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DELAWARE CODE TITLE 25

Property

Common Interests and Ownership of Real Estate

CHAPTER 81. DELAWARE UNIFORM COMMON INTEREST

OWNERSHIP ACT

Subchapter I. General Provisions

§ 81-101. Short title. ...................................................................................................................... 1

§ 81-102. Applicability. .................................................................................................................. 1

§ 81-103. Definitions. ..................................................................................................................... 1

§ 81-104. Variation by agreement. ................................................................................................ 6

§ 81-105. Separate titles and taxation.......................................................................................... 6

§ 81-106. Applicability of local ordinances, regulations, and building codes.............................. 6

§ 81-107. Eminent domain. ........................................................................................................... 7

§ 81-108. Supplemental general principles of law applicable. .................................................... 7

§ 81-109. Construction against implicit repeal. ........................................................................... 7

§ 81-110. Uniformity of application and construction. ................................................................ 8

§ 81-111. Severability. ................................................................................................................... 8

§ 81-112. Unconscionable agreement or term of contract............................................................ 8

§ 81-113. Obligation of good faith. ................................................................................................ 8

§ 81-114. Remedies to be liberally administered. ........................................................................ 8

§ 81-115. Relation to Electronic Signatures in Global and National Commerce Act................. 9

§ 81-116. Applicability to new common interest communities; effective date............................ 9

§ 81-117. Exception for small condominiums and cooperatives. ................................................. 9

§ 81-118. Exception for small and limited expense liability planned communities. ................ 10

§ 81-119. Applicability to preexisting common interest communities and approved

common interest communities. ................................................................................... 10

§ 81-120. Exception for small preexisting cooperatives and planned communities................. 11

§ 81-121. Amendments to governing instruments. .................................................................... 11

§ 81-122. Applicability to nonresidential and mixed-use common interest communities. ...... 12

Delaware Uniform Common Interest Ownership Act 2017

§ 81-123. Applicability to out-of-state common interest communities...................................... 12

§ 81-124. Applicability to continuing care common interest communities. .............................. 12

§ 81-126. Transition period for existing contracts prior to effective date................................. 13

§ 81-127. Notice............................................................................................................................ 13

Subchapter II. Creation, Alteration, and Termination of Common Interest

§ 81-201. Creation of common interest communities................................................................. 13

§ 81-202. Unit boundaries. .......................................................................................................... 14

§ 81-203. Construction and validity of declaration and bylaws. ............................................... 14

§ 81-204. Description of units...................................................................................................... 14

§ 81-205. Contents of declaration................................................................................................ 15

§ 81-206. Leasehold common interest communities. ................................................................. 16

§ 81-207. Allocation of allocated interests. ................................................................................. 17

§ 81-208. Limited common elements. ......................................................................................... 17

§ 81-209. Plats and plans. ........................................................................................................... 18

§ 81-210. Exercise of development rights. .................................................................................. 19

§ 81-211. Alterations of units. ..................................................................................................... 20

§ 81-212. Relocation of unit boundaries...................................................................................... 20

§ 81-213. Subdivision of units. .................................................................................................... 21

§ 81-214. Variations in boundaries. ............................................................................................ 21

§ 81-215. Use for sales purposes. ................................................................................................ 22

§ 81-216. Easement rights........................................................................................................... 22

§ 81-217. Amendment of declaration. ......................................................................................... 22

§ 81-218. Termination of common interest community. ............................................................ 24

§ 81-219. Rights of secured lenders. ........................................................................................... 26

§ 81-220. Master associations. .................................................................................................... 26

§ 81-221. Merger or consolidation of common interest communities........................................ 27

§ 81-222. Addition of unspecified real estate.............................................................................. 28

§ 81-223. Master planned communities...................................................................................... 28

§ 81-224. Other exempt real estate arrangements. ................................................................... 29

§ 81-225. Termination following catastrophe............................................................................. 29

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Subchapter III. Management of the Common Interest Community

§ 81-301. Organization of unit owners' association.................................................................... 29

§ 81-302. Powers of unit owners' association. ............................................................................ 30

§ 81-303. Executive board members and officers. ...................................................................... 32

§ 81-304. Transfer of special declarant rights............................................................................ 33

§ 81-305. Termination of contracts and leases of declarant. ..................................................... 35

§ 81-306 Bylaws .......................................................................................................................... 35

§ 81-307. Upkeep of common interest community. .................................................................... 36

§ 81-308. Unit owner meetings. .................................................................................................. 36

§ 81-308A. Executive board meeting. ............................................................................................ 37

§ 81-309. Quorums. ...................................................................................................................... 38

§ 81-310. Voting; proxies. ............................................................................................................ 38

§ 81-311. Tort and contract liability; tolling of limitation period.............................................. 39

§ 81-312. Conveyance or encumbrance of common elements. ................................................... 40

§ 81-313. Insurance...................................................................................................................... 41

§ 81-314. Surplus funds. .............................................................................................................. 42

§ 81-315. Assessments for common expenses............................................................................. 43

§ 81-316. Lien for assessments.................................................................................................... 44

§ 81-317. Other liens.................................................................................................................... 46

§ 81-318. Association records. ..................................................................................................... 47

§ 81-319. Association as trustee.................................................................................................. 48

§ 81-320. Rules. ............................................................................................................................ 49

§ 81-321. Litigation involving declarant..................................................................................... 50

§ 81-322. [Reserved.].................................................................................................................... 51

§ 81-323. Removal of members of executive board..................................................................... 51

§ 81-324. Adoption of budget. ...................................................................................................... 52

§ 81-325. Service on associations and executive board.............................................................. 52

Delaware Uniform Common Interest Ownership Act 2017

Subchapter IV. Protection of Purchasers

§ 81-401. Applicability; waiver.................................................................................................... 53

§ 81-402. Liability for public offering statement requirements. ............................................... 53

§ 81-403. Public offering statement; general provisions............................................................ 54

§ 81-404. Common interest communities subject to development right................................... 56

§ 81-405. Time shares. ................................................................................................................. 57

§ 81-406. Common interest communities containing conversion buildings.............................. 57

§ 81-407. Common interest community securities. .................................................................... 57

§ 81-408. Purchaser's right to cancel. ......................................................................................... 57

§ 81-409. Resales of units. ........................................................................................................... 58

§ 81-410. Escrow of deposits........................................................................................................ 60

§ 81-411. Release of liens............................................................................................................. 60

§ 81-412. Conversion buildings. .................................................................................................. 60

§ 81-413. Express warranties of quality. .................................................................................... 61

§ 81-414. Implied warranties of quality...................................................................................... 62

§ 81-415. Exclusion or modification of implied warranties of quality....................................... 62

§ 81-416. Statute of limitations for warranties. ......................................................................... 63

§ 81-417. Effect of violations on rights of action; attorneys' fees. ............................................. 63

§ 81-418. Labeling of promotional material. .............................................................................. 64

§ 81-419. Declarant's obligation to complete and restore. ......................................................... 64

§ 81-420. Substantial completion of units. ................................................................................. 64

§ 81-421. Amendment to public offering statement................................................................... 64

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Subchapter I. General Provisions

§ 81-101. Short title.

This chapter shall be known and may be cited as the "Delaware Uniform Common Interest Ownership

Act" or "DUCIOA".

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-102. Applicability.

Applicability of this chapter is governed by this subchapter I.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 4, § 1; 77 Del. Laws, c. 91, § 82.;

§ 81-103. Definitions.

In this chapter and documents prepared to create a common interest community pursuant to this chapter,

unless specifically provided otherwise herein or therein, terms shall have the meaning attributed to them

in this section:

(1) "Affiliate of a declarant" means any person who controls, is controlled by, or is under common

control with a declarant. A person "controls" a declarant if the person: (i) is a general partner, officer,

director, or employer of the declarant, (ii) directly or indirectly or acting in concert with 1 or more other

persons, or through 1 or more subsidiaries, owns, controls, holds with power to vote, or holds proxies

representing, more than 20 percent of the voting interest in the declarant, (iii) controls in any manner the

election of a majority of the directors of the declarant, or (iv) has contributed more than 20 percent of the

capital of the declarant. A person "is controlled by" a declarant if the declarant: (i) is a general partner,

officer, director, or employer of the person, (ii) directly or indirectly or acting in concert with 1 or more

other persons, or through 1 or more subsidiaries, owns, controls, holds with power to vote, or holds proxies

representing, more than 20 percent of the voting interest in the person, (iii) controls in any manner the

election of a majority of the directors of the person, or (iv) has contributed more than 20 percent of the

capital of the person. Control does not exist if the powers described in this paragraph are held solely as

security for an obligation and are not exercised.

(2) "Allocated interests" means the following interests allocated to each unit: (i) in a

condominium, the undivided interest in the common elements, the common expense liability, and votes in

the association; (ii) in a cooperative, the common expense liability and the ownership interest and votes in

the association; and (iii) in a planned community, the common expense liability and votes in the

association.

(3) "Approved common interest community" means a proposed common interest community that

has received all legally required zoning and/or subdivision approvals from the applicable governmental

authorities to permit the construction of such common interest community for which the declarant has (i)

entered into 1 or more written contracts with bona-fide third-party purchasers for the construction of 1 or

more units in contemplation of the submission of the unit and the proposed common interest community

to the provisions of the Unit Property Act (Chapter 22 of this title) and prior to the effective date has

provided such third-party purchasers with draft copies of the declaration, code of regulations and other

documents pertaining to such common interest community in contemplation of submission to the Unit

Property Act [Chapter 22 of this title], and (ii) not yet recorded the declaration plan, declaration, code of

regulations and other related documents pertaining to such proposed common interest community in

accordance with the Unit Property Act [Chapter 22 of this title] prior to the effective date.

Delaware Uniform Common Interest Ownership Act 2017

(4) "Assessment" or "common expense assessment" means the sums attributable to each unit and

due to the association as a result of the common expense liability allocated to each unit in the manner

described in § 81-315 of this title, including all ground lease rents due in a leasehold condominium.

(5) "Association" or "unit owners' association" means the unit owners' association organized

under § 81-301 of this title.

(6) "Bylaws" mean the recorded document (and any recorded amendments thereto) that contains

the procedures for conduct of the affairs of the association of a common interest community in accordance

with § 81-306 of this title, regardless of the form of the association's legal entity or the name by which the

document comprising the bylaws is identified.

(7) "Certificate of notice of approved common interest community" means a recorded document by

a declarant whereby the declarant certifies and affirms under oath that an approved common interest

community shall be developed and units shall be sold under the provisions of the Unit Property Act

[Chapter 22 of this title] as a preexisting common interest community, subject to the provisions of § 81-

119 of this title regarding applicability to preexisting common interest communities.

(8) "Common elements" means: (i) in the case of (A) a condominium or cooperative, all portions of

the common interest community other than the units; and (B) a planned community, any real estate

within a planned community which is owned or leased by the association, other than a unit; and (ii) in all

common interest communities, any other interests in real estate for the benefit of unit owners which are

subject to the declaration.

(9) "Common expenses" means expenditures made by, or financial liabilities of, the association,

together with any allocations to reserves, related to common elements, other units or other real estate

described in the declaration.

(10) "Common expense liability" means the liability for common expenses allocated to each unit

pursuant to § 81-207 of this title.

(11) "Common interest community" means real estate described in a declaration with respect to

which a person, by virtue of that person's ownership of a unit, is obligated to pay for a share of real estate

taxes, insurance premiums, maintenance, or improvement of or services or other expenses related to

common elements, other units or other real estate described in that declaration. Common interest

community does not include a campground which is subject to Chapter 28 of Title 6 or those arrangements

described in § 81-224 of this title. "Ownership of a unit" does not include holding a leasehold interest in a

unit of a stated term of less than 20 years in a unit, including renewal options.

(12) "Condominium" means a common interest community in which portions of the real estate are

designated for separate ownership and the remainder of the real estate is designated for common

ownership solely by the owners of those portions. A common interest community is not a condominium

unless the undivided interests in the common elements are vested in the unit owners.

(13) "Conversion building" means a building that at any time before creation of the common

interest community was occupied wholly or partially by persons other than purchasers and persons who

occupy with the consent of purchasers.

(14) "Cooperative" means a common interest community in which the real estate is owned by an

association, each of whose members is entitled by virtue of the member's ownership interest in the

association to exclusive possession of a unit.

(15) "Dealer" means a person in the business of selling units for that person's own account.

(16) "Declarant" means any person or group of persons acting in concert who: (i) as part of a

common promotional plan, offers to dispose of the interest of the person or group of persons in a unit not

previously disposed of or (ii) reserves or succeeds to any special declarant right.

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(17) "Declaration" means the recorded instruments, however denominated, that create a common

interest community, including any amendments to those instruments.

(18) "Declaration plan" means a survey of a condominium or cooperative which contains the

verified statement of a registered architect or licensed professional engineer certifying that the

declaration plan fully and accurately shows (i) the location of the condominium or cooperative and the

location and layout of the common elements and units, and (ii) sets forth the name by which the

condominium or cooperative will be known and the unit designation for each unit therein. In addition, the

declaration plan may show such other details or information as the declarant may elect or as may be

required under § 81-106 of this title. References in this chapter to plats or plans as required by § 81-209 of

this title shall mean the declaration plan.

(19) "Development rights" means any right or combination of rights reserved by a declarant in the

declaration to: (i) add real estate to a common interest community; (ii) create units, common elements, or

limited common elements within a common interest community including, without limitation, by the

conversion of units into common elements or limited common elements and vice versa; (iii) subdivide units

or convert units into common elements; or (iv) withdraw real estate from a common interest community;

(v) do other things expressly reserved, and identified as such, by declarant in the declaration.

(20) "Dispose" or "disposition" means a voluntary transfer to a purchaser of any legal or equitable

interest in a unit, but the term does not include the transfer or release of a security interest.

(21) "Effective date" means September 30, 2009.

(22) "Executive board" means the body, regardless of name, designated in the declaration or

bylaws to act on behalf of the association.

(23) "Fully funded," or any variation thereof with respect to a repair and replacement reserve,

means a repair and replacement reserve which contains that balance of funds which (i) when

supplemented by a fixed, budgeted annual addition, will meet fully, without supplementation by borrowed

funds or special assessments, the cost of each projected repair and replacement noted in the reserve study

no later than the date when each such repair or replacement is projected to be required by the reserve

study, and (ii), with all budgeted contributions and expenditures for repairs and replacements projected

out no less than 20 years, will never fall below a positive balance.

(24) "Identifying number" means a symbol or address that identifies only 1 unit in a common

interest community.

(25) "Lease" means a lease or other agreement, written or oral, that establishes the terms and

conditions for the use and occupancy of a unit by a tenant.

(26) "Leasehold common interest community" means a common interest community in which all or

a portion of the real estate is subject to a lease the expiration or termination of which will terminate the

common interest community or reduce its size.

(27) "Limited common element" means a portion of the common elements allocated by the

declaration or by operation of § 81-202(b) or (d) of this title for the exclusive use of 1 or more but fewer

than all of the units.

(28) "Master association" means an organization described in § 81-220 of this title, whether or not

it is also an association described in § 81-301 of this title.

(29) "Nonresidential common interest community" means a common interest community in which

all units are restricted exclusively to nonresidential purposes.

(30) "Noticed rules" means rules delivered to or otherwise made available to a tenant as provided

in § 81-320 of this title.

Delaware Uniform Common Interest Ownership Act 2017

(31) "Offering" means any advertisement, inducement, solicitation, or attempt to encourage any

person to acquire any interest in a unit, other than as security for an obligation. An advertisement in a

newspaper or other periodical of general circulation, or in any broadcast medium to the general public, of

a common interest community not located in this State, is not an offering if the advertisement states that

an offering may be made only in compliance with the law of the jurisdiction in which the common interest

community is located.

(32) "Person" means an individual, corporation, business trust, estate, trust, partnership,

association, joint venture, government, governmental subdivision, instrumentality or agency, limited

liability company, or other legal or commercial entity. In the case of a land trust established pursuant to

any statute providing for the creation of a land trust, however, "person" means the beneficiary of the trust

rather than the trust or the trustee.

(33) "Planned community" means a common interest community that is not a condominium or a

cooperative. A condominium or cooperative may be part of a planned community.

(34) "Proprietary lease" means an agreement with the association pursuant to which a member is

entitled to exclusive possession of a unit in a cooperative.

(35) "Purchaser" means a person, other than a declarant or a dealer, who by means of a voluntary

transfer acquires a legal or equitable interest in a unit other than: (i) a leasehold interest (including

renewal options) of less than 20 years, or (ii) as security for an obligation.

(36) "Real estate" means any leasehold or other estate or interest in, over, or under land, including

structures, fixtures, and other improvements and interests that by custom, usage, or law pass with a

conveyance of land though not described in the contract of sale or instrument of conveyance. "Real estate"

includes parcels with or without upper or lower boundaries, and spaces that may be filled with air or

water.

(37) "Record", when used as a noun, means information that is inscribed on a tangible medium or

that is stored in an electronic or other medium and is retrievable in perceivable format.

(38) "Recorded" means, with respect to the declaration or bylaws of a common interest community

and any amendments thereto, to be placed of record at the office for the recorder of deeds in and for each

county in which any portion of the common interest community is located.

(39) "Repair and replacement reserve" means a reserve fund maintained by the executive board of

a condominium or cooperative solely for the repair and replacement of common elements, and for no other

purpose, including operating budget shortfalls or other expenditures appropriately addressed by a

contingency reserve.

(40) "Reserve study" means an analysis, by 1 or more independent engineering, architectural, or

construction contractors or other qualified persons, performed or updated within the last 5 years, of the

remaining useful life and the estimated cost to replace each separate system and component of the

common elements, the purpose of which analysis by 1 or more independent engineering, architectural, or

construction contractors or other qualified persons, is to inform the executive board and the association of

a condominium or cooperative of the amount which should be maintained from year to year in a fully

funded repair and replacement reserve to minimize the need for special assessments.

(41) "Residential purposes" means use for dwelling and appurtenant recreational purposes, or

both.

(42) "Rule" or "rules" means any rule, procedure or regulation of the association, however

denominated, that does not appear in the declaration or bylaws and that governs either the management

of the association or the common interest community or the conduct of persons or property within the

common interest community and adopted as provided in § 81-320 of this title.

(43) "Security interest" means an interest in real estate or personal property, created by contract

or conveyance, which secures payment or performance of an obligation. The term includes a lien created

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by a mortgage, deed of trust, trust deed, security deed, contract for deed, land sales contract, lease

intended as security, assignment of lease or rents intended as security, pledge of an ownership interest in

an association, and any other consensual lien or title retention contract intended as security for an

obligation.

(44) "Special assessment" means an assessment duly adopted from time to time for an unexpected,

nonrecurring or other common expense not included in the annual budget.

(45) "Special declarant rights" means rights reserved for the benefit of a declarant to: (i) complete

improvements indicated on plats and plans filed with the declaration or, in a cooperative, to complete

improvements described in the public offering statement pursuant to § 81-403(a)(2) of this title; (ii)

exercise any development right maintain sales offices, management offices, signs advertising the common

interest community, and models; (iv) use easements through the common elements for the purpose of

making improvements within the common interest community or within real estate which may be added

to the common interest community; (v) make the common interest community subject to a master

association; (vi) merge or consolidate a common interest community with another common interest

community of the same form of ownership; (vii) appoint or remove any officer of the association or any

master association or any executive board member during any period of declarant control; (viii) control

any construction, design review or aesthetic standards committee or process; (ix) attend meetings of the

unit owners and, except during an executive session, the executive board; (x) have access to the records of

the association to the same extent as a unit owner; or (xi) other special declarant rights so identified in the

declaration.

(46) "Tenant" means a tenant or lessee of a unit, including any subtenant, sublessee, or licensee.

(47) "Time share" means a right to occupy a unit or any of several units during 5 or more

separated time periods over a period of at least 5 years, including renewal options, whether or not coupled

with an estate or interest in a common interest community or a specified portion thereof.

(48) "Unit" means a physical portion of or 3-dimensional space in the common interest community

designated for separate ownership or occupancy, the boundaries of which are described pursuant to § 81-

205(a)(5) of this title, and shall include all improvements contained within the space except those

excluded in the declaration. A unit may include 2 or more noncontiguous spaces. If a unit in a cooperative

is owned by a unit owner or is sold, conveyed, voluntarily or involuntarily encumbered, or otherwise

transferred by a unit owner, the interest in that unit which is owned, sold, conveyed, encumbered, or

otherwise transferred is the right to possession of that unit under a proprietary lease, coupled with the

allocated interests of that unit, and the association's interest in that unit is not thereby affected.

(49) "Unit owner" means a declarant or other person who owns a unit, or a lessee of a unit in a

leasehold common interest community whose lease expires simultaneously with any lease the expiration

or termination of which will remove the unit from the common interest community, but does not include a

person having an interest in a unit solely as security for an obligation. In a condominium or planned

community, the declarant is the unit owner of any unit created by the declaration. In a cooperative, the

declarant is treated as the unit owner of any unit to which allocated interests have been allocated until

that unit has been conveyed to another person.

(50) "Nonresidential purposes" means use for a purpose other than a residential purpose.

(51) "Customary condominium assessment" shall mean an assessment for periodic payments,

payable no less frequently than quarterly, due the association for regular and usual operating and

common area expenses pursuant to the association's annual budget and shall not include amounts for

reserves for contingencies, nor shall it include any late charges, penalties, interest or any fees or costs for

the collection or enforcement of the assessment or any lien arising from the assessment.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 4, §§ 2, 3; 77 Del. Laws, c. 91, §§ 1-10, 79, 82.;

Delaware Uniform Common Interest Ownership Act 2017

§ 81-104. Variation by agreement.

Except as expressly provided in this chapter, the effect of its provisions may not be varied by agreement,

and rights conferred by it may not be waived. Except as provided in § 81-122 of this title, a declarant may

not act under a power of attorney, or use any other device, for the purpose of evading the limitations or

prohibitions of this chapter or the declaration.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 11, 82.;

§ 81-105. Separate titles and taxation.

