Delaware Real Estate Salesperson Exam — All Questions

The principle of contribution states that the value of a component or improvement is measured by:

• a.The raw number of square feet of floor area or land area that the improvement happens to occupy
• b.The owner's personal emotional attachment to and sentimental feelings about that improvement
• c.Its original construction or installation cost in every case, dollar for dollar, with no exception
• d.How much it adds to the overall value of the property, not its cost✓

Under contribution, an improvement is worth the amount it adds to the whole property's market value, which may be more or less than its cost. This principle explains why some renovations do not fully return their expense, a key point in over-improvement analysis.

Under Internal Revenue Code Section 121, a qualifying homeowner may generally EXCLUDE from taxable capital gain:

• a.Up to $250,000 of gain if single, or $500,000 if married filing jointly✓
• b.Up to a full one million dollars of gain on any property at all, at any time and any frequency
• c.All gain on any and every investment or rental property the taxpayer happens to own and sell
• d.Absolutely nothing, because gain on the sale of a home is always fully and entirely taxable

Section 121 lets homeowners who owned and used the home as their principal residence for at least two of the prior five years exclude up to $250,000 of gain (single) or $500,000 (married filing jointly). It applies to a primary residence, not to investment property.

Depreciation recapture on the sale of investment real estate means that:

• a.All of the depreciation deductions previously claimed are simply refunded to the investor in cash
• b.The investor is legally required to physically restore and rebuild the depreciated building itself
• c.Gain from prior depreciation may be taxed, often at a special rate✓
• d.No income tax is ever owed at all on the sale of a property that has previously been depreciated

When depreciated property is sold at a gain, the portion of gain due to depreciation deductions is 'recaptured' and taxed under special rules, reflecting the earlier tax benefit. It is a tax concept, not a requirement to rebuild, and it increases, not eliminates, tax on sale.

Which appraisal approach is generally MOST reliable for a special-purpose property, such as a church or public school, that rarely sells and earns no market income?

• a.The sales comparison approach, which depends on recent sales of similar comparable properties
• b.The income approach, which converts a property's market rental income into an indicated value
• c.The gross rent multiplier method, which relies on typical market rents that these lack entirely
• d.The cost approach✓

Special-purpose properties have few or no comparable sales and generate no market rent, so the cost approach (replacement cost new, less depreciation, plus land) is typically most reliable. Sales comparison lacks comparables and the income/GRM methods need market income these properties do not produce.

The four characteristics an item must have to possess value in the market, often remembered as DUST, are:

• a.Debt, Utility, Supply, and Taxes, a mix of unrelated financing and cost terms rather than value
• b.Demand, Utility, Scarcity, and Transferability✓
• c.Depreciation, Use, Sale, and Title, which describe stages of ownership rather than value itself
• d.Demand, Ownership, Scarcity, and Time, which swaps in two terms that are not part of the concept

For something to have market value it must have Demand (buyers who want it), Utility (usefulness), Scarcity (limited supply), and Transferability (the ability to convey it). The DUST acronym captures these four essentials of value.

Real estate salespersons in Delaware are licensed and regulated by:

• a.The Delaware Court of Chancery
• b.The Delaware Real Estate Commission, within the Division of Professional Regulation✓
• c.The Delaware Association of Realtors
• d.The Delaware State Housing Authority

The Delaware Real Estate Commission licenses and disciplines brokers, associate brokers, and salespersons under 24 Del. C. Chapter 29, operating within the Division of Professional Regulation. A trade association is a private membership group and has no licensing authority.

A Delaware salesperson may lawfully accept a commission for brokerage services:

• a.Directly from the buyer at closing
• b.From the Real Estate Guaranty Fund
• c.Only through the broker with whom the salesperson is licensed✓
• d.From any licensee in the transaction

A Delaware salesperson works under and is paid only by the broker who holds the salesperson's license. A salesperson may not accept a fee or commission directly from a buyer, seller, or another licensee. The employing broker supervises the salesperson and is responsible for escrow money.

