Flash Cards and Study Sheet for DE State Exam (2025)

Question

Steps for Associate Broker License

Answer 1

- Take 96 hr course - Pass exam in 3 attempts or less - Submit application (DELPROS) - Upload docs - Pay fees - don't have to pay Guaranty Fund again if you paid it when applying for Salesperson - Include list of 30 transactions completed within 5 yrs immediately prior to application (address, seller and buyers name, date) - get signed by Broker - Submit application within 1 year of completing course

Answer 2

Qualified to sell real estate, train, supervise and manage brokerage day to day activities

Answer 3

Same steps as Associate Broker + - Proof of compliance with escrow account rules & regs - Proof of day-to-day brokerage mgmt & supervision - If intending to serve as replacement broker, need to submit a letter from current broker naming them as new broker w/application - If names don't match will need legal proof

Answer 4

After 1st Renewal - you need 21 hours of CE (3 hrs each): - Agency and Fair Housing - Professional Stds - RE Documents - Office Management - Legislative Issues - RE Practices - Electives (can choose another approved module above)

Answer 5

- CE must come from standard modules - CE is prorated for 1st renewal depending on when licensed - Associate Broker or Brokers changing status from one to the other follow the 21 hours of CE

Answer 6

- Once you've passed the exam the CE clock starts whether you apply for your license right away - Must take 12 hrs of CE between 1yr to 1.5 years after course completion even if you haven't applied for license yet - Must take 21 hrs of CE between 1.5 yrs to 2 yrs after course completion and then 2 hrs for each renewal after course completion

Answer 7

CE requirements are prorated: - New salesperson (if not licensed elsewhere) - need 12 hours of CE within 90 days of getting license - Professional Stds - Sales Agreement - Real Estate Docs - Professionalism < 6mo. to renewal - only need 12 hrs above within 90 days 6 mo. to 1 yr - need 12 hrs above + 6 add'l hrs 1 yr to 1.5 yrs - need 12 hrs above + 12 add'l hrs 1.5 years - < 2 yrs - need 12 hrs above + 18 hrs

Answer 8

- DREC members who attend 80% of meetings during a 2yr period earn 1 CE credit for every mtg attended - Licensees who complete Brokers course will earn 21 hours of CE - Licensees who take out-of-state brokers course of 99+ hrs earn 18 hrs - Licensees who take 6+ hrs of a Nat'l accredited program and earn designation earn 6 hrs of CE

Answer 9

- Licensee can submit a written request w/proof of illness, injury or family hardship - DREC may waive or postpone requirement - Must submit requests no later than 60 days before renewal period

Answer 10

DREC selects licensees for audits - Will notify licensee 60 days after May 31st of even numbered yrs - If you have a late renewal, automatically subject to audit - Have 20 days to verify CE including submitting docs to show completion - If determined doesn't meet CE requirements - a hearing will be held per the Admin. Procedure Act

Answer 11

- When there is a change that affects your license, licensees must notify DREC and pay any associated fees - All changes completed through DELPROS - most docs can be uploaded - Examples of changes: - Transfer to new brokerage - both licensee & broker need to take action - Place license in inactive status - releasing broker needs to take action - Request to terminate - releasing broker to take action - Cancel a license - Licensee name changes - submit legal document - Licensee address changes - notify within 30 days - Change broker Type - Change broker address - broker notifies DREC w/list of all licensees and DREC will update each license - License reinstatement: - Lapsed can renew - complete online - Lapsed must Reinstate - apply in DELPROS - DREC reviews at monthly meeting (submit at least 10 days before monthly meeting) - DREC may reject if it has been > 1 yr or may require you retake the license exam

Answer 12

- Need to satisfy CE requirements - Pay renewal fee - Renew online DELPROS where you have to attest to completion of CE hrs (Broker to ensure you are in compliance) - Broker and Licensee has to hold records for 3 years

Answer 13

DE Licensees renew every 2 years (even numbered yrs) on April 30th - Commission mails renewal notices a few weeks before expiration

Answer 14

- Need to wait 2 years before re-licensing - Take and pass course - Take and pass exam - Meet any other requirements stated by DREC *Note: DREC isn't compelled to issue an applicant a new license. If permanently revoked - can never get a license in RE again

Answer 15

- If don't renew by April 30th on the even numbered yrs license will expire - Can apply for late renewal up to 60 days after expiration - Have to pay late fee plus renewal fee - If > 60 Days license will terminate and you have to do a license reinstate

Answer 16

- If inactive, still need to renew - No CE is required - Will need to reactivate once you get back in to RE

Answer 17

- Provide proof of mtg CE requirements - Need to pass any exams DREC requires - Need to pay all fees - If 6 mo. pass & haven't reinstated, you'll be required to re-take the state exam - If 2 yrs pass, you'll have to take state and general exams

Answer 18

Active Military - permit continuation of license - Can request license remains active while deployed - Protected from expiration date, still need CE require. Provisional License - service member or spouse can apply for provisional license in DE for up to 6 months while application is in process

Answer 19

- Applicants w/criminal record or pending charges may ask for authorities to provide information about the charges to the DREC for review, DREC reviews, if not related to RE could waive stipulation - need majority vote of a quorum - Felony waivers - if 5+ yrs since conviction, not incarcerated, not serving a suspended sentence or on probation or work release - Misdemeanor - not incarcerated, serving a suspended sentence on probation, parole or work release

Answer 20

Licensee and Broker can both lose license - if convicted or plead guilty to forgery, embezzlement, bribery, extortion license can be suspended or revoked - Misrepresentation, false promises - Misrepresentation, false promises thru advertising - Failure to act for escrow funds - Negligent or incompetent RE activities - Commission, compensation, valuable consideration violations - Rules and regulations violations - Misrepresentation of sellers disclosure condition & radon - Fraud or deceptive practices in gaining RE license - Disciplinary actions in another jurisdiction - Illegal practice of RE, helping someone practice RE illegally DREC will not suspend/revoke license without giving notice and chance to plead your case

Answer 21

Pays out when a person wins a judgement against a licensee for losses or damages due to any kind of deceit and the person can't collect the entire amount of judgement. File a claim with the commission within 60 days of the final judgment.

