Condominium conversion and tenant protections
When your apartment building becomes condominiums, this is the chapter that decides how long you may stay, what rent increase is allowed in the meantime, and whether you get the first chance to buy your own unit. Elderly and disabled tenants get 18 months. Waiving any of it in a lease is void. The full statutory text, hosted for reference.
If your landlord is turning your building into condominiums, this chapter — ten sections of it still in force — is the one that protects you. It sits on top of registration under the Condominium Act or the Land Sales Full Disclosure Act — RSA 356-C:2, III requires a conversion subject to this chapter to be registered under one of them notwithstanding any exemption in those chapters, unless the Attorney General exempts it.
“Conversion” is defined broadly at RSA 356-C:1, II: a change in the character of residential real property from a rental to an ownership basis, and “A condominium, stock cooperative or other similar arrangement shall be deemed ownership in character.” The chapter does not care what the arrangement is called.
Whether the chapter reaches your building
RSA 356-C:2, I(a) is the size test, and it has an anti-avoidance clause built in. The chapter does not apply to the conversion of a building, building complex or manufactured housing park having 10 or fewer dwelling units — but if a property with more than 10 units is converted in stages of 10 or fewer at a time, the chapter applies to that conversion anyway. Splitting a 40-unit building into four rounds of ten does not escape it.
Paragraph I(b) excludes nursing homes, dormitories, boarding houses, motels, hotels, units normally occupied by transient persons for 3 months or less, and units occupied seasonally for fewer than 6 months of the year. Paragraph I(c) excludes a dwelling unit that is individually owned but has been rented. Paragraph II carries the 1983 transitional rules: the chapter does not reach a conversion registered, recorded or formally offered before 22 June 1983, but it does reach one whose registration application had been filed and not yet granted by that date, to the extent set out in RSA 356-C:3, II; 356-C:5; 356-C:8 and 356-C:9 — and for that narrow class RSA 356-C:3, II(c) gives 90 days, not 270.
The notice, and the clocks it starts
RSA 356-C:3 is the heart of the chapter. No conversion may be effected until the owner has mailed each tenant, by registered mail, return receipt requested, a notice of intent to convert — sent no earlier than 120 days before the application for registration is filed — containing twelve specified items. A second notice goes out after registration, and the two may be combined if registration came first. If the owner does not apply for registration within 120 days of mailing, RSA 356-C:3, III makes the notice void.
Four of the twelve items are the ones tenants need:
Time to stay. Item (7): a tenant residing in the building when the notice is received has no less than 270 days from receipt, or until the 60-day exclusive purchase period expires, whichever is later, before being required to vacate — and a lease giving a longer term of occupancy still runs to its end.
Elderly and disabled tenants get far longer. Item (8): a tenant who is elderly or disabled when the notice is given has at least 18 months from receipt before being required to vacate, on showing that they qualify. RSA 356-C:1, IV defines an elderly tenant as one who is 65 years of age or older; paragraph III defines a disabled tenant as one receiving aid to the totally and permanently disabled from the state division of human services, social security disability benefits, or total disability benefits from the department of veterans affairs.
You can leave early without penalty. Item (10): notwithstanding any obligation in a lease to the contrary — except one entered into before 22 June 1983 — the tenant may terminate the tenancy without penalty or liability on giving the owner at least 30 days notice.
Item (12) is the rent-increase brake that the Condominium Act also refers to: if there is a rent increase, other than one permitted by RSA 356-C:6, I(a), the application for condominium conversion may not be made until 3 months after the increase. RSA 356-C:4 requires the RSA 356-C:3, I notices to be filed with the Attorney General at least 10 days before they are mailed to any tenant.
One limit worth knowing: RSA 356-C:3, IV withholds the chapter’s protections from anyone whose tenancy begins after the notices are served, if they were given written notice of the impending conversion before signing.
