Final Exam

When Delaware landlords purchase utilities from public utilities, distribute those utilities to commercial tenants and common areas, and then meter tenant usage and common area usage, landlords may only charge tenants

What they would have paid if they'd arranged for the utility to their leased space themselves

Karen's house was recently foreclosed on to pay off a lien on her home. What happens to any extra money after the lien and expenses of the sale are paid?

it goes to Karen

Which of the following Delaware residential sales contract provisions says, in part, that anything the parties agree to in writing becomes part of the purchase agreement?

notice/delivery of documents

Licensee Jonathan signed a listing agreement with a new client. Which of these actions should Jonathan plan to perform next, before he publishes the listing on the MLS?

prepare a features list

Which of the following is another name for a residential sales contract?

purchase agreement

Which of the following parties must sign the Radon Disclosure form after it's been completed?

the buyer and seller

A seller has prepaid annual HOA fees of $1,200, what is the seller's credit at closing if the buyer is responsible for seven months of this expense?

$1,200 annually is $100 per month. $100 x seven months = $700.

The assessed value of a home in Kent County is $214,000. The assessment ratio in Kent is 60%. What's the taxable amount?

$128,400

When the Delaware Real Estate Commission finds that individuals have performed unlicensed real estate activities for the first time, what's the estimated fine?

$500-$5,000

When unit owners in the Flying Horses Condominium complex offer their units for sale, they'll ask the condo association for documentation, which must be provided within ______ days of the request.

10

New Castle County taxes at ______% of the assessed value.

100%

The assessed value of a home in Sussex County is $175,000. The combined tax rate is 2.3. What's the total tax amount due?

2,012.50

After their first renewal, how many hours of CE courses do Delaware real estate licensees need to take to renew their license?

21 hours

Hank is a broker who supervises 14 licensees. One of his responsibilities is to maintain copies of his associated licensees' continuing education certificates for at least ______ after the related renewal period ends.

3 years

A home in Wilmington sold for $368,000. The buyer and the seller agreed to split the transfer tax. Neither are first-time homeowners. What's the transfer tax amount they would each pay?

368,000 X .04 = $14,720. Buyer and seller agreed to split the fee, so each would pay $7,360.

Delaware's transfer tax rate is

4%

Dover resident Stacy lives in a four-unit building. Her landlord, Jacob, lives in one of the other units. Under Delaware's Landlord-Tenant Code, rent is due on the first of every month. What is the grace period on her rent payment?

5 days

How many years must commission members have resided in Delaware prior to their appointment?

5 years

The assessment ratio for Sussex County is ______ of the assessed value.

50%

Joe claims he's been harmed as a result of pesticide application. How long does he have to file a complaint with the Delaware Department of Agriculture?

60 days

How old must residents in Delaware be to qualify for the senior citizen property tax exemption?

65

Sondra, a buyer, signs all the required mortgage documentation, promising to make all payments to her lender. Unfortunately, Sondra falls on hard times and misses multiple payments, and the bank indicates that it's going to foreclose on her. The foreclosure proceedings are more difficult for the lender because Sondra holds the deed to the land. What kind of state does Sondra live in?

A lien theory state

While the Delaware residential sales contract for improved land and unimproved land are very similar, the unimproved land contract has several unique provisions, including flood zone/wetlands disclosure, and ______.

A notice that the parties may wish to have additional inspections of the property done regarding the water quality, quantity, and other factors

Which of the following is the most accurate definition of the word "creed"?

A set of beliefs

Which of these properties is NOT regulated by the Delaware Uniform Common Interest Ownership Act (DUCIOA)?

A single-family residence in a new subdivision

Your buyer clients, the Shepherds, are looking at unimproved lots with the intention of building a custom home. You inform them that any property they agree to buy will require ______.

A site evaluation performed by a licensed soil scientist

Delaware licensee Ron has several properties listed. For which of these will he advise his client to request a resale certificate from the association?