Answer 22

Illegal action that occurs when someone who is not a licensed attorney attempts to practice law, draft legal documents, or otherwise performs any actions for which a law license is required

Answer 23

The Delaware Administrative Procedure Act is the law governing procedures for state administrative agencies to propose and issue regulations and provides for judicial review of agency adjudications and other final decisions in Delaware. It can be found in Title 29, Chapter 101 of the Delaware Code. Helps to ensure that no governmental entity acts without an opportunity for public input by requiring public disclosure and discourse before rulemaking. Example: Conducts hearings for failed CE audits

Answer 24

- Includes Truth in Lending Act (TILA) - Meant to safeguard the consumer in the use of residential credit by requiring full disclosure of the terms and conditions in any offer of credit - Requires lenders to make disclosures that allow consumers to compare the costs across different lenders

Answer 25

Created to let borrowers know the true cost of credit - MUST BE PROVIDED WITHIN 3 DAYS OF MAKING LOAN APPLICATION - Enforces TILA - includes all advertising to promote RE - Make credit info. "clear and conspicuous" - APR (cost of credit) must be disclosed when borrowers apply for credit - Does not set a minimum or maximum interest rate - Full Disclosure needed if "trigger terms are; down payment, payment amount, number of payments, interest rate, not APR - If ad is simply mentioning financing in a general way, like "low down payment" or "easy financing" no add'l disclosure is needed

Answer 26

- Regulation B - Prohibits discrimination in financing on protected classes (race, color, religion, national origin, sex, marital status, age (18+), dependence on public assistance

Answer 27

- Enacted by US Dept. of Housing and Urban Development (HUD) - Prohibits illegal kickbacks and referral fees - Covers loan on 1-4 family residential properties (includes loan assumptions, refinances, home improvement loans, equity lines of credit - Must provide borrowers with a written disclosure of estimated settlement costs

Answer 28

- Lenders must offer affordable loans to "low to moderate" income indivduals - Lenders must prepare a statemtn showing how they are invested in low-income & rehabilitation efforts (show boundaries, credit offered, comments from schools - Involves Fed. Regulatory Review by Comptroller, Fed. Reserve Board of Driectors, FDIC, Office of Thrft Supervision - Lenders must post they are subject to this review and make results public

Answer 29

- Seeks to accommodate those with disabilities by broadening their access to public facilities - Any business with 15+ employees must update their facility to conform w/ADA rules and regs - All new construction (except SF homes) must be handicap accessible - Ground floor apartments need to be ADA compliant, but UL do not - 1988 - multi family w/4+ units must comply w/ADA

Answer 30

Governs the creation and administration of condominiums; applies primarily to developments created prior to 2009. The Unit Property Act specifically regulates condominiums and their development and doesn’t address other types of common interest communities. Most of its provisions were superseded by DUCIOA when it was enacted in 2009, but the management of pre-existing condo communities may still be regulated under the provisions of the Unit Property Act. The act’s provisions describe how units are held and transferred, requirements for managing the property, how condominium owners are taxed and insured, how liens can be placed, how repairs and improvements must be handled, and so forth.

Answer 31

Governs the formation, management, and termination of all common interest communities since 2009. Requires delivery of resale package. Associations have 10 days to provide the certificate once requested. The association may charge up to $200, or $250 for a hard copy. Unit owners aren’t liable to purchasers for association errors the owner isn’t aware of. If the resale certificate isn’t provided to the buyer prior to signing the purchase contract, the buyer may cancel the contract within five days of receiving the resale certificate. Applis to Conods, Co-ops and PUDs. Exempt for commercial common interest properties, conitnuing care faclities or smaller communities with < 20 or fewer units. Developers of new construction are required to provide buyers with a public offering statement that provides disclosures about the developer, how the ocmmunity is governed and financials for the community.

Answer 32

loan modification service providers are prohibited from indicating or suggesting that homeowners shouldn't or aren't allowed to communicate with their lender, among other things. It doesn’t prohibit a real estate licensee from also acting as a loan modification service provider or from charging the homeowner for loan modification services. Part of the service involves negotiating with lenders on behalf of the homeowner/borrower regarding loan modification.

Answer 33

Outlines the rights of manufactured home owners in a manufactured home community The act requires manufactured home community owners to give residents advance notice of an impending sale. Residents are granted the right of first offer—that is, they have the right to purchase it first by forming a cooperative or homeowners association (HOA). The co-op or HOA has 30 days after receiving the community owner’s notice of sale, which includes the sale price and terms, to either accept the price and terms, to reject them, or to make a counter-offer.

Answer 34

Governments authority at state, local and federal level - to do what it can to ensure the health, safety and welfare of its citizens

Answer 35

Represents buyer and seller - also known as "limited agency"

Answer 36

Premiums, prizes, merchandise discounts or other incentives to list, sell, purchase or lease property, or event o visit open houses **Undisclosed inducements related to a purchase agreement are prohibited

Answer 37

- Requires title to be free and clear of liens, judgements, encumbrances other than any easements or restrictions. - Any encroachments or title issues must be disclosed on the Sellers Disclosure of Real Property Condition Report

Answer 38

Land and everything permanently attached to it

Answer 39

- Disposition - Enjoyment - Exclusion - Possession - Control

Answer 40

Real Property - the land and everything attached to the land Personal property - everything that isn't real property (not attached)

Answer 41

Artificial attachments (fencing, sheds, buildings, walkways)

Answer 42

Method of Annexation Adaptability of item to lands use Relationship of the parties Intention in placing the item on the land Agreement of the parties

