TOPA in Washington, DC: A Guide for Real Estate Investors

The Tenant Opportunity to Purchase Act, or TOPA, gives tenants in DC the right to be offered the chance to buy their building before it is sold to someone else. For investors it can add time and steps to a purchase or a sale. This is a summary, not legal advice. TOPA is technical, so work with a DC settlement attorney on any tenant-occupied deal.

Single-family homes

Since 2018, tenants in most single-family homes, including a home with one accessory unit such as an English basement, no longer have TOPA purchase rights. Tenants who are elderly or disabled under leases from before the change keep their rights, and tenants must still receive notice when the home goes on the market.

Buildings with two or more units

In buildings with two or more rental units, tenants can carry TOPA rights, which come with offer, notice and response periods before a sale to a third party can close. Tenants in larger buildings can also assign their rights, subject to cooling-off periods.

What changed in 2025

The RENTAL Act of 2025, effective December 31, 2025, narrowed TOPA in several ways, including:

• An exemption for multifamily buildings sold within 15 years of their first permanent certificate of occupancy
• Exemptions for certain transfers to family members and family entities, for bona fide foreclosure sales, and for admitting minority investors
• A requirement that leases in exempt buildings disclose the exemption to tenants

What it means for a deal

• Ask the seller for TOPA documentation, such as notices sent and tenant waivers, before you sign a contract on a tenant-occupied property.
• Allow for TOPA periods in your closing date and your loan term.
• When you sell a multi-unit building later, the same rules apply to you as the seller.

Common questions

See how rentals are financed on the DSCR rental loans page.