Real Estate Exam Delaware

According to the Delaware Mortgage Loan Modification Services Act (MLMSA), mortgage loan modification service providers must pay a _____ fee to the state Consumer Protection Fund. $1,000 $2,000 $3,000 $4,000

$1,000

After their first renewal, how many hours of CE courses do Delaware real estate licensees need to take to renew their license? 12 hours 18 hours 21 hours 24 hours

21 hours

Under the Delaware statewide residential sales contract, buyers are responsible for scheduling the pre-settlement property inspection within ______ hours prior to settlement. 24 48 72 96

48

How old must residents in Delaware be to qualify for the senior citizen property tax exemption? 55 60 65 70

65

Associate broker applicants must complete _____ hours of pre-licensing education courses to be eligible for a Delaware broker real estate license. 23 30 64 96

96

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 title to the land. What kind of state does Sondra live in? A deed of trust theory state A lien theory state An intermediary theory state A title theory state

A lien theory state

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 15-unit residential condominium complex with a hot tub but no pool A unit in a bustling residential complex with three pools, two tennis courts, and 200 units A unit in an office condominium complex A unit in the Argent Rest Home complex, a continuing care facility

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

Someone who's been given the authority to act on behalf of someone else is a(n) ______. Agent Client Mortgage lender Trustor

Agent

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 MLS details for the property Seller's Disclosure of Real Property Condition Report Title insurance abstract

Agreement of sale

What's NOT true about seller disclosure of radon hazards in Delaware? All real property sales in Delaware require radon disclosure; there are no exemptions. Disclosure is made whether there's a known hazard on the property or not. Disclosure requires two forms, one of which must be signed by both the buyer and seller. The seller must provide any existing radon testing or inspection reports.

All real property sales in Delaware require radon disclosure; there are no exemptions.

Which of the following options describes a subordination agreement? An agreement between a contractor and any subcontractors An agreement between a landowner and a contractor An agreement between the court and landowner to decrease property taxes An agreement between two lien holders to modify the order of lien priority

An agreement between two lien holders to modify the order of lien priority

Which of the following statements is true regarding Delaware's licensing requirements? Anyone acting as an attorney in fact under an executed power of attorney whose duties include real estate transactions needs a real estate license. Anyone who markets and advertises other people's properties for sale or lease is required by law to hold a Delaware real estate license. Companies, subsidiaries, or divisions that perform real estate activities for their own properties in the regular course of management or investment business need a real estate license. Owners, lessors, buyers, or lessees (or their employees) who perform real estate activities on their own behalf need a real estate license.

Anyone who markets and advertises other people's properties for sale or lease is required by law to hold a Delaware real estate license.

Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided? Barbie and Midge each own 50%. Barbie and Skipper each own 50%. Barbie, Midge, and Ken's heirs each own one-third. Barbie owns two-thirds, and Midge owns one-third.

Barbie owns two-thirds, and Midge owns one-third.

What is one of the many programs offered for free by the Delaware Community Reinvestment Action Council (DCRAC) to support and educate Delawareans about financial aspects regrading credit, housing, and taxes? Borrow $mart seminars Loan modification services No-cost refinance programs Tax credits

Borrow $mart seminars

Which of these is a complete list of the types of real estate licenses in Delaware? Broker, associate broker, salesperson Broker firm, broker, salesperson Broker, salesperson Managing broker, independent broker, salesperson

Broker, associate broker, salesperson

Which of these statements accurately represents how Delaware real estate firms should manage escrow records? Brokerage firms must retain escrow accounting records for at least five years after a transaction closes or terminates. Brokerage firms must retain escrow accounting records for at least three years in either electronic or hard-copy format. Brokerage firms should retain escrow accounting records in hard copy for at least one year after the transaction closes, then, if desired, retain electronic copies for two additional years. If a transaction fails to go to closing, the brokerage firm may immediately dispose of accounting records related to the escrow deposit.

Brokerage firms must retain escrow accounting records for at least three years in either electronic or hard-copy format.

