DELAWARE REAL ESTATE FINAL EXAM 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔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.
✔✔How many years must commission members have resided in Delaware prior to their
appointment?
Five years
Nine years
Seven years
Two years - ✔✔five years
✔✔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
✔✔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.
✔✔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.
✔✔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
✔✔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.
✔✔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.
✔✔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
✔✔Where permitted, married couples usually hold property as ______.
Joint tenancy
QUESTIONS AND SOLUTIONS RATED A+
✔✔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.
✔✔How many years must commission members have resided in Delaware prior to their
appointment?
Five years
Nine years
Seven years
Two years - ✔✔five years
✔✔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
✔✔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.
✔✔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.
✔✔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
✔✔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.
✔✔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.
✔✔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
✔✔Where permitted, married couples usually hold property as ______.
Joint tenancy