Answer 43

A private control which limits the use or appearance of a given property

Answer 44

- Conditions - contingencies in which a property might be won or lost if the condition is violated - Covenants - agreements between two or more parties - Restrictions - deed restrictions

Answer 45

Private control that limits the use of the property

Answer 46

Earth's surface extending downward to the center of the earth and upward to infinity, including permanently-attached natural objects

Answer 47

Permission to do something on another's land without actually possessing and interest or ownership in the land **Usually temporary and may be revoked by the landowner at any time

Answer 48

The authorized use of another property for a specific purpose

Answer 49

- Attached to a specific parcel of land - Transfers with the land - Grants the right to use adjoining property

Answer 50

Only created for the purpose of ingress and egress

Answer 51

Created through the continued, uninterrupted, obvious and adverse use of another property for many years

Answer 52

Granted to a specific individual or business entity rather than attached to the property itself

Answer 53

If someone uses someone else's land for a long period of time without permission, that person has rights based on fact they were treating the property as their own

Answer 54

An affixed intrusion onto another persons property (ex. fence, shed)

Answer 55

Any claim or lien held by another person or entity against a property that limits owners use or rights or decreases property value

Answer 56

Concern the allocation of water between land owners along a flowing waterway (river)

Answer 57

Concern the use of the shore of closed bodies of water (lakes) for abutting property owners

Answer 58

A public notice that a legal issue is pending

Answer 59

Planned Unit Development - everything in definition of land, plus all things permanently attached to it naturally or artificially

Answer 60

Establishes path of ownership

Answer 61

Summary of title history

Answer 62

Severalty - title is held by one owner Co-Ownership - title is held by 2+ persons or 2+ legal entities

Answer 63

Insures against title defects for policy holder

Answer 64

Establishes proof of ownership, legal document that is signed and delivered

Answer 65

- Full covenant and warranty - Special warranty - Bargain and sale - Quitclaim - Referre's - Executor's - Deed in Trust

Answer 66

In a general warranty deed, the grantor is warranting against title defects that occurred not only during the grantor's period of ownership, but also all prior owner periods.

Answer 67

- Customary way to convey title to RE in DE - Conveys title or interest to the grantee and warrants against the grantor and grantor's heirs and assigns. - Does not provide a warranty for claims prior to the Grantors ownership

Answer 68

A quit claim deed contains no covenants of warranty and transfers nothing more than the grantor's interest in the real estate at the time of the execution, rather than the real estate itself. The grantor is not providing any expressed or implied warranties against title defects.

Answer 69

- Grantor/Grantee - Act of conveyance (granting clause) - Consideration - Legal description - Habendum clause - Limitations and "subject to" clause - Signature of Grantor - Acknowledgment/recording - Delivery and acceptance

Answer 70

- Must be acknowledged before recording - Deed must be recorded in the county where the property is located - Recording date is used to establish order of lien priority, not the date the deed is signed

Answer 71

Ownership estates of indeterminable length (fee simple, life estate)

Answer 72

Highest form of ownership of land and any buildings on it. It is a type of freehold ownership that grants the owner full and irrevocable rights to the property. Can sell, mortgage or pass along to anyone

Answer 73

Type of property interest that is similar to a fee simple, but is subject to a condition that can end the interest. A condition precedent is a condition that must be met before a future interest can become possessor.

Answer 74

Right of re-entry - type of property ownership where the grantor has the right to take back the property if certain conditions are not met. This is different from a fee simple determinable, where the property automatically reverts to the grantor if the conditions are not met. Have to take legal action to reclaim property

Answer 75

Type of real estate ownership that can be taken away if a specific event occurs or doesn't occur. The conditions are outlined in the property's deed or legal document.

Answer 76

Type of real estate ownership that automatically ends when a certain condition is met. The property then reverts to the original grantor or their heirs.

Answer 77

Rights of possession without ownership (ex: estate for years, estate at will, estate at sufferance, periodic estate)

Answer 78

One person owns the property; all other interests are severed

Answer 79

Grants a husband (or child) interest in his wife's estate when she passes

Answer 80

Grants a wife (or child) interest in her husbands estate when he passes

Answer 81

Died without leaving a will

Answer 82

States power to claim the estate of a deceased person without a will, heirs or creditors

Answer 83

Died leaving a will

Answer 84

The power of the gov't to take private property for public use

Answer 85

Equal ownership with undivided rights of possession; each owner may sell his own interest; if one owner dies, that person’s ownership reverts to the survivors

Answer 86

Each person is entitled to possession of the whole; if one dies, that person’s ownership is inheritable (but doesn’t necessarily pass to the other owners)

Answer 87

Spouses (including same-sex spouses) own property together as a single legal entity; neither spouse may sell or give away an interest in the property without the other’s permission; if one dies, the entire ownership reverts to the surviving spouse

Answer 88

Transfer of title to real property

Answer 89

- Sale - Will

Answer 90

- Foreclosure - Court ordered sale - Adverse possession

Answer 91

Description of RE sufficient to identify it for legal purposes

Answer 92

- Metes and bounds - Lot and Block - Rectangular Survey

Answer 93

Uses compass heading and directions

Answer 94

Provides plat reference

Answer 95

Divides land surveyed into 6 mile square townships, which are further divided

Answer 96

Buyers in New Castle County have the option of a mortgage survey to reduce costs. The buyer must agree to accept a survey/plat map showing the position of improvements on the property using historically identified boundaries rather than setting corner markers and identifying the actual boundary lines. This does require a licensed surveyor. NOT permitted in Kent and Sussex counties. DE regulations allow a mortgage survey or mortgage survey plan - Requires a buyer or owner if not selling but getting a mortgage, to sign waiver allowing the survey to be done without setting corner markers. - Provides a warning that the boundary lines haven't been identified and that a more complete survey may be needed in the future - Buyer receives a plat map showing the positions of buildings and other improvements with descriptions on the property

Answer 97

Corner markers are set

Answer 98

Establishing specific classifications to land that impacts how the land may be used