Delaware counties may offer which type of county-specific property tax exemption? Cemeteries Investment properties Political affiliation Religious

Cemeteries

One of the ways the Office of the State Bank Commissioner protects consumers from predatory lending practices is _____. Chartering and regulating state banks and trust companies Imposing fines against lenders who commit predatory lending acts Providing education to lenders about predatory lending practices Working to establish credit score reform

Chartering and regulating state banks and trust companies

Once you submit the required documentation to the Delaware Real Estate Commission to verify that you legally changed your name, what's the next step to take to obtain a new license that shows your new name? Ask your broker affiliate to submit a request for a new license to the Delaware Real Estate Commission. Confirm your name has been changed on Delaware's verify license online website and submit the Request Duplicate License form online. No additional steps need to be taken. The Delaware Real Estate Commission will mail an updated license. Submit the name change for approval to the Delaware Associate of REALTORS®.

Confirm your name has been changed on Delaware's verify license online website and submit the Request Duplicate License form online.

Which of the following is a true statement about general exemptions in Delaware? Charitable and religious property are typically county-specific exemptions. Counties may offer county-specific exemptions, such as for cemeteries. Farmland is typically exempt statewide. Governmental and educational property are typically county-specific exemptions.

Counties may offer county-specific exemptions, such as for cemeteries.

Which of the following agencies is in charge of ensuring statewide wetlands regulations are carried out in Delaware? Department of Natural Resources and Environmental Control Department of Real Estate Department of Wetlands Protections Real Estate Commission

Department of Natural Resources and Environmental Control

Delaware's statutory agency is different from common law agency because it _______. Begins with an agreement to compensate the licensee Creates a fiduciary relationship Doesn't require a written agreement to establish the agency relationship Prohibits an agent from representing both the buyer and the seller in the same transaction

Doesn't require a written agreement to establish the agency relationship

Donna, a Delaware licensee, has entered into a common law agency relationship with Chip, who's interested in selling his single-family home. In order for this to be legal, which of the following must be true? Donna must only disclose this agency relationship to Chip. Donna's brokerage exclusively practices dual agency. Donna's brokerage exclusively practices single agency. Donna's broker gave her written permission.

Donna's brokerage exclusively practices single agency.

Ace Realty has branch offices in several metro area locations. Which of these statements accurately describes the way those branch offices must be managed? A branch manager is solely responsible for supervision of licensees affiliated with that particular branch office. 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. The firm's broker may choose to either retain full responsibility for managing branch offices or to appoint a managing broker. The firm's broker may designate another broker who has at least three years of experience as a branch manager.

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.

New Castle County resident Alex pays her rent to her landlord, Kyle, who lives in Sussex County, on the first of the month. What is the grace period on her rent payment? 10 days Eight days Five days Three days

Eight days

The purpose of Delaware's Real Estate Tax Return Declaration of Estimated Income Tax, Form 5403 is to ______. Double-tax Delaware residents on capital gains Ensure property sellers pay income tax on capital gains Promote more out-of-state investors Restrict unincorporated entities from purchasing property in Delaware

Ensure property sellers pay income tax on capital gains

Terry represents seller Farrah, and Michael represents Troy, the buyer. Who is (or are) the principal(s) in this transaction? Farrah Farrah and Troy Terry and Michael Troy

Farrah and Troy

The Residential Mortgage Foreclosure Mediation Program helps homeowners facing foreclosure by offering _____. Free mediation between homeowners and lenders Loan modification services No cost refinancing Short-term loans

Free mediation between homeowners and lenders

Which of these is a Delaware listing agent's responsibility? Complete the seller's property disclosure form prior to entering into a listing agreement. Give the seller's completed property condition disclosure form to all prospective buyers or their agents. Inform prospective buyers that the seller disclosures should be supplemented by a professional property inspection. Inspect the seller's property for potential material defects that would require disclosure to prospective buyers.

Give the seller's completed property condition disclosure form to all prospective buyers or their agents.

What's something you should do to avoid fair housing violations? Avoid advertising to dodge the possible perception of discrimination. Have someone review your qualification process. Right from the start, describe the ideal buyer for specific properties. Test all your listings and licensees to ensure fair housing compliance.

Have someone review your qualification process.

James is a Delaware licensee. Which of the following is a true statement? He can only engage in dual agency if consumers specifically agree to it on the Consumer Information Statement. He isn't allowed to engage in dual agency. He's allowed to practice dual agency unless consumers specifically decline it on the Consumer Information Statement. If he represents both buyers and sellers in separate transactions, he's engaging in dual agency.

