25 Del. C. ch. 59 § 5905
Receivership procedures
Operative Text
The receiver shall be the Division of Consumer Protection of the State or its successor agency. (1) Upon its appointment, the receiver must make within 15 days an independent finding whether there is proper cause shown for the need for rent to be paid to it and for the employment of a private contractor to correct the condition complained of in § 5901 of this title and found by the Court to exist. (2) If the receiver shall make such a finding, it shall file a copy of the finding with the recorder of deeds of the county where the property lies and it shall be a lien on that property where the violation complained of exists. (3) Upon completion of the aforesaid contractual work and full payment of the contractor, the receiver shall file a certification of such with the recorder of deeds of the appropriate county, and this filing shall release the aforesaid lien. (4) The receiver shall forthwith give notice to all lienholders of record. (5) If the receiver shall make a finding at such time or any other time that for any reason the appointment of a receiver is not appropriate, it shall be discharged upon notification of the Court and all interested parties and shall make legal distribution of any funds in its possession.
Under 25 Del. C. ch. 59 § 5905, when a court appoints a receiver in a residential rental dispute, that receiver is the Delaware Division of Consumer Protection. Within 15 days of appointment, the receiver must independently determine whether rent should be redirected to it and whether a private contractor should be hired to fix the housing condition identified under § 5901. If the receiver confirms the need, it files that finding with the county recorder of deeds, creating a lien on the property; once the repair work is completed and the contractor is fully paid, the lien is released by a follow-up filing.
Plain English — not legal advice.
Property owners subject to a receivership action under 25 Del. C. ch. 59 § 5905 should be aware that the Delaware Division of Consumer Protection steps in as receiver and has authority to redirect rent payments and hire contractors to address court-identified violations. A compliant operator generally maintains properties in a condition that avoids the § 5901 violations that trigger this process in the first place, keeping records of repairs and communications with tenants. Landlords should also understand that a receiver's finding can result in a lien recorded against the property with the county recorder of deeds, which is only released after the contractor is paid in full and a certification is filed.
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. 59 § 5905, tenants benefit from a court-supervised process in which the Delaware Division of Consumer Protection acts as receiver, independently evaluating whether rent should be held and repairs made by a private contractor at the landlord's expense. This provision is part of a broader enforcement mechanism tied to § 5901 conditions, meaning tenants who have raised qualifying housing complaints may see those conditions addressed through a court-ordered receivership. Tenants seeking to understand how this process applies to their building may find it useful to consult a tenant-rights organization or review filings with the county recorder of deeds, where any resulting liens or certifications of completion are recorded.
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