Answer 99

1) Credit - credit score and accounts 2) Capacity - cash reserve and debt to income ratio 3) Collateral - down payment and property taxes

Answer 100

Voluntary, specific (applies to one property) lien

Answer 101

Mortgagor = borrower Mortgagee = lender

Answer 102

Attaches to all of debtors property

Answer 103

Attaches to a single property

Answer 104

Voluntary - debtor agrees to voluntary lien (mortgage) Involuntary - lien placed without debtor's consent

Answer 105

- Lender gives money to borrow using the home itself as collateral - Repay at death or sell home - Popular with: - Elderly - Lot of equity "house rich" - Little liquid cash "cash poor"

Answer 106

Short term loan that allows borrowers to borrow against current property in order to buy a new one

Answer 107

- FMHA - Fredie Mac - Fannie Mae

Answer 108

An agreement to subordinate a priority lien beneath another

Answer 109

Encourages low income housing *Freddie mac has some programs for low income

Answer 110

Interest paid on accrued interest as well as principle

Answer 111

Document from lender that states the property has been paid off and is released from lien

Answer 112

Leinor holds the lien vs. Lienee is subject to the lien

Answer 113

1) Sate/municipal liens 2) Super Liens (1st 6 mo. unpaid HOA) 3) 1st and 2nd Mortgages 4) HOA's - in excess of super lien 5) 3rd mortgages, mechanics liens, judgements

Answer 114

Appraiser will investigate following factors: - economic - environmental - physical - social

Answer 115

Market Value - estimate of what a property should sell for Market price - price a property did sell for

Answer 116

Referred to as "Market Approach" - Valuation by an appraiser using similar properties and makes valuation adjustments

Answer 117

A legal condition in which a foreclosed homeowner or short sale seller owes the lender the diff, btw what was owed and the sales proceeds

Answer 118

Section 1031 of the Internal Revenue Code allows the owner of real property to sell that property and then reinvest in a “like-kind” property and defer paying any capital gains taxes; strict IRS rules regulate this type of exchange

Answer 119

When a tenant vacates a property without notice and before the lease terminates

Answer 120

Land parcels that share a common border

Answer 121

Allows a lender to demand immediate and full payment of all debt owed if a buyer defaults or fails to meet certain conditions that apply to the loan

Answer 122

The addition of value to property through labor or the addition of new materials, including an increase in land through natural processes. Ex. Jonathan’s property borders a bay. The bay receded, and Jonathan gained an extra 10 feet of property to his land through accession; also, Chris built a fence on his neighbor's property with no agreement allowing Chris to remove the fence. The neighbor now owns the fence.

Answer 123

The gradual growth in the size of a land parcel due to water-deposited sand, silt, or gravel. Ex. Jillian’s property grew through accretion when the creek flow created a long sandbar.

Answer 124

An incidental or subordinate use to the primary use of the property. Ex. Andy’s military bunker in his back yard constituted an accessory use of the property.

Answer 125

A requirement for deed transfer; a public official must acknowledge, usually by a notary public, the grantor’s signature

Answer 126

A unit of land that is equal to 43,560 square feet

Answer 127

Abuse of a property by a person who holds possession through a life estate

Answer 128

The final basis for taxing purposes, computed by taking acquisition costs plus capital improvements and less certain deductions such as depreciation

Answer 129

Law related to the legal process; enacted by administrative agencies, which are governmental bodies of the city, county, state, or federal government

Answer 130

Related to the concept of property taxes; a Latin term that means "according to value". Ex. Ad valorem is a method of charging a tax according to the value of the property instead of by a fixed rate.

Answer 131

A fact that might cause the buyer to change his mind about purchasing the property

Answer 132

A type of septic system that promotes the growth of aerobic bacteria by introducing air into the wastewater, leading to more efficient waste breakdown.

Answer 133

Specifies style or architecture of buildings in an area in order to preserve charm, feel, etc.

Answer 134

A sworn statement assuring that no title defects have occurred since the date of the last title search

Answer 135

The amount of money left over after a property’s operating expenses, debt service, and taxes have been paid

Answer 136

Rights to use the airspace above the land may be sold or leased independently of the land itself

Answer 137

A provision in a mortgage that requires the loan to be paid in full by the mortgagor if a transfer of ownership takes place. This is also called a due-on-sale clause.

Answer 138

The material that creates an increase of soil and thus land parcel size due to accretion. Water flowing from a creek bordering Jillian's property created a sandbar, and she was able to use the alluvion—the new land mass that formed—as her own property.

Answer 139

A large commercial tenant that draws in traffic to a mall or shopping center

Answer 140

An attachment of personal property to real property, thereby making it a fixture (also known as an attachment)

Answer 141

The sum of the annual mortgage payments—both principal and interest—divided by the mortgage balance; also commonly referred to as an annual loan constant or mortgage constant; annual constant = annual payment ÷ mortgage balance

Answer 142

A rate derived to reflect the true cost of financing that allows consumers to compare loan products; includes financing fees, so it will always be higher than the actual interest rate on a loan

Answer 143

Laws relating to the promotion of fair competition in the marketplace. Ex. Antitrust violations include price-fixing, tie-in arrangements, market allocation, and group boycotting.

Answer 144

An estimate of value as of a specific date and for a specific use performed by a state-licensed or certified appraiser.

Answer 145

Automatic rights inherent in property ownership Ex. Jason loved being a property owner. He decided not to sell off the water rights that came with his property and to others. He kept all of his bundle of sticks together.

Answer 146

A fibrous mineral found in rocks and soil, previously used in construction materials for its insulating and fire-retardant strength and currently classified by the EPA as a hazardous material.

Answer 147

as-built drawing A plan or drawing that reflects the final design and modifications of a septic system as constructed. Ex. An engineer submits an as-built drawing to the local health department, documenting the exact layout and specifications of the installed septic system.

