Right of first offer; duty to negotiate in good faith, penalties for noncompliance

# (a)

If a community owner has decided to sell, transfer, or convey all or part of the community, the community owner and the homeowner association shall negotiate in good faith for the sale, transfer, or conveyance of the community to the homeowner association. If a party fails to negotiate in good faith, the court shall award reasonable attorneys’ fees to the prevailing party.

# (b)

If a community owner or a homeowner association fails to comply with any provision of this subchapter, either party has standing to seek equitable relief, including declaratory relief, injunctive relief, and the appointment of a receiver. The offending party is liable for actual damages. If a court of competent jurisdiction finds that the offending party wilfully and intentionally failed to comply with the requirements of this subchapter, it is a per se violation of the Consumer Fraud Statute, § 2511 et seq. of Title 6, and the aggrieved party may be entitled to recover treble damages. In any action under this section, the court may award reasonable attorneys’ fees and costs.

# (c)

Chapter 71 of this title does not apply to the sale, transfer, or conveyance of manufactured home communities under this section.

Amendment history

74 Del. Laws, c. 35, § 2; 70 Del. Laws, c. 186, § 1; 76 Del. Laws, c. 336, § 1; 77 Del. Laws, c. 238, §§ 2-20; 79 Del. Laws, c. 330, § 1; 82 Del. Laws, c. 38, § 32; 83 Del. Laws, c. 283, § 40

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In this title (40 sections)

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