Delaware Real Estate Broker Exam — All Questions

Delaware requires licensees to disclose the nature of their agency relationship to consumers so that a buyer or seller:

• a.Can negotiate the licensee's commission down
• b.Will waive the right to counsel
• c.Understands whom the licensee represents before sharing confidential information✓
• d.Can avoid signing any contracts

Delaware's mandatory agency disclosure ensures consumers know at the outset whether a licensee represents the seller, the buyer, both, or neither, before they reveal confidential negotiating information. Understanding the representation relationship protects the consumer and clarifies the licensee's duties. The disclosure is informational and does not by itself change the price or the consumer's right to legal advice.

A Delaware broker managing rental property should be aware that the landlord-tenant relationship is governed by the:

• a.Uniform Commercial Code
• b.Delaware Residential Landlord-Tenant Code✓
• c.Federal Fair Credit Reporting Act only
• d.Delaware Real Estate Guaranty Fund statute

Residential rentals in Delaware are governed by the Delaware Residential Landlord-Tenant Code, which sets rules for security deposits, leases, notices, and eviction. A broker who manages property or represents landlords and tenants must follow this code in addition to license law. It is separate from the Guaranty Fund statute and from federal credit-reporting rules that may also apply.

Delaware permits dual agency in a transaction only when:

• a.The two parties are related
• b.The property is commercial
• c.The broker keeps it secret to avoid confusion
• d.Both the buyer and the seller give informed consent to the arrangement✓

Delaware allows a broker to act as a dual agent, representing both buyer and seller, only with the informed consent of both parties. A dual agent cannot fully advocate for either side and must protect each party's confidential information. Concealed dual agency is prohibited; the arrangement must be disclosed and consented to, which is why agency disclosure is emphasized on the broker exam.