The Delaware Real Estate Guaranty Fund exists primarily to:

• a.Insure the value of properties sold through licensed brokers
• b.Pay Commission staff salaries
• c.Provide down-payment assistance to buyers
• d.Reimburse a consumer for an actual loss from certain fraudulent acts of a licensee when a judgment cannot be collected✓

The Guaranty Fund may reimburse a member of the public who obtains a final judgment against a licensee for an actual loss from fraud, misrepresentation, or deceit and cannot otherwise collect, subject to statutory limits. When the fund pays, the licensee's license is suspended until the fund is repaid. It is not an insurance or assistance program.

Before a consumer shares confidential information, a Delaware licensee should:

• a.File the listing with the Commission
• b.Order a survey
• c.Disclose the nature of the agency relationship and whom the licensee represents✓
• d.Collect an escrow deposit

Delaware requires licensees to disclose their agency relationship, identifying whether the licensee represents the seller, the buyer, both, or neither, so the consumer understands the relationship before revealing confidential information. Early disclosure helps consumers make informed decisions about representation.

In Delaware, an arrangement in which a broker names individual licensees to represent the buyer and the seller separately within the same firm is called:

• a.Universal agency
• b.A transaction brokerage
• c.Subagency
• d.Designated agency✓

Delaware permits designated agency, in which a broker designates individual licensees to represent the buyer and the seller separately within the same firm. This differs from a single dual agent representing both parties. Designated agency still requires appropriate disclosure and consent.

A Delaware licensee may act as a dual agent for both the buyer and the seller in one transaction only when:

• a.Both parties give informed written consent✓
• b.The Commission issues a waiver
• c.The price exceeds a set amount
• d.The broker approves after closing

Dual agency is permitted only with the informed written consent of both parties. A dual agent must remain neutral on price and terms and may not reveal one party's confidential negotiating information to the other, because dual agency limits the advocacy each client would otherwise receive.

Escrow money a Delaware salesperson receives from a buyer must be:

• a.Deposited in the salesperson's personal account
• b.Paid directly to the seller with the offer
• c.Held by the salesperson until closing
• d.Delivered promptly to the employing broker for deposit in the broker's escrow account✓

Escrow and trust money must be handled through the broker's escrow account and kept separate from 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.

A person who passes the Delaware salesperson examination may begin practicing real estate when:

• a.The applicant joins a trade association
• b.The license is placed with and supervised by a licensed Delaware broker✓
• c.The applicant pays the Guaranty Fund assessment
• d.The exam results are posted

Passing the exam is one step; a Delaware salesperson may conduct licensed activity only after the license is placed with a licensed broker who agrees to supervise the salesperson and accept responsibility for the licensed activity and escrow money. Without an employing broker, the license is not active.

The minimum age for a Delaware associate broker licence applicant is:

• a.Eighteen years
• b.Twenty-one years
• c.Twenty-three years✓
• d.Twenty-five years of age

A salesperson applicant must be at least 18; an applicant for an associate broker licence must be at least 23 years of age, in addition to meeting the experience, financial, education and examination requirements. Cite: 24 Del. C. Sec. 2907(c)(2).

A Delaware salesperson applicant's prelicensing course of instruction must include real estate principles and practices and:

• a.A supervised apprenticeship under a licensed broker
• b.Delaware real estate law✓
• c.A course in appraisal theory approved by the Commission
• d.Forty-five hours of property management instruction

The salesperson applicant must have completed a prescribed prelicensing course of instruction including real estate principles and practices and Delaware real estate law, and must pass a uniform national and state examination. Cite: 24 Del. C. Sec. 2907(b)(3), (4).