(a) In a cooperative, unless the declaration provides that a unit owner's interest in a unit and its

allocated interests is real estate for all purposes, that interest is personal property. That interest is

subject to the provisions of homestead exemptions, even if it is personal property.

(b) In a condominium or planned community:

(1) If there is any unit owner other than a declarant, each unit that has been created, together

with its interest in the common elements, constitutes for all purposes a separate parcel of real estate.

(2) If there is any unit owner other than a declarant, each unit must be separately taxed and

assessed, and no separate tax or assessment may be rendered against any common elements for which a

declarant has reserved no development rights.

must be separately taxed and assessed against the declarant, and the declarant alone is liable for

payment of those taxes.

(d) If there is no unit owner other than a declarant, the real estate comprising the common interest

community may be taxed and assessed in any manner provided by law.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-106. Applicability of local ordinances, regulations, and building codes.

(a) A building code may not impose any requirement upon any structure in a common interest

community which it would not impose upon a physically identical development under a different form of

ownership.

(b) In condominiums and cooperatives, no zoning, subdivision, or other real estate use law, ordinance,

or regulation may prohibit the condominium or cooperative form of ownership or impose any requirement

upon a condominium or cooperative which it would not impose upon a physically identical development

under a different form of ownership.

invalidate any provision of any building code, zoning, subdivision, or other real estate use law, ordinance,

rule, or regulation governing the use of real estate. Without limiting the generality of the foregoing, any

preexisting common interest community or approved common interest community located in any political

subdivision of this State shall continue to be governed by the building code, zoning, subdivision, or other

real estate use law, ordinance, rule, or regulation, including appendices of such political subdivision,

which are applicable to a preexisting common interest community or approved common interest

community, notwithstanding any contrary provision of this chapter.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 4, § 4; 77 Del. Laws, c. 91, § 82.;

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§ 81-107. Eminent domain.

(a) If a unit is acquired by eminent domain or part of a unit is acquired by eminent domain leaving the

unit owner with a remnant that may not practically or lawfully be used for any purpose permitted by the

declaration, the award must include compensation to the unit owner for that unit and its allocated

interests, whether or not any common elements are acquired. Upon acquisition, unless the decree

otherwise provides, that unit's allocated interests are automatically reallocated to the remaining units in

proportion to the respective allocated interests of those units before the taking, and the association shall

promptly prepare, execute, and record an amendment to the declaration reflecting the reallocations. Any

remnant of a unit remaining after part of a unit is taken under this subsection is thereafter a common

element.

(b) Except as provided in subsection (a) of this section, if part of a unit is acquired by eminent domain,

the award must compensate the unit owner for the reduction in value of the unit and its interest in the

common elements, whether or not any common elements are acquired. Upon acquisition, unless the decree

otherwise provides: (i) that unit's allocated interests are reduced in proportion to the reduction in the size

of the unit, or on any other basis specified in the declaration and (ii) the portion of the allocated interests

divested from the partially acquired unit are automatically reallocated to that unit and to the remaining

units in proportion to the respective allocated interests of those units before the taking, with the partially-

acquired unit participating in the reallocation on the basis of its reduced allocated interests.

attributable to the common elements taken must be paid to the association. Unless the declaration

provides otherwise, any portion of the award attributable to the acquisition of a limited common element

must be equally divided among the owners of the units to which that limited common element was

allocated at the time of acquisition.

(d) The court decree or order must be recorded in every county in which any portion of the common

interest community is located.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 12, 82.;

§ 81-108. Supplemental general principles of law applicable.

The principles of law and equity, including the law of corporations and any other form of business

organization authorized by law in this State, the law of real property, and the law relative to capacity to

contract, principal and agent, eminent domain, estoppel, fraud, misrepresentation, duress, coercion,

mistake, receivership, substantial performance, or other validating or invalidating cause supplement the

provisions of this chapter, except to the extent inconsistent with this chapter. Without limiting the

foregoing, the laws of this State that apply to the association's form of legal entity apply to the association

except to the extent that law is inconsistent with this chapter, in which case this chapter governs.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-109. Construction against implicit repeal.

This chapter being a general act intended as a unified coverage of its subject matter, no part of it shall be

construed to be impliedly repealed by subsequent legislation if that construction can reasonably be

avoided.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

Delaware Uniform Common Interest Ownership Act 2017

§ 81-110. Uniformity of application and construction.

This chapter shall be applied and construed so as to effectuate its general purpose to make uniform the

law with respect to the subject of this chapter among states enacting it.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-111. Severability.

If any provision of this chapter or the application thereof to any person or circumstances is held invalid,

the invalidity does not affect other provisions or applications of this chapter which can be given effect

without the invalid provisions or applications, and to this end the provisions of this chapter are severable.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-112. Unconscionable agreement or term of contract.

(a) The court, upon finding as a matter of law that a contract or contract clause was unconscionable at

the time the contract was made, may refuse to enforce the contract, enforce the remainder of the contract

without the unconscionable clause, or limit the application of any unconscionable clause in order to avoid

an unconscionable result.

(b) Whenever it is claimed, or appears to the court, that a contract or any contract clause is or may be

unconscionable, the parties, in order to aid the court in making the determination, must be afforded a

reasonable opportunity to present evidence as to:

(1) The commercial setting of the negotiations;

(2) Whether a party has knowingly taken advantage of the inability of the other party reasonably

to protect that party's interests by reason of physical or mental infirmity, illiteracy, inability to

understand the language of the agreement, or similar factors;

(3) The effect and purpose of the contract or clause; and

(4) If a sale, any gross disparity, at the time of contracting, between the amount charged for the

property and the value of that property measured by the price at which similar property was readily

obtainable in similar transactions. A disparity between the contract price and the value of the property

measured by the price at which similar property was readily obtainable in similar transactions does not,

of itself, render the contract unconscionable.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-113. Obligation of good faith.

Every contract or duty governed by this chapter imposes an obligation of good faith in its performance or

enforcement.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-114. Remedies to be liberally administered.

(a) The remedies provided by this chapter shall be liberally administered to the end that the aggrieved

party is put in as good a position as if the other party had fully performed. However, consequential,

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special, or punitive damages may not be awarded except as specifically provided in this chapter or by

other rule of law.

(b) Any right or obligation declared by this chapter is enforceable by judicial proceeding.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-115. Relation to Electronic Signatures in Global and National Commerce Act.

This chapter modifies, limits and supersedes the federal Electronic Signatures in Global and National

Commerce Act (15 U.S.C. § 7001, et seq.) but does not modify, limit or supersede § 101(c) of that act (15

U.S.C. § 7001(c)) or authorize electronic delivery of any of the notices described in § 103(b) of that act (15

U.S.C. § 7003(b)).

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 4, §§ 5-7; 77 Del. Laws, c. 91, §§ 13, 82.;

§ 81-116. Applicability to new common interest communities; effective date.

(a) Except as provided in this subchapter, this chapter applies to all common interest communities

created within this State after the effective date that are not excepted from this chapter by the provisions

of this chapter. The provisions of the Unit Property Act (Chapter 22 of this title) do not apply to common

interest communities created after the effective date except for those governed by §§ 81-117 and 81-118 of

this title and those others that are otherwise excepted from this chapter by the provisions of this chapter.

Amendments to this chapter apply to all common interest communities created after the effective date, or

subjected to this chapter, regardless of when the amendment is adopted.

(b) The effective date of this chapter shall be September 30, 2009. All references in this Chapter 81 to

the date of October 31, 2008, were deleted and replaced with the aforementioned effective date, except as

provided in this section.

the amendment of the effective date to September 30, 2009.

(d) Anything to the contrary in this chapter notwithstanding, compliance with DUCIOA was not

intended to be required, and shall not be required, until September 30, 2009, subject to the provisions of

subsection (c) of this section above.

(e) Any amendment or amendment and restatement of the declaration of a preexisting common interest

community does not affect the status of that preexisting common interest community as excepted from

some or all of this chapter as provided in this chapter.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 4, § 8; 77 Del. Laws, c. 91, §§ 14, 82; 77 Del. Laws, c. 364, §§ 1,

2.;

§ 81-117. Exception for small condominiums and cooperatives.

If a condominium or cooperative contains no more than 20 units and is not subject to any development

rights expanding it to include more than 20 units, it is subject only to §§ 81-106 (Applicability of local

ordinances, regulations, and building codes) and 81-107 of this title (Eminent domain), but to no other

sections of this chapter unless the declaration provides that the entire chapter is applicable. The bylaws of

any such condominium or cooperative, and any amendments thereto, shall be recorded.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 15, 82; 77 Del. Laws, c. 364, § 3.;

Delaware Uniform Common Interest Ownership Act 2017

§ 81-118. Exception for small and limited expense liability planned communities.

(a) If a planned community:

(1) Contains no more than 20 units and is not subject to any developmental rights expanding it to

include more than 20 units; or

(2) Provides, in its declaration, that during the period of declarant control the annual average

common expense liability of each unit restricted to residential purposes, exclusive of optional user fees

and any insurance premiums paid by the association, may not exceed $500, as adjusted pursuant to

paragraph (b)(2) of this section, it is subject only to §§ 81-105 (Separate titles and taxation), 81-106

(Applicability of local ordinances, regulations, and building codes), and 81-107 of this title (Eminent

domain), but to no other sections of this chapter unless the declaration provides that this entire chapter is

applicable. The bylaws of any such planned community, and any amendments thereto, shall be recorded.

(b) The exemption provided in paragraph (a)(2) of this section applies only if:

(1) The declarant reasonably believes in good faith that the maximum stated assessment will be

sufficient to pay the expenses of the planned community; and

(2) The declaration provides that the assessment may not be increased during the period of

declarant control without the consent of all unit owners; except that commencing with the July 1 next

following the effective date of this chapter and each July 1 thereafter during the period of declarant

control, the assessment specified in the declaration may be increased by an amount not in excess of 3

percent over the amount so calculated for the previous year.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 16, 17, 81, 82; 77 Del. Laws, c. 364, § 4.;

§ 81-119. Applicability to preexisting common interest communities and approved

common interest communities.

Except as provided in § 81-120 (Exception for small preexisting cooperatives and planned communities),

and § 81-124 and except as limited by § 81-122 of this title hereof, §§ 81-105, 81-106, 81-107, 81-127, 81-

203, 81-204, 81-221, 81-301, 81-302(a)(1) through (6) and (11) through (17), 81-302(f), 81-302(g), 81-303,

81-307(a), 81-309(a), 81-311, 81-315, 81-316, 81-318, 81-321, 81-322 [repealed], 81-323, 81-324, 81-409,

and 81-417 of this title, and § 81-103 of this title to the extent any definitions are necessary in construing

any of the foregoing sections to the extent the definitions do not conflict with the declaration, apply to all

common interest communities and approved common interest communities created in this State before the

effective date; but those sections apply only with respect to events and circumstances occurring after the

effective date, and do not invalidate existing provisions of the declaration, bylaws, code of regulations,

declaration plan, or plats or plans of those preexisting common interest communities and approved

common interest communities that do not conflict with this chapter. With respect to condominiums and

cooperatives, such existing provisions of those declarations, bylaws, codes of regulations, declaration

plans, plats or plans, and subsequent amendments thereto adopted subsequent to the effective date of this

chapter in strict accordance with those existing provisions, and not in conflict with the Unit Property Act

(Chapter 22 of this title), shall be controlling in the event of any express conflict between those existing

provisions (as duly amended) and the provisions of this chapter. In matters and as to issues where neither

such existing provisions of the declaration, bylaws, code of regulations, declaration plan, or plats or plans

(as duly amended) of preexisting common interest communities or approved common interest communities

nor the Unit Property Act (Chapter 22 of this title) expressly addresses the matter or issue, the provisions

of this chapter shall control. As to any such preexisting common interest community or approved common

interest community prior to the effective date: (i) this chapter shall not operate to terminate or allow the

termination of existing contractual obligations created prior to the effective date, including, but not

limited to contracts for units for preexisting common interest communities or approved common interest

community projects; (ii) this chapter shall not invalidate the declaration, code of regulations, bylaws,

declaration plan, or plats or plans of such common interest community that do not conflict with this

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chapter; (iii) the Unit Property Act (Chapter 22 of this title), and not this chapter shall govern all

obligations of a declarant created under the Unit Property Act (Chapter 22 of this title); (iv) unless the

declarant or other person with the right to do so elects to conform the requirements of this chapter in

exercising any development right or special declarant rights, this chapter is not applicable to the

procedures for the exercise of any such development rights or special declarant rights; (v) this chapter

does not require that the preexisting declaration, code of regulations, bylaws, declaration plans, or plats or

plans or other governing documents, including, but not limited to certificates or articles of incorporation,

formation or otherwise of any preexisting common interest community or approved common interest

community be amended to, or otherwise to comply with, the requirements of this chapter; and (vi) except

for §§ 81-409 and 81-417 of this title, subchapter IV of this chapter is not applicable to any such

preexisting common interest community or approved common interest community. Without limiting the

generality of any other provision of this chapter, and notwithstanding any other provision of this chapter,

any condominium created under the Unit Property Act for which future expansions are provided under its

declaration made pursuant to the Unit Property Act shall remain governed by the Unit Property Act and

not this chapter with respect to all of such future sections, phases or other expansion rights.

Any preexisting common interest community or approved common interest community has the right to

amend its declaration, code of regulations, bylaws, declaration plans, or plats or plans or other governing

documents, including, but not limited to certificates or articles of incorporation, formation or otherwise to

comply with any or all of the requirements of this chapter, or a preexisting common interest community or

approved common interest community may select particular additional sections of this chapter to apply to

that community without adopting the entire chapter.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 4, § 9; 77 Del. Laws, c. 91, §§ 18, 82; 77 Del. Laws, c. 364, § 5; 80

Del. Laws, c. 160, § 1.;

§ 81-120. Exception for small preexisting cooperatives and planned communities.

If a cooperative or planned community created within this State before the effective date of this chapter,

contains no more than 20 units and is not subject to any development rights expanding it to include more

than 20 units, or the annual average common expense liability of each unit restricted to residential

purposes, exclusive of optional user fees and any insurance premiums paid by the association, does not

exceed $500, as adjusted pursuant to this section, it is subject only to §§ 81-105 (Separate titles and

taxation), 81-106 (Applicability of local ordinances, regulations, and building codes), and 81-107 of this

title (Eminent domain), but to no other sections of this chapter unless the declaration is amended in

conformity with applicable law and with the procedures and requirements of the declaration to take

advantage of the provisions of §§ 81-121 of this title, in which case all the sections enumerated in § 81-119

of this title apply to that cooperative or planned community. Commencing with the July 1 next following

the effective date of this chapter and each July 1 thereafter, the $500 maximum assessment specified in

this section may be increased by an amount not in excess of 3 percent over the amount so calculated for

the previous year. The bylaws of any such cooperative or planned community, and any amendments

thereto, shall be recorded.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 19, 82; 77 Del. Laws, c. 364, § 6.;

§ 81-121. Amendments to governing instruments.

(a) The declaration, bylaws, or plats and plans of any common interest community created before the

effective date of this chapter, may be amended to achieve any result permitted by this chapter, regardless

of what applicable law provided before this chapter was adopted.

(b) An amendment to the declaration, bylaws, or plats and plans authorized by this section must be

adopted and recorded in conformity with any procedures and requirements for amending the instruments

specified by those instruments or, if there are none, in conformity with the amendment procedures of this

Delaware Uniform Common Interest Ownership Act 2017

chapter. If an amendment grants to any person any rights, powers, or privileges permitted by this

chapter, all correlative obligations, liabilities, and restrictions in this chapter also apply to that person.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 20, 82.;

§ 81-122. Applicability to nonresidential and mixed-use common interest communities.

(a) Except as provided in subsection (e) of this section, this section applies only to nonresidential

common interest communities.

(b) A nonresidential common interest community is not subject to this chapter unless the declaration

otherwise provides.

chapter applies to the community or that only certain identified sections apply.

(d) If the entire chapter applies to a nonresidential common interest community, the declaration may

also require, subject to § 81-112 of this title (Unconscionable agreement or term of contract), that:

(1) Notwithstanding § 81-305 of this title (Termination of contracts and leases of declarant), any

management contract, employment contract, lease of recreational or parking areas or facilities, and any

other contract or lease between the association and a declarant or an affiliate of a declarant continues in

force after the declarant turns over control of the association; and

(2) Notwithstanding § 81-104 of this title (Variation by agreement), purchasers of units must

execute proxies, powers of attorney, or similar devices in favor of the declarant regarding particular

matters enumerated in those instruments.

(e) A common interest community that contains units restricted exclusively to nonresidential purposes

and other units that may be used for residential purposes is not subject to this chapter unless the units

that may be used for residential purposes would comprise a common interest community in the absence of

the nonresidential units or the declaration provides that this chapter applies as provided in subsection (c)

or (d) of this section. Nothing herein shall prevent the establishment of a common interest community for

residential purposes and a nonresidential common interest community for the same real estate.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-123. Applicability to out-of-state common interest communities.

This chapter does not apply to common interest communities or units located outside this State, but the

public offering statement provisions in subchapter IV of this chapter apply to all contracts for the

disposition thereof signed in this State by any party unless exempt under § 81-401 of this title.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-124. Applicability to continuing care common interest communities.

Anything to the contrary in this chapter notwithstanding, this chapter does not apply to any

condominium, cooperative or other common interest community created in this State before October 31,

2008, that is a continuing care facility governed by the Delaware Life-Care Registration Act (§ 4601 et seq.

of Title 18) as of October 31, 2008. Such condominium, cooperative or other common interest community

shall continue to be governed solely by the Unit Property Act [Chapter 22 of this title] or other statutes in

effect prior to October 31, 2008, and applicable to such common interest community.

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76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-125. Additional exceptions for preexisting common interest communities or approved

common interest communities.

Anything to the contrary in this chapter notwithstanding, an approved common interest community shall

be treated under this chapter in the same manner as a preexisting common interest community.

77 Del. Laws, c. 4, § 10; 77 Del. Laws, c. 91, § 82.;

§ 81-126. Transition period for existing contracts prior to effective date.

Anything to the contrary in this chapter notwithstanding, any declarant, dealer, or unit owner may, but

shall not be obligated to, comply with the provisions of subchapter IV of this chapter regarding public

offering statements and resale certificates with respect to any contract of sale executed prior to the

effective date.

77 Del. Laws, c. 4, § 11; 77 Del. Laws, c. 91, § 82.;

§ 81-127. Notice.

(a) Unless otherwise required or permitted by the declaration or bylaws, the following methods of

giving notice suffice when notice is required: (i) hand delivered to the unit owner or other intended

recipient; (ii) sent prepaid by United States mail to the mailing address of each unit or other intended

recipient, unless that person has designated in writing a different mailing address in which case it shall

be sent to the designated address; or (iii) sent by electronic means in the manner described in subsection

(b) of this section.

(b) An association provides effective notice by electronic means if the unit owner gives the association

prior written authorization to provide that notice, together with an electronic address.

invalidate action taken at a meeting or in lieu of a meeting.

77 Del. Laws, c. 91, § 21.;

Subchapter II. Creation, Alteration, and Termination of Common Interest

§ 81-201. Creation of common interest communities.

(a) A common interest community may be created pursuant to this chapter only by recording a

declaration executed in the same manner as a deed and, in a cooperative, by conveying the real estate

subject to that declaration to the association. The declaration and bylaws must be recorded in every

county in which any portion of the common interest community is located and must be indexed in the

grantee's index in the name of the common interest community and the association and in the grantor's

index in the name of each person executing the declaration.

(b) In a condominium, a declaration, or an amendment to a declaration, adding units that are contained

in or comprised by buildings may not be recorded unless the structural components and mechanical

systems of any buildings containing or comprising any units thereby created, if any, are substantially

Delaware Uniform Common Interest Ownership Act 2017

completed in accordance with the plans, as evidenced by a record certification of completion executed by

an independent registered engineer or architect, which may be incorporated in the recorded declaration or

amendment or the recorded plat or otherwise, or by the issuance by the appropriate governmental

authority of a certificate of occupancy, or its equivalent, for the applicable unit.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 22, 82.;

§ 81-202. Unit boundaries.

Except as provided by the declaration:

(a) If walls, floors, or ceilings are designated as boundaries of a unit, all lath, furring, wallboard,

plasterboard, plaster, paneling, tiles, wallpaper, paint, finished flooring, and any other materials

constituting any part of the finished surfaces thereof are a part of the unit, and all other portions of the

walls, floors, or ceilings are a part of the common elements.

(b) If any chute, flue, duct, wire, conduit, bearing wall, bearing column, or any other fixture lies

partially within and partially outside the designated boundaries of a unit, any portion thereof serving only

that unit is a limited common element allocated solely to that unit, and any portion thereof serving more

than 1 unit or any portion of the common elements is a part of the common elements.

improvements within the boundaries of a unit are a part of the unit.

(d) Any shutters, awnings, window boxes, doorsteps, stoops, porches, balconies, patios, and all exterior

doors and windows or other fixtures designed to serve a single unit, but located outside the unit's

boundaries, are limited common elements allocated exclusively to that unit.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-203. Construction and validity of declaration and bylaws.

(a) All provisions of the declaration and bylaws are severable.

(b) The rule against perpetuities does not apply to defeat any provision of the declaration, bylaws or

rules.

prevails.

(d) Title to a unit and common elements is not rendered unmarketable or otherwise affected by reason

of an insubstantial failure of the declaration to comply with this chapter. Whether a substantial failure

impairs marketability is not affected by this chapter.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 23, 24, 82.;

§ 81-204. Description of units.

A description of a unit which sets forth the name of the common interest community, the recording data

for the declaration, the county in which the common interest community is located, and the identifying

number of the unit, is a legally sufficient description of that unit and all rights, obligations, and interests

appurtenant to that unit which were created by the declaration or bylaws.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

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§ 81-205. Contents of declaration.