First refusal on your own unit
RSA 356-C:5 gives a tenant entitled to notice an exclusive right to contract for the purchase of the unit they occupy, provided the unit is to be retained without substantial alteration in its physical layout. The tenant must be given all the documents provided to the general public or to any other tenant as part of the offering, and has 60 days from receipt of the sales documents to exercise the right. It expires earlier if the tenant voluntarily gives notice terminating the lease or vacates.
Paragraph II is the remedy, and it is a strong one: failure to comply “shall render a sale to any person or entity other than the tenant voidable at the option of the tenant”, so long as the tenant exercises that option before giving notice of termination or vacating.
Eviction: six grounds, and a rent-increase cap
Once the notice has been served, RSA 356-C:6 closes off every other reason to evict. The tenant may be evicted only for: non-payment of rent or other reasonable charges (I); failure to comply with material terms of the lease, after written notice of the failure and a reasonable opportunity to comply (II); damage to the unit beyond reasonable wear and tear, not repaired within a reasonable time (III); repeated conduct disturbing the peace and quiet of other tenants (IV); expiration of the notice period (V); or, where the longer elderly-or-disabled period was the basis, that qualifying tenant no longer being in residence (VI).
Paragraph I(a) caps the rent in the meantime. No owner may charge, and no tenant is liable for, any rent increase other than one based on the unit’s pro rata share of increases in insurance, fuel oil, gas, electricity, water or sewer costs, real property taxes, and maintenance and operational expenses that directly or indirectly benefit the tenant. Two increases are prohibited outright: assessments against the unit for improvements to the converted property, and increased tax assessments due to the conversion itself. In other words, the tenant does not pay for the landlord’s conversion.
Paragraph I(b) is a safety net in court. In any non-payment action based on a tenant’s failure to pay an increase, the court determines how much of the proposed increase is permissible and gives the tenant 30 days to pay that sum — and if the tenant pays within the 30 days, the eviction action is dismissed.
You cannot sign these rights away
RSA 356-C:7 is unambiguous: no lease or rental agreement, oral or written, may contain a provision by which the tenant prospectively waives any right under this chapter, and any such waiver “shall be deemed contrary to public policy and shall be unenforceable and void”. RSA 356-C:8 is the anti-circumvention section, and it is the one the $1,000 floor below attaches to: no owner or agent, alone or with others, may circumvent or attempt to circumvent the RSA 356-C:6 eviction protections, or wilfully cause a tenant to vacate or be evicted without good cause in contemplation of conversion before the notices issue. It ends with a savings clause — nothing in the chapter makes it unlawful to evict at any time on one of the RSA 356-C:6 grounds.
Damages, and the risk of a frivolous claim
RSA 356-C:9, I doubles the damages. An owner or agent who violates any provision of the chapter is liable to any tenant injured by the violation in an amount equal to double the actual damages suffered — and for a violation of RSA 356-C:8, actual damages or $1,000, whichever is greater. A tenant who prevails is entitled to reasonable attorney’s fees and costs. Paragraphs II and III make one household member’s action, or a good-faith settlement with one member, a bar to actions by the others.
RSA 356-C:10 runs the other way. A tenant who refuses to pay a permissible rent increase under RSA 356-C:6, I(a), or who brings an action under RSA 356-C:9, I, on grounds a court finds frivolous or brought solely to harass, is liable to the owner for the owner’s costs, including reasonable attorney’s fees.
Once the conversion is complete and you own a unit, the law that governs the community is the Condominium Act — and RSA 356-B:56 sets out the special provisions for a conversion condominium, including that the RSA 356-C notices form part of the registration application. The rest of the tab is on the New Hampshire HOA laws hub.
Contents · 11 sections ▾
- RSA 356-C:1 Definitions
- RSA 356-C:2 Applicability
- RSA 356-C:3 Provision of Rights; Contents of Notice
- RSA 356-C:4 Filing Notices With Attorney General
- RSA 356-C:5 Exclusive Right to Purchase
- RSA 356-C:6 Eviction Protection
- RSA 356-C:7 Waiver Prohibited
- RSA 356-C:8 Circumvention of This Chapter
- RSA 356-C:9 Damages; Penalties
- RSA 356-C:10 Reimbursement of Owner’s Costs
- RSA 356-C:11 Repealed by 1985, 300:30, eff. July 1, 1987
As used in this chapter:
I. [Repealed.]
II. “Conversion” means a change in the character of residential real property from a rental to an ownership basis. A condominium, stock cooperative or other similar arrangement shall be deemed ownership in character.
