25 Del. C. ch. 71 § 7108
Option to purchase; right of first refusal; rescission of contract to purchase; nonpurchasing tenant with children attending school
Operative Text
(a) Where there is a tenants’ association in existence at the time of the preliminary notice, the owners of the real property which is to be converted shall in a separate writing mailed to the association, upon approval of the plan by the Office of the Attorney General, grant to the association the exclusive option to purchase the community for a period of 90 days at the price set forth in the plan. If the tenants’ association should exercise its option, it shall have 120 days from the date of its exercise of its option to complete the purchase. If the tenants’ association decides not to exercise its options, upon the expiration of the 90-day period, the option shall convert into a right of first refusal meaning that the property shall not be sold to any other purchaser, at any time, at any price or terms, without first having been offered on the same terms to the tenants’ association. (b) Should the tenants’ association fail to exercise its option to purchase within the 90-day period, the owner shall grant to the tenant the exclusive option to purchase the unit for a period of 90 days thereafter at the price set forth in the plan. Upon the request of a tenant, the owner shall provide the tenant with a listing of the types of units within the conversion project, and the price for each type of unit. If the tenant should exercise that tenant’s option, that tenant shall have 120 days from the date of the exercise of that tenant’s option to complete the purchase. If the tenant decides not to exercise that tenant’s option, upon the expiration of the 90-day period, the option shall convert into a right of first refusal, meaning that the property shall not be sold to any other purchaser at any time, at any price or terms without first having been offered on the same terms to the tenant. (c) For a period of 60 days after a purchasing tenant has agreed in writing to purchase a unit within the conversion project, such tenant shall have the right to rescind such contract without the imposition of any penalty or fee. If the tenant rescinds, any renegotiation or new agreement signed by the owner and the purchasing tenant shall be valid and binding, if such renegotiation occurs between the time of rescission and the expiration of the 60-day period set forth in this subsection. (d) Where the 3-year grace period has expired and a nonpurchasing tenant with children still attending school has failed to move, such tenant shall be permitted to remain until 1 week following the end of the school year; or if any of the children is about to graduate, 1 week after the graduation ceremony; whichever is later.
Section 7108 of Title 25 of the Delaware Code establishes a layered system of purchase rights when a mobile home community is being converted. First, an existing tenants' association receives a 90-day exclusive option to buy the entire community at the plan price, which converts to a right of first refusal if unused. If the association declines, individual tenants each receive a 90-day exclusive option to purchase their own unit, also converting to a right of first refusal if unused. Additionally, purchasing tenants have a 60-day window to rescind a signed purchase agreement without penalty, and tenants with school-age children who have not purchased may remain beyond the standard grace period until one week after the school year or graduation, whichever is later.
Plain English — not legal advice.
Under 25 Del. C. ch. 71 § 7108, operators converting a mobile home community to another form of ownership are generally expected to provide written notice of the exclusive purchase option to any existing tenants' association upon Attorney General approval of the conversion plan, and to track the sequential 90-day option periods carefully. If a tenants' association or individual tenant does not exercise their option, the property cannot be sold to any outside buyer without first offering the same terms to that association or tenant, so compliant operators document each step of the offer-and-response process. Operators also typically honor the 60-day rescission right for purchasing tenants without imposing fees, and they account for the extended-stay protection for nonpurchasing tenants with children still in school when planning transition timelines.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 7108 of Title 25 of the Delaware Code gives tenants meaningful rights during a community conversion: if a tenants' association exists, it has the first opportunity to purchase the community, and individual tenants receive their own 90-day option to buy their unit if the association does not act. Even if a tenant signs a purchase agreement, they generally have 60 days to rescind that contract without facing any penalty or fee. Tenants with children still attending school may also be entitled to remain in their unit beyond the standard grace period, and those who believe these rights are not being honored may consider contacting the Delaware Office of the Attorney General or a local tenant-rights organization for information about available options under § 7108.
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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