(a) The declaration must contain:

(1) The names of the common interest community and the association and a statement that the

common interest community is either a condominium, cooperative, or planned community;

(2) The name of every county in which any part of the common interest community is situated;

(3) A legally sufficient description of the real estate included in the common interest community;

(4) A statement of the maximum number of units that the declarant reserves the right to create;

(5) In a condominium, a description of the boundaries of each unit created by the declaration,

including the unit's identifying number; or, in a cooperative, a description, which may be by plats or plans,

of each unit created by the declaration, including the unit's identifying number, its size or number of

rooms, and its location within a building if it is within a building containing more than 1 unit;

(6) A description of any limited common elements, other than those specified in § 81-202(b) and

(d) of this title, as provided in § 81-209(b)(10) of this title and, in a planned community, any real estate

that is or must become common elements;

(7) A description of any real estate, except real estate subject to development rights, that may be

allocated subsequently as limited common elements, other than limited common elements specified in §

81-202(b) and (d) of this title, together with a statement that they may be so allocated;

(8) A description of any development rights (§ 81-103(19) of this title) and other special declarant

rights (§ 81-103(45) of this title) reserved by the declarant, together with a legally sufficient description of

the real estate to which each of those rights applies, and a time limit within which each of those rights

must be exercised;

(9) If any development right may be exercised with respect to different parcels of real estate at

different times, a statement to that effect together with: (i) either a statement fixing the boundaries of

those portions and regulating the order in which those portions may be subjected to the exercise of each

development right or a statement that no assurances are made in those regards, and (ii) a statement as to

whether, if any development right is exercised in any portion of the real estate subject to that

development right, that development right must be exercised in all or in any other portion of the

remainder of that real estate;

(10) Any other conditions or limitations under which the rights described in paragraph (8) of this

section may be exercised or will lapse;

(11) An allocation to each unit of the allocated interests in the manner described in § 81-207 of

this title;

(12) Any restrictions: (i) on alienation of the units, including any restrictions on leasing which

exceed the restrictions on leasing units which executive boards may impose pursuant to § 81-302(c)(2) of

this title, and (ii) on the amount for which a unit may be sold or on the amount that may be received by a

unit owner on sale, condemnation, or casualty loss to the unit or to the common interest community, or on

termination of the common interest community;

(13) The recording data for recorded easements and licenses appurtenant to or included in the

common interest community or to which any portion of the common interest community is or may become

subject by virtue of a reservation in the declaration;

(14) In the case of a condominium or cooperative, provisions that mandate that the association

create and maintain, in addition to any reserve for contingencies, a fully funded repair and replacement

reserve based upon a current reserve study;

Delaware Uniform Common Interest Ownership Act 2017

(15) Any authorization pursuant to which the association may regulate the display of American

flags or political signs within the common interest community;

(16) Any authorization pursuant to which the association may adopt rules to establish and enforce

construction and design criteria and aesthetic standards in the manner provided in § 81-320 of this title;

and

(17) All matters required by §§ 81-206, 81-207, 81-208, 81-209, 81-215, 81-216, and 81-303 of this

title.

(b) The declaration may contain any other matters the declarant considers appropriate, including any

restrictions on the uses of a unit or the number or other qualifications of persons who may occupy units.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 25, 26, 82.;

§ 81-206. Leasehold common interest communities.

(a) Any lease the expiration or termination of which may terminate the common interest community or

reduce its size must be referenced in the declaration. Every lessor of those leases in a condominium or

planned community shall sign the declaration. The declaration must state:

(1) The recording data for the lease;

(2) The date on which the lease is scheduled to expire;

(3) A legally sufficient description of the real estate subject to the lease;

(4) Any right of the unit owners to redeem the reversion and the manner whereby those rights

may be exercised, or a statement that they do not have those rights;

(5) Any right of the unit owners to remove any improvements within a reasonable time after the

expiration or termination of the lease, or a statement that they do not have those rights; and

(6) Any rights of the unit owners to renew the lease and the conditions of any renewal, or a

statement that they do not have those rights.

(b) After the declaration for a leasehold condominium or leasehold planned community is recorded,

neither the lessor nor the lessor's successor in interest may terminate the leasehold interest of a unit

owner who makes timely payment of a unit owner's share of the rent and otherwise complies with all

covenants which, if violated, would entitle the lessor to terminate the lease. A unit owner's leasehold

interest in a condominium or planned community is not affected by failure of any other person to pay rent

or fulfill any other covenant.

does not merge the leasehold and fee simple interests unless the leasehold interests of all unit owners

subject to that reversion or remainder are acquired.

(d) If the expiration or termination of a lease decreases the number of units in a common interest

community, the allocated interests must be reallocated in accordance with § 81-107(a) of this title as if

those units had been taken by eminent domain. Reallocations must be confirmed by an amendment to the

declaration prepared, executed, and recorded by the association.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 4, § 12; 77 Del. Laws, c. 91, § 82.;

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§ 81-207. Allocation of allocated interests.

(a) The declaration must allocate to each unit:

(1) In a condominium, a fraction or percentage of undivided interests in the common elements

and a fraction or percentage of undivided interests in the common expenses of the association, and a

portion of the votes in the association;

(2) In a cooperative, an ownership interest in the association, a fraction or percentage of the

common expenses of the association, and a portion of the votes in the association; and

(3) In a planned community, a fraction or percentage of the common expenses of the association,

and a portion of the votes in the association.

(b) The declaration must state the formulas used to establish allocations of interests and the portions of

the votes. Those allocations may not discriminate in favor of units owned by the declarant or an affiliate of

the declarant.

state the formulas to be used to reallocate the allocated interests among all units included in the common

interest community after the addition or withdrawal.

(d) The declaration may provide: (i) that different allocations of votes shall be made to the units on

particular matters specified in the declaration; (ii) for cumulative voting only for the purpose of electing

members of the executive board; and (iii) for class voting on specified issues affecting the class if necessary

to protect valid interests of the class. A declarant may not utilize cumulative or class voting for the

purpose of evading any limitation imposed on declarants by this chapter nor may units constitute a class

because they are owned by a declarant.

(e) Except for minor variations due to rounding, the sum of the common expense liabilities and, in a

condominium, the sum of the undivided interests in the common elements allocated at any time to all the

units must each equal one if stated as a fraction or 100 percent if stated as a percentage. In the event of

discrepancy between an allocated interest and the result derived from application of the pertinent

formula, the allocated interest prevails.

(f) In a condominium, the common elements are not subject to partition, and any purported

conveyance, encumbrance, judicial sale, or other voluntary or involuntary transfer of an undivided

interest in the common elements made without the unit to which that interest is allocated is void.

(g) In a cooperative, any purported conveyance, encumbrance, judicial sale, or other voluntary or

involuntary transfer of an ownership interest in the association made without the possessory interest in

the unit to which that interest is related is void.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-208. Limited common elements.

(a) Except for the limited common elements described in § 81-202(b) and (d) of this title, the declaration

must specify to which unit or units each limited common element is allocated. An allocation may not be

altered without the consent of the unit owners whose units are affected.

(b) Except as the declaration otherwise provides, a limited common element may be reallocated by an

amendment to the declaration executed by the unit owners between or among whose units the reallocation

is made. The persons executing the amendment shall provide a copy thereof to the association, which shall

record it. The amendment must be recorded in the names of the parties and the common interest

community.

Delaware Uniform Common Interest Ownership Act 2017

pursuant to provisions in the declaration made in accordance with § 81-205(a)(7) of this title. The

allocations must be made by amendments to the declaration.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-209. Plats and plans.

(a) Plats and plans are a part of the declaration, and are required for all condominiums and

cooperatives. Each plat and plan must be clear and legible and contain a certification as required by

subsection (g) of this section and by declarant that the plat or plan contains all information required by

this section.

(b) Each plat must show or project:

(1) The name and a survey or general schematic map of the entire common interest community;

(2) The location and dimensions of all real estate not subject to development rights, or subject

only to the development right to withdraw, and the location and dimensions of all existing improvements

within that real estate;

(3) A legally sufficient description of any real estate subject to development rights, labeled to

identify the rights applicable to each parcel, but plats and plans need not designate or label which

development rights are applicable to each parcel if that information is clearly delineated in the

declaration;

(4) The extent of any encroachments by or upon any portion of the common interest community;

(5) To the extent feasible, a legally sufficient description of all easements serving or burdening

any portion of the common interest community;

(6) Except as provided in subsection (h) of this section, the approximate location and dimensions

of any vertical unit boundaries not shown or projected on plans recorded pursuant to subsection (d) of this

section and that unit's identifying number;

(7) Except as provided in subsection (h) of this section, the approximate location with reference to

an established datum of any horizontal unit boundaries not shown or projected on plans recorded

pursuant to subsection (d) of this section and that unit's identifying number;

(8) A legally sufficient description of any real estate in which the unit owners will own only an

estate for years, labeled as "leasehold real estate";

(9) The distance between noncontiguous parcels of real estate comprising the common interest

community; and

(10) The approximate location and dimensions of any porches, decks, balconies, garages, or patios

allocated as limited common elements, and show or contain a narrative description of any other limited

common elements.

(11) [Repealed.]

constructed anywhere within the common interest community. Any contemplated improvement shown

must be labeled either "MUST BE BUILT" or "NEED NOT BE BUILT."

(d) Except as provided in subsection (h) of this section, to the extent not shown or projected on the

plats, plans of the units must show or project:

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(1) The approximate location and dimensions of the vertical boundaries of each unit, and that

unit's identifying number;

(2) The approximate location of any horizontal unit boundaries, with reference to an established

datum, and that unit's identifying number; and

(3) The approximate location of any units in which the declarant has reserved the right to create

additional units or common elements (§ 81-210(c) of this title), identified appropriately.

(e) Unless the declaration provides otherwise, the horizontal boundaries of part of a unit located

outside a building have the same elevation as the horizontal boundaries of the inside part and need not be

depicted on the plats and plans.

(f) Upon exercising any development right, the declarant shall record either new plats and plans

necessary to conform to the requirements of subsections (a), (b), and (d) of this section, or new

certifications of plats and plans previously recorded if those plats and plans otherwise conform to the

requirements of those subsections.

(g) Any certification of a plat or plan required by this section or § 81-201(b) of this title must be made

by an independent architect, independent licensed professional land surveyor or independent engineer.

(h) Plats and plans need not show the location and dimensions of the units' boundaries or their limited

common elements if:

(1) The plat shows the location and dimensions of all buildings containing or comprising the

units; and

(2) The declaration includes other information that shows or contains a narrative description of

the general layout of the units in those buildings and the limited common elements allocated to those

units.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 27-29, 82.;

§ 81-210. Exercise of development rights.

(a) To exercise any development right reserved under § 81-205(a)(8) of this title, the declarant shall

prepare, execute, and record, without joinder of any other person required except as expressly provided in

the declaration, an amendment to the declaration and in a condominium or planned community comply

with § 81-209 of this title. The declarant is the unit owner of any units thereby created. The amendment

to the declaration must assign an identifying number to each new unit created, and, except in the case of

subdivision or conversion of units described in subsection (b) of this section, reallocate the allocated

interests among all units. The amendment must describe any common elements and any limited common

elements thereby created and, in the case of limited common elements, designate the unit to which each is

allocated to the extent required by § 81-208 of this title.

(b) Development rights may be reserved within any real estate added to the common interest

community if the amendment adding that real estate includes all matters required by § 81-205 or § 81-206

of this title, as the case may be, and, in a condominium or planned community, the plats and plans include

all matters required by § 81-209 of this title. This provision does not extend the time limit on the exercise

of development rights imposed by the declaration pursuant to § 81-205(a)(8) of this title.

created into additional units, common elements, or both:

(1) If the declarant converts the unit entirely to common elements, the amendment to the

declaration must reallocate all the allocated interests of that unit among the other units as if that unit

had been taken by eminent domain; and

Delaware Uniform Common Interest Ownership Act 2017

(2) If the declarant subdivides the unit into 2 or more units, whether or not any part of the unit is

converted into common elements, the amendment to the declaration must reallocate all the allocated

interests of the unit among the units created by the subdivision in any reasonable manner prescribed by

the declarant.

(d) If the declaration provides, pursuant to § 81-205(a)(8) of this title, that all or a portion of the real

estate is subject to a right of withdrawal:

(1) If all the real estate is subject to withdrawal, and the declaration does not describe separate

portions of real estate subject to that right, none of the real estate may be withdrawn after a unit has been

conveyed to a purchaser; and

(2) If any portion is subject to withdrawal, it may not be withdrawn after a unit in that portion

has been conveyed to a purchaser.

(e) If the declaration for a pre-existing condominium provides for conversion of limited common

elements to part of the unit to which such limited common elements are allocated, the same shall be a

development right exercisable by the declarant by amendment to the declaration prepared, executed and

recorded by the declarant, without the joinder of any other person required, and complying with § 81-209

of this title.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-211. Alterations of units.

Subject to the provisions of the declaration and other provisions of law, a unit owner:

(a) May, upon written notice to the association specifying the improvements or alterations planned,

make any improvements or alterations to that unit owner's unit that do not impair the structural

integrity or mechanical systems or lessen the support of any portion of the common interest community;

(b) May not change the appearance of the common elements, or the exterior appearance of a unit or any

other portion of the common interest community, without permission of the association;

to the association specifying the improvements or alteration planned, but without requiring permission of

the association, remove or alter any intervening partition or create apertures therein, even if the partition

in whole or in part is a common element, if those acts do not impair the structural integrity or mechanical

systems or lessen the support of any portion of the common interest community. Removal of partitions or

creation of apertures under this subsection is not an alteration of boundaries.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-212. Relocation of unit boundaries.

(a) Subject to the provisions of the declaration and other provisions of law, the boundaries between

adjoining units may be relocated by an amendment to the declaration upon application to the association

by the owners of those units. If the owners of the adjoining units have specified a reallocation between

their units of their allocated interests, the application must state the proposed reallocations. Unless the

executive board determines, within 30 days, that the reallocations are unreasonable, the association shall

prepare an amendment that identifies the units involved and states the reallocations. The amendment

must be executed by those unit owners, contain words of conveyance between them, and, on recordation,

be indexed in the name of the grantor and the grantee, and in the grantee's index in the name of the

association. All costs associated with the relocation or any attempted relocation which fails or is denied,

including reasonable attorney's and engineer's fees, shall be paid by the owners seeking the change.

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(b) Subject to the provisions of the declaration and other provisions of law, boundaries between units

and common elements may be relocated to incorporate common elements within a unit by an amendment

to the declaration upon application to the association by the owner of the unit who proposes to relocate a

boundary. Unless the declaration provides otherwise, the amendment may be approved only if persons

entitled to cast at least 67 percent of the votes in the association, including 67 percent of the votes

allocated to units not owned by the declarant, agree to the action. The amendment may describe any fees

or charges payable by the owner of the affected unit in connection with the boundary relocation. The fees

and charges shall be assets of the association. The amendment must be executed by the unit owner of the

unit whose boundary is being relocated and by the association, contain words of conveyance between

them, and on recordation be indexed in the name of the unit owner and the association as grantor or

grantee, as appropriate. All costs associated with the relocation or any attempted relocation which fails or

is denied, including reasonable attorney's and engineer's fees, shall be paid by the owners seeking the

change.

necessary to show the altered boundaries of affected units, and their dimensions and identifying numbers,

and (ii) in a cooperative shall prepare and record amendments to the declaration, including any plans,

necessary to show or describe the altered boundaries of affected units, and their dimensions and

identifying numbers.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-213. Subdivision of units.

(a) In a condominium or cooperative if the declaration expressly so permits and approval as noted

herein is obtained in writing, a unit may be subdivided into 2 or more units. Subject to the provisions of

the declaration, payment of all expenses by the unit owner and other provisions of law other than this

chapter, upon application of a unit owner to subdivide a unit in a condominium or cooperative, the

association shall prepare, execute, and record an amendment to the declaration, including in a

condominium or planned community the plats and plans, subdividing that unit.

(b) The amendment to the declaration must be executed by the owner of the unit to be subdivided,

assign an identifying number to each unit created, and reallocate the allocated interests formerly

allocated to the subdivided unit to the new units in any reasonable manner prescribed by the owner of the

subdivided unit or on any other basis the declaration requires.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 30, 31, 82.;

§ 81-214. Variations in boundaries.

The existing physical boundaries of a unit or a common element or the physical boundaries of a unit or a

common element reconstructed in substantial accordance with the description contained in the original

declaration are its legal boundaries, rather than the boundaries derived from the description contained in

the original declaration, regardless of vertical or lateral movement of the building or minor variance

between those boundaries and the boundaries derived from the description contained in the original

declaration. This section does not relieve a unit owner of liability in case of the unit owner's wilful

misconduct or relieve a declarant or any other person of liability for failure to adhere to any plats and

plans or, in a cooperative, to any representation in the public offering statement.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

Delaware Uniform Common Interest Ownership Act 2017

§ 81-215. Use for sales purposes.

A declarant may maintain sales offices, management offices, and models in units or on common elements

in the common interest community only if the declaration so provides and specifies the rights of a

declarant with regard to the number, size, location, and relocation thereof. In a cooperative or

condominium, any sales office, management office, or model not designated a unit by the declaration is a

common element. If a declarant ceases to be a unit owner, the declarant ceases to have any rights with

regard thereto unless it is removed promptly from the common interest community in accordance with a

right to remove reserved in the declaration. Subject to any limitations in the declaration, a declarant may

maintain signs on the common elements advertising the common interest community. This section is

subject to the provisions of other state law and to local ordinances.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-216. Easement rights.

(a) Subject to the provisions of the declaration, a declarant has an easement through the common

elements as may be reasonably necessary for the purpose of discharging the declarant's obligations or

exercising special declarant rights, whether arising under this chapter or reserved in the declaration.

(b) Subject to §§ 81-302(a)(6) and 81-312 of this title, the unit owners have an easement in the common

elements for purposes of access to their units.

elements and all real estate that must become common elements for the purposes for which they were

intended.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 32, 82.;

§ 81-217. Amendment of declaration.

(a) Except in cases of amendments that may be executed by a declarant under § 81-209(f) or § 81-210 of

this title, or by the association under § 81-107, § 81-206(d), § 81-208(c), § 81-212(a), or § 81-213 of this

title, or by certain unit owners under § 81-208(b), § 81-212(a), § 81-213(b), or § 81-218(b) of this title, or by

secured lenders pursuant to § 81-219 of this title, and except as limited by subsection (d) of this section or

as otherwise provided in this § 81-217 of this title, the declaration, including any plats and plans, may be

amended only by vote or agreement of unit owners of units to which at least 67 percent of the votes in the

association are allocated, unless the declaration specifies a different percentage for all amendments or for

specific subjects of amendment. If the declaration requires the approval of another person as a condition of

its effectiveness, the amendment is not valid without the approval.

(b) No action to challenge the validity of an amendment adopted by the association pursuant to this

section may be brought more than 1 year after the amendment is recorded.

common interest community is located and is effective only upon recordation. An amendment, except an

amendment pursuant to § 81-212(a) of this title, must be indexed in the grantee's index in the name of the

common interest community and the association and in the grantor's index in the name of the parties

executing the amendment.

(d) Except to the extent expressly permitted or required by other provisions of this chapter, or in a

nonresidential common interest community, except as provided in the declaration, no amendment may

create or increase special declarant rights, increase the number of units, change the boundaries of any

unit or the allocated interests of a unit, in the absence of unanimous consent of the unit owners.

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(e) Amendments to the declaration required by the chapter to be recorded by the association must be

prepared, executed, recorded, and certified on behalf of the association by any officer of the association

designated for that purpose or, in the absence of designation, by the president of the association.

(f) By vote or agreement of unit owners of units to which at least 80 percent of the votes in the

association are allocated, or any larger percentage specified in the declaration, an amendment to the

declaration may prohibit or materially restrict the permitted uses of or behavior in a unit or the number

or other qualifications of persons who may occupy units. The amendment must provide reasonable

protection for a use or occupancy permitted at the time the amendment was adopted.

(g) The time limits specified in the declaration pursuant to § 81-205(a)(8) of this title within which

reserved development rights must be exercised may be extended, and additional development rights may

be created, if persons entitled to cast at least 80 percent of the votes in the association, including 80

percent of the votes allocated to units not owned by the declarant, agree to that action. The agreement is

effective 30 days after an amendment to the declaration reflecting the terms of the agreement is recorded

unless all the persons holding the affected special declarant rights, or security interests in those rights,

record a written objection within the 30-day period, in which case the amendment is void, or consent in

writing at the time the amendment is recorded, in which case the amendment is effective when recorded.

(h) Provisions in the declaration creating special declarant rights which have not expired may not be

amended without the consent of the declarant.

(i) If any provision of this chapter or of the declaration of any common interest community subject to

this chapter requires the consent of a person holding a security interest in a unit as a condition to the

effectiveness of any amendment to the declaration, that consent shall be deemed granted if no written

refusal to consent is received by the association within 45 days after the association delivers notice of the

proposed amendment to the holder of the interest or mails the notice to the holder of the interest by

certified mail, return receipt requested. The association may rely on the last recorded security interest of

record in delivering or mailing notice to the holder of that interest. Notwithstanding this section, no

amendment to the declaration that affects the priority of a holder's security interest or the ability of that

holder to foreclose its security interest may be adopted without that holder's consent in a record if the

declaration requires that consent as a condition to the effectiveness of the amendment.

(j) Unless the declaration or bylaws provide otherwise and subject to paragraphs (j)(ii) and (j)(iii) of

this section:

(i) The executive board may execute and record an amendment to the declaration bylaws, or plat,

to conform the declaration or bylaws to be consistent with the provisions of this chapter or to correct:

(1) A typographical error or other error in the percentage interests or number of votes

appurtenant to any unit;

(2) A typographical error or other incorrect reference to another prior recorded document;

(3) A typographical error or other incorrect unit designation or assignment of limited

common elements if the affected unit owners and their mortgagees consent in writing to the amendment,

and the consent documents are recorded with the amendment.