In Delaware, a real estate licence is issued to:

• a.The brokerage organisation, which then assigns it to its broker
• b.A corporation or partnership that provides real estate services
• c.Either an individual or a business entity, at the applicant's option
• d.An individual only, never to a brokerage organisation or corporation✓

No brokerage organisation, corporation, partnership or other business entity is licensed under Chapter 29. A brokerage organisation may provide real estate services so long as it has a broker who is responsible for those services. Cite: 24 Del. C. Sec. 2901(c).

A first conviction for engaging in the practice of providing real estate services in Delaware without a licence carries a fine of:

• a.Not less than one hundred nor more than one thousand dollars
• b.Not less than five hundred nor more than five thousand dollars✓
• c.Not less than one thousand nor more than ten thousand dollars
• d.Not less than two thousand nor more than twenty thousand dollars

Unlicensed practice is a misdemeanor. On a first offence the fine is not less than $500 nor more than $5,000 for each offence; for a second or subsequent conviction it is not less than $1,000 nor more than $10,000 for each offence. Cite: 24 Del. C. Sec. 2924.

The monetary penalty the Delaware Real Estate Commission may impose on a licensee after a disciplinary hearing may not exceed:

• a.One thousand dollars for each violation
• b.Two thousand five hundred dollars for each violation
• c.Five thousand dollars for each violation✓
• d.Ten thousand dollars for each violation

Among the sanctions available are a letter of reprimand, probation, suspension, revocation, and a monetary penalty not to exceed $5,000 for each violation. Cite: 24 Del. C. Sec. 2914(a)(3).

When a Delaware broker's licence is revoked, the licences of the salespersons and associate brokers working under that broker are:

• a.Unaffected, because each individual licence stands entirely on its own
• b.Revoked along with the broker's licence
• c.Suspended for ninety days, after which they lapse
• d.Automatically suspended pending a change of employing broker✓

Revocation of a broker's licence automatically suspends every licence granted to an individual by virtue of employment by that broker, pending a change of employing broker and issuance of a new licence, which is issued without charge if granted in the same licensure period. Cite: 24 Del. C. Sec. 2917.

Recovery from the Delaware Real Estate Guaranty Fund is capped, in the aggregate, in connection with any one transaction or claim, at:

• a.Fifty thousand dollars✓
• b.Twenty-five thousand dollars
• c.One hundred thousand dollars
• d.Three hundred fifty thousand dollars

A person with a final judgment against a licensee for theft, forgery, fraud, misrepresentation or deceit may recover not more than $50,000 in the aggregate in connection with any one transaction or claim, regardless of the number of persons aggrieved or parcels involved. Cite: 24 Del. C. Sec. 2922(a).

A verified claim against the Delaware Real Estate Guaranty Fund must be filed with the Commission within:

• a.Thirty days after the final judgment is obtained
• b.Sixty days after the final judgment is obtained✓
• c.Six months after the final judgment is obtained
• d.One year after the final judgment is obtained

The aggrieved person must file the verified claim within 60 days after the final judgment has been obtained, with a copy of the pleadings, a certified copy of the judgment, and documentation of collection efforts. Cite: 24 Del. C. Sec. 2922(b).

The Delaware Real Estate Guaranty Fund must be maintained above a set level, and a pro rata assessment is levied on licensees if the balance falls below:

• a.Fifty thousand dollars
• b.One hundred thousand dollars
• c.One hundred fifty thousand dollars
• d.Two hundred fifty thousand dollars✓

The Commission must maintain the Fund in excess of $350,000; if the balance falls below $250,000 the Commission shall, at the next renewal date, assess each licensee a pro rata fee sufficient to return the Fund to the $250,000 level. Cite: 24 Del. C. Sec. 2922(i), (j).

After the Delaware Guaranty Fund pays a claim on a licensee's account, the licensee remains ineligible for a new licence until:

• a.The Commission's suspension order expires by its terms
• b.Two years have run from the date of the payment
• c.The amount paid is repaid in full with interest at the legal rate✓
• d.A court of competent jurisdiction sets aside the underlying judgment

The licence may be suspended or revoked, and in the Commission's discretion the licensee is ineligible for a new licence until the amount paid from the Fund is repaid in full plus interest at the legal rate. A discharge in bankruptcy does not relieve the licensee of this. Cite: 24 Del. C. Sec. 2922(d).

