HB436

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SPONSOR: Rep. Carson & Sen.

Ennis
Rep. Kowalko

HOUSE OF REPRESENTATIVES
149th GENERAL ASSEMBLY

HOUSE BILL NO. 436

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:

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

2 insertions as shown by underline as follows:

3 § 7022. Manufactured home transfer; rented lot transfer.

4 (b)(1) A rental agreement for a lot in a manufactured home community is not transferable from the tenant who

5 owns the manufactured home on the lot to the buyer or transferee to whom the tenant intends to sell or transfer title to the

6 home, unless the if all of the following apply:

7 a. The home qualifies for retention in the manufactured home community according to written

8 standards promulgated pursuant to under § 7020 of this title, and unless the title.

9 b. The landlord accepts the buyer or transferee as a tenant.

10 (2) Acceptance or rejection of a buyer or transferee under this subsection must be on the same basis by

11 which the landlord accepts or rejects any prospective tenant.

12 (3) A landlord who rejects a prospective tenant must give the rejected prospective tenant a written

13 statement that explains the cause provides a copy of the specific eligibility requirement and the grounds for the

14 rejection.

15 (d) If a landlord accepts a prospective tenant, the transfer of an existing rental agreement must be completed using

16 one of the following 2 methods. The selection of the method is methods at the exclusive discretion of the tenant/seller of the

17 manufactured home, and the buyer is and landlord are bound by that selection. selection:

18 (1) The tenant/seller agrees to an assignment of the lease to the buyer, with all of the existing obligations

19 and benefits, including but not limited to the rental amount under the existing rental agreement, for the remaining

20 term of the agreement.

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21 a. If this option is elected, the method under paragraph (d)(1) of this section is selected, the existing

22 rental agreement between the tenant/seller and the landlord is simultaneously assigned by the tenant-seller

23 tenant/seller and assumed by the buyer and the buyer becomes the new tenant.

24 b. Upon the sale, assignment, and assumption, the landlord will must amend the existing rental

25 agreement and list the buyer as the new tenant.

26 (2) The tenant-seller tenant/seller chooses to terminate the existing rental agreement. The buyer may then

27 negotiate the terms of and enter into a new rental agreement for a full term at a rental amount set by the landlord.

28 If this option method is elected, selected, the existing rental agreement is terminated upon the execution of the new

29 rental agreement.

SYNOPSIS
This Act clarifies conditions under which a manufactured home owner can transfer the existing lot lease to the
purchaser of the home.
This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative
Drafting Manual.

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