Cal. Civ. Code § 7-206
Md. Code, Hous. & Cmty. Dev. — tenant-facing provisions (Titles 5, 7; §§ 4-2911, 4-2914, 4-2918)
Operative Text
(a) This section applies if the owner’s offer is not accepted and the acceptance period under § 7-205(c) of this subtitle has expired. (b) The owner may sell or convey the assisted project to any person on terms and conditions not more favorable to the purchaser than those of the owner’s offer. (c) The owner may sell or convey the assisted project on terms and conditions more favorable to the purchaser than those of the original offer under this subtitle only after the owner again offers the right of first purchase as required by this subtitle based on the new terms and conditions.
Maryland Code § 7-206 governs what happens after tenants or their designated organization decline—or fail to accept within the required window—an owner's offer to sell an assisted housing project. Once that acceptance period expires without a deal, the owner is free to sell to any outside buyer, but only at terms no better than what was offered to the tenants. If the owner later wants to offer a buyer more favorable terms (such as a lower price or better financing), the law requires the owner to restart the right-of-first-purchase process under this subtitle before completing that sale.
Plain English — not legal advice.
Under § 7-206, once the tenant acceptance period under § 7-205(c) has lapsed without an accepted offer, owners of assisted projects in Maryland may proceed with a third-party sale—provided the deal is not structured on terms more favorable to that buyer than the original tenant offer. Compliant operators typically document the original offer terms carefully so they can demonstrate that any subsequent sale does not exceed those parameters. If market conditions or negotiations lead to a more favorable deal for a prospective buyer, owners generally re-initiate the full right-of-first-purchase notice process before closing.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section § 7-206 preserves tenant protections even after the initial acceptance period expires: if an owner tries to sell to an outside buyer on terms better than those offered to tenants, the law requires the owner to offer tenants that same opportunity first. Tenants or tenant organizations who believe a sale is proceeding on more favorable terms without a renewed offer may have grounds to raise a violation under this subtitle. Consulting a tenant-rights organization or legal aid provider familiar with Maryland assisted-housing law can help clarify what options may be available in that situation.
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 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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