The on-site supervisor designated for a Delaware branch office must be a licensee with a minimum of:

• a.Five years of continuous real estate services experience✓
• b.Two years of continuous real estate services experience
• c.Three years of experience as a licensed associate broker
• d.Ten years of experience in the brokerage business

A broker with more than one office must obtain an additional broker's licence and office permit for each branch, and the branch application must state the address and the designated on-site supervisor, who must be a licensee with a minimum of 5 years of continuous real estate services experience. Cite: 24 Del. C. Sec. 2919(d).

Misrepresenting the availability or content of the seller's disclosure of real property condition report is, under Delaware law:

• a.A criminal offence prosecuted by the Attorney General
• b.A ground for discipline by the Real Estate Commission✓
• c.A matter for the Division of Revenue, not the Commission
• d.Actionable only by the buyer in a civil suit for damages

The grounds for discipline expressly include misrepresenting the availability of or the content of any statutorily required form such as the seller's disclosure of real property condition report or the radon disclosure under Chapter 25 of Title 6. Cite: 24 Del. C. Sec. 2912(a)(11).

A Delaware county or municipality may not charge a real estate licensee a local business licence fee for renting real estate for owners or tenants unless:

• a.The licensee maintains a physical office in that jurisdiction
• b.The licensee also lists property for sale in that jurisdiction
• c.The rental is of a residential property containing four or more units
• d.The property is in a city with a population over fifty thousand✓

Local business licensing requirements, fees and taxes may not be imposed for listing real estate, representing buyers, or renting real estate for owners or tenants, except that the rental exemption does not apply where the property is in a city with a population over 50,000. Cite: 24 Del. C. Sec. 2939(a)(3).

Unless a consumer specifically hires the licensee as a common law agent in writing, a Delaware licensee acts as:

• a.A transaction broker owing no duties to either party
• b.A subagent of the listing broker in the transaction
• c.A statutory agent, the common law of agency being abrogated✓
• d.A fiduciary under the common law of agency of this State

For licensees functioning as statutory agents, the common law of agency relative to brokerage relationships is expressly abrogated, and Subchapter II occupies the field. Unless specifically hired as a common law agent by written brokerage agreement, a licensee is a statutory agent. Cite: 24 Del. C. Sec. 2933(a); Sec. 2936(a).

In a Delaware transaction involving a one-to-four family residence, a licensee working for both the buyer and the seller is presumed to be:

• a.A common law agent for the seller alone
• b.A statutory agent representing both parties as a dual agent✓
• c.A statutory agent of the party who pays the commission
• d.A neutral intermediary with no agency duties to either

For 1-to-4 family residences and single lots intended for such a residence, the licensee working for the buyer is presumed the buyer's statutory agent, the licensee working for the seller the seller's, and a licensee working for both is presumed a statutory agent representing both as a dual agent. Cite: 24 Del. C. Sec. 2933(c)(1).

A licensee staffing a new construction on-site sales office for one-to-four family residences in Delaware is presumed to be:

• a.The statutory agent of the builder or seller✓
• b.A dual agent of the builder and any prospective buyer
• c.A statutory agent of whichever party first signs a CIS
• d.A customer service representative with no agency status

For new construction on-site sales offices for 1-to-4 family residences or single lots intended for such a residence, the on-site licensee is presumed to be a statutory agent representing the builder or seller. Cite: 24 Del. C. Sec. 2933(c)(2).

The presumption of statutory agency in Delaware may be rebutted by:

• a.An oral statement by the licensee at first contact
• b.A written memorandum placed in the brokerage transaction file by the broker
• c.A written notice from the broker to the Commission
• d.The consumer signing a CIS establishing a different relationship✓

The presumption of agency may be rebutted by the consumer signing a consumer information statement establishing a different agency relationship. Cite: 24 Del. C. Sec. 2933(c)(3).