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

Where must the disclosure pertaining to CMAs that begins, "Notwithstanding any language to the contrary contained herein, this Competitive Market Analysis is NOT an appraisal ..." be listed on the CMA? At the bottom At the top Immediately after the estimated price Near the signature

Immediately after the estimated price

You're selling your Delaware duplex to another investor, using an installment sales contract. How long can the contract remain executory? No longer than 15 years No longer than 30 years No longer than five years No longer than six months

In Delaware, a purchase contract may not remain executory for longer than six months, although one six-month extension is allowed if the parties agree in writing.

Julie is a Delaware licensee. Unless a customer signs a written agreement stating otherwise, which type of agent is she? Common law Dual Fiduciary Statutory

In Delaware, licensees are statutory, and not common law, agents. That means that Delaware law spells out specific duties owed to customers and clients.

An installment sales contract is also known as a _____. Contract for deed Installment land contract Provisional contract Residential purchase contract

Installment land contract

Which of the following statements accurately describes the written lease requirements in Delaware? Lease agreements always have to be written. Lease agreements don't have to be written. Lease agreements for 120 or more days must be written. Lease agreements for more than one year must be written.

Lease agreements for more than one year must be written.

If a licensee needs a waiver for completion of Delaware CE requirements, when must the request be submitted? No later than 20 days before the biennial license renewal date No later than 30 days before the biennial license renewal date No later than 60 days before the biennial license renewal date No later than 90 days before the biennial license renewal date

Licensees can submit a written request with proof of an illness, injury, family or financial hardship, or other circumstance that barred their completion of the CE requirements no later than 60 days before the biennial license renewal date.

One of the ways the Office of the State Bank Commissioner protects consumers from predatory lending practices is _____. Imposing fines against lenders who commit predatory lending acts Licensing and examining non-depository financial institutions Offering credit score reform Providing education to lenders about predatory lending practices

Licensing and examining non-depository financial institutions

Lucas, Ivan, Chad, and Trace own a property as joint tenants. After a few years, Ivan sells his interest to Tom (with permission from Lucas, Chad, and Trace). Chad dies intestate but is survived by a wife, Amy. Trace also then passes away but wills his property to Monique. Who owns the property after Trace's death? Lucas Lucas and Tom Lucas, Monique, and Amy Lucas, Tom, Amy, and Monique

Lucas and Tom

Delaware licensee Ralph buys a pesticide, and without bothering to read the application instructions, he liberally applies it in and around all the properties listed with him. Which of the following is true of this situation? Negligent or careless pesticide application is illegal, and Ralph could face fines of up to $2,500 per violation. Since Ralph didn't register with the DDA first, he could face fines of up to $500 per violation. This is legal, as long as he has the homeowners' permission to do so. This is legal with the homeowners' permission and signed waivers.

Negligent or careless pesticide application is illegal, and Ralph could face fines of up to $2,500 per violation.

Oscar and Felix are married and own their Delaware condominium as tenants by the entirety. When they have a fight about house cleaning, Felix proclaims he will sell his share of the condo to someone as filthy as Oscar if he doesn't change his ways. Can Felix legally carry through on this threat? No. Felix can transfer his share of the property to another in his will, but while both spouses are alive they're treated as one legal entity. No. Felix can't transfer any part of the property without Oscar's consent. Yes. Felix can transfer his share of the property to another as long as Oscar gives his consent to become tenants by the entirety with another person. Yes. Tenants by the entirety may transfer their individual shares of the property without the other spouse's consent.

No. Felix can't transfer any part of the property without Oscar's consent.

At which point in the residential selling process does the real estate professional prepare a comparative market analysis? Closing Listing and marketing Managing the transaction Obtaining the listing

Obtaining the listing

Which of these would be an illegal place to put a real estate sign in Delaware? In the window of a real estate office Next to a public road, at least 10 feet from the pavement edge On the side of a bus shelter, as long as it doesn't obstruct the view of the street On the subject property's front lawn, at least seven feet from the pavement edge

On the side of a bus shelter, as long as it doesn't obstruct the view of the street

Under the terms of a Delaware commercial lease, tenants' property and goods can be seized and sold to pay past due rent not to exceed _________. 18 months One year Six months Two years

One year

Violations of Delaware license law could earn a licensee a sanction from the real estate commission, including the possibility of _______. A fine of up to $10,000 House arrest Jail time Probation, including regular reports to the commission and limited professional activities

Probation, including regular reports to the commission and limited professional activities

Mark, a Delaware mobile home park owner, has grown sick of managing the property and wants to sell. What's he required to do before entering into a purchase agreement for the community with investor Carol? Give residents a 60-day notice to vacate. Give the mobile homeowners the opportunity to purchase the park themselves. Provide Carol with a certificate of resale. Request permission from the mobile homeowners to sell the park.

