Tenant Right of First Refusal on Sale of Properties is a BAD IDEA
Massachusetts is considering allowing tenants the right of first refusal to purchase the properties in which they live. The proposed bill would allow those tenants up to 6 months to purchase the home when the owner decides to sell.
This article talks about how DC, which had a similar program, has run into problems and why Massachusetts landlords oppose it.
It is a terrible idea to take the ability to sell to whom they want away from an owner of a property. This is taking away their property rights, otherwise known as theft.
The concept is to provide renters with an opportunity to purchase properties, but you cannot legislate this.
The easiest path to selling a house is to sell it to the occupant. Everyone knows that. Most owners would gladly sell to the occupants if that is a good option for them. It is much easier to sell to someone who is living there than to ask them to leave to maximize the sale price.
Reasons Why Owners Might Not Sell to Tenants
Price: Others may be willing to pay more.
Timing: Others may be able to close quicker or on a timeframe that works best for the seller. Perhaps the seller wants to do a 1031 exchange or needs the money right away to pay for their child's college expenses.
This bill would take those choices away from the property owner. It is not the government's place to hinder free trade and limit people's property rights.
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