31 Del. C. ch. 44 § 4406
Discharge of custodian; costs
Operative Text
(a) In addition to those situations described in § 4404 of this title, the custodian may also be discharged when: (1) The condition or conditions alleged in the petition have been remedied; (2) The property materially complies 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) The costs of the above work and any other costs as authorized herein have been paid or reimbursed from the rents and profits of the property; and (4) The surplus money, if any, has been paid over to the owner. (b) Upon paragraphs (a)(1) and (2) of this section being satisfied, the owner, mortgagee or any lien or may apply for the discharge of the custodian after paying to the custodian all moneys expended by the custodian and all other costs which have not been paid or reimbursed from the rents and profits of the property. (c) If the Court determines that future profits of the property will not cover the cost of satisfying paragraphs (a)(1) and (2) of this section, the Court may discharge the custodian and order such action as would be appropriate in the situation, including but not limited to terminating the rental agreement; and may order the vacation of the development within a specified time.
Section 4406 of Title 31 of the Delaware Code sets out the conditions under which a court-appointed custodian overseeing a residential property can be released from that role. Discharge generally requires that the original violations have been corrected, the property meets applicable maintenance and construction standards, all custodianship costs have been covered, and any remaining surplus funds have been returned to the owner. If a court finds that the property's future rental income cannot cover the cost of bringing it into compliance, the court may discharge the custodian and take additional steps, which could include terminating rental agreements or ordering tenants to vacate within a set timeframe.
Plain English — not legal advice.
Under 31 Del. C. ch. 44 § 4406, a property owner, mortgagee, or lienholder seeking to end a custodianship typically ensures that all cited violations have been remedied and that the property materially complies with applicable state and local codes before applying for discharge. Compliant operators also settle any outstanding custodian expenses that were not already recovered from the property's rents and profits, since the court requires those costs to be resolved before granting discharge. Owners should be aware that if the court determines the property cannot generate enough future income to fund the required repairs, it retains broad authority to order additional remedies, including termination of rental agreements.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 4406 of Title 31 of the Delaware Code is relevant to tenants living in a property that has been placed under court-appointed custodianship, because it governs when that oversight ends and what happens if the property cannot financially sustain the required repairs. If a court finds that future rents will not cover compliance costs, it may order the vacation of the property within a specified period, which directly affects tenants' housing stability. Tenants in custodianship situations may wish to monitor court proceedings, consult a tenant-rights organization familiar with Delaware housing law, or seek guidance on any rights they may have regarding notice and relocation before a discharge order takes effect.
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
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Rules and statutes that cite this regulation