(ii) If the executive board executes and records an amendment under paragraph (j)(i) of this

section, the executive board shall also record with the amendment:

(1) During the time that the declarant has an interest:

(A) The consent of the declarant; or

(B) An affidavit by the executive board that any declarant who has an interest in the

condominium has been provided a copy of the amendment and a notice that the declarant may object in

writing to the amendment within 30 days of receipt of the amendment and notice, that 30 days have

Delaware Uniform Common Interest Ownership Act 2017

passed since delivery of the amendment and notice, and that the declarant has made no written objection;

and

(2) An affidavit by the executive board that at least 30 days before recordation of the

amendment a copy of the amendment was sent with a notice of the amendment sent to each unit owner as

required for notices pursuant to this chapter.

(iii) An amendment under this section is entitled to be recorded and is effective upon recordation

if accompanied by the supporting documents required by this section.

(k) During the time that the declarant has an interest, the declaration, bylaws or plat may be amended

by declarant in order to achieve compliance with the requirements of Federal National Mortgage

Association, Federal Home Loan Mortgage Corporation, Federal Housing Authority, Veterans

Administration or other governmental agency or their successors.

(l) During the time that the declarant has an interest, the declaration, bylaws or plat may be amended

by declarant to conform the same to be consistent with the provisions required or allowed by this chapter.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 33-36, 82.;

§ 81-218. Termination of common interest community.

(a) Except in the case of a taking of all the units by eminent domain or in the case of foreclosure against

an entire cooperative of a security interest that has priority over the declaration, a common interest

community may be terminated only by agreement of unit owners of units to which at least 80 percent of

the votes in the association are allocated, or any larger percentage the declaration specifies. The

declaration may specify a smaller percentage only if all of the units are restricted exclusively to

nonresidential uses.

(b) An agreement to terminate must be evidenced by the execution of a termination agreement, or

ratifications thereof, in the same manner as a deed, by the requisite number of unit owners. The

termination agreement must specify a date after which the agreement will be void unless it is recorded

before that date. A termination agreement and all ratifications thereof must be recorded in every county

in which a portion of the common interest community is situated and is effective only upon recordation.

boundaries described in the declaration, a termination agreement may provide that all of the common

elements and units of the common interest community must be sold following termination. If, pursuant to

the agreement, any real estate in the common interest community is to be sold following termination, the

termination agreement must set forth the minimum terms of the sale.

(d) In the case of a condominium or planned community containing any units not having horizontal

boundaries described in the declaration, a termination agreement may provide for sale of the common

elements, but it may not require that the units be sold following termination, unless the declaration as

originally recorded provided otherwise or all the unit owners consent to the sale.

(e) The association, on behalf of the unit owners, may contract for the sale of real estate in a common

interest community, but the contract is not binding on the unit owners until approved pursuant to

subsections (a) and (b) of this section. If any real estate is to be sold following termination, title to that

real estate, upon termination, vests in the association as trustee for the holders of all interests in the

units. Thereafter, the association has all powers necessary and appropriate to effect the sale. Until the

sale has been concluded and the proceeds thereof distributed, the association continues in existence with

all powers it had before termination. Proceeds of the sale must be distributed to unit owners and lien

holders as their interests may appear, in accordance with subsections (h), (i), and (j) of this section. Unless

otherwise specified in the termination agreement, as long as the association holds title to the real estate,

each unit owner and the unit owner's successors in interest have an exclusive right to occupancy of the

portion of the real estate that formerly constituted the unit. During the period of that occupancy, each

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unit owner and the unit owner's successors in interest remain liable for all assessments and other

obligations imposed on unit owners by this chapter or the declaration.

(f) In a condominium or planned community, if the real estate constituting the common interest

community is not to be sold following termination, title to the common elements and, in a common interest

community containing only units having horizontal boundaries described in the declaration, title to all the

real estate in the common interest community, vests in the unit owners upon termination as tenants in

common in proportion to their respective interests as provided in subsection (j) of this section, and liens on

the units shift accordingly. While the tenancy in common exists, each unit owner and the unit owner's

successors in interest have an exclusive right to occupancy of the portion of the real estate that formerly

constituted the unit.

(g) Following termination of the common interest community, the proceeds of any sale of real estate,

together with the assets of the association, are held by the association as trustee for unit owners and

holders of liens on the units as their interests may appear.

(h) Following termination of a condominium or planned community, creditors of the association holding

liens on the units, which were recorded or judgments docketed before termination, may enforce those liens

in the same manner as any lien holder. All other creditors of the association are to be treated as if they

had perfected liens on the units immediately before termination.

(i) In a cooperative, the declaration may provide that all creditors of the association have priority over

any interests of unit owners and creditors of unit owners. In that event, following termination, creditors of

the association holding liens on the cooperative which were recorded or judgments docketed before

termination may enforce their liens in the same manner as any lien holder, and any other creditor of the

association is to be treated as if the creditor had perfected a lien against the cooperative immediately

before termination. Unless the declaration provides that all creditors of the association have that priority:

(1) The lien of each creditor of the association which was perfected against the association before

termination becomes, upon termination, a lien against each unit owner's interest in the unit as of the date

the lien was perfected;

(2) Any other creditor of the association is to be treated upon termination as if the creditor had

perfected a lien against each unit owner's interest immediately before termination;

(3) The amount of the lien of an association's creditor described in paragraphs (i)(1) and (i)(2) of

this section against each of the unit owners' interest must be proportionate to the ratio which each unit's

common expense liability bears to the common expense liability of all of the units;

(4) The lien of each creditor of each unit owner which was perfected before termination continues

as a lien against that unit owner's unit as of the date the lien was perfected; and

(5) The assets of the association must be distributed to all unit owners and all lien holders as

their interests may appear in the order described above. Creditors of the association are not entitled to

payment from any unit owner in excess of the amount of the creditor's lien against that unit owner's

interest.

(j) The respective interests of unit owners referred to in subsections (e), (f), (g), (h), and (i) of this

section are as follows:

(1) Except as provided in paragraph (j)(2) of this section, the respective interests of unit owners

are the fair market values of their units, allocated interests, and any limited common elements

immediately before the termination, as determined by one or more independent appraisers selected by the

association. The decision of the independent appraisers must be distributed to the unit owners and

becomes final unless disapproved within 30 days after distribution by unit owners of units to which 25

percent of the votes in the association are allocated. The proportion of any unit owner's interest to that of

all unit owners is determined by dividing the fair market value of that unit owner's unit and its allocated

interests by the total fair market values of all the units and their allocated interests.

Delaware Uniform Common Interest Ownership Act 2017

(2) If any unit or any limited common element is destroyed to the extent that an appraisal of the

fair market value thereof before destruction cannot be made, the interests of all unit owners are: (i) in a

condominium, their respective common element interests immediately before the termination, (ii) in a

cooperative, their respective ownership interests immediately before the termination, and (iii) in a

planned community, their respective common expense liabilities immediately before the termination.

(k) In a condominium or planned community, except as provided in subsection (l) of this section,

foreclosure or enforcement of a lien or encumbrance against the entire common interest community does

not terminate, of itself, the common interest community, and foreclosure or enforcement of a lien or

encumbrance against a portion of the common interest community, other than withdrawable real estate,

does not withdraw that portion from the common interest community. Foreclosure or enforcement of a lien

or encumbrance against withdrawable real estate, or against common elements that have been subjected

to a security interest by the association under § 81-312 of this title, does not withdraw, of itself, that real

estate from the common interest community, but the person taking title thereto may require from the

association, upon request, an amendment excluding the real estate from the common interest community.

(l) In a condominium or planned community, if a lien or encumbrance against a portion of the real

estate comprising the common interest community has priority over the declaration and the lien or

encumbrance has not been partially released, the parties foreclosing the lien or encumbrance, upon

foreclosure, may record an instrument excluding the real estate subject to that lien or encumbrance from

the common interest community.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-219. Rights of secured lenders.

(a) The declaration may require that all or a specified number or percentage of the lenders who hold

security interests encumbering the units or who have extended credit to the association approve specified

actions of the unit owners or the association as a condition to the effectiveness of those actions, but no

requirement for approval may operate to: (i) deny or delegate control over the general administrative

affairs of the association by the unit owners or the executive board, or (ii) prevent the association or the

executive board from commencing, intervening in, or settling any litigation or proceeding, or (iii) prevent

any insurance trustee or the association from receiving and distributing any insurance proceeds except

pursuant to § 81-313 of this title.

(b) A lender who has extended credit to an association secured by an assignment of income or an

encumbrance on the common elements may enforce its security agreement in accordance with its terms,

subject to the requirements of this chapter and other law. Requirements that the association must deposit

its periodic common charges before default with the lender to which the association's income has been

assigned, or increase its common charges at the lender's direction by amounts reasonably necessary to

amortize the loan in accordance with its terms, do not violate the prohibitions on lender approval

contained in subsection (a) of this section.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-220. Master associations.

(a) If the declaration provides that any of the powers described in § 81-302 of this title are to be

exercised by or may be delegated to a profit or nonprofit corporation that exercises those or other powers

on behalf of one or more common interest communities or for the benefit of the unit owners of 1 or more

common interest communities, all provisions of this chapter applicable to unit owners' associations apply

to any such corporation, except as modified by this section.

(b) Unless it is acting in the capacity of an association described in § 81-301 of this title, a master

association may exercise the powers set forth in § 81-302(a)(2) of this title only to the extent expressly

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permitted in the declarations of common interest communities which are part of the master association or

expressly described in the delegations of power from those common interest communities to the master

association.

delegate certain powers to a master association, the members of the executive board have no liability for

the acts or omissions of the master association with respect to those powers following delegation.

(d) The rights and responsibilities of unit owners with respect to the unit owners' association set forth

in §§ 81-303, 81-308, 81-309, 81-310, and 81-312 of this title apply in the conduct of the affairs of a master

association only to persons who elect the board of a master association, whether or not those persons are

otherwise unit owners within the meaning of this chapter.

(e) Even if a master association is also an association described in § 81-301 of this title, the certificate

of incorporation or other instrument creating the master association and the declaration of each common

interest community, the powers of which are assigned by the declaration or delegated to the master

association, may provide that the executive board of the master association must be elected after the

period of declarant control in any of the following ways:

(1) All unit owners of all common interest communities subject to the master association may

elect all members of the master association's executive board.

(2) All members of the executive boards of all common interest communities subject to the master

association may elect all members of the master association's executive board.

(3) All unit owners of each common interest community subject to the master association may

elect specified members of the master association's executive board.

(4) All members of the executive board of each common interest community subject to the master

association may elect specified members of the master association's executive board.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-221. Merger or consolidation of common interest communities.

(a) Any 2 or more common interest communities of the same form of ownership, by agreement of the

unit owners as provided in subsection (b) of this section, may be merged or consolidated into a single

common interest community. In the event of a merger or consolidation, unless the agreement otherwise

provides, the resultant common interest community is the legal successor, for all purposes, of all of the

pre-existing common interest communities, and the operations and activities of all associations of the pre-

existing common interest communities are merged or consolidated into a single association that holds all

powers, rights, obligations, assets, and liabilities of all preexisting associations.

(b) An agreement of 2 or more common interest communities to merge or consolidate pursuant to

subsection (a) of this section must be evidenced by an agreement prepared, executed, recorded, and

certified by the president of the association of each of the preexisting common interest communities

following approval by owners of units to which are allocated the percentage of votes in each common

interest community required to terminate that common interest community. The agreement must be

recorded in every county in which a portion of the common interest community is located and is not

effective until recorded.

in the new association among the units of the resultant common interest community either: (i) by stating

the reallocations or the formulas upon which they are based or (ii) by stating the percentage of overall

allocated interests of the new common interest community which are allocated to all of the units

comprising each of the preexisting common interest communities, and providing that the portion of the

percentages allocated to each unit formerly comprising a part of the pre-existing common interest

Delaware Uniform Common Interest Ownership Act 2017

community must be equal to the percentages of allocated interests allocated to that unit by the declaration

of the preexisting common interest community.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-222. Addition of unspecified real estate.

In a planned community, if the right is originally reserved in the declaration, the declarant in addition to

any other development right, may amend the declaration at any time during as many years as are

specified in the declaration for adding additional real estate to the planned community without describing

the location of that real estate in the original declaration; but, the amount of real estate added to the

planned community pursuant to this section may not exceed 10 percent of the real estate described in §

81-205(a)(3) of this title and the declarant may not in any event increase the number of units in the

planned community beyond the number stated in the original declaration pursuant to § 81-205(a)(5) of

this title.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-223. Master planned communities.

(a) The declaration for a common interest community may state that it is a master planned community

if the declarant has reserved the development right to create at least 400 units that may be used for

residential purposes, and at the time of the reservation that declarant owns or controls more than 400

acres on which the units may be built.

(b) If the requirements of subsection (a) of this section are satisfied, the declaration for the master

planned community need not state a maximum number of units and need not contain any of the

information required by § 81-205(a)(3) through (14) of this title until the declaration is amended under

subsection (c) of this section.

contain: (i) a sufficient legal description of the unit and all portions of the master planned community in

which any other units have been conveyed to a purchaser; and (ii) all the information required by § 81-

205(a)(3) through (14) of this title with respect to that real estate.

(d) The only real estate in a master planned community which is subject to this chapter is units that

have been declared or which are being offered for sale and any other real estate described pursuant to

subsection (c) of this section. Other real estate that is or may become part of the master planned

community is only subject to other law and to any other restrictions and limitations that appear of record.

(e) If the public offering statement conspicuously identifies the fact that the community is a master

planned community, the disclosure requirements contained in subchapter IV of this chapter apply only

with respect to units that have been declared or are being offered for sale in connection with the public

offering statement and to the real estate described pursuant to subsection (c) of this section.

(f) Limitations in this chapter on the addition of unspecified real estate do not apply to a master

planned community.

(g) The period of declarant control of the association for a master planned community terminates in

accordance with any conditions specified in the declaration or otherwise at the time the declarant, in a

recorded instrument and after giving written notice to all the unit owners, voluntarily surrenders all

rights to control the activities of the association.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

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§ 81-224. Other exempt real estate arrangements.

(a) An agreement between two or more common interest communities to share the costs of real estate

taxes, insurance premiums, services, maintenance or improvements of real estate or other activities

specified in their agreement or declarations does not create a separate common interest community unless

the cost sharing agreement was intended to evade the limitations of this chapter. If the declarants of those

common interest communities are affiliates, the agreement may not unreasonably allocate the costs

among those common interest communities.

(b) An agreement between an association for a common interest community and the owner of real

estate that is not part of that common interest community to share the costs of real estate taxes,

insurance premiums, services, maintenance or improvements of real estate or other activities specified in

their agreement does not create a separate common interest community so long as the assessments

against the units in the common interest community are included in the periodic budget for the common

interest community and are subject to unit owner approval under § 81-324 of this title.

a common law party wall, shared driveway or shared well does not create a common interest community.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-225. Termination following catastrophe.

If substantially all the units in a common interest community have been destroyed or are uninhabitable

and the available methods for giving notice for a meeting of unit owners to consider termination under §

81-218 of this title will not likely result in receipt of the notice, the executive board or any other interested

person may commence an action in the Court of Chancery of the State of Delaware seeking to terminate

the common interest community. During the pendency of the action, the Court may enter whatever orders

it considers appropriate, including appointment of a receiver. After a hearing, the court may terminate the

common interest community or reduce its size and may enter into any other order the court considers to

be in the best interest of the unit owners and persons holding an interest in the common interest

community.

77 Del. Laws, c. 91, § 37.;

Subchapter III. Management of the Common Interest Community

§ 81-301. Organization of unit owners' association.

A unit owners' association must be organized no later than the date the first unit in the common interest

community is conveyed. The association must have an executive board and the membership of the

association at all times consists exclusively of all unit owners or, following termination of the common

interest community, of all former unit owners entitled to distributions of proceeds under § 81-218 of this

title or their heirs, successors, or assigns. The association may be organized as a profit or nonprofit

unincorporated association, corporation, trust, limited liability company or other lawful form of legal

entity authorized by the laws of this State.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

Delaware Uniform Common Interest Ownership Act 2017

§ 81-302. Powers of unit owners' association.

(a) Except as otherwise provided in subsection (b) of this section and other provisions of this chapter, the

association:

(1) Must adopt and may amend recorded bylaws consistent with § 81-306 of this title and may

adopt rules consistent with § 81-320 of this title;

(2) Must adopt and may amend budgets pursuant to § 81-324 of this title and collect assessments

for common expenses, including funds for the repair and replacement reserve, from unit owners and may

invest any funds of the association;

(3) May hire and discharge managing agents and other employees, agents, and independent

contractors;

(4) May institute, defend, or intervene in litigation, arbitration, mediation or administrative

proceedings in its own name on behalf of itself or 2 or more unit owners on matters affecting the common

interest community subject to, in the case of litigation involving the declarant, the provisions of § 81-321

of this title;

(5) May make contracts and incur liabilities;

(6) May regulate the use, maintenance, repair, replacement, and modification of common

elements;

(7) May cause additional improvements to be made as a part of the common elements;

(8) May acquire, hold, encumber, and convey in its own name any right, title, or interest to real

estate or personal property, but: (i) common elements in a condominium or planned community may be

conveyed or subjected to a security interest only pursuant to § 81-312 of this title and (ii) part of a

cooperative may be conveyed, or all or part of a cooperative may be subjected to a security interest, only

pursuant to § 81-312 of this title;

(9) May grant easements, leases, licenses, and concessions through or over the common elements;

(10) May impose and receive any payments, fees, or charges for the use, rental, or operation of the

common elements, other than limited common elements described in § 81-202(b) and (d) of this title, and

for services provided to unit owners;

(11) May suspend any privileges of unit owners, other than the right of a unit owner to vote on any

matter submitted to a vote of unit owners, or services provided to unit owners by the association (other

than those necessary for the habitability of the owner's unit) for non-payment of assessments; may impose

charges for late payment of assessments; and, after notice and an opportunity to be heard, may levy

reasonable fines for violations of the declaration, bylaws and rules of the association;

(12) May impose reasonable charges for the preparation and recordation of amendments to the

declaration, resale certificates required by § 81-409 of this title, or statements of unpaid assessments;

(13) May provide for the indemnification of its officers and executive board and maintain directors'

and officers' liability insurance;

(14) May assign its right to future income, including the right to receive common expense

assessments, except to the extent limited by the declaration;

(15) May exercise any other powers conferred by the declaration or bylaws;

(16) May exercise all other powers that may be exercised in this State by legal entities of the same

type as the association;

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(17) May exercise any other powers necessary and proper for the governance and operation of the

association; and

(18) By rule, may require that disputes between the executive board and unit owners or between

two or more unit owners regarding the common interest community be submitted to nonbinding

alternative dispute resolution in the manner described in the rule as a prerequisite to commencement of a

judicial proceeding.

(b) The declaration may not impose limitations on the power of the association to:

(1) Deal with the declarant which are more restrictive than the limitations imposed on the power

of the association to deal with other persons; or

(2) Commence litigation, arbitration, mediation or administrative proceedings against any

person, but: (A) the association must comply with § 81-321 of this title, if applicable, before commencing

any proceeding against any person in connection with construction defects; and (B) the executive board

shall promptly provide notice to the unit owners of any litigation filed by or against the association other

than a proceeding involving enforcement of rules and claims for assessments.

exercising any of its powers against the unit owner, the association may:

(1) Exercise directly against the tenant the powers described in paragraph (a)(11) of this section;

(2) After giving notice to the tenant and the unit owner and an opportunity to be heard, levy

reasonable fines against the tenant for the violation; and

(3) Require, as a means of collecting a fine or past due association fee due from the tenant (and

not the unit owner), that the tenant make payments directly to the association in the amount of the rent

up to the limit of the amount owed the association.

(4) Enforce any other rights against the tenant for the violation which the unit owner as landlord

could lawfully have exercised under the lease or which the association could lawfully have exercised

directly against the unit owner, or both.

(d) The rights referred to in paragraph (c)(3) of this section may only be exercised if the tenant or unit

owner fails to cure the violation within 10 days after the association notifies the tenant and unit owner of

that violation.

(e) Unless a lease otherwise provides, this section does not:

(1) Affect rights that the unit owner has to enforce the lease or that the association has under

other law; or

(2) Permit the association to enforce a lease to which it is not a party in the absence of a violation

of the declaration, bylaws or rules.

(f) The executive board shall use its reasonable judgment to determine whether to exercise the

association's powers to impose sanctions and pursue legal action for violations of the declaration, bylaws

and rules including, without limitation, whether to compromise any claim made by or against it, including

claims for unpaid assessments. The association shall have no duty to take enforcement action if the

executive board, acting in good faith and without a conflict of interest, determines that, under the facts

and circumstances presented: (i) the association's legal position does not justify taking any or further

enforcement action; (ii) the covenant, restriction, or rule being enforced is, or is likely to be construed as,

inconsistent with current law; (iii) although a technical violation may exist or may have occurred, it is not

of such a material nature as to be objectionable to a reasonable person or to justify expending the

association's resources; or (iv) it is not in the association's best interests, based upon hardship, expense, or

other reasonable criteria, to pursue an enforcement action. The executive board's decision not to pursue

enforcement under one set of circumstances does not prevent the association from later taking

Delaware Uniform Common Interest Ownership Act 2017

enforcement action under another set of circumstances, except the executive board may not be arbitrary or

capricious in taking enforcement action. Whether the association's course of performance with respect to

enforcement of any provision of the declaration, bylaws and rules constitutes a waiver or modification of

that provision is not affected by this chapter.

(g) The association may compromise any claim made by or against it, including claims for unpaid

assessments.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 38-40, 82.;

§ 81-303. Executive board members and officers.

