14 DCMR § 14-4712
CONTRACT NEGOTIATION
Operative Text
4712.1 The tenant(s) and the owner shall bargain in good faith. 4712.2 The following items shall constitute prima facie evidence of lack of good faith: (a) The failure of an owner to offer the tenant(s) a price at least as favorable as that offered to a third party, within the time periods specified in the Act, without a reasonable justification; (b) The failure of an owner to make a contract with the tenant(s) that substantially conforms with the price and terms of a third party, without reasonable justification, except where the Act may require otherwise; and (c) The willful violation by a tenant or owner of the provisions of the Act. 4712.3 The owner shall not require the tenants to pay a deposit of more than five percent (5%) of the contract sales price in order to make a contract. The deposit, with interest accrued thereon, shall be refundable in the event of a good faith failure of the tenants to perform under the contract. 4712.4 The tenant(s) may assign his or her rights under Title IV of the Act to an agency or instrumentality of the District of Columbia or federal government. 4712.5 The tenant(s) may exercise rights under the Act in conjunction with a third party to aid in the purchase. 4712.6 A tenant or tenant organization shall have the right of first refusal for fifteen (15) days after the owner has notified the tenant organization of receipt of a valid sales contract from a third party. The owner shall notify the tenant(s) of such contract or offer. 4712.7 If the third party contract is received before or during the tenant negotiation period, the fifteen (15) day right of first refusal shall come at the end of the negotiation period. If the third party contract is received after the tenant negotiation period, the fifteen (15) day right of first refusal shall begin when the tenants receive notice.
Under D.C. Mun. Regs. tit. 14 et seq. § 14-4712, when a rental property is offered for sale, both the owner and tenants are required to negotiate in good faith. Certain owner behaviors—such as offering tenants less favorable terms than those offered to an outside buyer without reasonable justification—are treated as prima facie evidence of bad faith. Tenants also hold a 15-day right of first refusal once a valid third-party sales contract is received, and the owner must notify tenants of that contract. Deposits required of tenants to enter a contract may not exceed five percent of the sales price, and are refundable if tenants fail to perform in good faith.
Plain English — not legal advice.
Property owners subject to D.C. Mun. Regs. tit. 14 et seq. § 14-4712 are generally expected to offer tenants pricing and contract terms at least as favorable as those extended to any outside buyer, within the timeframes the Act specifies. Compliant operators document their good-faith efforts throughout negotiations and avoid requiring deposits exceeding five percent of the contract sales price. Owners also ensure that tenants receive timely written notice of any valid third-party sales contract, triggering the 15-day right-of-first-refusal period, and maintain records showing that all required notifications were delivered within the applicable deadlines.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
D.C. Mun. Regs. tit. 14 et seq. § 14-4712 gives tenants and tenant organizations the right to negotiate on equal footing with outside buyers and a 15-day right of first refusal once a valid third-party contract is presented to the owner. Tenants may assign their rights under Title IV of the Act to a D.C. or federal government agency, and may also bring in a third party to assist with the purchase. Tenants who believe an owner has failed to bargain in good faith or has not provided proper notice of a third-party contract may consider consulting a tenant-rights organization or contacting the District of Columbia's relevant housing authorities to understand available remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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