Delaware Real Estate Salesperson Exam — All Questions

Under Delaware's Buyer Property Protection Act, the seller's written disclosure of material defects must be made:

• a.Within ten days after the agreement of sale is ratified
• b.At the same time the buyer's offer is presented to the seller
• c.Before the seller signs the listing agreement✓
• d.At any time before the day of final settlement

A seller transferring residential real property must disclose all known material defects in writing, and that disclosure shall be made in writing before the seller signs the listing agreement, updated as necessary for material changes occurring before final settlement. Cite: 6 Del. C. Sec. 2572(b).

The Delaware Seller's Disclosure of Real Property Condition Report must be given to a prospective buyer:

• a.Within three days after the agreement of sale is signed
• b.Prior to the time the buyer makes an offer to purchase✓
• c.At the first showing of the property to that buyer
• d.No later than twenty days before final settlement

The agent, subagent or seller must give a copy of the report to all prospective buyers or the buyer's agent prior to the time the buyer makes an offer to purchase, and the written disclosure form, signed by buyer and seller, becomes part of the purchase agreement. Cite: 6 Del. C. Sec. 2573.

Which transfer of Delaware residential real property is NOT exempt from the Buyer Property Protection Act?

• a.A transfer from one co-owner to another co-owner
• b.A sheriff's sale for default on an obligation secured by a mortgage
• c.A transfer by a fiduciary administering a decedent's estate
• d.A sale by an owner-occupant to an unrelated first-time buyer✓

The exemptions cover transfers by court order, deeds in lieu of foreclosure, sheriff's sales, fiduciaries administering an estate, guardianship or trust, transfers between co-owners, transfers to a spouse or lineal relative, divorce property settlements, and transfers to or from a government entity. An ordinary arm's-length sale by an owner-occupant is not exempt. Cite: 6 Del. C. Sec. 2577.

Delaware's realty transfer tax on a document is apportioned:

• a.Equally between the grantor and the grantee✓
• b.Entirely to the grantee, who presents the deed
• c.Entirely to the grantor, unless the contract says otherwise
• d.In proportion to each party's interest in the property

The realty transfer tax is 3 percent of the value of the property, or 2.5 percent where the municipality or county has enacted the full 1.5 percent local realty transfer tax, and the tax is to be apportioned equally between grantor and grantee. No tax is imposed where the actual value transferred is less than $100. Cite: 30 Del. C. Sec. 5402(a), (b).

Delaware's first-time home buyer reduction in realty transfer tax equals one half of one percent multiplied by the lesser of the property's value or:

• a.Two hundred thousand dollars
• b.Three hundred thousand dollars
• c.Four hundred thousand dollars✓
• d.Five hundred thousand dollars

For a first-time home buyer in a transaction entered into on or after August 1, 2017, the portion of the tax payable by that buyer is reduced by one half percent multiplied by the lesser of the value of the property or $400,000. The reduction applies to the grantee's portion only and does not relieve the grantor. Cite: 30 Del. C. Sec. 5402(c).