III. “Disabled tenant” means a tenant who is receiving aid to the totally and permanently disabled from the New Hampshire division of human services, disability benefits from the social security administration or benefits for total disability from the department of veterans affairs.
IV. “Elderly tenant” means a tenant who is 65 years of age or older.
V. “Tenant” means a person who has entered into a lease or other contractual arrangement with the owner.
VI. “Tenant household” means one or more persons, whether related or not, who occupy a dwelling unit in residential real property on a rental basis pursuant to a valid lease or oral or written rental agreement.
Source. 1983, 398:1. 1985, 300:29, IV.
I. This chapter shall apply to the conversion of all residential real property in the state of New Hampshire except:
(a) The conversion of any building, building complex or manufactured housing park having 10 or fewer than 10 dwelling units; provided, however, that, if the conversion of a building, building complex or manufactured housing park having more than 10 dwelling units is conducted in stages of 10 or fewer than 10 units at any time, this chapter shall be applicable to any such conversion;
(b) The conversion of any nursing home, dormitory, boarding house, motel, hotel, dwelling unit normally occupied by transient persons for periods of 3 months or less or dwelling unit occupied on a seasonal basis for fewer than 6 months of the year;
(c) The conversion of any dwelling unit which is individually owned but has been rented.
II. This chapter shall not apply to a conversion which has been registered under RSA 356-A or 356-B prior to June 22, 1983, or, if registration was not required, if either condominium instruments had been recorded in the registry of deeds in accordance with RSA 356-B:7 prior to June 22, 1983, or if a formal offering of sale to prospective buyers had been made prior to June 22, 1983. This chapter shall apply to a conversion with respect to which an application for registration had been filed in proper form under RSA 356-A or 356-B, but for which registration had not been granted, prior to June 22, 1983, to the extent provided in RSA 356-C:3, II; 356-C:5; 356-C:8 and 356-C:9.
III. A conversion subject to this chapter shall be registered under RSA 356-A or 356-B, as appropriate, notwithstanding any exemption to the contrary contained in those chapters, unless the conversion is exempted by action of the attorney general pursuant to RSA 356-A or 356-B.
Source. 1983, 398:1. 1985, 300:7, I(b).
Cites other chapters: RSA 356-A, RSA 356-B
I. No conversion subject to this chapter shall be effected until:
(a) The owner or his agent has mailed to each tenant by registered mail, return receipt requested, a notice of intent to convert no earlier than 120 days before the date of filing an application for registration under RSA 356-A or 356-B, as appropriate, which notice shall contain the following information:
(1) That the owner intends to convert the tenant’s dwelling unit into a condominium, stock cooperative or other ownership arrangement;
(2) The name of the owner or owners of the real property and the number of dwelling units in the building or buildings to be converted;
(3) That the conversion must be registered with the attorney general before the owner may offer or sell dwelling units in the building or buildings to be converted;
(4) That the owner has submitted, or intends to submit within 120 days, an application for registration of the conversion with the attorney general under RSA 356-A or 356-B, as appropriate, and that the attorney general may take up to 60 days to act upon the application;
(5) That, if the conversion is not yet registered with the attorney general, the owner shall notify each tenant of the registration or of the withdrawal of the application at such time as it occurs;
(6) That, if the dwelling unit is to be retained without substantial alteration in its physical layout, the tenant has the exclusive right to contract for the purchase of the unit that the tenant occupies for a period of 60 days from the time of receipt of the sale documents;
(7) That any tenant residing in the building at the time of the receipt of this notice shall have no less than 270 days from the receipt of the notice or until the expiration of the 60 day period in which the tenant has an exclusive right to purchase his or her dwelling unit, whichever is later, before being required to vacate. If the tenant has valid leasehold rights which provide for a longer term of occupancy than provided by this section, such tenant shall not be required to vacate the unit until the longer term has expired;
