Free Delaware Real Estate Practice Exam Questions (December 2024) 40+

Delaware administrative code requires brokers to keep full and complete records of all their real estate transactions and escrow accounts for a minimum of three years.

Per Chapter 29. Real Estate Services, Brokers, Associate Brokers, and Salespersons: “Any such licensee or any employee thereof who does not hold a license, may recover, after a hearing and on the order of the Commission, compensation in an amount not exceeding in the aggregate the sum of $25,000 in connection with any 1 transaction or claim, regardless of the number of persons aggrieved or parcels of real estate involved in such transaction or claim.”

Per Chapter 29. Real Estate Services, Brokers, Associate Brokers, and Salespersons “the Commission shall establish and maintain a Real Estate Guaranty Fund (hereinafter referred to as the “Fund”).

The form's purpose is to ensure property sellers pay income tax on capital gains. Form 5403 allows the seller to claim exemption from tax because the seller is a resident of Delaware. It also allows for exemption if the gain is excluded from income.

Under agency law in Delaware Dual Agency is legal but only with the consent of all parties to the transaction. Dual Agency is when the broker owes both the seller and buyer a duty to deal with them fairly and honestly. In this type of agency relationship, the broker represents each party.

Per chapter 55, Tenant Obligations and Landlord Remedies 5517 preference of rent in cases of execution: “Liability of goods levied upon for 1 year’s rent.”

Homeowners age 65 or over are eligible for a tax credit against regular school property taxes of 50 percent (up to $400). This credit may only be used against property taxes on a primary residence. Per State Senior Citizen School Property Tax Credit.

A tenant may terminate a rental agreement by giving a minimum of 60 days' written notice prior to the expiration of the term of the rental agreement that the agreement shall terminate upon its expiration date. Per Title 25 - Chapter 51. General Provisions - Delaware Code.

If a tenant does not claim their property in seven days, then the landlord can consider the property abandoned and dispose of it per Title 25 Chapter 55 Residential Landlord-Tenant Code.

A three-year limitation applies for breach of written contracts in Delaware.

Delaware commission members serve three-year terms and must be Delaware residents for the five years preceding their nomination to the commission in order to be eligible to serve.

All the following. The Commission may impose any of the following sanctions, singly or in combination: (1) Issue a letter of reprimand; (2) Place the licensee on probationary status and require the licensee to a. Report regularly to the Commission upon the matters which are the basis for the probation; and/or b. Limit real estate services activities to those areas prescribed by the Commission. (3) Impose a monetary penalty not to exceed $5,000 for each violation; (4) Suspend any licensee’s license. (5) Revoke or permanently revoke any licensee’s license.

Delaware commission members serve three-year terms and must be Delaware residents for the five years preceding their nomination to the commission in order to be eligible to serve.

If a landlord accepts cash payment for rent, the landlord shall, within 15 days, give to the tenant a receipt for that payment. The landlord shall, for a period of 3 years, maintain a record of all cash receipts for rent. Per, Title 15 Residential Landlord-Tenant Code Chapter 55. Tenant Obligations and Landlord Remedies.

Per Chapter 29. Real Estate Services, Brokers, Associate Brokers, and Salespersons: “Any such licensee or any employee thereof who does not hold a license, may recover, after a hearing and on the order of the Commission, compensation in an amount not exceeding in the aggregate the sum of $25,000 in connection with any 1 transaction or claim, regardless of the number of persons aggrieved or parcels of real estate involved in such transaction or claim.”

Delaware is NOT a Community Property state. The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort.

Per Title 24 - Chapter 29. Real Estate Services, Brokers, Associate Brokers, and Salespersons. “A member of the Commission shall be suspended or removed by the Governor for misfeasance, nonfeasance, malfeasance, misconduct, incompetence, neglect of duty, or for unprofessional or dishonorable conduct.”

If a landlord accepts cash payment for rent, the landlord shall, within 15 days, give to the tenant a receipt for that payment. The landlord shall, for a period of 3 years, maintain a record of all cash receipts for rent. Per, Title 15 Residential Landlord-Tenant Code Chapter 55. Tenant Obligations and Landlord Remedies.