A unit in a bustling residential complex with three pools, two tennis courts, and 200 units

In Delaware, a notice to buyers encouraging them to confirm access to sewer and water facilities on unimproved land must appear in the

Agreement of sale

Paul is selling his Delaware home on five acres to Denise and Sally, using a contract for deed. Which of these things must the contract include, by state law?

An amortization schedule

Why would a buyer be asked to sign a waiver before a survey is performed on the Delaware property under contract?

As a warning to the buyer that the survey performed won't identify property boundaries

Which of the following Delaware property managers must hold a real estate license, based on the information provided?

Blake, who negotiates leases

Which party is considered the property owner on closing day in Delaware?

Buyer

What service are all real estate licensees permitted to perform for clients to assess a property's value?

CMA

Which of these Delaware licensees is guilty of the unauthorized practice of law?

Carl tells his seller client how he can legally extricate himself from the purchase contract he's now sorry he signed.

You're showing a house when you notice piles of what looks like sawdust outside near the basement windows. This may be evidence of which pest?

Carpenter ants

When the Delaware Real Estate Commission sanctions a licensee, which of these is NOT within the commission's authority?

Community service as specified by the commission, usually involving pro bono assistance for first-time homebuyers, elderly sellers, and other needy individuals.

The _____ protects Delaware citizens from fraud and scams.

Consumer Protection Unit

_____ calculate the amount of taxes to levy against property owners

County assessors

In Delaware, the residents of one of these communities have a right to be notified of the community's impending sale and to take steps to become the community's owners themselves. Which one?

Cozy Cottage Mobile Home Park, a family-friendly mobile home community on eight acres

Four friends are grilling out and arguing about property taxes. The assessed value of Joe's home in Sussex County is $120,000. The market value of Darrick's home in Sussex County is the highest, but its assessed value is $115,000. Sal's home in New Castle County has an assessed value is $210,000. Barry moved to Kent County last year, and his property's assessed value is $198,000. Who has the lowest taxable amount?

Darrick

Developer Steve is selling his new condo units, and they're going like hotcakes. He deposits earnest money from each of these buyers in his business account. Which Delaware law has he violated?

Delaware Uniform Common Interest Ownership Act (DUCIOA)

Thomas is helping his tenant client, Kayla, complete a one-year lease agreement. Which of the following laws requires this agreement to be in writing?

Delaware statute of frauds

Ace Realty has branch offices in several metro area locations. Which of these statements accurately describes the way those branch offices must be managed?

Each branch office must have a licensee designated as the branch manager, but the firm's broker has ultimate responsibility for supervision of affiliated licensees.

In what section of the Delaware sales contract do buyers indicate whether they plan to obtain a loan to purchase the property?

Financing Contingency

Affiliating with a broker is an important decision. What is something you should consider when making the decision?

Firm location

Luke is selling his home to Diana. At closing, he gives Diana a special warranty deed. With this deed, Luke is giving Diana guarantees of title ______.

For the time Luke owned the property

In Delaware, if a party to a written agricultural lease wishes to end the lease before termination, that party must

Give the other party at least a four-month advance notice to terminate the lease

What is one of the steps you need to take if you choose to affiliate with more than one Delaware broker?

Give written notice to each broker with whom you're currently affiliated that you plan to affiliate with an additional broker.

Blake backs out of his $400,000 sales contract to purchase Larry's property. Larry eventually sells the property for $375,000. Which of the following remedies is available to Larry under Delaware law?

He can sue Blake for benefit of the bargain for $25,000.

James is a Delaware licensee. Which of the following is a true statement?

He's allowed to practice dual agency unless consumers specifically decline it on the Consumer Information Statement.

New Castle County has the ______ effective property tax rate in the state, and Sussex County has the ______.

Highest, lowest

Brendan placed an ad for his real estate services on his social media account, which listed his email address, phone number, and name. What is Brendan's ad missing?

His brokerage's full name, office phone number, main office location, and licensure jurisdiction

Delaware licensee Gina is under investigation for a potential violation of license law. Which of these statements is NOT true?

If Gina is found guilty, at least seven members of the commission must agree to any disciplinary measure imposed on Gina.