Answer 148

Zoning regulations that permit property owners to develop their land in accordance with predetermined guidelines without needing special permissions or approvals from local authorities

Answer 149

The process of combining separate adjacent parcels of land into one piece

Answer 150

Number assigned to each plot of land by a county tax assessor

Answer 151

The substitution of tenants, putting the responsibility for the lease contract in the new tenant’s hands. Requires written permission of landlord.

Answer 152

When a new party to a contract agrees to satisfy the former party’s obligations. Unless there is a novation (a new contract) the original parties remain liable for the contract terms. Ex. Ty decided to take an African Safari in the middle of his transaction. His brother agreed to have the contract assigned to him. However, Ty remains responsible unless a new contract is drawn up, naming his brother as the contracted party.

Answer 153

The transfer of a mortgage from the original lender to another Ex. Sima must not have been paying attention to her disclosures because she was surprised with EZ Well Bank assigned her mortgage to another lender.

Answer 154

The percentage of a property's market value that is subject to taxation, used to calculate the assessed value for property tax purposes Ex. To find the assessment ratio, divide the assessed value by the market value. If a property has an assessed value of $150,000 and a market value of $200,000, the assessment ratio is 75%.

Answer 155

Rely on mathematical modeling combined with data from sources such as tax records to provide real estate property valuations

Answer 156

A loss of existing land by the sudden change in a watercourse, washing it away. Ex. Brady was aghast when part of his property washed away in a tidal wave. This avulsion caused him to lose 15% of his property.

Answer 157

A significant environmental concern or condition associated with a property is typically identified during environmental due diligence assessments. These issues are categorized based on their severity and potential impact on human health or the environment, with B-1 being one of the highest priority classifications. Ex. B-1 environmental issues include the presence of hazardous substances, contamination of soil or groundwater, or other conditions requiring remediation to address potential risks to occupants or the surrounding environment.

Answer 158

28 member appointed by the Governor, 7 from each county and 7 that don't represent a specific county. Responsible for enforcing Fair Housing Laws

Answer 159

The Division of Human Relations receives complaints of fair housing violations, investigates discrimination, and mediates solutions. The State Human Relations Commission plays a role in implementing the provisions of Delaware’s Fair Housing Act. It’s not part of the Delaware Real Estate Commission’s role to handle fair housing complaints, though it can discipline licensees who are found guilty of violating fair housing law.

Answer 160

Individuals found guilty of violating state fair housing laws may be fined. Fines can be as high as $50,000 per violation for those who’ve consistently engaged in discriminatory practice over time, or even as high as $100,000 per violation in cases where a pattern of discriminatory behavior is found. A complaint of discrimination can also be filed as a civil action in the county where the discrimination occurred. If the court finds for the plaintiff, actual and punitive damages may be awarded.

Answer 161

Delaware makes a licensee a Statutory Agent by Default. No written agereement is needed. A statutory agent in real estate is a licensed real estate agent who acts as an independent contractor to bring buyers and sellers together. The permitted actions for a statutory agent include presenting an offer to a client when the property is already under contract; serving as a single agent, dual agent, or sub-agent; and showing the same property to multiple interested parties.They also provide advice and negotiate on behalf of their clients. Delaware outlines statutory duties required of a licensee when working with a client. They include the duty to perform ministerial tasks related to the contract.

Answer 162

Only owe duty of confidentiality. In Delaware, a real estate customer is a member of the public who is working with a real estate licensee. A customer may be a potential buyer, seller, landlord, or tenant. They may also be consulting with a licensee about a brokerage agreement or transaction

Answer 163

In Delaware, a real estate client is a member of the public who is the main party in a real estate transaction. A client can be a buyer or seller.

Answer 164

The duty of confidentiality required by Delaware law begins upon the first contact (as opposed to first scheduled appointment) between a licensee and the customer. Thus, confidential information a consumer shares with a licensee, even if it’s just discussing the property over the phone or at an open house, is protected. The following are defined as confidential: A buyer/tenant is willing to pay more than the price offered. A seller or landlord is willing to accept less than the asking price. Personal motivating factors for any party to a transaction. A client will agree to terms other than those offered. Material confidential information about the parties or property unless disclosure is required by statute or regulation or failure to disclose such information would constitute fraud or intentional misrepresentation. Facts or suspicions regarding circumstances that may psychologically impact or stigmatize any real property. Facts or suspicions that any party in the community is a registered sex offender. If asked, licensees must refer the person to the Delaware State Police to seek this information. *** Information that’s public knowledge isn’t considered confidential, and licensees may disclose this information without the client’s permission *** The duty of confidentiality may only be broken if disclosure is required by law or if not disclosing would constitute fraud or intentional misrepresentation.

Answer 165

The following actions do not breach any obligation that a licensee has to either a customer or client with whom the licensee is working: List and advertise competing properties. Show properties that aren’t listed by the licensees’ brokerage. Show the same property to multiple interested clients/customers. Present offers for the same property on behalf of more than one client/customer. Disseminate generally known information to which all licensees are privy (e.g. MLS info.), as long as the client/customer makes the ultimate decision about what to do with it. Help transaction parties prepare offers and counter-offers, as long as the forms being used contain language advising the parties that they may seek legal counsel prior to signing. Unless the client/customer instructs otherwise, present all offers and counter-offers, even if the property is already under contract. Assist clients/customers in negotiating, advising them on how to proceed in the transaction. Perform ministerial tasks. Serve as either a single agent or dual agent for the same parties in different transactions, or as a sub-agent for another licensee. Cooperate with other real estate licensees. (Note: Licensees can’t work with any common-law sub-agents from other brokerages.) Discuss transactions with the licensee’s broker, other designated licensees, and other office personnel. Provide customers and clients with requested information and advise clients on how to proceed while answering any questions.

