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Bill

HB 872

Residential Real Property - Tenants' Right of First Refusal

2025 Regular Session Introduced by Vaughn Stewart

Maryland law now requires landlords to offer residential tenants first opportunity to purchase their rental homes before selling to outside buyers, aiming to reduce displacement and housing insecurity.

Approved by the Governor - Chapter 524
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Bill Summary · HB 872

Legislative bill overview

HB 872 grants residential tenants a right of first refusal when their landlord intends to sell rental property, requiring landlords to offer tenants the opportunity to purchase at the same price and terms before selling to third parties. The bill establishes a specific timeline for tenant response and outlines procedures for exercising this right.

Why is this important

This legislation addresses housing affordability and displacement by allowing long-term tenants to acquire properties they occupy, potentially preserving housing stability and building wealth in communities facing rising rents. It shifts leverage in the landlord-tenant relationship during property sales, which commonly precede rent increases or evictions under new ownership.

Potential points of contention

  • Property rights concerns: Landlords argue this restricts their ability to freely sell property and may reduce investment incentives or property values, potentially limiting the rental housing supply
  • Financing barriers: Tenants may lack access to mortgage financing or capital for down payments, making the right to purchase theoretically available but practically unattainable for many
  • Implementation complexity: Defining purchase price valuation, timeframe for tenant response, and enforcement mechanisms across diverse property types and circumstances poses administrative challenges

Compiled from official sources — confirm details with the bill’s official record.

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