31 Del. C. ch. 44 § 4405
Powers and duties of custodian
Operative Text
The custodian shall have all the powers and duties accorded a custodian foreclosing a mortgage on real property, and all other powers and duties deemed necessary by the Court. Such powers and duties shall include, but are not necessarily limited to, collecting and using all rents and profits of the property, prior to and despite any assignment of rent, for the purposes of: (1) Correcting the condition or conditions alleged in the petition; (2) Materially complying with all applicable provisions of any federal, state, local statute, code, regulation or ordinance governing the maintenance, construction, use or appearance of the surrounding grounds; (3) Paying all expenses reasonably necessary for the proper operation and management of the property including insurance, mortgage payments, taxes and assessments, and fees for the services of the custodian and any agent the custodian should hire; (4) Paying the costs of the custodianship proceeding; and (5) In accordance with the Delaware Landlord Tenant Code [Chapter 51 et seq. of Title 25], compensating the tenants for whatever deprivation of their rental agreement rights resulted from the condition or conditions alleged in the petition.
Under 31 Del. C. ch. 44 § 4405, when a court appoints a custodian over a residential property, that custodian steps into a role similar to a mortgage foreclosure custodian and receives broad authority to manage the property. The custodian is empowered to collect all rents and profits from the property—regardless of any prior rent assignment—and apply those funds toward fixing the conditions that triggered the custodianship, maintaining legal compliance, covering operating costs, and compensating tenants for rights they lost due to the property's condition. The court may also grant additional powers beyond those listed in the statute as circumstances require.
Plain English — not legal advice.
Property owners and managers should understand that 31 Del. C. ch. 44 § 4405 authorizes a court-appointed custodian to effectively take over financial and operational control of a property when serious habitability or code-compliance conditions are alleged. A compliant operator generally avoids custodianship by proactively correcting code violations, maintaining insurance, keeping up with mortgage payments and taxes, and ensuring the property meets all applicable federal, state, and local maintenance standards. Once a custodian is in place, the owner's control over rent collection and property management is displaced by court order, and the custodian's fees and proceeding costs are paid from the property's own revenues.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 31 Del. C. ch. 44 § 4405, tenants have a recognized interest in being compensated for any deprivation of their rental agreement rights that resulted from the conditions that led to the custodianship, consistent with the Delaware Landlord Tenant Code (Chapter 51 et seq. of Title 25). This provision means that rents collected during a custodianship can be directed toward making tenants whole, not just toward repairs or operating costs. Tenants who believe they are owed compensation under this provision may wish to document the conditions they experienced, review their rights under the Delaware Landlord Tenant Code, and consider reaching out to a tenant-rights organization for general guidance.
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 Out
No outbound references recorded yet for this provision.
References In
Rules and statutes that cite this regulation