Provide Carol with a certificate of resale.

The Delaware Agreement of Sale for Unimproved Land stipulates that the buyer must receive information about any agricultural leases the property is subject to, along with ______. An addendum waiving rental payments from the lease holder according to the Delaware Agricultural Leases Act Provisions of the Delaware Agricultural Leases Act related to lease renewal Provisions of the Delaware Landlord/Tenant Act related to agricultural lease terms The opportunity to cancel any current agricultural leases upon closing

Provisions of the Delaware Agricultural Leases Act related to lease renewal

Which of the following provisions of the Delaware residential sales contract states that the sellers bear responsibility for any loss in value or damage to the house prior to closing? Homeowners Warranty Loss of Value Notice to Sellers Risk of Loss

Risk of Loss

Most residential real estate transfers require the seller to provide the buyer with this

Seller's Disclosure of Real Property Condition Report

Which form would the seller (who is the property developer) use to make legally required disclosures for a newly constructed home in a Delaware subdivision? Developer's Real Property Condition Report Seller's Real Property Condition Report Seller's Real Property Condition Report and Radon Disclosure - Exempt Property Certification Seller's Real Property Condition Report - New Construction Only

Seller's Real Property Condition Report - New Construction Only

When Delaware licensee Cara is working with buyer clients, she gives them lists of recommended professionals to choose from. What's true about the home inspectors she recommends? She should include a waiver for her clients to sign to avoid liability for the actions of the other professionals they hire. She should make sure they're currently licensed in the state of Delaware. She should perform background checks on them before including them on her list. There are no professional requirements for them, so she should include a warning to her clients explaining this.

She should make sure they're currently licensed in the state of Delaware.

Mike, a Delaware licensee, is sitting down with a potential buyer for their first scheduled appointment. What must he make sure they do when he meets with her? Get pre-approved. Sign a common law agency agreement. Sign an exclusive agency agreement. Sign the CIS.

Sign the CIS.

What is the purpose of an abatement program? Increase costs and put a moratorium on future development Increase development costs and fees Put a moratorium on building Stimulate community revitalization

Stimulate community revitalization

Which of these is NOT a part of the license renewal process for real estate licensees in Delaware? Complete CE requirements prior to the renewal date Pay the renewal fee Submit certification of CE Submit the renewal application

Submit certification of CE

In Delaware, married couple Jeff and Linda will take title to their new home as ______ unless they specify otherwise. Joint tenants Tenants by the entirety Tenants in common Tenants in severalty

Tenants by the entirety

Which type of pest may make mud tubes—tunnels that run along your walls—or shed tiny wings? Carpenter ants Fire ants Powder post beetles Termites

Termites

Sherry is a new licensee, but when she helps her first client through the purchase of a home, she does so with professional competence. What entity is responsible for ensuring that Delaware licensees such as Sherry are able to safely help the public with real estate transactions? The Delaware Association of REALTORS® The Delaware Public Health and Safety Commission The Delaware Real Estate Commission The Department of Housing and Urban Development

The Delaware Real Estate Commission

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? FIRPTA No Recording Notice/Delivery of Documents Risk of Loss

The Notice/Delivery of Documents provision of the sales contract says that anything the buyers agree to in writing with the sellers becomes part of this agreement, and that all agreements must be in writing to be enforceable.

Which of the following entities monitors Delaware's groundwater for signs of pesticide contamination? The Clean Water section The Groundwater section The Licensing section The Pesticide section

The Pesticide section

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 15 30 Five

The association must provide a resale certificate and copies of other community documents within 10 days of a seller's request.

The Marsdens recently sued their Delaware real estate broker for fraud and won their case. When the broker was only able to pay less than half of the amount the court awarded to the Marsdens, which was $300,000, they applied to the Guaranty Fund. What's the most the fund will give them for this single claim? $15,000 $150,000 $25,000 $300,000

The maximum Guaranty Fund compensation that may be granted on behalf of parties against a licensee is limited to $25,000.