(8) That a tenant who is elderly or disabled at the time notice is given shall have at least 18 months from the receipt of this notice before the tenant shall be required to vacate the unit; provided, however, any such tenant shall be required to show that he qualifies as an elderly or disabled tenant within the meaning of this chapter;
(9) That, notwithstanding any of the foregoing, the tenant may be evicted pursuant to the provisions of RSA 356-C:6, which provisions shall be set forth in full or summary form in the notice;
(10) That, notwithstanding any obligation contained in a lease or other contractual arrangement to the contrary, except for an obligation contained in a lease or other contractual arrangement entered into before June 22, 1983, the tenant may terminate his tenancy without penalty or liability upon giving notice to the owner or his agent at least 30 days prior to termination; and
(11) Such other information as the attorney general deems necessary or advisable to effectuate the purposes of this chapter;
(12) That, notwithstanding any provision of this notice, if there is a rent increase, except for those increases under RSA 356-C:6, I(a), application for condominium conversion shall not be made until 3 months after such increase; and
(b) The owner or his agent has mailed to each tenant by registered mail, return receipt requested, a registration notice after the conversion has been registered under RSA 356-A or 356-B, as appropriate, which notice shall contain the following information:
(1) That the owner or his agent has registered the conversion with the attorney general;
(2) That the time periods described in subparagraphs I(a)(6), (7), (8) and (12) shall expire on specified dates; and
(3) Such other information as the attorney general deems necessary or advisable to effectuate the purposes of this chapter; and
(c) The owner or his agent may consolidate the notices described herein into one notice if registration of the conversion has occurred prior to notice of intent to convert being sent to the tenants.
II. No residential property for which an application for registration has been filed in proper form under RSA 356-A or 356-B, but not registered, prior to June 22, 1983, shall be converted until, no earlier than the date upon which the conversion is registered, the owner or his agent has mailed to each tenant by registered mail, return receipt requested, a notice containing the following information:
(a) The information required by subparagraphs I(a)(1), (2), and (6); and
(b) That the owner or his agent has registered the conversion with the attorney general; and
(c) That any tenant residing in the building at the time of the receipt of this notice shall have 90 days from the receipt of the notice or until the expiration of the 60 day period in which the tenant has an exclusive right to purchase his unit, whichever is later, before being required to vacate. If the tenant has valid leasehold rights which provide for a longer term of occupancy than provided in this section, such tenant shall not be required to vacate the unit until the longer term has expired.
III. The notice described in subparagraph I(a) shall be void if the owner or his agent fails to make application for registration under RSA 356-A or 356-B, as appropriate, within 120 days after mailing the notice to tenants.
IV. Any person whose tenancy begins after service of the notices required under this section shall not be provided with the protections of this chapter if he or she was given written notice of the impending conversion before entering into the lease for other contractual arrangement.
Source. 1983, 398:1. 1985, 300:7, I(b). 1987, 320:5, 6, eff. May 25, 1987.
Cites other chapters: RSA 356-A
The notices required under RSA 356-C:3, I, shall be filed with the attorney general at least 10 days prior to their being mailed to any tenant.
Source. 1983, 398:1. 1985, 300:7, I(b).
I. Any tenant entitled to notice under RSA 356-C:3, I and II, shall have an exclusive right to contract for the purchase of the unit that he occupies, provided that the unit is to be retained without substantial alteration in its physical layout. Such tenant shall be given all documents provided to the general public or to any other tenant as a part of the offering for sale. Each tenant shall have 60 days from the time of receipt of the sales documents to exercise his exclusive right to purchase. The exclusive right to purchase shall expire prior to the expiration of the 60 day period upon the tenant’s voluntarily giving notice of termination of his lease or rental agreement or vacating his unit, whichever is earlier.
II. Failure to comply with this section shall render a sale to any person or entity other than the tenant voidable at the option of the tenant if the tenant exercises this option before giving notice of termination or vacating the premises.
