Assignment of TOPA rights (Tenant's Opportunity to Purchase Act): Q&A

Assignment of TOPA rights (Tenant's Opportunity to Purchase Act): Q&A

Q: Can TOPA rights be assigned without a contract?

A: With our without a contract, TOPA rights can be assigned.

Q: How much (consideration) does the landlord/owner need to pay the Tenant to make the assignment valid?

A: Most title insurance underwriters agree that there must be at least $300.00 of consideration which can be in the form of rent abatement/waiver, moving expenses, or cash payment.

Q: What forms must be provided to the tenant prior to the existence of a contract?

A: The landlord/owner must provide TOPA Form B by certified mail before tenant signs the agreement to assign. Because the rights of first refusal will be assigned concurrently with the rights to purchase, it is not necessary to provide Form C.

Q: What forms must be provided to the tenant with the existence of a contract?

A: The landlord/owner must provide TOPA Form A by certified mail before tenant signs the agreement to assign.

Q: Once the Assignment is signed by both landlord/owner and tenant, is there a waiting period before settlement can occur?

A: No. However, do note that either Form A or Form B must be sent by certified mail in order to satisfy the legal requirements such that the rights become legally assignable.

What's the benefit of the DC First Time Homebuyer Recordation Tax Deduction

What's the benefit of the DC First Time Homebuyer Recordation Tax  Deduction

What’s the Benefit?

DC First-Time Recordation Tax is reduced to 0.725% from customary 1.1% or 1.4%.

Qualifications*

  • Homebuyer* has never owned a principal residence in the District of Columbia.
  • Homebuyer must qualify for the DC Homestead Deduction.
  • Purchase price cannot exceed $625,000.
  • Total Household Income cannot exceed defined thresholds listed below:
    • Persons in Households / Income Limits
      • 1 / $139,140
      • 2 / $158,940
      • 3 / $178,740
      • 4 / $198,540
      • 5 / $214,560
      • 6 / $230,400
      • 7 / $246,240
      • 8 / $262,080

What's the Benefit of the Maryland First-time Homebuyer Tax Credit?

What's the Benefit of the Maryland First-time Homebuyer Tax Credit?

What’s the Benefit?

The Maryland First-Time Homebuyer Credit exempts the buyer from paying the State Transfer Tax.

Qualifications*

  • All homebuyers must be individuals (cannot be a trust or other entity) who have never owned in the state of Maryland residential real property that has been the individual(s) principal residence; and
  • The residence will be occupied as the homebuyer’s principal residence.

* There is an exemption that will allow a homebuyer to qualify if a co-buyer is on title solely for the loan qualification and will not occupy the property as a principal residence.

Seller Property Disclosure Requirements in DC

Question from an Agent:  My client, a seller of a DC property, has recently purchased a property and has never occupied it.  Is the seller still required to complete the property disclosure form or is the seller exempt?

Answer from an attorney:  There is no statutory exemption that would preclude the above seller from providing the property disclosure statement.   DC Code § 42-1301 (b), provides guidance and lists certain types of property transfers that are exempt from anyone having to fill out the Disclosure statement.  Some, but not all of these include:  transfers between co-tenants; foreclosure sales; court ordered transfers such as probate, bankruptcy, divorce; and transfers made by a person of a newly constructed residential property that has not been inhabited. 

Close It!™ House of the week: A special Valentine’s Day edition located in Chevy Chase

Close It!™ House of the week: A special Valentine’s Day edition located in Chevy Chase

Featuring a wide side hall brick Colonial house, in the desirable Chevy Chase area, with over 3,300 square feet. The home has four bedrooms and four baths, perfect for a growing family that needs a lot of space and storage. The backyard is BREATHTAKING – a walkout, covered patio area that overlooks a beautiful fenced-in garden. The property also includes a detached garage with a private entrance. It’s listed for $1,149,000.        

Assuming a homebuyer puts down 20 percent, their cash-to-close would be $259,754 and monthly mortgage payments would be approximately $3,421. You’ll also receive a credit of $750 when you choose to use Federal Title & Escrow Company for settlement services when ordered online. For a complete picture of what your cash-to-close figures would be, including seller’s net proceeds from the sale and such, please view the Close It! Web version or download the free Close It! iOS app.  

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