The Delaware Consumer Information Statement must be delivered to a consumer no later than the earlier of the first scheduled appointment, the first showing of a property, or:

• a.The signing of a brokerage agreement
• b.The first substantive contact
• c.Making an offer✓
• d.Delivery of the seller's disclosure

The CIS must be delivered no later than the earlier of the first scheduled appointment, the first showing of a property, or making an offer, unless the consumer has already been given the CIS by another licensee. Cite: 24 Del. C. Sec. 2938(b).

By what point must a Delaware consumer have signed the Consumer Information Statement?

• a.Within three days after the agreement of sale is ratified
• b.Before signing an agreement of sale, listing or brokerage agreement✓
• c.Before the licensee may show the consumer any property
• d.At the settlement table, together with the rest of the closing documents

The CIS must be signed by the customer or client prior to signing an agreement of sale, listing agreement or any other brokerage agreement, unless the transaction is exempt from providing a CIS. Cite: 24 Del. C. Sec. 2938(b).

Which residential tenancy is exempt from the Delaware requirement to provide a Consumer Information Statement to the tenant?

• a.A nonrenewable lease of one hundred twenty days or less✓
• b.A nonrenewable lease of one hundred eighty days or less
• c.Any month-to-month tenancy without a written lease
• d.Any lease of a single-family dwelling owned by an individual

Nonrenewable leases of 120 days or less are exempt from the requirement to provide the CIS to the potential tenant, although the duties of confidentiality and the rest of the chapter still apply to those leases. Cite: 24 Del. C. Sec. 2938(e).

A Delaware transaction involving property other than a one-to-four family residence is exempt from the CIS, but the agreement of sale or lease must instead include:

• a.A statement that no agency relationship has been created
• b.The broker's written policy on dual agency and designated agency practice
• c.A waiver of the parties' right to claim a breach of agency duty
• d.An acknowledgement of rights under Delaware agency law and counsel✓

Transactions of property other than 1-to-4 family residences or single lots intended for such a residence are exempt from the CIS, but in lieu of it the agreement of sale or lease must include, after the confirmation of the agency relationships, an acknowledgement that the parties have rights and responsibilities under Title 24, Chapter 29 and may consult legal counsel. Cite: 24 Del. C. Sec. 2938(f).

Under Delaware's statutory agency law, a licensee's duty of confidentiality to a customer begins:

• a.When a written brokerage agreement is signed by the consumer
• b.At the first showing of a property
• c.Upon first contact between the licensee and the customer✓
• d.When the CIS is signed and dated by the customer

The duties of confidentiality required by Sec. 2936(c) begin upon first contact between a licensee and the customer; the other statutory duties to a client begin on the earlier of the first scheduled appointment, first showing, making an offer, or otherwise working for the client. Cite: 24 Del. C. Sec. 2934(a); Sec. 2938(d).

After a Delaware brokerage relationship terminates, the licensee still owes the former customer or client:

• a.Every duty listed in the brokerage agreement, for two years
• b.Only timely accounting for money and property, and confidentiality✓
• c.No duty whatever, once the transaction has been completed
• d.A continuing duty to disclose adverse material facts about the property

After termination, expiration, completion or performance, a licensee and brokerage organisation owe no further duty except accounting in a timely manner for all money and property received during the relationship and treating the customer's or client's information as confidential, subject to stated exceptions. Cite: 24 Del. C. Sec. 2934(b).

If a Delaware customer asks a licensee whether a registered sex offender lives in the community, the licensee shall:

• a.Answer from the licensee's own knowledge of the surrounding neighbourhood
• b.Decline to answer and end the discussion of the property
• c.Ask the seller to disclose the information in writing
• d.Refer the person to the Delaware State Police for that information✓

Facts or suspicions that any party or someone in the community is a registered sex offender are confidential and shall not be disclosed, but if asked the licensee shall refer the person to the Delaware State Police to seek this information. Cite: 24 Del. C. Sec. 2936(c)(7).

