Real Estate Exam Delaware with complete solution

Real Estate Exam Delaware with complete solution Most residential real estate transfers require the seller to provide the buyer with this Seller's Disclosure of Real Property Condition Report 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 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. 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 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 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 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. 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 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 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 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 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. 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. 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. 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. Delaware counties may offer which type of county-specific property tax exemption? Cemeteries Investment properties Political affiliation Religious Cemeteries 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. 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 How many commission members are appointed from the public? Eight Four Six Two four 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. 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 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. ______ 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. 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