Real Estate Practice in Delaware
Delaware practice emphasizes proper handling of escrow money, accurate disclosure of property condition, and truthful advertising under the broker. This chapter covers escrow, disclosure, and advertising.
Escrow and Trust Money
Escrow deposits and other trust money must be handled through the broker's escrow account and kept separate from the broker's personal and operating funds. A salesperson who receives escrow money must deliver it promptly to the employing broker. Commingling or converting escrow money is a serious violation of Delaware license law and can trigger discipline and a Guaranty Fund claim.
Property Condition Disclosure
Delaware sellers of residential real property generally must provide the buyer a written disclosure of the property's known condition. A licensee must not help a seller conceal known material defects and must disclose known material facts affecting value or desirability. Accurate disclosure protects consumers and limits the licensee's exposure to misrepresentation claims.
Advertising Under the Broker
Advertising by a licensee must be truthful and must be conducted under the name and supervision of the employing broker rather than the salesperson acting independently. False or misleading statements to induce a transaction are prohibited. The broker is accountable for the advertising of affiliated licensees and for maintaining accurate records.