Sales agreement, agreement of sale, or bill of sale are all the same thing and the correct answer. Notice for buyers encouraging them to confirm access to sewer and water facilities on unimproved property or land must appear in the agreement of sale per Delaware Code Title 25 § 313.

Statutory. Unless specifically hired as a common law agent by a written brokerage agreement, a licensee is a statutory agent and not a common law agent for any party. Per Title 24 Chapter 29 Real Estate Services, Brokers, Associate Brokers, and Salespersons.

Race/Color, Religion, National Origin, Familial Status, Sex (Gender), Disability Status, Marital Status, Sexual Orientation/Gender Identity, Creed, Age, and Source of Income are all protected per Delaware Fair Housing Law.

Per Agreement of Sale for Delaware Residential Property: buyers are responsible for scheduling the pre-settlement property inspection within 48 hours prior to settlement.

The Commission issues licenses to real estate brokers, associate brokers, and salespersons. It also licenses real estate main and branch offices. Per 24 Del. C., Chapter 29.

“The purpose of this chapter is to protect homeowners from unfair or deceptive practices by providers of mortgage loan modification services.” Per Delaware Mortgage Loan Modification Services Act (MLMSA).

Six months, although one six-month extension is allowed if the parties agree in writing. Per Chapter 311 formerly House Bill No. 413

Per Chapter 29. Real Estate Services, Brokers, Associate Brokers, and Salespersons: “Each licensee shall pay a fee of $25 which shall be credited to the Fund.”

Per Title 24, Chapter 29. Real Estate Services, Brokers, Associate Brokers, and Salespersons 2917. Effect of revocation of broker’s license. If a Delaware broker’s license is revoked, then all salespersons working under this broker will have their license suspended.

“The Commission shall consist of 9 members appointed by the Governor: 5 professional members, 3 of whom shall be licensed brokers, 1 associate broker, and 1 salesperson; and 4 public members.” So 4 members.

Per Chapter 29. Real Estate Services, Brokers, Associate Brokers, and Salespersons: “If the balance of the Fund should fall below the $250,000 level, the Commission shall, at the next license renewal date, assess each licensee a pro-rated fee in such amount that the Fund will be returned to the $250,000 level.”

Delaware has full reciprocity with all other states but with some additional education requirements.

Active Real Estate Professionals (Broker, Associate Broker, Salesperson) must complete 21 hours of approved CE during each full licensure renewal period.

Race/Color, Religion, National Origin, Familial Status, Sex (Gender), Disability Status, Marital Status, Sexual Orientation/Gender Identity, Creed, Age, and Source of Income are all protected per Delaware Fair Housing Law.

Delaware is a lien theory state which means banks or mortgage lenders never retain title to the property. Instead, the mortgage lender holds a lien against the property. In these states, the deed stays with the borrower, and the lender places a lien on the property using a mortgage. The lien ends when the loan is paid in full.

The Delaware Real Estate Guaranty Fund. Per Chapter 29. Real Estate Services, Brokers, Associate Brokers, and Salespersons: “Each licensee shall pay a fee of $25 which shall be credited to the Fund.”

If the licensee doing the advertising is employed by or associated with a brokerage or firm, the advertising must identify the name of the employing brokerage. The identification must include both the name and phone number of the brokerage exactly as it appears on the brokerage's real estate license.

As defined and Title 24, Chapter 29. Real Estate Services, Brokers, Associate Brokers, and Salespersons: broker, associate broker, and salesperson are the types of real estate licenses in Delaware.

The Delaware Real Estate Commission is responsible for ensuring that Delaware licensees are able to safely help the public with real estate transactions.

Applicants must be at least 18 years old in order to become real estate salespeople or brokers in New Delaware.

Technically, the seller pays the listing broker (their sponsoring broker) who then pays the listing agent. “All compensation relating to a real estate services transaction to be paid to a licensee shall be paid through the broker or brokerage organization,” per Delaware Code Title. 24 - 2930

Brokers must then deposit these funds no later than 72 hours after the date the contract was executed. The only exception to this 72-hour requirement is weekends and national holidays, in which case the funds must be deposited on the next business day following the holiday or weekend.