Bulletin: DC2018003

Date:
July 25, 2018
To:
All District of Columbia Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - New TOPA Single Family Forms

Dear Associates:

The purpose of this Bulletin is to alert agents that on July 18, 2018, the District of Columbia’s Conversion and Sales Division (“CASD”) published new TOPA (Tenant Opportunity to Purchase Act) forms in compliance with the TOPA Single Family Home Exemption Amendment Act of 2018 (“2018 Amendment”) that went into effect on July 3, 2018. The new forms can be found here, under the heading “TOPA Notices, Offer of Sale and Right of First Refusal Forms - Single-Family Accommodations.”

Summary of the Forms:

There are four new forms for single-family properties, although, there are only two links to the forms on CASD’s website. Forms 1, 2, and 4 are found under the link titled, “Notice to Tenant of Landlord’s Receipt or Solicitation of an Offer to Sell and Notice of Intent to Sell - Single-Family Accommodation.” Form 3A, 3B, and 3C can be found under the link titled, “Offer of Sale With or Without a Third Party Contract and Right of First Refusal - Single-Family Accommodation.”

Form 1:

Form 1 is a combination of the Notice to Tenant of Landlord’s Receipt or Solicitation of an Offer to Sell the Accommodation and Notice of Intent to Sell. 

  • This form needs to be sent to every tenant in a single family accommodation REGARDLESS of when the tenant signed the lease when the tenant took occupancy, or whether the tenant claims to be elderly or disabled.
  • This form needs to be sent within 3 days of the landlord soliciting an offer (e.g., signing a listing agreement, posting the property on a website, putting a sign in the yard, etc.) or the landlord receiving an offer.
  • NOTE: The law requires that the Notice of Intent to Sell cannot be sent more than 60 days prior to an Offer of Sale being delivered to a tenant. 

Form 2:

Form 2 is the tenant’s response to the landlord claiming status as an elderly or disabled tenant. 

  • The tenant must send Form 2 to the landlord and a copy to DHCD within 20 days after the Notice of Intent to Sell was delivered to the tenant.
  • Failure to send Form 2 to the landlord within 20 days after the Notice of Intent to Sell was delivered to the tenant is deemed a waiver of the tenant’s TOPA rights.
  • CAUTION: Whether or not the tenant responded to the landlord with Form 2, if the Notice of Intent to Sell was delivered more than 60 days prior to the date a third party contract was ratified for the property, please contact the underwriter. 
  • If the Notice of Intent to Sell was delivered more than 60 days prior to the date a third party contract was ratified for the property, then the tenant’s failure to respond within 20 days of the Notice of Intent being delivered is not a waiver of the tenant’s TOPA rights.

Forms 3A, 3B, and 3C:

These forms are the old single family A, B, and C forms tweaked to comply with the 2018 Amendment. Form 3A is the Offer of Sale With a Third Party Contract. Form 3B is the Offer of Sale Without a Third Party Contract. Form 3C is the Right of First Refusal.

  • If the tenant executed a lease on or prior to March 31, 2018, the tenant should be sent Forms 3A or 3B and 3C, if:
    • A Notice of Intent to Sell was properly sent to the tenant and the tenant sent the landlord a letter claiming status as an elderly or disabled tenant; or
    • A Notice of Intent to Sell was improperly sent or never sent to the tenant.
  • NOTE: Forms 3A and 3B must be sent by certified mail to the tenant and by certified mail or hand delivery to CASD. 

Form 4:

After the tenant has received Form 3A or Form 3B, the tenant may send Form 4 along with documentation evidencing a tenant’s disability or elderly status to CASD.

  • The tenant must submit Form 4 and the appropriate evidence of elderly or disability status to CASD by or before the deadline for the tenant to submit a written statement of interest to the landlord.
  • NOTE: Form 4 is lumped in with Forms 1 & 2 on CASD website. Please educate real estate agents and sellers to send Form 4 when sending Form 3A or Form 3B. 

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None