Delaware Real Estate Salesperson Exam — All Questions

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.

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).