(a) The declaration must create an executive board. Except as provided in the declaration, the bylaws,

subsection (b) of this section, or other provisions of this chapter, the executive board may act in all

instances on behalf of the association. In the performance of their duties, officers and members of the

executive board appointed by the declarant shall exercise the degree of care and loyalty to the association

required of an officer or director of a corporation organized under Delaware law. Officers and members of

the executive board not appointed by the declarant shall exercise the degree of care and loyalty required of

an officer or director of a nonprofit corporation organized under Delaware law. The standards of care and

loyalty described in this section apply regardless of the form of legal entity in which the association is

organized.

(b) The executive board may not act on behalf of the association to amend the declaration or the bylaws,

to terminate the common interest community, or to elect members of the executive board or determine the

qualifications, powers and duties, or terms of office of executive board members, but the executive board

may fill vacancies in its membership for the unexpired portion of any term.

of the association, during which a declarant, or persons designated by the declarant, may appoint and

remove the officers and members of the executive board. Regardless of the period provided in the

declaration, and except as provided in § 81-223(g) of this title, a period of declarant control terminates no

later than the earlier of: (i) except as to a nonresidential common interest community, 60 days after

conveyance of 75 percent of the units that may be created to unit owners other than a declarant; (ii) as to

units for residential purposes, 2 years after all declarants have ceased to offer units for residential

purposes for sale in the ordinary course of business; (iii) as to units for residential purposes, 2 years after

any right to add new units for residential purposes was last exercised; (iv) as to a common interest

community other than a condominium or cooperative, at such time as may be required by other applicable

laws; or (v) as to nonresidential units in a common interest community that is subject to this chapter, 7

years after all declarants have ceased to offer nonresidential units for sale in the ordinary course of

business; (vi) as to nonresidential units in a common interest community that is subject to this chapter, 7

years after any right to add new nonresidential units was last exercised; or (vii) the day the declarant,

after giving written notice to unit owners, records an instrument voluntarily surrendering all rights to

control activities of the association. A declarant may voluntarily surrender the right to appoint and

remove officers and members of the executive board before termination of that period, but in that event

the declarant may require, for the duration of the period of declarant control, that specified actions of the

association or executive board, as described in a recorded instrument executed by the declarant, be

approved by the declarant before they become effective.

(d) Not later than 60 days after conveyance of 25 percent of the units that may be created to unit

owners other than a declarant, at least one member and not less than 25 percent of the members of the

executive board must be elected by unit owners other than the declarant. Not later than 60 days after

conveyance of 50 percent of the units that may be created to unit owners other than a declarant, not less

than 33 1/3 percent of the members of the executive board must be elected by unit owners other than the

declarant.

Whiteford, Taylor & Preston LLC

(e) Except as otherwise provided in §§ 81-220(e) and 81-303(f) of this title, not later than the

termination of any period of declarant control, the unit owners must elect an executive board of at least 3

members, at least a majority of whom must be unit owners. Unless the declaration provides for the

election of officers by the unit owners, the executive board shall appoint the officers. The executive board

members and officers shall take office upon election or appointment.

(f) The declaration may provide for the appointment of members of the executive board before or after

the period of declarant control and the method of filling vacancies in appointed memberships, rather than

election of those members by the unit owners. After the period of declarant control, such appointed

members:

(i) Shall not be appointed by the declarant or an affiliate of the declarant;

(ii) Shall not comprise more than 33 percent of the entire board; and

(iii) Have no greater authority than any other member of the executive board.

(g) Not later than the termination of any period of declarant control, the declarant shall provide at its

sole expense an audit of all expenditures made with funds collected from unit owners not affiliated with

the declarant together with a list of all items paid for out of association funds that specifically benefited

only the units owned by declarant and not the units generally. The audit shall be conducted by a certified

public accountant that is not an affiliate of declarant.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 41-43, 82.;

§ 81-304. Transfer of special declarant rights.

(a) A special declarant right created or reserved under this chapter may be transferred only by an

instrument evidencing the transfer recorded in every county in which any portion of the common interest

community is located. The instrument is not effective unless executed by the transferee.

(b) Upon transfer of any special declarant right, the liability of a transferor declarant is as follows:

(1) A transferor is not relieved of any obligation or liability arising before the transfer and

remains liable for warranty obligations imposed upon the transferor by this chapter. Lack of privity does

not deprive any unit owner of standing to maintain an action to enforce any obligation of the transferor.

(2) If a successor to any special declarant right is an affiliate of a declarant, the transferor is

jointly and severally liable with the successor for any obligations or liabilities of the successor relating to

the common interest community.

(3) If a transferor retains any special declarant rights, but transfers other special declarant

rights to a successor who is not an affiliate of the declarant, the transferor is liable for any obligations or

liabilities imposed on a declarant by this chapter or by the declaration relating to the retained special

declarant rights and arising after the transfer.

(4) A transferor has no liability for any act or omission or any breach of a contractual or warranty

obligation arising from the exercise of a special declarant right by a successor declarant who is not an

affiliate of the transferor.

security interest, in case of foreclosure of a security interest, sale by a trustee under an agreement

creating a security interest, tax sale, judicial sale, or sale under Bankruptcy Code [11 U.S.C. § 101 et seq.]

or receivership proceedings, of any units owned by a declarant or real estate in a common interest

community subject to development rights, a person acquiring title to all the property being foreclosed or

sold, but only upon such person's request, succeeds to all special declarant rights related to that property

held by that declarant, or only to any rights reserved in the declaration pursuant to § 81-215 of this title

Delaware Uniform Common Interest Ownership Act 2017

and held by that declarant to maintain models, sales offices, and signs. The judgment or instrument

conveying title must provide for transfer of only the special declarant rights requested.

(d) Upon foreclosure of a security interest, sale by a trustee under an agreement creating a security

interest, tax sale, judicial sale, or sale under Bankruptcy Code [11 U.S.C. § 101 et seq.] or receivership

proceedings, of all interests in a common interest community owned by a declarant:

(1) The declarant ceases to have any special declarant rights, and

(2) The period of declarant control (§ 81-303(d) of this title) terminates unless the judgment or

instrument conveying title provides for transfer of all special declarant rights held by that declarant to a

successor declarant.

(e) The liabilities and obligations of a person who succeeds to special declarant rights are as follows:

(1) A successor to any special declarant right who is an affiliate of a declarant is subject to all

obligations and liabilities imposed on the transferor by this chapter or by the declaration.

(2) A successor to any special declarant right, other than a successor described in paragraph

(e)(3) or (e)(4) of this section or a successor who is an affiliate of a declarant, is subject to the obligations

and liabilities imposed by this chapter or the declaration:

(i) On a declarant which relate to the successor's exercise or nonexercise of special

declarant rights; or

(ii) On the successor's transferor, other than:

(A) Misrepresentations by any previous declarant;

(B) Warranty obligations on improvements made by any previous declarant, or made

before the common interest community was created;

appointees to the executive board; or

(D) Any liability or obligation imposed on the transferor as a result of the transferor's

acts or omissions after the transfer.

(3) A successor to only a right reserved in the declaration to maintain models, sales offices, and

signs, may not exercise any other special declarant right, and is not subject to any liability or obligation as

a declarant, except the obligation to provide a public offering statement and any liability arising as a

result thereof.

(4) A successor to all special declarant rights held by a transferor who succeeded to those rights

pursuant to a deed or other instrument of conveyance in lieu of foreclosure or a judgment or instrument

conveying title under subsection (c) of this section, may declare in a recorded instrument the intention to

hold those rights solely for transfer to another person. Thereafter, until transferring all special declarant

rights to any person acquiring title to any unit or real estate subject to development rights owned by the

successor, or until recording an instrument permitting exercise of all those rights, that successor may not

exercise any of those rights other than any right held by that successor's transferor to control the

executive board in accordance with § 81-303(d) of this title for the duration of any period of declarant

control, and any attempted exercise of those rights is void. So long as a successor declarant may not

exercise special declarant rights under this subsection, the successor declarant is not subject to any

liability or obligation as a declarant other than liability for that successor declarant's acts and omissions

under § 81-303(d) of this title.

(f) Nothing in this section subjects any successor to a special declarant right to any claims against or

other obligations of a transferor declarant, other than claims and obligations arising under this chapter or

the declaration.

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76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-305. Termination of contracts and leases of declarant.

Except as provided in § 81-122 of this title, if entered into before the executive board elected by the unit

owners pursuant to § 81-303(f) of this title takes office: (i) any management contract, employment

contract, or lease of recreational or parking areas or facilities, (ii) any other contract or lease between the

association and a declarant or an affiliate of a declarant, or (iii) any contract or lease that is not bona fide

or was unconscionable to the unit owners at the time entered into under the circumstances then

prevailing, may be terminated without penalty by the association at any time after the executive board

elected by the unit owners pursuant to § 81-303(f) of this title takes office upon not less than 90 days'

notice to the other party. This section does not apply to: (i) any lease the termination of which would

terminate the common interest community or reduce its size, unless the real estate subject to that lease

was included in the common interest community for the purpose of avoiding the right of the association to

terminate a lease under this section, or (ii) a proprietary lease.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-306. Bylaws

(a) The bylaws of the association must provide for:

(1) The number of members of the executive board and the titles of the officers of the association;

(2) Election by the executive board, or if the declaration so requires by the unit owners, of a

president, treasurer, secretary, and any other officers of the association specified in the bylaws;

(3) The qualifications, powers and duties, terms of office, and manner of electing and removing

executive board members and officers and filling vacancies;

(4) Which of its powers the executive board or officers may delegate to other persons or to a

managing agent;

(5) Which of its officers may prepare, execute, certify, and record amendments to the declaration

on behalf of the association;

(6) For an association for a condominium or cooperative with more than 50 unit owners, an

independent audit by a licensed certified public accounting firm of the financial records of the association

to be performed no less frequently than once every 3 years and for each intervening year a review (instead

of a full audit) by an independent accountant which need not be conducted by a certified public accounting

firm, provided that where an association of fewer than 100 unit owners so decides by duly adopted

resolution, the audit requirement may be satisfied by a review (instead of a full audit) by an independent

accountant which need not be conducted by a certified public accounting firm;

(7) A method for amending the bylaws by the unit owners;

(8) Any provisions that may be necessary to satisfy requirements in this chapter or the

declaration concerning meetings, voting, quorums and other matters concerning the activities of the

association; and

(9) Any other matters required by the laws of this State to appear in the bylaws of legal entities

organized in the same manner as the association.

(b) (1) Subject to the provisions of the declaration, the bylaws may provide for any other matters the

association deems necessary and appropriate unless the declaration or this chapter requires that those

provisions appear in the declaration.

Delaware Uniform Common Interest Ownership Act 2017

(2) The bylaws of any condominium or cooperative common interest community may expressly

require that all unit owners designate the unit owners' association for such community as a third party to

receive notification of a termination of utility service under any third-party notification program

maintained by a gas or electricity utility pursuant to § 117(b) of Title 26.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 44, 82; 80 Del. Laws, c. 185, § 1.;

§ 81-307. Upkeep of common interest community.

(a) Except to the extent provided by the declaration, subsection (b) of this section, or § 81-313(h) of this

title, the association, through its executive board, is responsible for maintenance, repair, and replacement

of the common elements, and each unit owner is responsible for maintenance, repair, and replacement of

the unit owner's unit. Each unit owner shall afford to the association and the other unit owners, and to

their agents or employees, as designated by the executive board, access through the unit owner's unit

reasonably necessary for those purposes. If damage is inflicted on the common elements or on any unit

through which access is taken, the unit owner responsible for the damage, or the association if it is

responsible, is liable for the prompt repair thereof. Each unit owner is likewise responsible for the costs,

as determined by the association, associated with the maintenance, repair and replacement of limited

common elements appurtenant to the unit owner's unit or for the prorated expense if the limited common

element is associated with more than one unit. The executive board shall determine when and to what

extent such maintenance, repair and replacement shall be required.

(b) In addition to the liability that a declarant as a unit owner has under this chapter, the declarant

alone is liable for all expenses in connection with real estate subject to development rights. No other unit

owner and no other portion of the common interest community is subject to a claim for payment of those

expenses. Unless the declaration provides otherwise, any income or proceeds from real estate subject to

development rights inures to the declarant.

declarant remains liable for all expenses of that real estate unless, upon expiration, the declaration

provides that the real estate becomes common elements or units.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-308. Unit owner meetings.

A meeting of the association must be held at least once each year. Special meetings of the association may

be called by the president, a majority of the executive board, or by unit owners having at least 20 percent,

or any lower percentage specified in the bylaws, of the votes in the association. Except in cases of

emergency meetings, which may be held without prior notice, not fewer than 10 nor more than 60 days in

advance of any regular or special meeting of the unit owners, the secretary or other officer specified in the

bylaws shall cause notice of that meeting to be delivered to each unit owner by any means described in §

81-127 of this title or sent prepaid by United States mail to any mailing address designated in writing by

the unit owner. The notice of any meeting must state the time and place of the meeting and the items on

the agenda, or must state the website address where the agenda is located as provided in this section

including: (i) a statement of the general nature of any proposed amendment to the declaration or bylaws;

(ii) a statement that in the absence of objection from any unit owner present at the meeting, the president

may add items to the agenda; (iii) any budget changes; and (iv) any proposal to remove an officer or

member of the executive board. The agenda may be posted on the website of the association, in lieu of

being included in the notice, provided that the association shall, by any means described in § 81-127 of

this title, furnish to any unit owner who so requests a copy of the agenda prior to the meeting. Regardless

of the agenda, unit owners shall be given a reasonable opportunity at any meeting to offer comments to

the executive board regarding any matter affecting the common interest community. If the association

does not notify unit owners of a special meeting within 30 days after the requisite number or percentage of

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unit owners requested the secretary to do so, the requesting members may directly notify all the unit

owners of that meeting. Only matters described in the meeting notice required by this section may be

considered at a special meeting.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 45, 82.;

§ 81-308A. Executive board meeting.

(a) A meeting of the executive board must be held at least quarterly. Special meetings of the executive

board may be called by the president or a majority of the executive board. For purposes of this section,

"meetings of the executive board" do not include incidental or other informal gatherings of 2 or more

directors for social or other purposes or any meetings where no decisions are made or discussed regarding

association business. The executive board and individual directors shall not use incidental or social

gatherings of directors or other devices to evade the open meeting requirements of this section.

(b) Except when a schedule of meetings has been distributed to unit owners that identifies the meeting

in question or in cases of emergency meetings that may be held without prior notice, the secretary or other

officer specified in the bylaws shall cause notice of any regular or special executive board meeting to be

delivered to each unit owner by any means described in § 81-127 of this title not fewer than 10 nor more

than 60 days in advance of the meeting (but not later than the time notice of the meeting is sent to

members of the executive board). The notice must state the time and place of the meeting and the items

on the agenda, including an opportunity for unit owners to offer comments to the executive board

regarding any matter affecting the common interest community.

unit owners except for executive sessions held for purposes of: (i) consulting with the association's lawyer

regarding, or board discussion of, litigation, mediation, arbitration or administrative proceedings or any

contract matters; (ii) labor or personnel matters; (iii) discuss matters relating to contract negotiations,

including the review of bids or proposals, if premature general knowledge of those matters would place the

association at a disadvantage; or (iv) discussion of any complaint from or alleged violation by a unit

owner, when the executive board determines that public knowledge would violate the privacy of the unit

owner.

(d) If any materials are distributed to the executive board before the meeting, the association shall at

the same time make copies of those materials reasonably available to unit owners, except that the

association need not distribute copies of unapproved minutes or materials that are to be considered in

executive session.

(e) Unless the declaration or bylaws otherwise provide, the executive board may meet in a telephonic or

video conference call or interactive electronic communication process provided that:

(1) The meeting notice must indicate that the meeting is to be a telephonic, video or other

conference and, if not a meeting in executive session, provide information as to how unit owners may

participate in the conference directly or by meeting at a central location or conference connection; and

(2) The process must provide all unit owners the opportunity to hear the discussion and offer

comments as provided in subsection (b) of this section. After termination of the period of declarant control,

unit owners may amend the bylaws to vary the procedures for conference calls described in this

subsection.

(f) After termination of the period of declarant control, in lieu of a meeting, the executive board may

act by unanimous consent as documented in a record signed by all its members, but the executive board

may not act by unanimous consent to: (i) adopt a rule, budget or special assessment, (ii) impose a fine or

take action to enforce the declaration, bylaws or rules, (iii) buy or sell real property, (iv) borrow money, or

(v) contract for any sum greater than 1 percent of the association 's annual budget. The secretary shall

promptly notify all unit owners of any action taken by unanimous consent.

Delaware Uniform Common Interest Ownership Act 2017

(g) Notwithstanding compliance with this section, an action by the executive board is valid unless set

aside by a court in an action brought pursuant to § 81-417 of this title. A challenge to the validity of an

action of the executive board for failure to comply with this section may not be brought more than 60 days

after the minutes of the executive board of the meeting at which the action was taken are approved or

after the record of that action is distributed to unit owners. Actions taken at an executive board meeting

in violation of this section are voidable by the court but a contract entered into with a third party who had

no knowledge of that failure is not invalid solely because of the board's failure to give notice of the meeting

at which the contract was approved.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 46, 47, 82.;

§ 81-309. Quorums.

(a) Unless the bylaws provide otherwise, a quorum is present throughout any meeting of the

association if:

(1) Persons entitled to cast at least 20 percent of the votes in the association are present in

person, by proxy or by ballot at the beginning of the meeting, provided that at least 25 percent of the unit

owners not related to the declarant are present; or

(2) Ballots solicited in accordance with § 81-310(f) of this title are delivered to the secretary in a

timely manner by persons who, together with those persons present in person or by proxy or ballot at the

beginning of the meeting, would comprise a quorum for that meeting.

(b) Unless the bylaws provide otherwise, a quorum is present throughout any meeting of the executive

board if persons entitled to cast a majority of the votes on that board are present throughout the meeting.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-310. Voting; proxies.

(a) If only 1 of several owners of a unit is present at a meeting of the association, that owner is entitled

to cast all the votes allocated to that unit. If more than 1 of the owners is present, the votes allocated to

that unit may be cast only in accordance with the agreement of a majority in interest of the owners, unless

the declaration expressly provides otherwise. There is majority agreement if any 1 of the owners casts the

votes allocated to that unit without protest being made promptly to the person presiding over the meeting

by any of the other owners of the unit.

(b) Votes allocated to a unit may be cast pursuant to a proxy duly executed by a unit owner. If a unit is

owned by more than 1 person, each owner of the unit may vote or register protest to the casting of votes by

the other owners of the unit through a duly executed proxy. A unit owner may revoke a proxy given

pursuant to this section only by actual notice of revocation to the person presiding over a meeting of the

association. A proxy is void if it is not dated or purports to be revocable without notice. A proxy terminates

1 year after its date, unless it specifies a shorter term.

be cast by lessees rather than unit owners of leased units: (i) the provisions of subsections (a) and (b) of

this section apply to lessees as if they were unit owners; (ii) unit owners who have leased their units to

other persons may not cast votes on those specified matters; and (iii) lessees are entitled to notice of

meetings, access to records, and other rights respecting those matters as if they were unit owners. Unit

owners must also be given notice, in the manner provided in § 81-308 of this title, of all meetings at which

lessees are entitled to vote.

(d) Votes allocated to a unit owned by the association may not be cast and shall not be calculated either

in a quorum or in any percentage of unit votes needed for any action by the unit owners.

Whiteford, Taylor & Preston LLC

(e) Except in cases where a greater percentage of unit votes in the association is required by this

chapter or the declaration, a majority of the votes cast in person, by proxy or by ballot at a meeting of unit

owners where a quorum is present shall determine the outcome of any action of the association where a

vote is taken so long as the number of votes cast in favor comprise at least a majority of the number of

votes required for a quorum for that meeting.

(f) Action may be taken by ballot without a meeting as follows:

(1) Unless prohibited or limited by the declaration or bylaws, any action that the association may

take at any meeting of members may be taken without a meeting if the association delivers a written or

electronic ballot to every member entitled to vote on the matter. A ballot shall set forth each proposed

action and provide an opportunity to vote for or against each proposed action.

(2) All solicitations for votes by ballot must: (A) indicate the number of responses needed to meet

the quorum requirements; (B) state the percentage of approvals necessary to approve each matter other

than election of directors; (C) specify the time by which a ballot must be delivered to the association in

order to be counted, which time shall not be less than 3 days after the date that the association delivers

the ballot; and (D) describe procedures (including time and size and manner) by when unit owners

wishing to deliver information to all unit owners regarding the subject of the vote may do so.

(3) Approval by the ballot pursuant to this section is valid only if: (A) the number of votes cast by

ballot equals or exceeds the quorum required to be present at a meeting authorizing the action; and (B)

the number of approvals equals or exceeds the number of votes that would be required to approve the

matter at a meeting at which the total number of votes cast was the same as the number of votes by

ballot.

(4) Except as otherwise provided in the declaration or bylaws, a ballot shall not be revoked after

delivery to the association by death, disability or revocation by the person who cast that vote.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-311. Tort and contract liability; tolling of limitation period.

(a) A unit owner is not liable, solely by reason of being a unit owner, for an injury or damage arising

out of the condition or use of the common elements. Neither the association nor any unit owner except the

declarant is liable for that declarant's torts in connection with any part of the common interest community

which that declarant has the responsibility to maintain.

(b) An action alleging a wrong done by the association, including an action arising out of the condition

or use of the common elements, may be maintained only against the association and not against any unit

owner. If the wrong occurred during any period of declarant control and the association gives the

declarant reasonable notice of and an opportunity to defend against the action, the declarant who then

controlled the association is liable to the association or to any unit owner for: (i) all tort losses not covered

by insurance suffered by the association or that unit owner, and (ii) all costs that the association would

not have incurred but for a breach of contract or other wrongful act or omission. Whenever the declarant

is liable to the association under this section, the declarant is also liable for all expenses of litigation,

including reasonable attorney's fees, incurred by the association.

limitation affecting the association's right of action against a declarant under this chapter is tolled until

the period of declarant control terminates. A unit owner is not precluded from maintaining an action

contemplated by this section because that person is a unit owner or a member or officer of the association.

