25 Del. C. ch. 70 § 7026
Right of first offer; duty to negotiate in good faith, penalties for noncompliance
Operative Text
(a) If a community owner has decided to sell, transfer, or convey all or part of the community, the community owner and the homeowner association shall negotiate in good faith for the sale, transfer, or conveyance of the community to the homeowner association. If a party fails to negotiate in good faith, the court shall award reasonable attorneys’ fees to the prevailing party. (b) If a community owner or a homeowner association fails to comply with any provision of this subchapter, either party has standing to seek equitable relief, including declaratory relief, injunctive relief, and the appointment of a receiver. The offending party is liable for actual damages. If a court of competent jurisdiction finds that the offending party wilfully and intentionally failed to comply with the requirements of this subchapter, it is a per se violation of the Consumer Fraud Statute, § 2511 et seq. of Title 6, and the aggrieved party may be entitled to recover treble damages. In any action under this section, the court may award reasonable attorneys’ fees and costs. (c) Chapter 71 of this title does not apply to the sale, transfer, or conveyance of manufactured home communities under this section.
Under 25 Del. C. ch. 70 § 7026, when a manufactured home community owner decides to sell or transfer the community, both the owner and the homeowner association are required to negotiate with each other in good faith. If either side fails to comply with this subchapter, the other may seek equitable remedies such as injunctions or a court-appointed receiver, and the non-complying party can be held liable for actual damages. A willful and intentional violation is treated as a per se violation of Delaware's Consumer Fraud Statute, which can expose the offending party to treble damages, and courts may award attorneys' fees and costs to the prevailing party.
Plain English — not legal advice.
Community owners subject to 25 Del. C. ch. 70 § 7026 who are considering a sale or transfer of all or part of their community generally document their good-faith negotiation efforts with the homeowner association, including records of offers, counteroffers, and communications. Operators are mindful that failing to engage genuinely in this process can result in court-ordered equitable relief, liability for actual damages, and potentially treble damages if a court finds the noncompliance was willful. Because a per se Consumer Fraud Statute violation can arise from intentional noncompliance, compliant operators typically maintain clear records demonstrating their participation in the negotiation process.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Homeowners and their associations have enforceable rights under 25 Del. C. ch. 70 § 7026 when a community owner decides to sell or transfer the community, including the right to negotiate in good faith and to seek court intervention if that process breaks down. If a community owner fails to comply with this subchapter, the homeowner association has standing to pursue equitable relief—such as an injunction or the appointment of a receiver—as well as actual damages, and potentially treble damages if the violation is found to be willful. Homeowners facing a potential sale of their community may wish to consult a tenant-rights organization or housing attorney familiar with Delaware manufactured home community law to understand the full range of options available under this provision.
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.
Effective Timeline
References In
Rules and statutes that cite this regulation