Delaware Real Estate Investor Directory

Delaware forecloses through an old writ-based action called scire facias sur mortgage, and charges one of the highest realty transfer taxes in the country at 4%. Neither is intuitive if you are arriving from a trustee-sale state, and the transfer tax in particular is large enough to change whether a flip works.

A 4% transfer tax on the way in and out

Delaware imposes a realty transfer tax of 4% of the consideration, customarily split between buyer and seller, with a portion going to the state and a portion to the municipality or county. First-time buyer relief exists, but an investor will not qualify.

On a flip you pay a share buying and a share selling, so the round trip is a material cost that many out-of-state models simply omit. Model both legs explicitly. Delaware has no state sales tax, which is the offset elsewhere in the budget. Confirm current rates and any local variation with the Division of Revenue — this is orientation, not tax advice.

Scire facias, sheriff's sale and confirmation

Mortgage foreclosure in Delaware is judicial, brought as a writ of scire facias sur mortgage in Superior Court. The mortgagor is served and must show cause; if judgment issues, the property proceeds to a sheriff's sale.

The sale then requires court confirmation before the deed is delivered, which adds weeks after the auction. So, as in Maryland, winning the bid is not the end of the process — do not commit contractors before confirmation. Timelines are moderate overall. Pre-foreclosure data is workable, and the court docket is public from filing. Confirm procedure with Delaware counsel.

Business licence, not a contractor licence

Delaware issues no state general contractor licence. Contractors must hold a Delaware business licence from the Division of Revenue and register for the gross receipts tax, and non-resident contractors face additional bonding requirements on larger contracts.

Electrical and plumbing are licensed at state level through the Division of Professional Regulation, and municipalities such as Wilmington add their own permitting. So verify trades with the state, the business licence with the Division of Revenue, and permitting locally. Verify current requirements directly with each.

Vetting a Delaware contractor or agent: a short checklist

• Confirm the Delaware business licence and, for a non-resident contractor, the bonding position.
• Verify electrical and plumbing licences with the Division of Professional Regulation.
• Model the 4% transfer tax on both legs of a flip before you commit.
• On an auction purchase, wait for court confirmation before scheduling work.
• Use a written draw schedule. Never fund ahead of completed work.

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Delaware directory FAQs

How much is Delaware's realty transfer tax?

4% of the consideration, customarily split between buyer and seller, divided between the state and the local jurisdiction. First-time buyer relief exists but does not help an investor, and a flip incurs a share on both legs.

What is scire facias sur mortgage?

The writ-based judicial action Delaware uses for mortgage foreclosure in Superior Court. The mortgagor must show cause, and if judgment issues the property goes to a sheriff's sale which then requires court confirmation.

Does Delaware license general contractors?

No. Contractors need a Delaware business licence from the Division of Revenue and gross receipts registration, with additional bonding for non-resident contractors on larger contracts. Electrical and plumbing are state-licensed separately.

Browsing another market? See the Maryland investor directory or Pennsylvania investor directory, or return to the full investor directory.