25 Del. C. ch. 70 § 7032
Right of first offer; sale to a third party at a higher price
Operative Text
(a) The community owner may accept an offer from a third party higher than the alternative price, if any, offered by the homeowner association without further obligation to the homeowner association unless there are significant or material changes in terms and conditions. However, the homeowner association must be given 7 business days to match the higher offer if 1 of the following apply: (1) The higher offer is less than $40 million and the homeowner association’s alternate price is within 6% of the offer. (2) The higher offer is $40 million or greater and the homeowner association’s alternate price is within 4.5% of the offer. (b) The notice of the right to match the higher offer under subsection (a) of this section, must be sent to the homeowner association by overnight service with signature receipt. The notice must state the price and any special conditions material to the transaction for the sale, transfer, or conveyance of the community. Upon written demand from the homeowner association, the community owner must provide the homeowner association with tangible evidence of the higher offer received within 3 business days of receipt of the written request from the homeowner association by overnight service with signature receipt. (c) If the homeowner association matches the offer within 7 business days of receipt under subsection (a) of this section, the community owner must move to the next step of the negotiation with the homeowner association under § 7033 of this title. The community owner must not accept or entertain a higher offer from a third party after the homeowners association matches the offer. (d) If the community owner accepts an offer from a third party that is greater than the alternative price offered by the homeowners association, such that the provisions of either under subsection (a) of this section, are not triggered, the community owner shall certify this fact in writing to both the homeowner association and the Consumer Protection Unit within 7 business days of acceptance of the third-party offer. Such written certification shall also indicate whether the accepted third-party offer contained any significant or material changes in terms or conditions.
Section 7032 of Delaware's mobile home community law governs what happens when a community owner receives a third-party purchase offer that exceeds the price proposed by the homeowner association. If the gap between the two offers falls within certain percentage thresholds—6% for offers under $40 million, or 4.5% for offers of $40 million or more—the homeowner association gets seven business days to match the higher figure. When the third-party offer is far enough above the association's price that neither threshold is triggered, the community owner must certify that fact in writing to both the homeowner association and the Consumer Protection Unit within seven business days of accepting the outside offer.
Plain English — not legal advice.
Community owners operating under 25 Del. C. ch. 70 § 7032 generally track the percentage difference between any third-party offer and the homeowner association's alternative price to determine whether a matching-right notice is required. When a notice is required, compliant operators send it by overnight service with signature receipt and include the price and any material special conditions; they also provide tangible evidence of the third-party offer within three business days if the association requests it in writing. When no matching right is triggered, operators document their compliance by filing a written certification with both the homeowner association and the Consumer Protection Unit within seven business days of accepting the third-party offer.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 7032 protects residents organized as a homeowner association by ensuring they have a structured opportunity to match competitive third-party offers before their community can be sold to an outside buyer. If the association believes a community owner has failed to provide proper notice, withheld evidence of a higher offer, or skipped the required written certification to the Consumer Protection Unit, those potential violations can be raised through the association's leadership or explored with a tenant-rights organization familiar with Delaware manufactured-home community law. Residents may also consult the Delaware Consumer Protection Unit, which is a named recipient of certifications under § 7032, as a starting point for understanding available remedies.
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