Answer 166

Required for all transactions involving one- to four-family residential properties and single lots intended for one- to four-family residences. CIS explains agency, the licensee’s duties, and the difference between a client and a customer. It identifies the consumer’s working relationship with the licensee. Consumers can decline to enter into dual agency or any agency relationship at all on the CIS form. The licensee working with the consumer must deliver the CIS to the consumer (except nonrenewable leases or 120 days or fewer) no later than the earliest of: The first scheduled appointment The first showing of a property The time when an offer is being made ** The customer/client should sign the CIS prior to signing an agreement of sale, listing agreement, or buyer/tenant representation agreement *** *****MUST BE DISPLAYED AT OPEN HOUSES******

Answer 167

All property sellers must disclose to potential buyers that the property being sold may potentially expose the buyers to radon. Form is to be completed and signed by the seller prior to signing the listing agreement. Must also include and radon testing or inspection reports, along with any known hazards. Buyer needs to review and sign acknowledging receipt. Radon disclosure isn’t required for a property being sold by or purchased by a government entity. Disclosure exemptions for radon are the same as those for the seller’s property condition disclosure.

Answer 168

Disclosure that must be provided to the Buyer. Must be signed by both buyer and seller

Answer 169

When listing a property of 1-4 units, the seller must complete prior to signing a listing agreement. It’s never completed by the licensee, and it’s required whether or not the seller is represented by a licensee. However, sellers are only obligated to disclose actual knowledge of any material defects; they don’t need to have an inspection done to uncover issues they’re not already aware of. Must be provided to any prospective buyer.

Answer 170

When exempt from providing, use the Exempt Property Certification form and provide to buyer for signature and inclusion in the contract. Transfers by a fiduciary in the course of the administration of the decedent's estate, guardianship, or trust: For estates, this exemption only applies if the executor or administrator is the seller. If the people who inherited the property are the sellers, they must complete the seller’s disclosure form. Court-ordered transfers, such as those from a bankruptcy or judgment for specific performance Transfers to a mortgagee (lender) by a mortgagor (borrower) in default by a deed in lieu of foreclosure Transfers by any sheriff's sale for default on an obligation secured by a mortgage, judgment, tax, or other lien: If the seller is a lender who acquired the property by a deed in lieu of foreclosure or by sheriff sale, the lender is required to complete the seller’s disclosure form when reselling the property. Transfers from one co-owner to one or more other co-owners Transfers made to a spouse or to a person or persons in the lineal line of consanguinity (e.g., direct relations such as grandparent, parent, and child) of one or more of the transferors Transfers between spouses resulting from a property settlement incident to a divorce Transfers to or from any government entity

Answer 171

New construction uses its own disclosure form, which is called the Seller’s Real Property Condition Report – New Construction Only.

Answer 172

Yes, when renting a property it is required, even if it is a manufactired home

Answer 173

The seller of the unit in the residential complex larger than 20 units is responsible for requesting a resale certificate from the condo association. The cooperative community isn’t covered by this DUCIOA requirement because of its size (fewer than 20 units). Commercial common interest communities and continuing care facilities are also exempt from the DUCIOA requirement for a resale certificate.

Answer 174

Delaware identifies 13 protected classes in its fair housing laws, but military service isn’t one of them. In addition to the seven classes that are also protected under federal law (race, color, religion, nationality, familial status, sex, and disability), Delaware adds creed (hasn’t been legally defined and may be equated with specific religious beliefs or any strongly held system of beliefs), sexual orientation, marital status, age, gender identity, and source of income.

Answer 175

The purchase contract for residential property includes a provision that requires Andy to have the septic system pumped and inspected by licensed professionals prior to completion of the sale. A soil evaluation would only come into play if the property didn’t have any existing form of sewage treatment available

Answer 176

Agreement from the parties to conduct the transaction electronically can be determined from the circumstances; it doesn’t have to be an agreement in writing. The law says that the contract signed electronically by both buyer and the seller now has the same effect as a contract that was signed physically by both parties.

Answer 177

Form 5403 is titled Real Estate Tax Return Declaration of Estimated Income Tax, and it records the amount owed for capital gains (not transfer tax) if the seller is an out-of-state entity. All sellers will complete it, but residents will mark the box indicating that they’re not subject to the withholding.

Answer 178

The purpose of the Delaware Consumer Fraud Act is to protect consumers from unfair or deceptive sales practices. It applies to the sale of all kinds of merchandise, including real estate. The act prohibits any sale, lease, or advertising that deceives or misrepresents a product. The act prohibits companies from listing a fake business name and number, implying the business is local when it’s not, or not properly identifying the business or the business’s actual location.

Answer 179

Home inspectors in Delaware must be licensed by the state and registered with the state Board of Home Inspectors. Must have a high school diploma or equivalent, pass a written home inspector's exam and complete board mandated educational and training requirements. The board may deny licensure to applicants with a criminal history related to home inspection. The statute allows home inspector licensees from other states to apply for a temporary Delaware license to work on a specific assignment.

Answer 180

The State Division of Professional Regulation receives complaints against home inspection licensees and investigates alleged home inspection law violations. Possible disciplinary actions include: formal reprimand, probation, license suspension/revocation, and fines not to exceed $1,000 per violation.

Answer 181

No county or municipal government, homeowner association, or association formed for the management of commonly-owned elements and facilities or for regulating use of private property shall adopt any covenant, restriction, deed restriction, zoning restriction, or subdivision restriction which prohibits or restricts the owner of a property from using a system for obtaining wind energy, installing or using a roof mounted system for a residential single family dwelling unit.

Answer 182

Only brokerages that exclusively practice single agency can engage in common law agency agreements for one- to four-family properties, and the relationship must be established in writing.

Answer 183

Signs may not be placed on medians, within 10 feet of the pavement of a public road, or within seven feet of the pavement on a residential street. If a sidewalk is present on a residential street, signs may be placed on the sidewalk edge furthest from the street. Signs may not be placed on state right-of-way property, such as utility poles and transit shelters.

