Monday January 05, 2026
This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members and owners should consult their attorneys to discuss the legal implications of their decisions or actions prior to proceeding.Can Delaware condos and HOAs evict homeowners?
In Delaware, homeowners associations (HOAs) and condo associations usually cannot “evict” an owner the way a landlord evicts a tenant. Instead, the association’s strongest remedy for nonpayment is typically an assessment lien and, if needed, foreclosure. Under 25 Del. C. § 81-316, an association lien
in a condominium or planned community is generally foreclosed like a mortgage.Foreclosure vs. eviction
Eviction is a landlord-tenant process, while foreclosure is the process that can remove an owner’s title when a debt secured by the property is not paid, such as past-due assessments. In Delaware, HOA and condo liens are handled through foreclosure, not eviction.Which Delaware HOA laws apply
Most HOA lien and foreclosure rules for common interest communities come from the Delaware Uniform Common Interest Ownership Act (DUCIOA). DUCIOA generally applies to communities created after September 30, 2009. Many key sections (including the lien statute) also apply to older communities for events after that date.When community association foreclosure is allowed
Delaware HOA laws set a minimum delinquency threshold before an association can start a foreclosure case. Under 25 Del. C. § 81-316(m)(1), an association may not start a foreclosure action unless (A) the owner owes at least 3 months of common expense assessments (based on the last budget) and (B) the executive board expressly votes to start foreclosure against that specific unit.Interest and late charges on delinquent assessments
Delaware allows associations to charge interest and late fees when assessments are not paid on time. Under 25 Del. C. § 81-302(a)(11), an association can charge late-payment charges and can suspend certain owner privileges or services for nonpayment, but it cannot take away the right of a unit owner to vote on any matter submitted to a vote of unit owners, and it cannot suspend services needed for the unit to remain habitable.25 Del. C. § 81-315(b) says past-due assessments can bear interest at a rate the association sets, as long as it does not exceed Delaware’s lawful rate. Separately, 25 Del. C. § 81-316(a) provides a default for interest on unpaid assessments (unless the declaration sets a different rate): the lesser of 18% per year or the highest rate permitted by law.
How payments must be applied
If an owner makes a partial payment while delinquent, Delaware sets a default “waterfall.” Under 25 Del. C. § 81-316(m)(2), the association applies sums paid:- First, to unpaid assessments
- Second, to late charges
- Third, to attorneys’ fees and other reasonable collection charges/costs
- Finally, to all other unpaid fees, charges, penalties, interest, and late charges
Foreclosure method and required notice
For condos and planned communities, 25 Del. C. § 81-316(j)(1) says the HOA forecloses its lien the same way a mortgage is foreclosed. This typically means a court foreclosure case leading to a sheriff’s sale, or another lawful procedure if the declaration provides one.Before foreclosure moves forward, 25 Del. C. § 81-316(j)(4) requires the HOA to give reasonable notice to all lienholders whose interests would be affected.
What happens after foreclosure
After the foreclosure sale is finished and the buyer becomes the new owner, the former occupant is expected to move out. If a tenant doesn’t leave, the new owner may file an eviction-type case called “summary possession” to get a court order for the tenant to move out.If the person staying is the former owner (not a tenant), the new owner typically goes to Superior Court to recover possession, often by filing ejectment. Learn more in our article on Delaware squatters’ rights.
Alternatives to foreclosure
Before foreclosure, Delaware law supports other tools that can resolve the problem earlier. Under 25 Del. C. § 81-302(a)(11), associations may suspend certain privileges or services (with limits) for nonpayment and may impose late charges.Associations can also levy reasonable fines for violations after notice and an opportunity to be heard. The declaration and adopted policies still matter for how these tools are used. A short, board-approved plan can outline deadlines, late-fee treatment, and what happens if payments are missed, creating clarity for both the owner and the association.
Special assessments
Special assessments can be included in the HOA’s lien and collected through the same process as regular assessments, subject to Delaware’s foreclosure rules.Owner requests for statements
Resale disclosure documents often require an association statement confirming whether any assessments are unpaid. Under 25 Del. C. § 81-316(h), the association must provide a statement of unpaid assessments upon written request, generally within 10 business days.The statute also caps the charge for that statement at $25 except in cases where the account has been referred to the association’s legal counsel. This is the backbone for many “estoppel” or payoff requests.
Communicating early to avoid escalation
Delinquencies become harder to resolve as time goes on. Boards can simplify the process with clear, effective communication with residents: early notice of delinquency, a ledger that separates assessments from other charges, and plain-language explanations of what happens next if the account stays unpaid.Delaware’s foreclosure threshold (3 months) means boards often have time to attempt resolution first, but they should not let accounts drift without a plan.
About FirstService Residential
As North America’s leading property management company, FirstService Residential serves Delaware communities with local expertise backed by national resources. Our teams support board members with meetings, recordkeeping, financial management, banking and insurance programs, resident communication, and 24/7 customer care teams. This way, board members can focus on long-term goals instead of day-to-day administration.With over 25 years of experience across the state, we help HOAs, condo associations, high-rises, and master-planned communities operate smoothly and meet their goals with confidence.
To learn how we can support your association, contact our Delaware team today.