A week after your seller client accepts an offer, there's a hard freeze, and a pipe in the home bursts, causing some minor flooding damage. Your client gets a plumber to repair the pipe but doesn't do much to repair the other damage. What's your responsibility in this situation?

Immediately have your client make written disclosure of the issue and alert the buyer's agent.

Which of the following is a true statement regarding Delaware's CIS?

It allows consumers to opt out of dual agency or any agency representation.

Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights?

Joint tenancy

The Delaware property Kelly is selling to John has a recorded easement for the utility company and a lien recorded against it because of Kelly's outstanding credit card debt. How will this affect the transfer of title from Kelly to John?

Kelly must deliver title to John clear of liens and encumbrances, though the recorded easement is allowed.

Juan and Natalie are preparing to send written notice that they are not accepting an offer from a potential buyer, but that they'd like the offeror to consider submitting a new offer (the couple even gives the offeror some ideas of how to make the new offer more acceptable). What is the type of the letter they will send?

Letter of non-acceptance

The Delaware Real Estate Commission may impose sanctions against a licensee for ______ violations.

License law

Licensees are required to relate all information that's material to the transaction to their clients. How does this relate to presenting offers to the seller?

Licensees must present and explain all offers.

Under the statute of ______, if legal remedy is sought against a person, the pursuer must bring a court action within a specified period of time.

Limitations

Buyer Corinne is the proud new owner of a one-acre property in Sussex County. Now that the deed has been recorded, the transfer tax is due. How much is Corinne required to pay?

Negotiable, per the terms of the sales contract

Betty and John are buying a three-acre parcel of unimproved land in Delaware. What notice does state law require in the purchase contract?

Notice to buyers that they may need to install water and sewer systems and will need a site evaluation approved to do so.

Which of the following is a prohibited housing practice under federal and state fair housing laws?

Offering different terms, conditions, or privileges for certain people

Carly, a Delaware licensee, must provide the Consumer Information Statement when the transaction involves which type of property?

One- to four-family residential properties and single lots intended for one- to four-family residences

Delaware statutory agents are required to

Perform all duties outlined in any written brokerage agreement

Which of these is a duty of a Delaware statutory agent?

Perform ministerial tasks related to the contract

Property owner Susan and property manager Phil just entered into a property management agreement. Which of the following is NOT something that would be addressed in the agreement?

Phil's power to sell the property without consulting Susan

You're representing a seller client, Angela, who has mentioned she may not accept any offers lower than $200,000 for her home. If you receive an offer for less than $200,000, what must you do?

Present the offer and let Angela decide whether or not to accept it.

Broker Alianna noticed that her new licensee was fudging numbers on a client's financial information. When she confronted him about it, he said he just wanted to make sure the deal went through. Alianna decided to terminate his services because he wasn't maintaining what standard?

Protect consumers

Josephine has just signed a listing agreement with the Jacksons. Which of these must Josephine do, according to the Delaware Real Estate Commission Rules and Regulations?

Provide the Jacksons with a copy of the signed agreement within a reasonable amount of time

Ahmad and Mahasin recently put in an offer on a home. The seller tells his agent to reject the offer. What should the seller's agent do?

Provide written notice to Ahmad and Mahasin.

Which of these Delaware home buyers will receive an exemption from the county portion of the transfer tax?

Ralph and Kyle, first-time homebuyers

Reina is a real estate salesperson in Delaware. The commission revoked her license after an investigation and hearing into her conduct. Which of the following is true?

Reina must stop practicing real estate for at least two years. After that, she can apply for a new license.

The Delaware Pesticide Law defines ______ as pesticides that are more dangerous to the environment or human health and require additional safety measures.

Restricted Use Pesticides

Which of the following may a person who doesn't hold a Delaware real estate license do?

Sell property as an executor of a will

Delaware seller Frank has refused reasonable offers from four prospective buyers. Which one of these rejected buyers could make a complaint of a fair housing violation against Frank

Serena and Mary, whom Frank rejected because they openly presented themselves as a lesbian couple.