Answer 184

Ted’s website must follow the rules for Internet advertisements. It must include the city and state in which his main office is located and his jurisdiction of licensure in addition to his brokerage office name and office phone number. These disclosures must be included on every page, but they can be made by using a link to the full disclosure. Do not need licensee license number.

Answer 185

Billboard advertising for personal promotion, must include brokerage’s name and office phone number as registered with the Delaware Real Estate Commission. Telephone numbers must be identified as an office. REALTOR® logo is not a required disclosure.

Answer 186

Yard signs are excluded from the requirement to disclose license status in advertisements for property owned by the licensee

Answer 187

Required in certain transfers, and only if a real estate licensee is involved in the transfer. Transfer of property to a person “in the line of consanguinity” of the transferor (meaning a relation in a direct line, such as a son, granddaughter, or parent of the seller) is one of the situations that’s exempt from the use of the usual property disclosures and will use the Exempt Property Certification. Form should be completed before signing a brokerage agreement with Harry.

Answer 188

Delaware law requires sellers of agricultural land that’s subject to an agricultural lease to disclose information related to lease renewal. The provisions of the Delaware Agricultural Leases Act don’t say anything about terminating a lease while crops are still in the ground, and it doesn’t obligate a property buyer to renegotiate lease terms. The act doesn’t require buyer approval from tenants, either.

Answer 189

Contracts for mortgage loan modification services must be in writing and free of alterations or modifications, and be given to homeowners for their review at least 24 hours before they sign. They must include a detachable page entitled "NOTICE OF CANCELLATION" that permits cancellation at any time without penalty. They may not suggest that homeowners can’t communicate directly with their lender. They may not accept any compensation until after homeowners and their lender execute a written agreement including the providers’ offer. They may not claim they’re associated with a government agency, a non-profit or government homeowner assistance or counseling program, a lender or loan service provider, or any other program, organization, entity, or individual. Business-related communications they issue must include three specific disclosures.

Answer 190

Protects homeowners from unfair or deceptive practices that shady mortgage loan modification service providers might attempt to employ. Requires mortgage loan modification service providers to: Register with the attorney general Pay a $1,000 fee Submit copies of print and electronic advertising Obtain a $100,000 surety bond. Exempt Entities: Attorneys practicing regular activities in the state, Anyone performing legal business activities at a financial institution (e.g., bank, trust company, or credit union) or insurance company, Anyone performing regular business services as a licensed mortgage loan originator, mortgage broker, lender, or debt services provider, Licensed real estate brokers or real estate salespersons negotiating with loan holders for properties they have listed with their brokerage, Nonprofit organizations that provide housing counseling, Public corporations or governmental agencies or subdivisions

Answer 191

Delaware law requires a notice to buyers in the agreement of sale for unimproved land that warns them to check for water and sewer services. The notice also allows the buyer to make the sale contingent on approval of a site evaluation.

Answer 192

Leases for less than one year may be verbal, but those for one year or longer must be in writing. Leases with no specified term are understood to be month to month. The following can NOT be included in a lease agreement in DE; Attempts to recover attorney's fees from the other party, Confessions of judgment to resolve a dispute (instead of normal court proceedings), Waivers, limits, or indemnifications regarding the landlord’s legal liability or indemnification for such liability, Waivers of a tenant’s rights as provided in the code. If any of the above are included, the lease is void and unenforceable.

Answer 193

Landlords must give tenants: A copy of any written agreement at no charge, A copy of the summary of the code published by the Consumer Protection Unit of the attorney general's office, The landlord is obligated to comply with all laws, regulations, and ordinances regarding maintenance, construction, use, or appearance of the rental unit, and to ensure that the unit is habitable and safe. If a landlord fails to provide heat, electricity, light, running water, or adequate sewage services, or any other dangerous condition exists for at least five days after receiving notice, tenants may file a petition with the Justice of the Peace Court.

Answer 194

Tenants may opt to purchase a surety bond from a carrier licensed by the Delaware Department of Insurance instead of paying part or all of the security deposit, but only if the landlord agrees. Surety bonds must not be more than one month’s rent.

Answer 195

Landlords may charge an application fee, security deposit, pet deposit, or a reservation deposit for a specific unit for a specific time period, as well as optional fees for services, like pool, tennis, or fitness room fees.

Answer 196

Tenants must abide by landlords’ reasonable rules and restrictions regarding the rental unit, provided the rules apply to all tenants, are clear and understandable, and preserve tenants’ health, safety, enjoyment, and fair access to services.

Answer 197

Landlords must give tenants 48 hours’ notice before entering for maintenance, repairs, or routine inspections, which must take place during normal business hours. Tenants must allow landlords to have reasonable access.

Answer 198

In Delaware, tenants may not be denied access to rental properties on the basis of race, color, creed, religion, national origin, marital status, familial status, gender, gender identity, sexual orientation, disability, age, income source, or occupation.

Answer 199

For leases longer than one month, monthly rent is due at the beginning of each month, with a five-day grace period. If the landlord’s office is in another county, an eight-day grace period applies. Late fees may not be more than 5% of the monthly rent. Landlords who accept cash payments must give tenants a cash receipt within 15 days and maintain records of all cash receipts for three years. Landlords must give tenants 60 days’ notice of a rent increase. Tenants then have 15 days from the date of receiving the increase notice to notify the landlord if they’ll be terminating the lease at the end of the 60 days. Without such notice, landlords can infer that the tenants accept the raised rent.

Answer 200

If a tenant violates the lease terms, the landlord can give the tenant a seven-day notice to remedy the situation, or the landlord will terminate the tenancy and file an eviction lawsuit.

Answer 201

The transfer of a property from one person to another triggers a tax known as a transfer tax. This tax becomes payable when the deed is recorded. Delaware transfer tax is usually a total of 4%. It includes: A transfer tax established by the municipality or county, which may be as much as 1.5% of the purchase price. A state transfer tax is 3%, unless it’s combined with a full 1.5% transfer tax from the county or municipality, in which case the state charges 2.5% to make the full transfer tax 4% of the purchase price. Transfer tax is split equally between the buyer and seller, unless the parties agree otherwise. First-time homebuyers receive an exemption from the county transfer tax but no discount from the state.

