25 Del. C. ch. 54 § 5413
Antiloophole provision
Operative Text
To prevent circumvention of this chapter, all owners of rental property must disclose to the Department their beneficial owner and any affiliation with other property owners. Any attempt to partition or transfer ownership to avoid classification as a large property owner must be considered a violation of this chapter and subject to penalties. Any rental unit transferred to a spouse, child, or parent of the property owner will be counted as a rental unit of the initial owner or transferor.
Section 5413 of Delaware's residential landlord-tenant code (25 Del. C. ch. 54) is an antiloophole rule designed to stop property owners from restructuring or transferring ownership solely to escape obligations that apply to large property owners. It requires all rental property owners to disclose their true beneficial ownership and any affiliations with other owners to the relevant Department. Transfers to close family members—spouses, children, or parents—are treated as if the original owner still holds those units, and deliberate partitioning or transfers made to dodge the large-owner classification are treated as violations subject to penalties.
Plain English — not legal advice.
Under § 5413, compliant operators proactively disclose their beneficial ownership interests and any affiliations with other property owners to the Department, keeping that information current as ownership structures change. Operators who hold rental units across multiple entities or family members should be aware that § 5413 treats transfers to spouses, children, or parents as units still counted under the original owner's portfolio. Restructuring ownership arrangements for the purpose of avoiding large-property-owner classification is itself a violation of Chapter 54, so operators generally document the legitimate business rationale for any ownership changes.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 5413 gives tenants a basis to question whether a landlord is accurately representing the size of their rental portfolio, since the law requires full disclosure of beneficial ownership and family-related transfers still count toward the original owner's unit total. If a tenant believes an owner has improperly restructured ownership to avoid obligations under 25 Del. C. ch. 54, that concern can be raised with the Department referenced in the chapter or with a local tenant-rights organization. Tenants may also be able to raise a violation of § 5413 as a defense or counterclaim in relevant proceedings, and consulting a housing attorney or tenant advocacy group can help clarify what options are available.
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 22, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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