25 Del. C. ch. 70 § 7066
Powers and duties of receiver
Operative Text
The receiver shall have all the powers and duties accorded a receiver foreclosing a mortgage on real property, and all other powers and duties deemed necessary by the court. Such powers and duties include collecting and using all rents and profits of the property, prior to and despite any assignment of rent, for any of the following purposes: (1) Correcting the condition or conditions alleged in the petition. (2) Materially complying with all applicable provisions of any state or local statute, code, regulation, or ordinance governing the maintenance, construction, use, or appearance of the surrounding grounds. (3) Paying all expenses reasonably necessary for the proper operation and management of the property including insurance, mortgage payments, taxes and assessments, and fees for the services of the receiver and any agent the receiver hires. (4) Compensating the tenants for whatever deprivation of their rental agreement rights resulted from the condition or conditions alleged in the petition. (5) Paying the costs of the receivership proceeding.
Under 25 Del. C. ch. 70 § 7066, when a court appoints a receiver over a residential property, that receiver is granted broad authority to collect all rents and profits from the property — even overriding any prior rent assignment — and to direct those funds toward specific remedial purposes. These purposes include fixing the conditions that triggered the receivership, bringing the property into compliance with applicable codes and regulations, covering operating expenses such as insurance and taxes, compensating tenants for losses stemming from the problematic conditions, and paying the costs of the receivership itself. The receiver's powers mirror those of a mortgage foreclosure receiver, plus any additional authority the court finds necessary.
Plain English — not legal advice.
Property owners and managers subject to a receivership under 25 Del. C. ch. 70 § 7066 should understand that a court-appointed receiver can assume control of all rental income, superseding any existing rent assignments, and redirect those funds without the owner's direction. Operators who maintain properties in compliance with applicable state and local codes, keep up with mortgage payments, taxes, insurance, and respond promptly to habitability concerns are the types of operators less likely to face the conditions that lead to receivership proceedings. Understanding the full scope of a receiver's authority — including the power to compensate tenants and pay receivership costs from rental income — is important context for any owner whose property becomes subject to such a proceeding.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 25 Del. C. ch. 70 § 7066, tenants living in a property placed into receivership have a recognized right to compensation for any deprivation of their rental agreement rights caused by the conditions that prompted the receivership. The receiver is specifically authorized to use collected rents to make repairs, bring the property into code compliance, and pay tenants for losses they suffered. Tenants who believe their rights under a rental agreement have been affected by such conditions may wish to consult a tenant-rights organization or legal aid provider to understand how this provision could apply to their circumstances.
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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