Legislation Document

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:

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 not transferable from the tenant who owns the manufactured home on the lot to the buyer or 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.

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

(2) Acceptance or rejection of a buyer or 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 a written statement that explains the cause provides a copy of the specific eligibility requirement and the grounds for the rejection.

(d) If a landlord accepts a prospective tenant, 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 the manufactured home, and the buyer is and landlord are bound by that selection. selection:

(1) The tenant/seller agrees to an assignment of the lease to the buyer, 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 and the landlord is simultaneously assigned by the tenant-seller tenant/seller and assumed by the buyer and the buyer becomes the new tenant.

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

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