What is the Right of First Refusal in Maryland?
- Adam Herod
- 10 hours ago
- 2 min read
If you’re a landlord in Maryland considering the sale of a residential rental property, there’s an important law you need to be aware of: the Right of First Refusal (ROFR). In effect across much of the state, this regulation gives tenants the opportunity to purchase the property before you sell it to someone else. While the intention is to promote housing stability, the process can become a roadblock if you’re unprepared.
At Portfolio Residential, we’ve helped landlords navigate Maryland’s ROFR requirements while keeping sales and lease transitions smooth. If you’re unsure what steps to take, keep reading—this article breaks it down clearly and ends with the support you need to take your next step with confidence.
What Is the Right of First Refusal?
The ROFR allows tenants the first opportunity to purchase the rental property they occupy if you, the landlord, intend to sell. This applies to residential properties with one to three dwelling units in most Maryland jurisdictions.
How the Process Works
Written Notice: Before listing your property or accepting any third-party offers, you must issue a written notice to your tenant using the state-approved form.
30-Day Response Window: Tenants have 30 days to make an offer that matches your intended sales terms.
Third-Party Sales: If a tenant declines or doesn’t respond, and you later accept a third-party offer at a lower price, you must offer it again to the tenant at the new terms.
Failure to comply could result in penalties of up to $1,000 per violation, and even delay your sale.
Download the Official ROFR Form
The Maryland Department of Housing and Community Development provides the standard ROFR form, which you can download here.
The Realtor Bias: Why It's Not Always About Selling
While many Realtors will push you to sell—it’s how they get paid—it may not always be the best financial move. If your property will cash flow well as a rental, keeping it can offer long-term financial stability and continued appreciation, especially in Maryland's high-demand markets.
This is where having an experienced property manager becomes essential.
How Portfolio Residential Helps
Whether you're weighing selling or renting, Portfolio Residential gives you options:
We provide a comparative financial analysis of your property's rental vs. sale potential.
We can buy your property, offering an annuity style payment option for 20-30 years
We connect you with top-performing Realtors if selling truly is the best choice.
If you choose to rent, we handle tenant placement, rent collection, compliance, and full-service management.
We also guide you step-by-step through the ROFR process, so you can move forward without delays, missteps, or unnecessary legal risks.
Let’s Make the Right Move Together
Are you unsure whether to sell your Maryland rental or keep it as an investment? Don’t let Right of First Refusal laws trip you up or cost you money. Let us help you weigh your options and act with clarity.
Contact Portfolio Residential today for your free comparative property analysis and guidance through Maryland’s ROFR process.
Your Next Step: Click here to download the ROFR form, and then contact us to start your personalized consultation. We’ll help you protect your time, your money, and your peace of mind.
Published on April 1, 2025
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