Liens resulting from judgments against the association are governed by § 81-317 of this title.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

Delaware Uniform Common Interest Ownership Act 2017

§ 81-312. Conveyance or encumbrance of common elements.

(a) In a condominium or planned community, portions of the common elements may be conveyed or

subjected to a security interest by the association if persons entitled to cast at least 80 percent of the votes

in the association, including 80 percent of the votes allocated to units not owned by a declarant, or any

larger percentage the declaration specifies, agree to that action; but all owners of units to which any

limited common element is allocated must agree in order to convey that limited common element or

subject it to a security interest. The declaration may specify a smaller percentage only if all of the units

are restricted exclusively to nonresidential uses. Proceeds of the sale are an asset of the association, but

the proceeds of the sale of limited common elements must be distributed equitably among the owners of

units to which the limited common elements were allocated.

(b) Part of a cooperative may be conveyed and all or part of a cooperative may be subjected to a security

interest by the association if persons entitled to cast at least 80 percent of the votes in the association,

including 80 percent of the votes allocated to units not owned by a declarant, or any larger percentage the

declaration specifies, agree to that action; but, if fewer than all of the units or limited common elements

are to be conveyed or subjected to a security interest, then all unit owners of those units, or the units to

which those limited common elements are allocated, must agree in order to convey those units or limited

common elements or subject them to a security interest. The declaration may specify a smaller percentage

only if all of the units are restricted exclusively to nonresidential uses. Proceeds of the sale are an asset of

the association. Any purported conveyance or other voluntary transfer of an entire cooperative, unless

made pursuant to § 81-218 of this title, is void.

them to a security interest, or in a cooperative, an agreement to convey any part of a cooperative or

subject it to a security interest, must be evidenced by the execution of an agreement, or ratifications

thereof, in the same manner as a deed, by the requisite number of unit owners. The agreement must

specify a date after which the agreement will be void unless recorded before that date. The agreement and

all ratifications thereof must be recorded in every county in which a portion of the common interest

community is situated, and is effective only upon recordation.

(d) The association, on behalf of the unit owners, may contract to convey an interest in a common

interest community pursuant to subsection (a) of this section, but the contract is not enforceable against

the association until approved pursuant to subsections (a), (b), and (c) of this section. Thereafter, the

association has all powers necessary and appropriate to effect the conveyance or encumbrance, including

the power to execute deeds or other instruments.

(e) Unless made pursuant to this section, any purported conveyance, encumbrance, judicial sale, or

other voluntary transfer of common elements or of any other part of a cooperative is void.

(f) A conveyance or encumbrance of common elements or of a cooperative pursuant to this section does

not deprive any unit of its rights of access and support.

(g) Unless the declaration otherwise provides, if the holders of first security interests on 80 percent of

the units that are subject to security interests on the day the unit owners' agreement under subsection (c)

of this section is recorded consent in writing:

(1) A conveyance of common elements pursuant to this section terminates both the undivided

interests in those common elements allocated to the units and the security interests in those undivided

interests held by all persons holding security interests in the units; and

(2) An encumbrance of common elements pursuant to this section has priority over all

preexisting encumbrances on the undivided interests in those common elements held by all persons

holding security interests in the units.

(h) The consents by holders of first security interests on units described in subsection (g) of this section,

or a certificate of the secretary affirming that those consents have been received by the association, may

be recorded at any time before the date on which the agreement under subsection (c) of this section

Whiteford, Taylor & Preston LLC

becomes void. Consents or certificates so recorded are valid from the date they are recorded for purposes of

calculating the percentage of consenting first security interest holders, regardless of later sales or

encumbrances on those units. Even if the required percentage of first security interest holders so consent,

a conveyance or encumbrance of common elements does not affect interests having priority over the

declaration, or created by the association after the declaration was recorded.

(i) In a cooperative, the association may acquire, hold, encumber, or convey a proprietary lease without

complying with this section.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-313. Insurance.

(a) Commencing not later than the time of the first conveyance of a unit to a person other than a

declarant, the association shall maintain, to the extent reasonably available:

(1) Property insurance on the common elements and, in a planned community, also on property

that must become common elements, insuring against all risks of direct physical loss commonly insured

against or, in the case of a conversion building, against fire and extended coverage perils. The total

amount of insurance after application of any deductibles must be not less than 80 percent of the actual

cash value of the insured property at the time the insurance is purchased and at each renewal date,

exclusive of land, excavations, foundations, and other items normally excluded from property policies;

(2) Liability insurance, including medical payments insurance, in an amount determined by the

executive board but not less than any amount specified in the declaration, covering all occurrences

commonly insured against for death, bodily injury, and property damage arising out of or in connection

with the use, ownership, or maintenance of the common elements and, in cooperatives, also of all units;

and

(3) Fidelity insurance.

(b) In the case of a building that contains more than 1 unit having horizontal boundaries or vertical

boundaries that comprise common walls or other boundaries between units, the insurance maintained

under paragraph (a)(1) of this section, to the extent reasonably available, must include the units, but need

not include improvements and betterments installed by unit owners.

association promptly shall cause notice of that fact to be hand-delivered or sent prepaid by United States

mail to all unit owners. The declaration may require the association to carry any other insurance, and the

association in any event may carry any other insurance it considers appropriate to protect the association

or the unit owners.

(d) Insurance policies carried pursuant to subsections (a) and (b) of this section must provide that:

(1) Each unit owner is an insured person under the policy with respect to liability arising out of

such unit owner's interest in the common elements or membership in the association;

(2) The insurer waives its right to subrogation under the policy against any unit owner or

member of the unit owner's household;

(3) No act or omission by any unit owner, unless acting within the scope of the unit owner's

authority on behalf of the association, will void the policy or be a condition to recovery under the policy;

and

(4) If, at the time of a loss under the policy, there is other insurance in the name of a unit owner

covering the same risk covered by the policy, the association's policy provides primary insurance.

Delaware Uniform Common Interest Ownership Act 2017

(e) Any loss covered by the property policy under paragraph (a)(1) and subsection (b) of this section

must be adjusted with the association, but the insurance proceeds for that loss are payable to any

insurance trustee designated for that purpose, or otherwise to the association, and not to any holder of a

security interest. The insurance trustee or the association shall hold any insurance proceeds in trust for

the association, unit owners, and lien holders as their interests may appear. Subject to the provisions of

subsection (h) of this section, the proceeds must be disbursed first for the repair or restoration of the

damaged property, and the association, unit owners, and lien holders are not entitled to receive payment

of any portion of the proceeds unless there is a surplus of proceeds after the property has been completely

repaired or restored, or the common interest community is terminated.

(f) An insurance policy issued to the association does not prevent a unit owner from obtaining

insurance for the unit owner's own benefit.

(g) An insurer that has issued an insurance policy under this section shall issue certificates or

memoranda of insurance to the association and, upon written request, to any unit owner or holder of a

security interest. The insurer issuing the policy may not cancel or refuse to renew it until 30 days after

notice of the proposed cancellation or nonrenewal has been mailed to the association, each unit owner and

each holder of a security interest to whom a certificate or memorandum of insurance has been issued at

their respective last known addresses.

(h) Any portion of the common interest community for which insurance is required under this section

which is damaged or destroyed must be repaired or replaced as soon as practicable by the association

unless: (i) the common interest community is terminated, in which case § 81-218 of this title applies (ii)

repair or replacement would be illegal under any state or local statute or ordinance governing health or

safety, or (iii) 80 percent of the unit owners, including every owner of a unit or assigned limited common

element that will not be rebuilt, vote not to rebuild. The cost of repair or replacement in excess of

insurance proceeds and reserves is a common expense. If the entire common interest community is not

repaired or replaced: (i) the insurance proceeds attributable to the damaged common elements must be

used to restore the damaged area to a condition compatible with the remainder of the common interest

community, and (ii) except to the extent that other persons will be distributees, (A) the insurance proceeds

attributable to units and limited common elements that are not rebuilt must be distributed to the owners

of those units and the owners of the units to which those limited common elements were allocated, or to

lien holders, as their interests may appear, and (B) the remainder of the proceeds must be distributed to

all the unit owners or lien holders, as their interests may appear, as follows: (1) in a condominium, in

proportion to the common element interests of all the units and (2) in a cooperative or planned

community, in proportion to the common expense liabilities of all the units. If the unit owners vote not to

rebuild any unit, that unit's allocated interests are automatically reallocated upon the vote as if the unit

had been condemned under § 81-107(a) of this title, and the association promptly shall prepare, execute,

and record an amendment to the declaration reflecting the reallocations.

(i) The provisions of this section may be varied or waived in the case of a common interest community

all of whose units are restricted to nonresidential use.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 48, 49, 82.;

§ 81-314. Surplus funds.

Unless otherwise provided in the declaration, any surplus funds of the association remaining after

payment of or provision for common expenses and any prepayment of reserves must be paid annually to

the unit owners in proportion to their common expense liabilities or credited to them to reduce their

future common expense assessments.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

Whiteford, Taylor & Preston LLC

§ 81-315. Assessments for common expenses.

(a) (1) Until the association is validly established pursuant to this chapter and makes a common

expense assessment, the declarant shall pay all common expenses together, in the case of a condominium

or cooperative, with all sums necessary to fully fund the repair and replacement reserve until the

association makes its first assessment.

(2) After an assessment has been made by the association, assessments must be made at least

annually, based on a budget adopted at least annually by the association. In the case of a condominium or

cooperative, the budget shall include as a line item a payment into the repair and replacement reserve

sufficient to achieve the level of funding noted in the reserve study, or maintain said reserve at such level.

The minimum percentage of the annual budget of a condominium or cooperative that must be assigned to

the repair and replacement reserve will depend upon how many of the following components and systems

are to be maintained, repaired and replaced by the executive board: (i) 1 or more hallways, (ii) 1 or more

stairwells, (iii) 1 or more management or administrative offices, (iv) 1 or more roofs, (v) 1 or more

windows, (vi) 1 or more exterior walls, (vii) 1 or more elevators, (viii) 1 or more HVAC systems, (ix) 1 or

more swimming pools, (x) 1 or more exercise facilities, (xi) 1 or more clubhouses, (xii) 1 or more parking

garages (but not including surface parking lots), (xiii) 1 or more masonry bridges used by motor vehicles,

(xiv) 1 or more bulkheads, and (xv) 1 or more docks. In the event that the executive board is responsible

for the maintenance, repair and replacement of 4 or more of the above-described systems or components,

the minimum percentage of the annual budget that must be assigned to the repair and replacement

reserve is 15%; if the responsibility extends to only 3 of the above-described systems and components, the

minimum percentage is 10%; and if the responsibility extends to only 2 or fewer of the above-described

systems and components, the minimum percentage is 5%. In the event that the association's accountant

certifies that the funds in the repair and replacement reserve are in excess of the sum required to

constitute a fully funded repair and replacement reserve, the executive board shall refund or credit the

surplus of the excess sum to the unit owners. In the event that the association does not have a current

reserve study as required by this chapter, the minimum percentages of the association's budget to be

assigned to the repair and replacement reserve shall be the percentages prescribed in this paragraph

(a)(2) of this section.

(b) Except for assessments under subsections (c), (d), and (e) of this section, all common expenses must

be assessed against all the units in accordance with the allocations set forth in the declaration pursuant to

§ 81-207(a) and (b) of this title. Any past due common expense assessment or installment thereof bears

interest at the rate established by the association not exceeding the lawful rate of interest.

(1) Any common expense associated with the maintenance, repair, or replacement of a limited

common element must be assessed against the units to which that limited common element is assigned,

equally, or in any other proportion the declaration provides;

(2) Any common expense or portion thereof included as part of the common expense budget, but

benefiting fewer than all of the units, including fees for services provided by the association to occupants

of individual units, must be assessed exclusively against the units benefited based on their use and

consumption of services; and

(3) The costs of insurance must be assessed in proportion to risk and the costs of utilities must be

assessed in proportion to usage.

(d) Assessments to pay a judgment against the association may be made only against the units in the

common interest community at the time the judgment was entered, in proportion to their common

expense liabilities.

(e) If any common expense is caused by the misconduct of any unit owner or a unit owner's guests or

invitees, the association may assess that expense exclusively against the unit of that unit owner.

Delaware Uniform Common Interest Ownership Act 2017

(f) If common expense liabilities are reallocated, common expense assessments and any installment

thereof not yet due must be recalculated in accordance with the reallocated common expense liabilities.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 50, 82.;

§ 81-316. Lien for assessments.

(a) The association has a statutory lien on a unit for any assessment levied against that unit or fines

imposed against its unit owner. Unless the declaration otherwise provides, fees, charges, late charges,

fines, and interest charged pursuant to § 81-302(a)(10), (11), and (12) of this title, and any other sums due

the association under the declaration, this chapter or as a result of an administrative or judicial decision,

together with court costs and reasonable attorneys' fees incurred in attempting collection of the same, are

enforceable in the same manner as unpaid assessments under this section. If an assessment is payable in

installments, the lien is for the full amount of the assessment from the time the first installment thereof

becomes due. Unless the declaration provides for a different rate of interest, interest on unpaid

assessments shall accrue at the rate of the lesser of 18% per annum or the highest rate permitted by law.

(b) Except as otherwise provided in the declaration, a lien under this section is prior to all other liens

and encumbrances on a unit except (i) liens and encumbrances recorded before the recordation of the

declaration and, in a cooperative, liens and encumbrances which the association creates, assumes, or

takes subject to, (ii) a first or second security interest on the unit recorded before the date on which the

assessment sought to be enforced became delinquent, or, in a cooperative, the first or second security

interest encumbering only the unit owner's interest and perfected before the date on which the

assessment sought to be enforced became delinquent, and (iii) liens for real estate taxes and other

governmental assessments or charges against the unit or cooperative. The lien shall have priority over the

security interests described in paragraph (ii) above for an amount not to exceed the aggregate customary

common expense assessment against such unit for 6 months as determined by the periodic budget adopted

by the association pursuant to § 81-315(a) of this title; provided that for the lien to have priority over the

security interests described in paragraph (ii) above, an association with assessments shall have recorded

in the county or counties in which the common interest community is located a document which contains

the name of the association, the address, a contact telephone number, a contact e-mail address and a web-

site address, if any. In addition, the association shall have recorded at any time, but not less than 30 days

prior to the sheriff's sale of a unit in its common interest community for which common expense

assessments are due, a statement of lien which shall include a description of such unit, the name of the

record owner, the amount due and the date due, the amount paid for recording the statement of lien and

the amount required to be paid for filing a termination thereof upon payment, and the signature and

notarized statement of an officer of the association that the amount described in the statement of lien is

correct and due and owing. Upon payment of the amount due in paragraph (ii) above, the payer shall be

entitled to a recordable termination of lien for the amount paid. The liens recorded pursuant to this

subparagraph shall expire on the first day of the sixtieth month after recording. This subsection does not

affect the priority of mechanics' or materialmen's liens, nor the priority of liens for other assessments

made by the association. The lien under this subsection is not subject to the provisions of homestead or

other exemptions.

created at any time on the same property, those liens have equal priority.

(d) Recording of the declaration constitutes record notice and perfection of the lien. No further

recordation of any claim of lien for assessment under this section is required.

(e) A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted

within 3 years after the full amount of the assessments becomes due; provided, that if an owner of a unit

subject to a lien under this section files a petition for relief under the United States Bankruptcy Code [11

U.S.C. § 101 et seq.], the period of time for instituting proceedings to enforce the association's lien shall be

tolled until 30 days after the automatic stay of proceedings under § 362 of the Bankruptcy Code [11 U.S.C.

§ 362] is lifted.

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(f) This section does not prohibit actions against unit owners to recover sums for which subsection (a)

of this section creates a lien or prohibit an association from taking a deed in lieu of foreclosure.

(g) A judgment or decree in any action brought under this section must include costs and reasonable

attorney's fees for the prevailing party.

(h) The association upon written request shall furnish to a unit owner a statement setting forth the

amount of unpaid assessments against the unit. If the unit owner's interest is real estate, the statement

must be in recordable form. The statement must be furnished within 10 business days after receipt of the

request and is binding on the association, the executive board, and every unit owner.

(i) In a cooperative, upon nonpayment of an assessment on a unit, the unit owner may be evicted in the

same manner as provided by law in the case of an unlawful holdover by a commercial tenant, and the lien

may be foreclosed as provided by this section.

(j) The association's lien may be foreclosed or executed upon as provided in this subsection and

subsection (m) of this section:

(1) In a condominium or planned community, the association's lien must be foreclosed in like

manner as a mortgage on real estate by equitable foreclosure or executed upon by other lawful procedures

provided for in the declaration;

(2) In a cooperative whose unit owners' interests in the units are real estate, the association's lien

must be foreclosed in like manner as a mortgage on real estate; or

(3) In a cooperative whose unit owners' interests in the units are personal property, the

association's lien must be foreclosed in like manner as a security interest under Article 9 of the Uniform

Commercial Code [§ 9-101 et seq. of Title 6].

(4) In the case of foreclosure, the association shall give reasonable notice of its action to all lien

holders of the unit whose interest would be affected and to all other persons as would be required under

applicable law for the foreclosure of a mortgage on real estate.

(k) In a cooperative, if the unit owner's interest in a unit is real estate:

(1) The association, upon nonpayment of assessments and compliance with this subsection, may

sell that unit at a public sale or by private negotiation, and at any time and place. Every aspect of the

sale, including the method, advertising, time, place, and terms must be reasonable. The association shall

give to the unit owner and any lessees of the unit owner reasonable written notice of the time and place of

any public sale or, if a private sale is intended, or the intention of entering into a contract to sell and of

the time after which a private disposition may be made. The same notice must also be sent to any other

person who has a recorded interest in the unit which would be cut off by the sale, but only if the recorded

interest was on record 7 weeks before the date specified in the notice as the date of any public sale or 7

weeks before the date specified in the notice as the date after which a private sale may be made. The

notices required by this subsection may be sent to any address reasonable in the circumstances. Sale may

not be held until 5 weeks after the sending of the notice. The association may buy at any public sale and,

if the sale is conducted by a fiduciary or other person not related to the association, at a private sale.

(2) Unless otherwise agreed, the unit owner is liable for any deficiency in a foreclosure sale.

(3) The proceeds of a foreclosure sale must be applied in the following order:

(i) The reasonable expenses of sale;

(ii) The reasonable expenses of securing possession before sale, holding, maintaining, and

preparing the unit for sale, including payment of taxes and other governmental charges, premiums on

hazard and liability insurance, and, to the extent provided for by agreement between the association and

the unit owner, reasonable attorneys' fees and other legal expenses incurred by the association;

Delaware Uniform Common Interest Ownership Act 2017

(iii) Satisfaction of the association's lien;

(iv) Satisfaction in the order of priority of any subordinate claim of record; and

(v) Remittance of any excess to the unit owner.

(4) A good faith purchaser for value acquires the unit free of the association's debt that gave rise

to the lien under which the foreclosure sale occurred and any subordinate interest, even though the

association or other person conducting the sale failed to comply with this section. The person conducting

the sale shall execute a conveyance to the purchaser sufficient to convey the unit and stating that it is

executed by the person after a foreclosure of the association's lien by power of sale and that the person

was empowered to make the sale. Signature and title or authority of the person signing the conveyance as

grantor and a recital of the facts of nonpayment of the assessment and of the giving of the notices required

by this subsection are sufficient proof of the facts recited and of the authority to sign. Further proof of

authority is not required even though the association is named as grantee in the conveyance.

(5) At any time before the association has disposed of a unit in a cooperative or entered into a

contract for its disposition under the power of sale, the unit owners or the holder of any subordinate

security interest may cure the unit owner's default and prevent sale or other disposition by tendering the

performance due under the security agreement, including any amounts due because of exercise of a right

to accelerate, plus the reasonable expenses of proceeding to foreclosure incurred to the time of tender,

including reasonable attorneys' fees of the creditor.

(l) In an action by an association to collect assessments or to foreclose a lien on a unit under this

section, the court may appoint a receiver to collect all sums alleged to be due and owing to a unit owner

before commencement or during pendency of the action. The court may order the receiver to pay any sums

held by the receiver to the association during pendency of the action to the extent of the association's

common expense assessments based on a periodic budget adopted by the association pursuant to § 81-315

of this title.

(m) The following restrictions apply to any action by the association to foreclose its lien under this

section:

(1) No foreclosure action may be commenced unless: (A) the unit owner, at the time the action is

commenced, owes a sum equal to at least 3 months of common expense assessments based on the periodic

budget last adopted by the association pursuant to § 81-315(a) of this title; and (B) the executive board

expressly votes to commence a foreclosure action against that specific unit.

(2) The association shall apply any sums paid by unit owners who are delinquent in paying

assessments as follows: (i) first, to unpaid assessments; (ii) then to late charges; (iii) then to attorneys fees

and other reasonable collection charges and costs; and (iv) finally, to all other unpaid fees, charges,

penalties, interest and late charges.

(3) If the only sums due with respect to a unit consist of fines and related sums levied against

that unit, a foreclosure action may not be commenced against that unit unless the association has first

secured a judgment against the unit owner with respect to those fines and has perfected a judgment lien

against the unit under state law.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 51, 52, 82.;

§ 81-317. Other liens.

(a) In a condominium or planned community:

(1) Except as provided in paragraph (a)(2) of this section, a judgment for money against the

association if recorded or docketed, is not a lien on the common elements, but is a lien in favor of the

Whiteford, Taylor & Preston LLC

judgment lien holder only against all units owned by the association and other real property owned by the

association. No property of a unit owner is subject to the claims of creditors of the association.

(2) If the association has granted a security interest in the common elements to a creditor of the

association pursuant to § 81-312 of this title, the holder of that security interest shall exercise its right

against the common elements before its judgment lien on any unit may be enforced.

