Determine your answer, then click the arrow to see the correct response.
Which of the Following Is True Regarding the Delaware Real Estate Commission?
A) It consists of seven members appointed by the Governor.
B) It has the authority to set real estate commission rates.
C) It can issue subpoenas and take testimony under oath.
D) It does not regulate real estate advertising.
Correct Answer: C) It can issue subpoenas and take testimony under oath.
Explanation: The Delaware Real Estate Commission has the power to issue subpoenas and take testimony under oath during investigations.
Which of the Following Forms of Co-Ownership Is NOT Recognized in Delaware?
A) Tenancy in common
B) Joint tenancy with right of survivorship
C) Community property
D) Tenancy by the entirety
Correct Answer: C) Community property
Explanation: Delaware does not recognize community property; it recognizes tenancy in common, joint tenancy with right of survivorship, and tenancy by the entirety.
Which of the Following Is Required To Become a Licensed Real Estate Broker in Delaware?
A) Complete 60 hours of approved real estate education.
B) Have five years of experience as a licensed salesperson.
C) Pass only the state portion of the licensing exam.
D) Submit proof of financial stability.
Correct Answer: B) Have five years of experience as a licensed salesperson.
Explanation: To become a broker, applicants must have at least five years of experience as a licensed real estate salesperson in Delaware.
Sarah, a Licensed Real Estate Salesperson in Delaware, Receives a Referral Fee From a Mortgage Broker. This Is:
A) Legal if disclosed to the client.
B) Legal without disclosure.
C) Illegal regardless of disclosure.
D) Allowed if approved by her broker.
Correct Answer: C) Illegal regardless of disclosure.
Explanation: Delaware law prohibits real estate licensees from accepting referral fees from mortgage brokers.
What Is the Primary Purpose of the Delaware Real Estate Guaranty Fund?
A) To fund real estate education programs.
B) To provide compensation for consumers harmed by licensee misconduct.
C) To support the operations of the Real Estate Commission.
D) To subsidize low-income housing projects.
Correct Answer: B) To provide compensation for consumers harmed by licensee misconduct.
Explanation: The Guaranty Fund is designed to protect consumers who suffer losses due to dishonest or unethical actions by licensed real estate professionals.
A Buyer in Delaware Defaults on Their Mortgage. What Is the Typical Process the Lender Will Follow To Recover the Property?
A) Judicial foreclosure
B) Strict foreclosure
C) Non-judicial foreclosure
D) Deed in lieu of foreclosure
Correct Answer: a) Judicial foreclosure
Explanation: Delaware primarily uses judicial foreclosure, which involves the court system to foreclose on the property and recover the loan amount.
What Type of Zoning Regulation Is Used To Control Land Use and Building Density in Delaware?
A) Covenants, conditions, and restrictions (CC&Rs)
B) Building codes
C) Comprehensive plans
D) Zoning ordinances
Correct Answer: d) Zoning ordinances
Explanation: Zoning ordinances are used to control land use and building density, ensuring that development is in line with the comprehensive plan of the area.
Which of the Following Statements Is TRUE Regarding Delaware's Real Estate Transfer Tax?
A) The transfer tax is solely the responsibility of the buyer.
B) The transfer tax is solely the responsibility of the seller.
C) The transfer tax is typically split equally between the buyer and the seller unless otherwise agreed.
D) There is no real estate transfer tax in Delaware.
Correct Answer: C) The transfer tax is typically split equally between the buyer and the seller unless otherwise agreed.
Explanation: In Delaware, the real estate transfer tax is generally split equally between the buyer and the seller unless they agree to a different arrangement.
What Is the Primary Purpose of a Deed of Trust in Delaware?
A) To transfer ownership of property
B) To serve as a security instrument for a mortgage loan
C) To establish zoning regulations
D) To outline property boundaries
Correct Answer: B) To serve as a security instrument for a mortgage loan
Explanation: A deed of trust is used as a security instrument for a mortgage loan, where the property is held in trust until the loan is repaid.
A Property Manager in Delaware Wants To Evict a Tenant for Non-Payment of Rent. Which of the Following Steps Must Be Taken First?
A) File an eviction lawsuit immediately.
B) Serve a notice to quit.
C) Change the locks on the property.
D) Notify the Real Estate Commission.
Correct Answer: B) Serve a notice to quit.
Explanation: The landlord must serve a notice to quit before filing an eviction lawsuit for non-payment of rent.