25 Del. C. ch. 59 § 5907
Discharge of the receiver
Operative Text
(a) In addition to those situations described in § 5905 of this title, the receiver 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 building and 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 lienor may apply for the discharge of the receiver after paying to the latter all moneys expended by the receiver and all other costs which have not been paid or reimbursed from the rent and profits of the property. (c) If the Court determines that future profits of the property will not cover the costs of satisfying paragraphs (a)(1) and (2) of this section, the Court may discharge the receiver and order such action as would be appropriate in the situation, including but not limited to terminating the rental agreement and ordering the vacation of the building within a specified time. In no case shall the Court permit repairs which cannot be paid out of the future profits of the property.
Section 5907 of Delaware's residential landlord-tenant code sets out the conditions under which a court-appointed receiver overseeing a rental property can be removed from that role. Discharge generally requires that the violations prompting the receivership have been corrected, the property meets applicable building and maintenance standards, all receivership costs have been covered, and any remaining surplus has 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 end the receivership and take other measures—including terminating tenancies and ordering the building vacated within a set timeframe.
Plain English — not legal advice.
Under 25 Del. C. § 5907, a property owner, mortgagee, or lienholder seeking to end a receivership typically demonstrates that all cited conditions have been remedied, that the property materially complies with applicable codes, and that all costs incurred by the receiver have been paid or reimbursed. Operators who proactively address code violations and maintain accurate financial records of repair expenditures are generally better positioned to satisfy the court's discharge criteria. If the property's projected rental income cannot cover remediation costs, the court retains broad authority under § 5907(c) to take actions beyond simple discharge, which underscores the importance of addressing maintenance issues before receivership proceedings arise.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 5907 of Title 25 of the Delaware Code directly affects tenants living in a property under receivership, because the court's discharge decision can include ordering the building vacated within a specified period if future rents cannot cover the cost of repairs. Tenants in a receivership situation have an interest in monitoring court proceedings, as the outcome under § 5907(c) may determine whether they can remain in their homes or must relocate. Tenant-rights organizations and legal aid services in Delaware can help residents understand their rights during and after a receivership, including any notice requirements before a court-ordered vacation 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.
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Rules and statutes that cite this regulation