Court Affirms Tenants' Rights When Buildings Are Sold

The case was sent back to the trial court.

Over the years, TOPA has allowed many tenants the opportunity to own their homes. But it has critics. Although some tenants refer to the law as a "tenant capitalism" measure, many landlords complain that it is nothing more than "tenant blackmail." (I have represented parties on all sides of such transactions -- tenants, property owners and buyers.)

The law provides different time frames in which the tenants can negotiate and go to settlement from the date of receipt of TOPA notice. For example:

Single-family home: up to 180 days.

Two, three or four-unit building: up to 240 days.

Five or more units: Only a tenant association can respond and act on behalf of the tenants. If such an organization exists (or is created when the notice is received), the association has up to 360 days.

Clearly, these delays can have a chilling effect on real estate transactions. However, some landlords -- recognizing that time is money -- have avoided entering into third-party contracts, working instead with the tenants or their association, and have successfully sold their property to the tenants in a much shorter time.

"The case affirms the priority of tenant rights and is consistent with experience and common sense," said Eric M. Rome, the D.C. lawyer who represented the tenants. "A purchaser needs to look very closely when it is represented to it that the tenants have failed to organize and assert their rights in a multifamily building. The message is that a purchaser cannot turn a blind eye and later claim that the tenants may not enforce their rights against it directly since it cannot claim innocence."

It would appear that the tenants may be on their way to homeownership, which is the underlying goal of the District law.

Benny L. Kass is a Washington lawyer. For a free copy of the booklet "A Guide to Settlement on Your New Home," send a self-addressed stamped envelope to Benny L. Kass, 1050 17th St. NW, Suite 1100, Washington, D.C. 20036. Readers may also send questions to him at that address or contact him through his Web site, www.kmklawyers.com.