Under Delaware law, the fact or suspicion that a property is psychologically impacted is:

• a.Not a material fact that must be disclosed in the transaction✓
• b.A material fact the seller's agent must volunteer to buyers
• c.Disclosable only after the agreement of sale has been signed
• d.A material fact only where the event occurred within five years

The fact or suspicion that a property might be or is psychologically impacted is not a material fact that must be disclosed, and no cause of action arises against an owner, landlord or licensee for failing to inquire about or disclose it. Cite: 24 Del. C. Sec. 2927(a), (b).

A Delaware buyer makes a specific written request asking the owner about psychological impacts affecting a property. The owner or licensee must answer truthfully, except that no disclosure may be made concerning:

• a.A death that occurred on the property more than ten years ago
• b.A criminal act that took place inside the dwelling
• c.HIV, AIDS, or a disease unlikely to be transmitted by occupancy✓
• d.A prior owner's bankruptcy or foreclosure proceedings

A specific written request must be answered truthfully to the best of the owner's, landlord's or licensee's knowledge, but no disclosure shall be made concerning psychological impacts of HIV, AIDS, or any other disease determined by medical evidence to be highly unlikely to be transmitted through occupancy of a dwelling, even if specifically asked. Cite: 24 Del. C. Sec. 2927(c), (d).

Under Delaware's statutory agency provisions, knowledge held by one licensee in a brokerage organisation is:

• a.Imputed to every other licensee in that organisation
• b.Not imputed by operation of law to anyone else✓
• c.Imputed only to the broker, who must then disclose it
• d.Imputed to the client of the licensee who holds it

There is no imputation of knowledge or information by operation of law among or between the customer, client, broker, associate broker, salesperson, brokerage organisation and other licensees or persons within a brokerage organisation. Cite: 24 Del. C. Sec. 2936(f).

In Delaware, notice given only to a designated salesperson is:

• a.Effective notice to that salesperson's client, but not to the broker✓
• b.Effective notice to the broker and the whole brokerage organisation
• c.Not effective notice to anyone until the broker countersigns it
• d.Effective notice only if the agreement of sale expressly says so

Unless the agreement of sale or lease specifies otherwise, notice given only to a designated associate broker or salesperson is considered effective notice to that licensee's client. Notice to the broker is not notice to the designated licensee, and notice to the designated licensee is not notice to the broker or the rest of the organisation. Cite: 24 Del. C. Sec. 2936(g).

A Delaware seller is generally not liable for a misrepresentation made by the licensee working with the seller unless:

• a.The licensee was hired as a statutory agent
• b.The misrepresentation appears in the listing agreement
• c.The seller failed to correct it before settlement
• d.The seller had actual knowledge of the misrepresentation✓

A customer or client is not liable for a wrongful act, error, omission or misrepresentation of the licensee except to the extent the customer or client had actual knowledge of it, and the same protection runs the other way for the licensee. This does not apply where the licensee was hired as a common law agent. Cite: 24 Del. C. Sec. 2937(a), (e).

A Delaware licensee may act as a common law agent in a transaction concerning a one-to-four family residential property only if the relationship is in writing and the broker's policy is to:

• a.Represent the seller in every residential transaction
• b.Obtain informed written consent to dual agency in advance
• c.Represent only the seller or the buyer, and never as a dual agent✓
• d.Refer the other party to a cooperating brokerage organisation

Licensees shall not function as a common law agent for a 1-to-4 family residential property unless the relationship is established in writing and the broker's policy is to represent only the seller or buyer as a single agent for each transaction and never as a dual agent. Cite: 24 Del. C. Sec. 2932(c)(4).

