Home Construction and Improvement Protection

Del. Code tit. 6, ch. 36

in effect

Del. Code tit. 6, § 3601 Definitions.

As used in this subchapter: (1) “Buyer” means any individual, partnership, corporation or trustee purchasing any estate or interest in a new residential real property or new dwelling. (2) “Final settlement” means the time at which the parties have signed and delivered all papers and consideration to convey title to the estate or interest in a new residential real property or new dwelling. (3) “New dwelling” means a new multi-family, single family or townhouse dwelling not previously occupied and constructed for use as a residence. (4) “New residential real property” means any estate or interest in real property improved by a new dwelling not previously occupied and constructed for use as a residence. (5) “Seller” means any individual, partnership, corporation or trustee transferring new residential property or a new dwelling. (6) “Unfinished work” means a condition in a new residential real property or new dwelling which fails to comply with the work agreed upon by the vendor and/or seller in the specifications, contract terms and applicable building codes. (7) “Vendor” means any person, firm, partnership, corporation or other entity that contracts to sell new dwellings or new residential real property.

Del. Code tit. 6, § 3602 New home construction; unfinished work and the escrow of moneys.

(a) If any unfinished work is discovered prior to or at the time of the previously agreed upon final settlement date on new residential real property or a new dwelling, the vendor and/or seller shall be required to set aside from the proceeds of the sale a sum of money equal to the contractual cost required to complete any such unfinished work. If the contract does not set forth the cost, the escrowed amount shall be the fair market value of completing said unfinished work. The escrow agreement shall specify the unfinished work at issue. (b) Said moneys shall be held in escrow for no longer than 30 days following the completion of the unfinished work. No buyer may refuse to release moneys escrowed pursuant to this section for unfinished work not specified pursuant to subsection (a) of this section. (c) If the unfinished work specified at the final settlement has not been remedied upon the expiration of 90 days from the date of final settlement or a date agreed upon by the parties and set forth in the escrow agreement, the moneys held in escrow pursuant to this section shall be released to the buyer. (d) Notwithstanding the above, this section shall apply only when the estimated cost to complete said unfinished work equals 1 percent or more of the contract price or when the aggregate estimated costs of completing all unfinished work equals 1 percent or more of the contract price. (e) This section shall not apply when a buyer unilaterally requests that settlement take place on a date prior to the previously agreed upon final settlement date. (f) To the extent the seller/vendor and the buyer agree that the buyer may withhold, at the final settlement, moneys otherwise subject to escrow under this section, such an arrangement shall be deemed in compliance with this section.

Del. Code tit. 6, § 3603 Remedies and penalties.

(a) In any successful action brought by a buyer for failure to acknowledge unfinished work subject to the escrow provisions of § 3602 of this title or failure to escrow the contractual cost or the fair market value required to complete the unfinished work subject to the escrow provisions of § 3602 of this title, the court may order the seller/vendor to pay the amount that should have been escrowed and the costs of litigation. To the extent a seller/vendor proves that a buyer’s request to escrow under § 3602 of this title was not valid, the buyer may be liable for the seller/vendor’s costs of litigation. (b) Failure to comply with a buyer’s valid request to escrow under § 3602 of this title shall constitute an unlawful practice in violation of § 2513 of this title and wilful violations of § 3602 of this title shall be punishable in accordance with § 2513 and/or § 2581 of this title. The Attorney General shall have the same authority in enforcing, remedying, and otherwise carrying out the provisions of this subchapter as is provided by Chapter 25 of Title 29 and by §§ 2511-2527 and 2531-2536 of this title. (c) The remedies and penalties provided for in this section are not exclusive and shall be in addition to any other procedures, rights or remedies which exist with respect to any other provisions of law including, but not limited to, state and/or federal criminal prosecutions and/or common law statutory actions brought by private parties.

Del. Code tit. 6, § 3651 Definitions.

As used in this subchapter: (1) “Construction” includes construction, erection, building, alteration, repair, reconstruction and destruction of improvements to real property. (2) “Improvement” includes buildings, roads, streets, entrances and walkways of any type constructed thereon, and other structures affixed to and on land, as well as any changes to the land itself. (3) “Residential real property” means any estate in real property improved by a dwelling for use as a residence.

Del. Code tit. 6, § 3652 Economic loss relating to improvements to residential real property.

No action based in tort to recover damages resulting from negligence in the construction or manner of construction of an improvement to residential real property and/or in the designing, planning, supervision and/or observation of any such construction or manner of construction shall be barred solely on the ground that the only losses suffered are economic in nature.

Del. Code tit. 6, § 3681 Definitions [For applicability of subchapter, see 80 Del. Laws, c. 145, § 3].

As used in this subchapter: (1) “Builder” means any individual, trustee, partnership, corporation, or other entity contracting with an owner for the construction of a new dwelling. (2) “Buyer” means any individual, trustee, partnership, corporation, or other entity purchasing any estate or interest in a new dwelling. (3) “New dwelling” means a new 1- or 2-family residential dwelling, not previously occupied, and constructed for residential use.

Del. Code tit. 6, § 3682 Disclosure of automatic fire sprinkler system information [For applicability of subchapter, see 80 Del. Laws, c. 145, § 3].

At the time of or prior to agreeing to final pricing for construction of a new dwelling with a buyer, a builder shall provide the buyer with a copy of written materials prepared and promulgated by the Office of the State Fire Marshal which detail the benefits an automatic fire sprinkler system. At the same time, a builder shall provide written materials including the costs associated with the installation and maintenance of an automatic fire sprinkler system. The buyer shall acknowledge receipt of the written materials in writing. Upon request of the buyer, the builder shall, at the buyer’s expense, install an automatic fire sprinkler system or other requested fire suppression system.

Del. Code tit. 6, § 3683 Remedies and penalties [For applicability of subchapter, see 80 Del. Laws, c. 145, § 3].

(a) In addition to any remedies the buyer may have at law or in equity, whenever it appears to the Attorney General or Director of the Division of Consumer Protection that a person has engaged in, is engaging in or is about to engage in any act or omission in violation of this subchapter, the Attorney General or Director of the Division of Consumer Protection may institute a court proceeding or administrative proceeding in accordance with the process in subchapter II of Chapter 25 of Title 29. However, upon a finding that any person has wilfully violated this subchapter, the person shall pay for the first offense a civil penalty not less than $75 nor more than $150, and for each subsequent offense, a civil penalty not less than $100 nor more than $250. For purposes of this subchapter, a wilful violation occurs when the person committing the violation knew or should have known that the conduct was of the nature prohibited by this subchapter. (b) The remedies and penalties provided for in this section are not exclusive and shall be in addition to any other procedures, rights or remedies which exist with respect to any other provisions of law including, but not limited to, criminal prosecutions and actions brought by private parties under common or statutory law or both. However, there shall be no liability or cause of action against a real estate licensee licensed under Chapter 29 of Title 24 or real estate brokerage arising out of or related to a builder failing to provide the information required by this subchapter or for the content of the information. Additionally, there shall be no liability or cause of action against any nonprofit builder using 0% financing to the buyer.

Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title6/c036/sc01/index.htmlFetched: 10/4/2026