Ana is selling her Delaware home, but wishes to take the free-standing range and refrigerator with ice maker, both of which she recently purchased, with her. Which of the following is true of this situation

She should indicate these items under the Exclusions provision in the sales contract.

Dierdre has agreed to represent Toby, who is selling several acres of fenced pasture that he leases to a dairy farmer. The farmer keeps a few of his cows there most of the year. Why does this matter to Dierdre?

She'll need to make sure the purchase contract includes disclosure of the lease, its terms, and state law regarding renewal of the lease.

Once Greg and Caitlin were married, they decided to purchase a home together. Since it was a shotgun wedding after a weekend in Vegas, they made sure that their ownership included the right of survivorship as well as protection from the other spouse attempting to sell the house from under them. Though not recognized in all states, the most likely form of co-ownership under which they would make this purchase is ______.

Tenancy by the entirety

______ is the form of ownership used by married couples in certain states. It includes automatic survivorship rights.

Tenancy by the entirety

Delaware licensee Shane is representing John and Tiffany Smith, who are looking to buy their first home. When Shane presents their offer to the seller's agent, he gets a funny feeling about the situation. When the seller rejects the Smith's extremely reasonable offer without even countering, Shane feels certain there's an element of discrimination involved based on race. Who should the Smiths and Shane go to with their suspicions?

The Delaware State Human Relations Commission. The state's Human Relations Commission has the authority to investigate charges of housing discrimination.

Which of the following documents, which details property defects and other material facts, are most property sellers in Delaware required to provide to buyers?

The Seller's Disclosure of Real Property Condition Report

Who or what entity has legal title to a financed property in a lien theory state?

The borrower

Angela didn't receive her renewal notice from the Delaware Real Estate Commission and forgot to submit her renewal application on time. What will happen to her license?

The commission will terminate her license immediately.

Which one of the following pieces of information should all commercial leases contain?

The lease agreement start and end dates

A Delaware landowner, Jed, is leasing pastureland to a tenant, Marcus. Their lease, which began on September 15, 2018, has no expressed term. Which of the following is true of this lease?

The lease terminates on December 31, 2019.

What happens to a broker's listings when the broker leaves one brokerage firm and goes to another firm?

The listings remain with the original brokerage firm.

Stan and Laura own a mobile home located in the Delaware Downs Mobile Home Park. When the park's owner gives them notice that the park is up for sale, what right do they and the other resident homeowners have?

The right to accept, counter, or reject the price and terms

One week before closing on a property in Dover, the garage door opener breaks. Who's responsible for fixing this and paying for the repair?

The seller must fix it and pay for the repair.

Which of the following statements about the sales contract form in Delaware is true?

There's no one standard form in Delaware for the sales contract.

Jack and Jill have gotten a divorce. Under the terms of the divorce, Jill transfers her interest in their Delaware home to Jack. A real estate licensee helps them with the transaction. Which of the following is true of this situation?

They should complete a property disclosure exemption form.

A Delaware licensee's seller clients will complete tax form 5403 as part of the transaction. Why?

To record the estimated amount owed for capital gains on the transaction if the seller is an out-of-state entity.

Which Delaware law may still apply to condominiums and their operation but doesn't apply to cooperatives or planned unit developments?

Unit Property Act

In part, the Rental/Lease provision of the Delaware sales contract is where the parties indicate which of the following?

Whether the property is subject to any leases

Buyers Mork and Mindy want to purchase the antique clock in the Delaware home they've made an offer on. How should they indicate this?

Write it include the sales contract under Inclusions.

Delaware licensee Jennifer has just met with prospective tenant, Aaron, who wants to find a house to rent in Dover for a year. She provides him with the Consumer Information Statement for Consumers Seeking to Rent Residential Property. Was she required by law to do this?

Yes, because the CIS must be provided to all prospective tenants who wish to obtain leases for 120 days or more.

Unlike the Delaware residential sales contract for improved land, the unimproved land sales contract contains a provision regarding

Zoning

In Delaware which party is responsible for expenses on closing day ?

buyer

In Delaware, _____ usually pay for the homeowner's title insurance policy.

buyers