Answer 202

Every unimproved land contract in Delaware must contain a notice to buyers that services, such as water and sewer, may not be available. The text of the notice is stipulated in the Delaware Code. If the buyer determines central sewerage and water access isn’t available, the provision allows the buyer to make the contract contingent on a satisfactory site evaluation and approval to install a well and septic system. The buyer may also choose to waive the provision if access to water and a sewage system isn’t an issue for the planned use of the property.

Answer 203

The Agreement of Sale for Unimproved Land includes disclosures related to: The potential for hidden environmental hazard; the buyer is encouraged to have a written agreement with the seller to conduct environmental testing. The possibility that the property is in a designated flood zone or wetland, which could limit the development options. The possible existence of various physical and regulatory characteristics that could prevent the buyer from using the property as intended, including water quantity and quality, availability or future extension of municipal utilities (and any associated costs), physical property characteristics, zoning regulations and restrictions, soil conditions, etc. Required site evaluation and approval for new wells and septic systems.

Answer 204

All aspects of septic system design, installation, repair, and maintenance are overseen by the Delaware Department of Natural Resources and Environmental Control

Answer 205

Treatment/disposal systems installed on an owner’s land specifically for that owner’s use.

Answer 206

In a residential sale of property that uses an OWTDS, the Agreement of Sale requires the seller to have the system pumped out by a Class F licensee and then inspected by a Class H licensee prior to closing. The seller must provide the buyer with a report indicating the system is in working order. Sellers must disclose any known issues with an OWTDS, but since the systems are often hidden, sellers may not be aware of any malfunctions. The buyer may also elect to have an additional inspection of the OWTDS made and make the contract contingent on the findings of the inspection.

Answer 207

Installation of a septic system involves three steps: 1) Site evaluation: Must be performed by licensed Class D soil scientist. Requires a fee and DNREC approval. 2) Design: Must be designed by a system designer licensed for the relevant type of system; a permit is issued upon approval by the DNREC. 3) Installation: Must be installed by a licensed Class E system contractor.

Answer 208

When a seller provides financing to the buyer in a Delaware real estate sale, the purchase contract must include an amortization schedule showing all payments the buyer must make according to the agreement. The purchase agreement must also include a statement that the seller(s) and buyer(s) have read and understood the amortization schedule. All of the parties must sign it. The purchase price in the contract must not include any interest from financing. A trustee and beneficiary are involved when the property is secured by a deed of trust

Answer 209

Contractual agreement in which the buyer pays the seller the purchase price over time in a series of installments until the contract has been paid in full. The seller holds the deed to the property until the purchase price is paid. While a contract is executory, the seller retains legal rights to the property while the buyer has equitable rights, which include the right of possession.

Answer 210

In Delaware, a purchase contract may not remain executory for longer than six months, with one six-month extension allowed if the parties agree in writing. This requirement applies only to residential property of one to four units, not to commercial or larger residential properties.

Answer 211

Installment sales contracts in Delaware must include provisions that specify: The rental value of the property The buyer’s right to redeem the property after default by paying the full purchase price within 120 days of default If the buyer defaults and doesn’t redeem, the sales contract becomes a landlord/tenant agreement

Answer 212

Tax ditches are subdivisions within the state government organized to control the watershed in various areas of the state. The work is financed by a tax on property owners in the area. The actual drainage ditch that controls the water may or may not be anywhere close to a particular property owner’s land. if the ditch is actually located on or bordering the property, that’s a required seller disclosure. The amount of each property owner’s tax is relative to the property’s assessment base

Answer 213

The tax ditch organization is a subdivision of the state government. Passed in 1951 by The Delaware General Assembly. There are over 230 tax ditch organizations in DE managine more than ,2000 miles of ditches. They collect taxes to fund maintenance, control vegetation, restore ditch lines and grades, and remove beavers and beaver dams. Ditch managers calculate the amount of taxes to levy against property owners by calculating the ratio between each property’s assessment base and the tax ditch’s total assessment base.

Answer 214

Delaware code requires licensees to include a specific statement with a CMA, which must be in at least a 12-point bold font immediately following the estimated market price, explaining that the CMA is not an appraisal and can’t be used as one. The text of the statement is in section 2931 of Delaware Code Title 24.

Answer 215

Licensees who are chemically dependent or impaired due to drug or alcohol addiction can enter into a Voluntary Treatment Option. If the board receives a report of a licensee’s dependency or impairment, the Director of Professional Regulation is immediately notified. If the director receives the report, then the chairperson of the board must be immediately notified. The licensee will be notified in writing within seven days of the report. The notification includes a description of the voluntary treatment option, and the opportunity to enter into treatment. Participation requires voluntary drug and alcohol screenings and evaluations. The initial screening or evaluation must occur within 30 days of written notification. Licensees who enter the voluntary treatment option may continue to practice real estate, but may be subject to limitations determined by the director or chairperson in consultation with the professional treating the licensee. If a licensee doesn’t fully cooperate with the treatment option, screenings, or evaluations, an investigation may be conducted which could lead to disciplinary proceedings and sanctions.

Answer 216

A straight note calls for the payment of interest only the entire principal due and payable at the end of the term.

Answer 217

The note is evidence of the debt. It contains the promise to pay and is a contract complete onto itself. The deed of trust is a security device used to secure the note.

Answer 218

A court action that "quiets" or settles a dispute concerning title. It is often used to clear a cloud on a title.

Answer 219

Mode or method of holding title to real property

Answer 220

All interests on a life estate terminates when the person on whose life the estate depends dies.

Answer 221

Also known as Fee Simple Defeasible

Answer 222

The definition of property is the rights or interest that a person has in the thing owned

Flash Cards and Study Sheet for DE State Exam (2025)

(264 cards)