(3) Whether perfected before or after the creation of the common interest community, if a lien,

other than a deed of trust or mortgage (including a judgment lien or lien attributable to work performed

or materials supplied before creation of the common interest community), becomes effective against 2 or

more units, the unit owner of an affected unit may pay to the lien holder the amount of the lien

attributable to the unit owner's unit, and the lien holder, upon receipt of payment, promptly shall deliver

a release of the lien covering that unit. The amount of the payment must be proportionate to the ratio

which that unit owner's common expense liability bears to the common expense liabilities of all unit

owners whose units are subject to the lien. After payment, the association may not assess or have a lien

against that unit owner's unit for any portion of the common expenses incurred in connection with that

lien.

(4) A judgment against the association must be indexed in the name of the common interest

community and the association and, when so indexed, is notice of the lien against the units.

(b) In a cooperative:

(1) If the association receives notice of an impending foreclosure on all or any portion of the

association's real estate, the association shall promptly transmit a copy of that notice to each unit owner

of a unit located within the real estate to be foreclosed. Failure of the association to transmit the notice

does not affect the validity of the foreclosure.

(2) Whether or not a unit owner's unit is subject to the claims of the association's creditors, no

other property of a unit owner is subject to those claims.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 53, 82.;

§ 81-318. Association records.

(a) The association shall maintain the following records in written form or in another form capable of

conversion into written form within a reasonable time:

(1) Detailed records of receipts and expenditures affecting the operation and administration of

the association and other appropriate accounting records, including those for the repair and replacement

reserve. All financial records shall be kept in accordance with generally accepted accounting practices.

(2) Minutes of all meetings of its members and executive board, a record of all actions taken by

the members or executive board without a meeting, and a record of all actions taken by a committee of the

executive board in place of the board or directors on behalf of the association.

(3) A record of its members in a form that permits preparation of a list of the names and

addresses of all members, in alphabetical order by class, showing the number of votes each member is

entitled to cast and the members' class of membership, if any; and

(4) In addition, the association shall keep a copy of the following records at its principal office: (1)

its original or restated certificate of incorporation and bylaws and all amendments to them currently in

effect; (2) the minutes of all members' meetings and records of all action taken by members without a

meeting for the past 3 years; (3) any financial statements and tax returns of the association prepared for

the past 3 years, together with the report of the auditors of the financial records; (4) a list of the names

and business addresses of its current directors and officers; (5) its most recent annual report delivered to

the Secretary of the State; (6) in the case of a condominium or cooperative, the association's most recent

Delaware Uniform Common Interest Ownership Act 2017

reserve study; and (7) financial and other records sufficiently detailed to enable the association to comply

with § 81-409 of this title.

(b) Subject to the provisions of subsection (c) of this section, all records kept by the association,

including the association's membership list and address, and aggregate salary information of employees of

the association, shall be available for examination and copying by a unit owner or the unit owner's

authorized agent so long as the request is made in good faith and for a proper purpose related to the

owner's membership in the association. This right of examination may be exercised: (i) only during

reasonable business hours or at a mutually convenient time and location, and (ii) upon 5-days' written

notice reasonably identifying the purpose for the request and the specific records of the association

requested.

concern:

(1) Personnel matters relating to specific persons or a person's medical records;

(2) Contracts, leases, and other commercial transactions to purchase or provide goods or services,

currently in or under negotiation;

(3) Pending or threatened litigation, arbitration, mediation or other administrative proceedings;

(4) Matters involving federal, state or local administrative or other formal proceedings before a

government tribunal for enforcement of the declaration, bylaws or rules;

(5) Communications with legal counsel which are otherwise protected by the attorney-client

privilege or the attorney work product doctrine;

(6) Disclosure of information in violation of law;

(7) Meeting minutes or other confidential records of an executive session of the executive board;

(8) Individual unit owner files other than those of the requesting owner.

(d) An attorney's files and records relating to the association are not records of the association and are

not subject to inspection by owners or production in a legal proceeding for examination by owners.

(e) The association may charge a fee for providing copies of any records under this section but that fee

may not exceed the actual cost of the materials and labor incurred by the association.

(f) The right to copy records under this section includes the right to receive copies by xerographic or

other means, including copies through an electronic transmission if available and so requested by the unit

owner.

(g) An association is not obligated to compile or synthesize information.

(h) Information provided pursuant to this section may not be used for commercial purposes.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 54-56, 82.;

§ 81-319. Association as trustee.

With respect to a third person dealing with the association in the association's capacity as a trustee, the

existence of trust powers and their proper exercise by the association may be assumed without inquiry. A

third person is not bound to inquire whether the association has power to act as trustee or is properly

exercising trust powers. A third person, without actual knowledge that the association is exceeding or

improperly exercising its powers, is fully protected in dealing with the association as if it possessed and

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properly exercised the powers it purports to exercise. A third person is not bound to assure the proper

application of trust assets paid or delivered to the association in its capacity as trustee.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-320. Rules.

(a) Before adopting or substantially amending any rule, the executive board must notify all unit owners

of: (i) its intention to adopt the proposed rule and (ii) a date on which the executive board will convene a

meeting to receive comments on them from the unit owners.

(b) If the right is reserved in the declaration pursuant to § 81-302(a)(16) of this title, the association

may adopt rules to establish and enforce construction and design criteria and aesthetic standards. If it

does so, the association must also adopt procedures for enforcement of those standards and for approval of

applications, including a reasonable time within which the association must act after an application is

submitted. The association's power under this section is subject to any reserved special declarant right to

control any construction or design review process during the period of declarant control.

316 of this title, but the rule may not prohibit the right of a unit owner to display the flag of the United

States, measuring up to 3 feet by 5 feet, on a pole located within the property's boundaries or attached to

the exterior wall of that unit owner's unit or the limited common elements appurtenant to that unit.

Unless the declaration otherwise provides, no rule may prohibit the display on a unit or on a limited

common element adjoining a unit of a flag of this State, or signs regarding candidates for public office or

ballot questions, but the association may adopt rules governing the time, place, size, number or manner of

those displays. Unless the declaration provides otherwise during the first 2 years of the period of

declarant control, no rule may prohibit the right of a unit owner to display a "For Sale" sign, measuring up

to 12 inches by 18 inches (12" x 18/"), on the exterior wall of the unit owner's unit or the limited common

elements appurtenant to that unit. Unless the declaration provides otherwise, the "For Sale" sign shall be

entitled "For Sale" and may contain such information as accurately describes the unit and any applicable

names, addresses and phone numbers of the person or persons who are offering the unit for sale.

(d) Unless otherwise permitted by the declaration or this chapter, an association may only adopt rules

that affect the use of or behavior in units that may be used for residential purposes to:

(1) Prevent any use of a unit which violates the declaration;

(2) Regulate any behavior in or occupancy of a unit which violates the declaration or adversely

affects the use and enjoyment of other units or the common elements by other unit owners;

(3) Permit installation of a flagpole located within the property's boundaries which does not

exceed 25 feet in height and conforms to all setback requirements, for purposes of displaying the flag of

the United States of America, provided such flag's measurement does not exceed 3 feet by 5 feet; or

(4) Restrict the leasing of residential units to the extent those rules are reasonably designed to

meet underwriting requirements of institutional lenders who regularly lend money secured by first

mortgages on units in common interest communities or regularly purchase those mortgages.

(e) All rules adopted by the association must be reasonable.

(f) The executive board must maintain on a current basis for reference by unit owners' tenants a

complete statement of all rules.

(g) The unit owner shall obtain from the executive board and deliver to or otherwise make available to

each tenant of the unit owner's unit, at the time the lease is executed or, in the absence of a written lease

when the tenancy begins, a current copy of the rules for the common interest community as furnished by

the executive board and shall deliver to or otherwise make available to the tenant a copy of any additions

Delaware Uniform Common Interest Ownership Act 2017

or revisions to the rules as such additions or revisions are adopted and noticed to the unit owners by the

executive board.

(h) A tenant shall be bound to comply with the noticed rules, and the unit owner leasing to the tenant

shall take all lawful action against a tenant who materially violates the noticed rules.

(i) By entering into a lease for a unit, the unit owner of that unit irrevocably appoints the executive

board as attorney-in-fact coupled with an interest to enforce the noticed rules against the tenant of that

lease in the event that the unit owner shall fail, within a reasonable time after written demand by the

executive board, to take what the executive board reasonably regards as adequate enforcement action

against the tenant in material violation of noticed rules. In the event of enforcement action (including any

summary action for possession at law or a petition for injunctive relief in equity) under this subsection,

the tenant shall have no resort to any defense based upon lack of contractual privity with the executive

board.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82; 79 Del. Laws, c. 93, § 3.;

§ 81-321. Litigation involving declarant.

(a) An association's authority under § 81-302(a)(4) of this title to commence and pursue litigation

involving the common interest community is subject to the following rules:

(1) Before the association commences litigation, arbitration or any administrative proceedings

against a declarant or any person employed by or under contract with a declarant involving any alleged

construction defect with respect to the common interest community, the association shall provide written

notice of its claims to the declarant and those persons whom the association seeks to hold responsible for

the claimed defects (the "allegedly responsible persons"). The text of the notice may be in any form

reasonably calculated to put the allegedly responsible persons on notice of the general nature of the

association's claims including, without limitation, a list of the claimed defects. The notice may be

delivered by any method of service and may be addressed to any person provided that the method of

service and the person who is actually served either:(i) provides actual notice to the allegedly responsible

persons named in the claim; or (ii) the method of service used would be sufficient under local law to confer

personal jurisdiction over the person in connection with commencement of a lawsuit by the association

against that person.

(2) The association may not commence litigation, arbitration or any administrative proceedings

against a responsible person for a period of 90 days after the association sends notice of its claim to that

responsible person.

(3) During the 90-day period, the declarant and any other responsible person may present to the

association a plan to repair or otherwise remedy the construction defects described in the notice. If the

association does not receive a timely remediation plan from each responsible person to whom it directed

notice, the association shall be entitled to commence any proceedings against that responsible person as

the board determines to be appropriate.

(4) If the association does receive 1 or more timely plans to repair or otherwise remedy the

construction defects described in the notice, then the executive board shall promptly consider those plans

and then notify the responsible persons of whether or not each such plan is acceptable as presented,

acceptable with stated conditions, or not accepted.

(5) If the association accepts a repair plan from a responsible person, or if a responsible person

agrees to stated conditions to an otherwise acceptable plan, then the parties shall agree on a timeframe

for implementation of that plan, and the association shall not commence litigation, arbitration or any

administrative proceedings against that allegedly responsible person during the time that the plan is

being diligently implemented.

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(6) If an allegedly responsible person submits notice submits a timely repair plan but the

association and the allegedly responsible party have not agreed in writing to the terms of the plan or its

implementation, then the association is entitled to commence litigation, arbitration or any administrative

proceedings against that person.

(7) Except as provided in § 81-416(d) of this title with respect to warranty claims, any statute of

limitation affecting the association's right of action against a declarant or other allegedly responsible

person under this chapter is tolled during the 90-day period described in paragraph (a)(2) of this section

above and during any extension of that time because the allegedly responsible person has commenced and

is diligently pursuing the remediation plan.

(8) After the time described in paragraph (a)(3) of this section expires, whether or not the

association agrees to any repair plan, nothing in this section bars to the commencement of litigation by:

(i) The association against an allegedly responsible person who fails to submit a timely

repair plan or whose plan is not acceptable or who fails to diligently pursue implementation of that plan;

(ii) A unit owner with respect to that owner's unit and any limited common elements

assigned to that unit, regardless of any actions of the association.

(9) Nothing in this section precludes the association from making emergency repairs to correct

any defect that poses a significant and immediate health or safety risk.

(10) Subject to the other provisions of this section and the declaration, the determination of

whether and when the association may commence any proceedings may be made by the executive board

and nothing in this section requires a vote by any number or percentage of unit owners a precondition to

litigation.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 57, 82.;

§ 81-322. [Reserved.]

§ 81-323. Removal of members of executive board.

Notwithstanding any provision of the declaration or bylaws to the contrary, the unit owners, by a two-

thirds vote of all persons present, in person, by proxy or by ballot, and entitled to vote at any meeting of

the unit owners at which a quorum is present, may remove any member of the executive board with or

without cause, except that: (i) a member appointed by the declarant may not be removed by a unit owner

vote during the period of declarant control, and (ii) a person appointed under § 81-303(h) of this title [sic]

may only be removed by the person that appointed that member:

(a) The unit owners may consider the question of whether to remove a member of the executive board

either: (1) at any duly called meeting of the unit owners at which a quorum is present if that subject was

listed in the notice of the meeting, or (2) at a special meeting called for the purpose of removing a member

of the executive board, whether or not a quorum is present, so long as the voting at the special meeting is

conducted in the manner described in subsection (c) of this section.

(b) At any meeting at which a vote to remove a member of the executive board is to be taken, the

executive board shall provide a reasonable opportunity to speak before the vote to all persons favoring and

opposing removal of that member, including without limitation the member being considered for removal.

Delaware Uniform Common Interest Ownership Act 2017

following rules apply, whether or not a quorum is present at that meeting in person or by proxy:

(1) After all persons present at the meeting have been given a reasonable opportunity to speak,

the meeting shall be recessed for a period calculated in the manner described in paragraph (c)(2) of this

section below.

(2) Promptly following the recess, the association shall notify all unit owners of the recessed

meeting and inform the unit owners of their opportunity to cast votes either in favor or against removal

during the 30-day period following the day that the notice is sent.

(3) The notice sent to unit owners shall specifically inform them of their right to cast votes either

in a secret written ballot, on a form provided to the unit owners or by electronic means according to

instructions contained in that notice.

(d) Whether a vote under subsection (c) of this section is taken before or after a recess, and whether or

not taken by electronic means, a member of the executive board may be removed only if the number of

votes cast in favor of removal: (i) exceeds the number of votes cast in opposition to removal and (ii) is

greater than one-third of the total votes of the association.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-324. Adoption of budget.

(a) The executive board shall, at least annually, prepare a proposed budget for the common interest

community. In a condominium or cooperative, the proposed budget shall include a line item for any

required funding of a repair and replacement reserve. Within 30 days after adoption of any proposed

budget after the period of declarant control, the executive board shall provide to all unit owners a

summary of the budget, including any reserves and a statement of the basis on which any reserves are

calculated and funded. Simultaneously, the executive board shall set a date for a meeting of the unit

owners to consider ratification of the budget not less than 14 nor more than 60 days after providing the

summary. Unless at that meeting a majority of all unit owners or any larger vote specified in the

declaration reject the budget, the budget is ratified, whether or not a quorum is present. If a proposed

periodic budget is rejected, the periodic budget last ratified by the unit owners must be continued until

such time as the unit owners ratify a subsequent budget proposed by the executive board.

(b) In addition to adoption of its regular periodic budget, the executive board may at any time propose a

budget which would require a special assessment against all the units. Except as provided in subsection

ratification of a budget described in subsection (a) of this section and the unit owners do not reject that

proposed special assessment.

order to respond to an emergency, then: (i) the special assessment shall become effective immediately in

accordance with the terms of the vote; (ii) notice of the emergency assessment shall be promptly provided

to all unit owners; and (iii) the executive board shall spend the funds paid on account of the emergency

assessment solely for the purposes described in the vote.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 59, 60, 82.;

§ 81-325. Service on associations and executive board.

A person may bring suit against the association or the executive board as a whole in any cause by service

in accordance with the otherwise applicable rules authorizing service on the form of legal entity of the

association.

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76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-326. Delaware corporations.

Any association that is a Delaware corporation shall also be subject to the Title 8, which shall govern and

control to the extent not inconsistent with this chapter.

77 Del. Laws, c. 91, § 61.;

Subchapter IV. Protection of Purchasers

§ 81-401. Applicability; waiver.

(a) This subchapter applies to all units subject to this chapter, except as provided in subsection (b) of

this section or as modified or waived by agreement of purchasers of units in a nonresidential common

interest community or as to units that are restricted to nonresidential use.

(b) Neither a public offering statement nor a resale certificate need be prepared or delivered in

the case of:

(1) A gratuitous disposition of a unit;

(2) A disposition pursuant to court order;

(3) A disposition by a government or governmental agency;

(4) A disposition by foreclosure or deed in lieu of foreclosure;

(5) A disposition to a dealer;

(6) A disposition that may be canceled at any time and for any reason by the purchase without

penalty;

(7) A disposition by operation of law upon the death of the unit owner;

(8) A disposition of a unit restricted to nonresidential purposes; or

(9) A disposition of a unit to a purchaser for which a declarant, dealer or existing unit owner has

entered into a written contract with such purchaser for the purchase and sale of such unit at any time

prior to the effective date.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 4, § 13; 77 Del. Laws, c. 91, § 82.;

§ 81-402. Liability for public offering statement requirements.

(a) Except as provided in subsection (b) of this section, a declarant, before offering any interest in a unit

to the public, shall prepare a public offering statement conforming to the requirements of §§ 81-403, 81-

404, 81-405, and 81-406 of this title.

(b) A declarant may transfer responsibility for preparation of all or a part of the public offering

statement to a successor declarant or to a dealer who intends to offer units in the common interest

community. In the event of any such transfer, the transferor shall provide the transferee with any

information necessary to enable the transferee to fulfill the requirements of subsection (a) of this section.

Delaware Uniform Common Interest Ownership Act 2017

In addition and anything to the contrary in this chapter notwithstanding, a declarant shall not be

required to prepare or provide a public offering statement under this subchapter IV of this chapter with

respect to any contract for a unit executed by the declarant with a purchaser of such unit prior to the

effective date.

the manner prescribed in § 81-408(a) of this title. The person who prepared all or a part of the public

offering statement is liable under §§ 81-408 and 81-417 of this title for any false or misleading statement

set forth therein or for any omission of a material fact therefrom with respect to that portion of the public

offering statement which the person prepared. If a declarant did not prepare any part of a public offering

statement that the declarant delivers, the declarant is not liable for any false or misleading statement set

forth therein or for any omission of a material fact therefrom unless the declarant had actual knowledge of

the statement or omission or, in the exercise of reasonable care, should have known of the statement or

omission.

(d) If a unit is part of a common interest community and is part of any other real estate regime in

connection with the sale of which the delivery of a public offering statement is required under the laws of

this State, a single public offering statement conforming to the requirements of §§ 81-403, 81-404, 81-405,

and 81-406 of this title as those requirements relate to each regime in which the unit is located, and to

any other requirements imposed under the laws of this State, may be prepared and delivered in lieu of

providing two or more public offering statements.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 4, § 14; 77 Del. Laws, c. 91, § 82.;

§ 81-403. Public offering statement; general provisions.

(a) Except as provided in subsection (b) of this section, a public offering statement must contain or fully

and accurately disclose:

(1) The name and principal address of the declarant and of the common interest community, and

a statement that the common interest community is either a condominium, cooperative, or planned

community;

(2) A general description of the common interest community, including to the extent possible, the

types, number, and declarant's schedule of commencement and completion of construction of buildings,

and amenities that the declarant anticipates including in the common interest community;

(3) The number of units in the common interest community;

(4) Copies and a brief narrative description of the significant features of the declaration, other

than any plats and plans, and any other recorded covenants, conditions, restrictions, and reservations

affecting the common interest community; the bylaws, and any rules or regulations of the association;

copies of any contracts and leases to be signed by purchasers at closing, and a brief narrative description

of any contracts or leases that will or may be subject to cancellation by the association under § 81-305 of

this title;

(5) Any current balance sheet and a projected budget for the association, either within or as an

exhibit to the public offering statement, for 1 year after the date of the first conveyance to a purchaser,

and thereafter the current budget of the association, a statement of who prepared the budget, and a

statement of the budget's assumptions concerning occupancy and inflation factors. The budget must

include, without limitation:

(i) A statement of the amount, or a statement that there is no amount, included in the

budget for the repair and replacement reserve;

(ii) A statement of any other reserves;

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(iii) The projected common expense by category of expenditures for the association; and

(iv) The projected common expense assessment for each type of unit;

(6) Any services not reflected in the budget that the declarant provides, or expenses that the

declarant pays and which the declarant expects may become at any subsequent time a common expense of

the association and the projected common expense assessment attributable to each of those services or

expenses for the association and for each type of unit;

(7) Any initial or special fee due from the seller or the purchaser at the time of sale, together with

a description of the purpose and method of calculating the fee;

(8) A description of any liens, defects, or encumbrances on or affecting the title to the common

interest community and a statement as to which liens, defects or encumbrances will remain after transfer

of the unit;

(9) A description of any financing offered or arranged by the declarant;

(10) The terms and significant limitations of any warranties provided by the declarant, including

statutory warranties and limitations on the enforcement thereof or on damages;

(11) [Repealed.]

(12) A statement of any unsatisfied judgments or pending suits against the association, and the

status of any pending suits material to the common interest community of which a declarant has actual

knowledge;

(13) A statement that any deposit made in connection with the purchase of a unit will be held in

an escrow account until closing and will be returned to the purchaser if the purchaser cancels the contract

pursuant to § 81-408 of this title, together with the name and address of the escrow agent;

(14) Any restraints on alienation of any portion of the common interest community and any

restrictions: (i) on use, occupancy, and alienation of the units, and (ii) on the amount for which a unit may

be sold or on the amount that may be received by a unit owner on sale, condemnation, or casualty loss to

the unit or to the common interest community, or on termination of the common interest community;

(15) A description of the insurance coverage provided for the benefit of unit owners;

(16) Any current or expected fees or charges to be paid by unit owners for the use of the common

elements and other facilities related to the common interest community;

(17) The extent to which financial arrangements have been provided for completion of all

improvements that the declarant is obligated to build pursuant to § 81-419 of this title; and

(18) [Reserved.]

(19) In a cooperative, a statement whether the unit owners will be entitled, for federal, state, and

local income tax purposes, to a pass-through of deductions for payments made by the association for real

estate taxes and interest paid the holder of a security interest encumbering the cooperative, and a

statement as to the effect on every unit owner if the association fails to pay real estate taxes or payments

due the holder of a security interest encumbering the cooperative.

