CHAPTER 422

FORMERLY

HOUSE BILL NO. 436

AS AMENDED BY

HOUSE AMENDMENT NO. 2

AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO MANUFACTURED HOME AND RENTED LOT TRANSFERS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 7022, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7022. Manufactured home transfer; rented lot transfer.

(b)(1) A rental agreement for a lot in a manufactured home community is only not transferable from the tenant an individual tenant, or heir who owns the manufactured home on the lot to the buyer or under the rental agreement to a transferee to whom the tenant intends to sell or transfer title to the home, unless the if all of the following apply:

a. The home qualifies for retention in the manufactured home community according to written standards promulgated pursuant to under § 7020 of this title, and unless the title. The community owner may conduct an exterior inspection of the home to determine if it qualifies for retention consistent with the written standards.

b. landlord accepts the buyer or After a review of the proposed rental agreement transferee’s written application, the landlord accepts the proposed rental agreement as a tenant.

(2) Acceptance or rejection of a buyer or proposed rental agreement transferee under this subsection must be on the same basis by which the landlord accepts or rejects any prospective tenant.

(3) A landlord who rejects a prospective tenant must give the rejected prospective tenant proposed rental agreement transferee a written statement that explains the cause specific eligibility requirement not satisfied and the grounds for the rejection.

(4) Within 15 days of the receipt of a completed application package, including the applicable fee, under subsection (c), a landlord must provide written notice, to the tenant under the lot rental agreement and the proposed rental agreement transferee, that states whether the proposed rental agreement transferee is accepted or rejected. If the application is rejected the notice must comply with B (3) above.

(d) If a landlord accepts a prospective tenant, proposed rental agreement transferee, the transfer of an existing rental agreement must be completed using one of the following 2 methods. The selection of the method is methods at the exclusive discretion of the tenant/seller of individual tenant, or heir, under the lot rental agreement for of the manufactured home, and the buyer is proposed rental agreement transferee and landlord are bound by that selection. selection:

(1) The tenant/seller tenant proposing to transfer the existing lot rental agreement agrees to an assignment of the lease to the buyer, lot rental agreement to an approved rental agreement transferee, with all of the existing obligations and benefits, including but not limited to the rental amount under the existing rental agreement, for the remaining term of the agreement.

a. If this option is elected, the method under paragraph (d)(1) of this section is selected, the existing rental agreement between the tenant/seller existing tenant and the landlord is simultaneously assigned by the tenant-seller existing tenant and assumed by the buyer and the buyer approved rental agreement transferee and the approved rental agreement transferee becomes the new tenant.

b. Upon the sale, assignment, and assumption, the landlord will must amend the existing lot rental agreement and list the buyer approved rental agreement transferee as the new tenant.

(2) The tenant-seller tenant who is selling the manufactured home chooses to terminate the existing lot rental agreement. The buyer may must then negotiate the terms of and enter into a new rental agreement for a full term at a rental amount set by the landlord. If this option method is elected, selected, the existing rental agreement is terminated upon the execution of the new rental agreement.

Approved September 4, 2018