Chloe is buying a Delaware home from the Sampsons. She wasn't able to come up with enough money to cover the entire purchase price, but luckily the Sampsons are willing to finance the remaining portion at a reasonable interest rate. What's NOT true about the purchase agreement Chloe and the Sampsons have? A statement that the buyers and sellers all understand the payment schedule must be included. Chloe and the Sampsons must all sign an amortization schedule. It includes an amortization schedule showing all monthly payments Chloe will make to the Sampsons, with each payment including principal and interest. The purchase price listed in the contract includes the sale price plus the full amount of interest resulting from the seller financing.

The purchase price listed in the contract includes the sale price plus the full amount of interest resulting from the seller financing.

Licensees pay a one-time fee of $25 which goes to maintain ______. Real estate commissioner salaries The Delaware Association of REALTORS The Delaware housing authority The real estate guaranty fund

The real estate guaranty fund

Which of these Delaware purchase agreements must include an amortization schedule by state law? A property requiring a jumbo loan Residential property purchased at a foreclosure sale The sale of a condominium unit where financing is used The sale of a single-family residence financed by the seller

The sale of a single-family residence financed by the seller

Who's responsible for paying for recording documents to clear all defects from the title? The buyer The lender The seller The title company

The seller

Which of the following parties must sign a Delaware sales contract to accept an offer? The buyers The sellers The sellers and buyers The sellers, buyers, and their agents

The sellers and buyers

When you are approaching your first renewal date for your real estate license in Delaware, which of these is true? The total number of CE credits you must complete will depend on how many months you've been licensed. You'll complete 21 CE credits taken from the seven modules required of all renewing licensees. You'll complete 24 CE credits from a different set of course topics than those that apply after your first renewal. Your CE requirement is satisfied by the pre-licensing education you completed.

The total number of CE credits you must complete will depend on how many months you've been licensed.

Where permitted, married couples usually hold property as ______. Joint tenancy Tenancy by the entirety Tenancy in common Tenancy in severalty

This is tenancy by the entirety, where each has an undivided interest in the entire property. If one dies, the other owns the entire property. If the couple divorces, their ownership automatically becomes a tenancy in common.

______ is the form of ownership used by married couples in certain states. It includes automatic survivorship rights. Tenancy by five unities Tenancy by the entirety Tenancy by union Tenancy in common

This is tenancy by the entirety, where each has an undivided interest in the entire property. If one dies, the other owns the entire property. If they divorce, their ownership automatically becomes a tenancy in common.

How many commission members are appointed from the public? Eight Four Six Two

four

Piper contracted with Alex to sell her Dover home to him for $350,000. If Alex breaches the sales contract, how long does Piper have to sue Alex for breach of contract? Eight years Four years

Three years

Which of these is NOT a purpose of the Delaware statute called the Unit Property Act? To promote the development of larger common interest communities To protect owners of condominium units To regulate the development of condominium communities To regulate the operation of homeowner associations

To promote the development of larger common interest communities

A Delaware licensee's seller clients will complete tax form 5403 as part of the transaction. Why? To receive a tax credit for any loss on the transaction if it qualifies as an investment. To receive a tax rebate for the amount of the real estate agent's commission. To record the amount of transfer tax a Delaware seller will pay if the buyer is an out-of-state entity. To record the estimated amount owed for capital gains on the transaction if the seller is an out-of-state entity.

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

What's it called when lien holders allow another lien holder's claim to have priority over their own? Equitable lien Lis pendens Subordination agreement Voluntary lien

When two lien holders agree to modify lien priority, it's called a subordination agreement.

In which form of co-ownership is a person's ownership inheritable? Joint tenancy Tenancy by the entirety Tenancy in common Tenancy in severalty

With tenancy in common, if one owner dies, that person's ownership is inheritable. It doesn't automatically pass to the other owners as it would with joint tenancy.

You're representing a buyer who's purchasing a single-family home on a corner lot in New Castle county. The buyer's lender wants a survey performed, so you meet with the buyer and the surveyor. Your client is asked to sign a waiver before the surveyor begins work. Is this legit or is your client being scammed? No, this isn't legit. You should advise your client not to sign. No, unless the waiver has already been seen and signed by the lender as well. Yes, all surveys require a waiver to protect the surveyor from lawsuits. Yes, a waiver is required with a mortgage survey plan.

Yes, a waiver is required with a mortgage survey plan.

How many years must commission members have resided in Delaware prior to their appointment? Five years Nine years Seven years Two years

five years