DELAWARE REAL ESTATE 2026/2027 QUESTIONS AND
SOLUTIONS RATED A+
✔✔What is Lien theory vs. Title theory, as it relates to mortgages? - ✔✔Delaware
records mortgage as lien against property
-DE is a lien theory state
- Title theory is a deed of trust, where the lender owns the property. You have right of
possession until you pay back loan, at which time the bank conveys the property back
with a trustee deed
✔✔How are taxes prorated on a settlement sheet? (credit v. debit) - ✔✔Prorated as a
debit to the buyer, and a credit to the seller
✔✔Is commission in a real estate transaction a credit or a debit? - ✔✔It is a debit to the
seller
✔✔What is the assignment of rights in a real estate contract? - ✔✔When buyer signs
contract, the Assignor (seller) transfers ALL rights to property to the Assignee (buyer)
✔✔What is Eminent Domain? - ✔✔The right of the government to take private property
for a public use
✔✔What are Deed Restrictions? - ✔✔Private restrictions that affect use of property.
- run with land & last forever
- affect all successive owners
✔✔What is chain of title? - ✔✔The chain of transactions linking each seller and buyer
under a title search
- Contains the name of all grantors
-EX: "makes sure "Ed: gets deed when buying from "Lisa" who bought from "Tim" and
so on .
-Makes sure everyone has proper title
✔✔How long do Deed Restrictions or Restrictive Covenants last? - ✔✔They last forever
unless specified to terminate at (or after) a specific time
✔✔What is the primary intent of Zoning Ordinances? - ✔✔To protect health, safety, and
welfare of citizens
✔✔What is an Eviction called in Delaware? - ✔✔It is called a summary proceeding for
possession in DE
✔✔May a residential lease be oral in Delaware? - ✔✔Yes, however it may only be an
oral lease for a term up to 1 year
, ✔✔Who is the Lessee? - ✔✔Lessee is the tenant (renter) of the property
✔✔Who is the Lessor? - ✔✔Lessor is the owner of the property
✔✔What is Fee Simple subject to a condition subsequent? - ✔✔Ownership on the
grounds that the property is used for specific purpose
EX: property was sold to build a museum. (If anything else is built, grantor is entitled to
property)
✔✔What is a Defeasible Estate? - ✔✔When a grantor sells property with special
limitations (or condition subsequent)
- some condition that if violated will revert property back to original owner
✔✔What are the requirements for real estate agents when selling their own property? -
✔✔You must disclose that you're a real estate agent to all parties involved
✔✔Before your license can be suspended or revoked, what are you entitled to? -
✔✔You are entitled to a hearing, and the right to cross examine your accuser
✔✔What is the best assurance of a good title? - ✔✔Purchasing Title Insurance
✔✔What are the Following Deeds?
- Bargain and Sell
- Quit Claim
- General Warranty deed
- Special Warranty deed - ✔✔- Bargain and Sell: implies that sheriff has title (often
foreclosure sales)
- Quit Claim: no warranties at all
- General Warranty:
The seller warrants property is free from all defects for all time
- special warranty: The seller warrants that if any defect occurred during ownership, the
seller will fix it
✔✔What is the Right of Condemnation? - ✔✔The process of obtaining property under
the right of eminent domain
✔✔What is Adverse Possession? - ✔✔where a 3rd party acquires title to your property
if they have occupied under the following conditions:
open, notorious, hostile and in excess of 20 years
SOLUTIONS RATED A+
✔✔What is Lien theory vs. Title theory, as it relates to mortgages? - ✔✔Delaware
records mortgage as lien against property
-DE is a lien theory state
- Title theory is a deed of trust, where the lender owns the property. You have right of
possession until you pay back loan, at which time the bank conveys the property back
with a trustee deed
✔✔How are taxes prorated on a settlement sheet? (credit v. debit) - ✔✔Prorated as a
debit to the buyer, and a credit to the seller
✔✔Is commission in a real estate transaction a credit or a debit? - ✔✔It is a debit to the
seller
✔✔What is the assignment of rights in a real estate contract? - ✔✔When buyer signs
contract, the Assignor (seller) transfers ALL rights to property to the Assignee (buyer)
✔✔What is Eminent Domain? - ✔✔The right of the government to take private property
for a public use
✔✔What are Deed Restrictions? - ✔✔Private restrictions that affect use of property.
- run with land & last forever
- affect all successive owners
✔✔What is chain of title? - ✔✔The chain of transactions linking each seller and buyer
under a title search
- Contains the name of all grantors
-EX: "makes sure "Ed: gets deed when buying from "Lisa" who bought from "Tim" and
so on .
-Makes sure everyone has proper title
✔✔How long do Deed Restrictions or Restrictive Covenants last? - ✔✔They last forever
unless specified to terminate at (or after) a specific time
✔✔What is the primary intent of Zoning Ordinances? - ✔✔To protect health, safety, and
welfare of citizens
✔✔What is an Eviction called in Delaware? - ✔✔It is called a summary proceeding for
possession in DE
✔✔May a residential lease be oral in Delaware? - ✔✔Yes, however it may only be an
oral lease for a term up to 1 year
, ✔✔Who is the Lessee? - ✔✔Lessee is the tenant (renter) of the property
✔✔Who is the Lessor? - ✔✔Lessor is the owner of the property
✔✔What is Fee Simple subject to a condition subsequent? - ✔✔Ownership on the
grounds that the property is used for specific purpose
EX: property was sold to build a museum. (If anything else is built, grantor is entitled to
property)
✔✔What is a Defeasible Estate? - ✔✔When a grantor sells property with special
limitations (or condition subsequent)
- some condition that if violated will revert property back to original owner
✔✔What are the requirements for real estate agents when selling their own property? -
✔✔You must disclose that you're a real estate agent to all parties involved
✔✔Before your license can be suspended or revoked, what are you entitled to? -
✔✔You are entitled to a hearing, and the right to cross examine your accuser
✔✔What is the best assurance of a good title? - ✔✔Purchasing Title Insurance
✔✔What are the Following Deeds?
- Bargain and Sell
- Quit Claim
- General Warranty deed
- Special Warranty deed - ✔✔- Bargain and Sell: implies that sheriff has title (often
foreclosure sales)
- Quit Claim: no warranties at all
- General Warranty:
The seller warrants property is free from all defects for all time
- special warranty: The seller warrants that if any defect occurred during ownership, the
seller will fix it
✔✔What is the Right of Condemnation? - ✔✔The process of obtaining property under
the right of eminent domain
✔✔What is Adverse Possession? - ✔✔where a 3rd party acquires title to your property
if they have occupied under the following conditions:
open, notorious, hostile and in excess of 20 years
