25 Del. C. ch. 70 § 7067
Discharge of receiver; costs
Operative Text
(a) In addition to those situations described under § 7065 of this title, the receiver may also be discharged when all of the following have occurred: (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. (4) The surplus money, if any, has been paid over to the owner. (b) Upon paragraphs (a)(1) and (a)(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 that receiver 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 (a)(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 may order the vacation of the mobile home park within a specified time. In no case shall the court permit repairs which cannot be paid out of the future profits of the property.
Under 25 Del. C. ch. 70 § 7067, a court-appointed receiver overseeing a mobile home park or rental property can be discharged—meaning their oversight role ends—once the property's violations have been corrected, the property substantially meets applicable maintenance and construction standards, all associated costs have been covered from the property's rents and profits, and any remaining surplus has been returned to the owner. An owner, mortgagee, or lienholder may also seek early discharge by directly paying any outstanding receiver costs. If a court finds that the property's future income cannot realistically cover the cost of bringing it into compliance, the court has authority to discharge the receiver and take more drastic action, including terminating rental agreements or ordering the park vacated within a set timeframe.
Plain English — not legal advice.
Property owners and mortgagees subject to a receivership under 25 Del. C. ch. 70 § 7067 generally work toward satisfying all four discharge conditions: fully remedying the cited violations, achieving material compliance with applicable codes, ensuring all receiver costs are paid from rents and profits, and confirming any surplus is returned to the owner. Owners who wish to accelerate the process may apply for discharge once violations are remedied and code compliance is achieved, provided they personally cover any receiver costs not yet reimbursed from the property's income. Operators who allow a property's financial condition to deteriorate to the point where future rents cannot cover remediation costs risk court-ordered outcomes beyond their control, including lease terminations or a mandated park vacation.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in a property under court receivership, 25 Del. C. ch. 70 § 7067 establishes the conditions under which that oversight ends—and importantly, it limits the court from ordering repairs that cannot be funded by the property's future income. If a court determines the property's revenues are insufficient to fund compliance, residents may face court-ordered lease terminations or a required vacation of the mobile home park within a specified period. Tenants who receive notice of such proceedings may wish to consult a tenant-rights organization or legal aid provider to understand how these court processes could affect their housing situation.
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