchaser of a rental facility has the right to rescind the contract of sale at any time before the receipt of this information or within five calendar days of receiving the material. The purchaser also has the right to the immediate return of any deposits made on account of the contract of sale.
Transfer of Rental License
The prior owner or new owner of a rental facility is required to apply to the City for a rental housing license or for the transfer of the existing rental housing license within 15 calendar days.