reglab/statecodes huggingface dataset:
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter II. Creation, Alteration, and Termination of Common Interest › § 81-213. Subdivision of units.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter II. Creation, Alteration, and Termination of Common Interest › § 81-214. Variations in boundaries.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter II. Creation, Alteration, and Termination of Common Interest › § 81-215. Use for sales purposes.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter II. Creation, Alteration, and Termination of Common Interest › § 81-216. Easement rights.

§§ 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.
(c) Subject to the declaration and the rules, the unit owners have an easement to use the common 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter II. Creation, Alteration, and Termination of Common Interest › § 81-219. Rights of secured lenders.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter II. Creation, Alteration, and Termination of Common Interest › § 81-220. Master associations.

§§ 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 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.
(c) If the declaration of any common interest community provides that the executive board may 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter II. Creation, Alteration, and Termination of Common Interest › § 81-221. Merger or consolidation of common interest communities.

§§ 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.
(c) Every merger or consolidation agreement must provide for the reallocation of the allocated interests 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 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter II. Creation, Alteration, and Termination of Common Interest › § 81-222. Addition of unspecified real estate.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter II. Creation, Alteration, and Termination of Common Interest › § 81-223. Master planned communities.

§§ 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.
(c) When each unit in a master planned community is conveyed to a purchaser, the declaration must 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter II. Creation, Alteration, and Termination of Common Interest › § 81-224. Other exempt real estate arrangements.

§§ 81-224. Other exempt real estate arrangements.
(a) An agreement between 2 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.
(c) An arrangement between 2 separately owned parcels of real estate for sharing costs associated with 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter II. Creation, Alteration, and Termination of Common Interest › § 81-225. Termination following catastrophe.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-301. Organization of unit owners' association.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-305. Termination of contracts and leases of declarant.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-306. Bylaws.

§§ 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.
(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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-307. Upkeep of common interest community.

§§ 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 1 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.
(c) In a planned community, if all development rights have expired with respect to any real estate, the 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-308. Unit owner meetings.

§§ 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 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-309. Quorums.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-311. Tort and contract liability; tolling of limitation period.

§§ 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.
(c) 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 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-314. Surplus funds.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-317. Other liens.

§§ 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 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-319. Association as trustee.

§§ 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 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-323. Removal of members of executive board.

§§ 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(f) of this title 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.
(c) If a special meeting is called for the purpose of removing a member of the executive board, then the 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 1/3 of the total votes of the association.
76 Del. Laws, c. 422, §  2;  77 Del. Laws, c. 91, §  82;  81 Del. Laws, c. 79, § 41;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-324. Adoption of budget.

§§ 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, voting in person or by proxy, 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 (c) of this section, the special assessment is effective only if the executive board follows the procedures for ratification of a budget described in subsection (a) of this section and the unit owners do not reject that proposed special assessment.
(c) If the executive board determines by unanimous vote that the special assessment is necessary in 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;  83 Del. Laws, c. 173, § 12;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-325. Service on associations and executive board.

§§ 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.
76 Del. Laws, c. 422, §  2;  77 Del. Laws, c. 91, §  82;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter III. Management of the Common Interest Community › § 81-326. Delaware corporations.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter IV. Protection of Purchasers › § 81-401. Applicability; waiver.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter IV. Protection of Purchasers › § 81-402. Liability for public offering statement requirements.

§§ 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. 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.
(c) Any declarant or dealer who offers a unit to a purchaser shall deliver a public offering statement in 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 2 or more public offering statements.
76 Del. Laws, c. 422, §  2;  77 Del. Laws, c. 4, §  14;  77 Del. Laws, c. 91, §  82;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter IV. Protection of Purchasers › § 81-405. Time shares.

§§ 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;
2023 Delaware Code › Title 25 - Property › Chapter 81. DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT › Subchapter IV. Protection of Purchasers › § 81-406. Common interest communities containing conversion buildings.

§§ 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;