(b) No public offering statement is required for any common interest community governed by §§ 81-117

and 81-118 of this title and those others that are otherwise excepted from this chapter by the provisions of

this chapter.

the information required by this section.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 62-66, 82; 77 Del. Laws, c. 364, § 7.;

Delaware Uniform Common Interest Ownership Act 2017

§ 81-404. Common interest communities subject to development right.

If the declaration provides that a common interest community is subject to any development rights, the

public offering statement must disclose, in addition to the information required by § 81-403 of this title:

(a) The maximum number of units, and the maximum number of units per acre, that may be created;

(b) A statement of how many or what percentage of the units that may be created will be restricted

exclusively to residential use, or a statement that no representations are made regarding use restrictions;

restricted exclusively to residential use, a statement, with respect to each portion of that real estate, of the

maximum percentage of the real estate areas, and the maximum percentage of the floor areas of all units

that may be created therein, that are not restricted exclusively to residential use;

(d) A brief narrative description of any development rights reserved by a declarant and of any

conditions relating to or limitations upon the exercise of development rights;

(e) A statement of the maximum extent to which each unit's allocated interests may be changed by the

exercise of any development right described in subsection (c) of this section;

(f) A statement of the extent to which any buildings or other improvements that may be erected

pursuant to any development right in any part of the common interest community will be compatible with

existing buildings and improvements in the common interest community in terms of architectural style,

quality of construction, and size, or a statement that no assurances are made in those regards;

(g) General descriptions of all other improvements that may be made and limited common elements

that may be created within any part of the common interest community pursuant to any development

right reserved by the declarant, or a statement that no assurances are made in that regard;

(h) A statement of any limitations as to the locations of any building or other improvement that may be

made within any part of the common interest community pursuant to any development right reserved by

the declarant, or a statement that no assurances are made in that regard;

(i) A statement that any limited common elements created pursuant to any development right reserved

by the declarant will be of the same general types and sizes as the limited common elements within other

parts of the common interest community, or a statement of the types and sizes planned, or a statement

that no assurances are made in that regard;

(j) A statement that the proportion of limited common elements to units created pursuant to any

development right reserved by the declarant will be approximately equal to the proportion existing within

other parts of the common interest community, or a statement of any other assurances in that regard, or a

statement that no assurances are made in that regard;

(k) A statement that all restrictions in the declaration affecting use, occupancy, and alienation of units

will apply to any units created pursuant to any development right reserved by the declarant, or a

statement of any differentiations that may be made as to those units, or a statement that no assurances

are made in that regard; and

(l) A statement of the extent to which any assurances made pursuant to this section apply or do not

apply in the event that any development right is not exercised by the declarant.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

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§ 81-405. Time shares.

(a) If the declaration provides that ownership or occupancy of any units, is or may be in time shares,

the public offering statement shall disclose, in addition to the information required by § 81-403 of this

title:

(1) The number and identity of units in which time shares may be created;

(2) The total number of time shares that may be created;

(3) The minimum duration of any time shares that may be created; and

(4) The extent to which the creation of time shares will or may affect the enforceability of the

association's lien for assessments provided in § 81-316 of this title.

(b) Any common interest community that is in time shares shall also be governed by Chapter 28 of Title

6, to the extent applicable.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 67, 81.;

§ 81-406. Common interest communities containing conversion buildings.

(a) The public offering statement of a common interest community containing any conversion building

must contain, in addition to the information required by § 81-403 of this title:

(1) A statement by the declarant, based on a report prepared by an independent registered

architect or engineer, describing the present condition of all structural components and mechanical and

electrical installations material to the use and enjoyment of the building;

(2) A statement by the declarant of the expected useful life of each item reported on in paragraph

(a)(1) of this section or a statement that no representations are made in that regard; and

(3) A list of any outstanding notices of uncured violations of building code or other municipal

regulations, together with the estimated cost of curing those violations.

(b) This section applies only to buildings containing units that may be occupied for residential use.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-407. Common interest community securities.

If an interest in a common interest community is currently registered with the Securities and Exchange

Commission of the United States, a declarant satisfies all requirements relating to the preparation of a

public offering statement of this chapter if the declarant delivers to the purchaser a copy of the public

offering statement filed with the Securities and Exchange Commission. An interest in a common interest

community is not a security under Delaware law.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-408. Purchaser's right to cancel.

(a) A person required to deliver a public offering statement pursuant to § 81-402(c) of this title for a

condominium or cooperative shall provide a purchaser with a copy of the public offering statement and all

amendments thereto before conveyance of the unit, and not later than the date of any contract of sale.

Unless such a purchaser is given the public offering statement before execution of a contract for the

Delaware Uniform Common Interest Ownership Act 2017

purchase of a unit, the purchaser, before conveyance, may cancel the contract within 15 days after first

receiving the public offering statement.

(b) If a purchaser elects to cancel a contract pursuant to subsection (a) of this section, the purchaser

may do so by notice to the offeror. Cancellation is without penalty, and all payments made by the

purchaser before cancellation must be refunded promptly.

entered into a contract with a purchaser for a unit on or before the effective date shall not be subject to

any of the provisions of this section and no such purchaser shall be entitled to exercise any of the rights

and remedies against such declarant, dealer or unit owner under this section.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 4, § 15; 77 Del. Laws, c. 91, §§ 68-70, 82.;

§ 81-409. Resales of units.

(a) Except in the case of a sale in which delivery of a public offering statement is required, or unless

exempt under § 81-401(b) of this title, a unit owner shall furnish to a purchaser not later than the time of

the signing of the contract to purchase, a copy of the declaration (other than any plats and plans), all

amendments to the declaration, the bylaws, and the rules of the association (including all amendments to

the rules), and a certificate containing or attaching the following, to be correct to within 120 days prior to

the date the certificate of the unit owner is furnished to the purchaser:

(1) A statement disclosing the effect on the proposed disposition of any right of first refusal or

other restraint on the free alienability of the unit held by the association;

(2) A statement setting forth the amount of the periodic common expense assessment and any

unpaid common expense or special assessment currently due and payable from the selling unit owner;

(3) A statement of any other fees payable by the owner of the unit being sold;

(4) In a condominium or cooperative, a statement of the current number of unit owners

delinquent in the payment of common expense assessments and the aggregate amount of such

delinquency;

(5) In a condominium or cooperative, a statement of the current balance in the repair and

replacement reserve;

(6) A statement of any capital expenditures approved by the association for the current and

succeeding fiscal years, including a statement of the amount of such capital expenditures to be taken from

the repair and replacement reserve;

(7) In a condominium or cooperative, a copy of the most recent reserve study;

(8) The most recent regularly prepared balance sheet and income and expense statement, if any,

of the association;

(9) The most recent report of auditors (if required by § 81-306(a)(6) of this title) on the association

balance sheet and income and expense statement or any accountant's report on any unaudited association

balance sheet and income and expense statement;

(10) The current operating budget of the association;

(11) A statement of any unsatisfied judgments against the association and the status of any

pending suits in which the association is a defendant;

(12) A statement describing any insurance coverage provided for the benefit of unit owners;

Whiteford, Taylor & Preston LLC

(13) In a condominium or cooperative, a statement as to whether the executive board has given or

received written notice that any existing uses, occupancies, alterations, or improvements in or to the unit

or to the limited common elements assigned thereto violate any provision of the declaration;

(14) In a condominium or cooperative, a statement as to whether the executive board has received

written notice from a governmental agency of any violation of environmental, health, or building codes

with respect to the unit, the limited common elements assigned thereto, or any other portion of the

common interest community which has not been cured;

(15) In a condominium or cooperative, a statement of the remaining term of any leasehold estate

affecting the common interest community and the provisions governing any extension or renewal thereof;

(16) In a cooperative, an accountant's statement, if any was prepared, as to the deductibility for

federal income tax purposes by the unit owner of real estate taxes and interest paid by the association;

(17) A statement describing any pending sale or encumbrance of common elements;

(18) A statement of any fees payable by the purchaser of the unit to the association at settlement;

and

(19) Copies of the minutes for the executive board meeting for the preceding 6 months or, if none, for

the most recent executive board meeting for which minutes are available.

(b) The association, within 10 days after a request by a unit owner, shall furnish a certificate

containing the information necessary to enable the unit owner to comply with this section. If the unit

owner has requested the information from the association and the association fails to provide any portion

of the requested information or if the unit owner, after reasonable investigation, has no information on

any particular item to be included in the certificate, or if the requested information does not exist, the unit

owner shall include a statement to that effect in the certificate from the unit owner. A unit owner

providing a certificate pursuant to subsection (a) of this section is not liable to the purchaser for any

erroneous information provided by the association and included in the certificate and is not liable to the

purchaser under this section if the owner had, after reasonable investigation, reasonable grounds to

believe, and did believe, at the time the information was provided to the purchaser, that the statements

were true and there was no omission to state a material fact necessary to make the statements made not

misleading, in light of the circumstances under which the statements were made. The association may

require that such certificate and information be furnished in an electronic format. Except as provided in

this subsection, the association may charge a fee for providing such certificate and related information.

Such fee shall not exceed $200 for each certificate, except that if the association agrees to furnish a

certificate and related information in a paper copy format, it may charge an additional cost not to exceed

$50 for each such certificate. If the association fails to provide the requested certificate within the 10-day

period, the association may not charge any fee for providing that certificate. Unless the purchaser is given

the resale certificate before execution of a contract for the purchase of a unit, the purchaser, before

conveyance, may cancel the contract within 5 days after first receiving the resale certificate.

is subject to more than one association, the unit owner must include in the certificate the information

required by subsection (a) of this section for each association governing that unit, but the unit owner does

not have to duplicate the information for any particular association if it is already included with respect to

any one of the associations.

(d) A purchaser is not liable for any unpaid assessment or fee greater than the amount set forth in the

certificate prepared by the association.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 71-75, 82; 77 Del. Laws, c. 364, §§ 8-10.;

Delaware Uniform Common Interest Ownership Act 2017

§ 81-410. Escrow of deposits.

Any deposit made in connection with the purchase or reservation of a unit from a person required to

deliver a public offering statement pursuant to § 81-402(c) of this title must be placed in escrow and held

either in this State or in an account designated solely for that purpose by an attorney or a licensed real

estate broker or an institution whose accounts are insured by a governmental agency or instrumentality

until: (i) delivered to the declarant at closing; (ii) delivered to the declarant because of the purchaser's

default under a contract to purchase the unit; or (iii) refunded to the purchaser. An escrow agent acting in

good faith and in accordance with the terms of the escrow shall have no liability for the disposition of the

fund.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-411. Release of liens.

(a) In the case of a sale of a unit where delivery of a public offering statement is required pursuant to §

81-402(c) of this title, a seller

(1) Shall have the subject property released from all liens, except liens on real estate that a

declarant has the right to withdraw from the common interest community, that the purchaser does not

expressly agree to take subject to or assume and that encumber:

(i) In a condominium, that unit and its common element interest, and

(ii) In a cooperative or planned community, that unit and any limited common elements

assigned thereto, or

(2) Shall provide a surety bond or substitute collateral for or insurance against the lien as

provided for liens on real estate.

(b) Before conveying real estate to the association, the declarant shall have that real estate released

from: (1) all liens the foreclosure of which would deprive unit owners of any right of access to or easement

of support of their units, and (2) all other liens on that real estate unless the public offering statement

describes certain real estate that may be conveyed subject to liens in specified amounts.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 76, 82.;

§ 81-412. Conversion buildings.

(a) A declarant of a common interest community containing conversion buildings, and any dealer who

intends to offer units in such a common interest community, shall give each of the residential tenants and

any residential subtenant in possession of a portion of a conversion building notice of the conversion and

provide those persons with the public offering statement no later than 120 days before the tenants and

any subtenant in possession are required to vacate. The notice must set forth generally the rights of

tenants and subtenants under this section and must be given as required in § 81-127 of this title. No

tenant or subtenant may be required to vacate upon less than 120-days' notice, except by reason of

nonpayment of rent, waste, or conduct that disturbs other tenants' peaceful enjoyment of the premises,

and the terms of the tenancy may not be altered during that period. Failure to give notice as required by

this section is a defense to an action for possession. A conversion does not relieve either the landlord or

tenant of their obligations pursuant to the Delaware Residential Landlord-Tenant Code [Part III of this

title], if applicable.

(b) For 60 days after delivery or mailing of the notice described in subsection (a) of this section, the

person required to give the notice shall offer to convey each unit or proposed unit occupied for residential

use to the tenant who leases that unit. If a tenant fails to purchase the unit during that 60 day period, the

Whiteford, Taylor & Preston LLC

offeror may not offer to dispose of an interest in that unit during the following 180 days at a price or on

terms more favorable to the offeree than the price or terms offered to the tenant. This subsection does not

apply to any unit in a conversion building if that unit will be restricted exclusively to nonresidential use or

the boundaries of the converted unit do not substantially conform to the dimensions of the residential unit

before conversion.

has no knowledge of the violation, the recordation of the deed conveying the unit or, in a cooperative, the

conveyance of the unit, extinguishes any right a tenant may have under subsection (b) of this section to

purchase that unit if the deed states that the seller has complied with subsection (b) of this section, but

the conveyance does not affect the right of a tenant to recover damages from the seller for a violation of

subsection (b) of this section.

(d) If a notice of conversion specifies a date by which a unit or proposed unit must be vacated and

otherwise complies with the provisions of Delaware law, the notice also constitutes a notice to vacate

specified by that statute.

(e) Nothing in this section permits termination of a lease by a declarant in violation of its terms.

(f) Conversion of a residential conversion building must also comply with all other laws applicable to a

conversion.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 77, 82.;

§ 81-413. Express warranties of quality.

(a) Express warranties made by a declarant to a purchaser of a unit, if relied upon by the purchaser,

are created as follows:

(1) Any affirmation of fact or promise in writing which relates to the unit, its use, or rights

appurtenant thereto, area improvements to the common interest community that would directly benefit

the unit, or the right to use or have the benefit of facilities not located in the common interest community,

creates an express warranty that the unit and related rights and uses will substantially conform to the

affirmation or promise in all material respects;

(2) Any model or description of the physical characteristics of the common interest community,

including plans and specifications of or for improvements, creates an express warranty that the common

interest community will substantially conform to the model or description in all material respects unless

the model or description discloses that it is only proposed or is subject to change;

(3) Any description of the quantity or extent of the real estate comprising the common interest

community, including plats or surveys, creates an express warranty that the common interest community

will substantially conform to the description in all material respects, subject to customary tolerances; and

(4) A provision that a purchaser may put a unit only to a specified use is an express warranty

that the specified use is lawful in all material respects.

(b) Neither formal words, such as "warranty" or "guarantee," nor a specific intention to make a

warranty, are necessary to create an express warranty of quality, but a statement purporting to be merely

an opinion or commendation of the real estate or its value does not create a warranty.

declarant.

(d) The warranties set out in this section are intended to supplement, not supersede or replace, any

other statutory construction warranty requirements. To the extent that there is a conflict between such

Delaware Uniform Common Interest Ownership Act 2017

other statutory construction warranty requirements and this section, the provision most favorable to the

purchaser shall prevail.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-414. Implied warranties of quality.

(a) A declarant and any dealer warrants that a unit, other than a unit not yet constructed or under

construction at the time of contracting, will be in at least as good condition at the earlier of the time of the

conveyance or delivery of possession as it was at the time of contracting, reasonable wear and tear

excepted.

(b) A declarant and any dealer impliedly warrants that a unit and the common elements in the common

interest community are suitable for the ordinary uses of real estate of its type and that any improvements

made or contracted for by the declarant or dealer, or made by any person before the creation of the

common interest community, will be:

(1) Free from defective materials; and

(2) Constructed in accordance with applicable law, according to sound engineering and

construction standards, and in a workmanlike manner.

that an existing use, continuation of which is contemplated by the parties, does not violate applicable law

at the earlier of the time of conveyance or delivery of possession.

(d) Warranties imposed by this section may be excluded or modified as specified in § 81-415 of this title.

(e) For purposes of this section, improvements made or contracted for by an affiliate of a declarant are

made or contracted for by the declarant.

(f) Any conveyance of a unit transfers to the purchaser all of the declarant's implied warranties of

quality.

(g) The warranties set out in this section are intended to supplement, not supersede or replace, any

other statutory construction warranty requirements. To the extent that there is a conflict between such

other statutory construction warranty requirements and this section, the provision most favorable to the

purchaser shall prevail.

76 Del. Laws, c. 422, § 2; 70 Del. Laws, c. 186, § 1; 77 Del. Laws, c. 91, § 82.;

§ 81-415. Exclusion or modification of implied warranties of quality.

(a) Except as limited by subsection (b) of this section with respect to a purchaser of a unit that may be

used for residential use, implied warranties of quality:

(1) May be excluded or modified by agreement of the parties; and

(2) Are excluded by expression of disclaimer, such as "as is," "with all faults," or other language

that in common understanding calls the purchaser's attention to the exclusion of warranties.

(b) With respect to a purchaser of a unit that may be occupied for residential use, no general disclaimer

of implied warranties of quality is effective, but a declarant and any dealer may disclaim liability in an

instrument signed by the purchaser for a specified defect or specified failure to comply with applicable

law, if the defect or failure entered into and became a part of the basis of the bargain.

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earlier of the time of the conveyance or the delivery of possession and extends for a period of 1 year.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-416. Statute of limitations for warranties.

(a) Unless a period of limitation is tolled under § 81-311 of this title or affected by subsection (d) of this

section, a judicial proceeding for breach of any obligation arising under § 81-413 or § 81-414 of this title

must be commenced within the applicable periods of any applicable statute of limitations or statute of

repose but in all events within 6 years after the cause of action accrues.

(b) Subject to subsection (c) of this section, a cause of action for breach of warranty of quality,

regardless of the purchaser's lack of knowledge of the breach, accrues:

(1) As to a unit, at the time the purchaser to whom the warranty is first made enters into

possession if a possessory interest was conveyed or at the time of acceptance of the instrument of

conveyance if a nonpossessory interest was conveyed; and

(2) As to each common element, at the time the common element is completed or, if later, as to: (i)

a common element that is added to the common interest community by exercise of development rights, at

the time the first unit which was added to the condominium by the same exercise of development rights is

conveyed to a bona fide purchaser, or (ii) a common element within any other portion of the common

interest community, at the time the first unit is conveyed to a bona fide purchaser.

component of the common interest community, the cause of action accrues at the time the breach is

discovered or at the end of the period for which the warranty explicitly extends, whichever is earlier.

(d) During the period of declarant control, the association may authorize an independent committee of

the executive board to evaluate and enforce by any lawful means warranty claims involving the common

elements, and to compromise those claims. Only members of the executive board elected by unit owners

other than the declarant and other persons appointed by those independent members may serve on the

committee, and the committee's decision must be free of any control by the declarant or any member of the

executive board or officer appointed by the declarant. All costs reasonably incurred by the committee,

including attorneys' fees, are common expenses, and must be added to the budget annually adopted by the

association under § 81-315 of this title. If the committee is so created, the period of limitation for claims

for these warranties begins to run from the date of the first meeting of the committee, regardless of when

the period of declarant control terminates.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-417. Effect of violations on rights of action; attorneys' fees.

(a) If a declarant or any other person subject to this chapter fails to comply with any of its provisions or

any provision of the declaration or bylaws, any person or class of persons adversely affected by the failure

to comply has a claim for appropriate relief. The court, in an appropriate case, may award court costs and

reasonable attorneys' fees.

(b) Parties to a dispute arising under this chapter, the declaration, or the bylaws may agree to resolve

the dispute by any form of binding or nonbinding alternative dispute resolution, but:

(1) A declarant may agree with the association to do so only after the period of declarant control

has expired unless the agreement is made with an independent committee of the executive board elected

pursuant to § 81-416(d) of this title; and

Delaware Uniform Common Interest Ownership Act 2017

(2) An agreement to submit to any form of binding alternative dispute resolution must be in a

writing signed by the parties.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-418. Labeling of promotional material.

No promotional material may be displayed or delivered to prospective purchasers which describes or

portrays an improvement that is not in existence unless the description or portrayal of the improvement

in the promotional material is conspicuously labeled or identified either as "MUST BE BUILT" or as

"NEED NOT BE BUILT".

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-419. Declarant's obligation to complete and restore.

(a) Except for improvements labeled "NEED NOT BE BUILT," the declarant shall complete all

improvements depicted on any site plan or other graphic representation, including any plats or plans

prepared pursuant to § 81-209 of this title, whether or not that site plan or other graphic representation is

contained in the public offering statement or in any promotional material distributed by or for the

declarant.

(b) The declarant is subject to liability for the prompt repair and restoration, to a condition compatible

with the remainder of the common interest community, of any portion of the common interest community

affected by the exercise of rights reserved pursuant to or created by § 81-210, § 81-211, § 81-212, § 81-213,

§ 81-215, or § 81-216 of this title.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-420. Substantial completion of units.

In the case of a sale of a unit for which delivery of a public offering statement is required, a contract of

sale may be executed, but no interest in that unit may be conveyed, until the declaration is recorded and

the unit is substantially completed, as evidenced by a recorded certificate of substantial completion

executed by an independent registered architect or engineer, or by issuance of a certificate of occupancy

authorized by law.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, § 82.;

§ 81-421. Amendment to public offering statement.

Following execution of a contract of sale by a purchaser, the declarant may not amend any required public

offering statement without the approval of such purchaser if the amendment would materially affect the

rights of such purchaser. Approval by such purchaser is not required if the amendment is required by any

governmental authority or public utility, or if the amendment is made as a result of actions beyond the

control of the declarant or in the ordinary course of affairs of the executive board, or if the amendment is

required by, or to achieve compliance with the requirements of Federal National Mortgage Association,

Federal Home Loan Mortgage Corporation, Federal Housing Authority, Veterans Administration or other

governmental agency or their successors.

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 78, 82.