A Delaware broker must deposit escrow money into the broker's escrow account within:

• a.Twenty-four hours of receiving the money from the buyer
• b.Seventy-two hours of the signing of the agreement by all parties✓
• c.Three business days of the acceptance of the offer by the seller
• d.Five banking days after delivery of the signed agreement of sale to the broker

On the signing of a written agreement by all parties, the licensee must promptly pay over the deposit, and the broker must deposit the money into the broker's escrow account within 72 hours of the signing by all parties, or by the dates defined in the agreement, excluding weekends and federal holidays. Cite: 24 Del. C. Sec. 2923(d).

A Delaware broker's escrow account must be opened in the name of the brokerage organisation, designated an escrow account, and held at:

• a.Any bank chartered in the United States
• b.A Delaware-chartered trust company only
• c.A banking institution approved in advance by the Real Estate Commission
• d.A federally insured banking institution with offices in Delaware✓

Every broker must establish and maintain an escrow account in a federally insured banking institution which has offices within the State; the account must be in the name of the brokerage organisation, designated as an escrow account, and the broker must be a signatory on it. Cite: 24 Del. C. Sec. 2923(a).

The only money of the broker's own that may be kept in a Delaware escrow account is:

• a.The bank's minimum balance and money to cover bank fees✓
• b.An amount equal to one month of anticipated commissions
• c.Any sum the broker identifies in the escrow ledger as personal
• d.Nothing at all, under any circumstance or for any purpose

Except for the minimum balance required by the bank and money to cover bank fees, each escrow account shall be used only for escrow deposits, earnest money deposits, rental money or other money in which the broker's customers or clients have an interest. Cite: 24 Del. C. Sec. 2923(a)(3).

A Delaware brokerage agreement for a lease later turns into a sale of the same property. The broker is entitled to compensation on the sale:

• a.Always, because continuous negotiations preserve the claim
• b.Never, because a lease and a sale are separate transactions
• c.Only if the listing, compensation agreement or lease provided for it✓
• d.Only if the seller signs a new written brokerage agreement before closing

Where continuous negotiations turn a sale into another type of transaction such as a lease, the broker is still entitled to compensation; but if the initial transaction was a lease which later became a sale, the broker is not entitled to compensation unless the listing agreement, other compensation agreement, or lease provided for compensation for a later sale. Cite: 24 Del. C. Sec. 2930(a).

All compensation relating to a Delaware real estate services transaction that is to be paid to a licensee must be paid:

• a.Directly to the licensee by the settlement agent
• b.Through the broker or brokerage organisation✓
• c.By the party who signed the brokerage agreement
• d.Into the brokerage organisation's escrow account

All compensation relating to a real estate services transaction to be paid to a licensee shall be paid through the broker or brokerage organisation, which may pay it to an entity the licensee created to receive compensation in the circumstances the statute describes. Cite: 24 Del. C. Sec. 2930(d).

A Delaware competitive market analysis must carry a prescribed disclosure that it is not an appraisal, printed immediately following the estimated market price in:

• a.Capital letters of any readable size
• b.Italic type of at least ten points
• c.Underlined eight-point type
• d.At least twelve-point bold face type✓

The prescribed disclosure must appear in at least a 12-point bold face type font located immediately following the estimated market price, and must state that the CMA is not an appraisal and may not be used for loan approval, divorce, estate settlement, bankruptcy or similar purposes. Cite: 24 Del. C. Sec. 2931(2).

A Delaware licensee may not perform a competitive market analysis for:

• a.The mortgagee on a property that is under a signed agreement of sale✓
• b.A potential seller who is considering listing the property for lease
• c.A potential buyer deciding what to offer for a listed property
• d.An owner who wants an opinion of value before making repairs

A licensee may perform a CMA for an existing or potential seller or owner for listing purposes, or for an existing or potential buyer or tenant, but shall not perform a competitive market analysis for the mortgagee on a property that is the subject of a signed agreement of sale. Cite: 24 Del. C. Sec. 2931(1).