Source. 1983, 398:1, eff. June 22, 1983.
Once notice has been served on the tenant in accordance with RSA 356-C:3, I or II, the tenant shall not be evicted from his dwelling unit except upon the following grounds:
I. Nonpayment of rent or other reasonable charges due under the lease or rental agreement, provided that:
(a) No owner or his agent shall charge, and no tenant shall be liable for, any rent increase other than increases which are based on the unit’s pro rata share of increases in insurance, fuel oil, gas, electricity, water or sewer costs, real property taxes and maintenance and operational expenses, which directly or indirectly benefit the tenant. Rental increases are prohibited if based on:
(1) Assessments against the unit for improvements to the converted property; and
(2) Increased tax assessments due to conversion of the residential property of which the unit is a part;
(b) In any action for nonpayment based on the tenant’s failure to pay an increase, the court shall determine how much of the proposed increase is permissible and allow the tenant 30 days to pay such sum. If the tenant pays the amount of the increase ordered by the court within the 30 day period, any eviction action shall be dismissed.
II. Failure of the tenant to comply with material terms of the lease or rental agreement if the tenant is first given written notice of the failure to comply and a reasonable opportunity to comply;
III. Damage by the tenant to the dwelling unit, reasonable wear and tear excepted, and failure by the tenant to repair the damage within a reasonable time;
IV. Repeated conduct of the tenant which disturbs the peace and quiet of other tenants;
V. Expiration of the notice period under RSA 356-C:3, I or II; or
VI. If applicable, there is no longer in residence in the dwelling unit an elderly or disabled tenant of the tenant household who occupied the unit at the time the notice was given under RSA 356-C:3, I or II.
Source. 1983, 398:1, eff. June 22, 1983.
No lease or rental agreement, oral or written, shall contain any provision by which the tenant prospectively waives any of his rights under this chapter; and any such waiver shall be deemed contrary to public policy and shall be unenforceable and void.
Source. 1983, 398:1, eff. June 22, 1983.
No owner or his agent acting alone or with other persons shall attempt to circumvent or circumvent the protections given tenants under RSA 356-C:6; nor shall any such person willfully cause a tenant to vacate the dwelling unit or to be evicted from the unit without good cause in contemplation of conversion before the issuance of the notices required by RSA 356-C:3, I or II. Nothing in this chapter shall make it unlawful for a landlord to evict a tenant at any time for one of the grounds set forth in RSA 356-C:6.
Source. 1983, 398:1, eff. June 22, 1983.
I. An owner or his agent who violates any provision of this chapter shall be liable in a court of competent jurisdiction to any tenant injured by such violation in an amount equal to double the actual damages suffered; provided, however, if RSA 356-C:8 is violated, the owner or his agent shall be liable to such tenant in an amount equal to actual damages or $1,000, whichever is greater. A tenant which prevails in any action brought under this section shall be entitled to recover reasonable attorney’s fees and costs.
II. An action commenced under paragraph I by any member of the tenant household shall bar any other action under said paragraph by any other member of the household. Any damages awarded to the tenant household shall be distributed to the members thereof in equal proportions or as the court, in its sole discretion, may otherwise determine.
III. A payment in good faith in settlement of any claim or action arising under paragraph I to any member of the tenant household shall bar any other claim or action thereunder by any other member of the household.
Source. 1983, 398:1, eff. June 22, 1983.
If a tenant refuses to pay a permissible rent increase under RSA 356-C:6, I(a), or brings an action under RSA 356-C:9, I, on grounds found by a court in either case to be frivolous or solely for the purposes of harassment, the tenant shall be liable to the owner for any costs incurred by the owner in connection with any such proceedings, including reasonable attorney’s fees.
Source. 1983, 398:1, eff. June 22, 1983.
This section no longer exists. The number is kept here because older declarations and deeds still cite it; the repealing act is named in the heading above.
General information, not legal advice. Statutory text is reproduced from the New Hampshire Revised Statutes Annotated and may not reflect the most recent amendments.