Delawa re Real Estate Test Questions and Answers Violations of Delaware license law could earn a licensee a sanction from the real estate commission, including the possibility of _______. A. A fine of up to $10,000 B. House arrest C. Jail time D. Probation, including regular reports to the commission and limited professional activities ✅Probation, including regular reports to the commission and limited professional activities Topic: Duties and Powers of the Real Estate Commission Subtopic: Sanctions Kristy is a Delaware salesperson associated with RBJ Realty. When her broker is convicted of embezzlement, and his license is revoked, what happens to Kristy and the rest of the licensees at RBJ Realty? A. All associated licensees are considered to have vicarious liability and will have their licenses revoked, as well. B. All licensees would be in the same boat as Kristy, whose license would be under suspension until she signed on with another broker. C. Kristy and all the other licensees would be allowed to complete any current brokerage agreements but must then cease any real estate activity until they associate with a new broker. D. Kristy and the other licensees at RBJ Realty must submit a request to the commission for a temporary broker until they find a new one. ✅All licensees would be in the same boat as Kristy, whose license would be under suspension until she signed on with another broker. Topic: Duties and Powers of the Real Estate Commission Subtopic: Sanctions Danette hasn't paid the first quarter water bill on her property. It was due on April 1. She's closing with the buyer, Jason, on April 1. What type of expense is this and how will it appear on the settlement statement? A.This is an accrued expense, and will appear as a buyer debit and a seller credit. B. This is an accrued expense, and will appear as a seller debit and a buyer credit. C. This is a prepaid expense, and will appear as a buyer debit and a seller credit. D. This is a prepaid expense, and will appear as a seller debit and a buyer credit. ✅This is an accrued expense, and will appear as a seller debit and a buyer credit. Topic: Financing and Settlement Subtopic: Settlement and closing the transaction Rhonda and her husband filed for bankruptcy five years ago. They want to purchase a new house but don't have the best credit score. They've decided to buy the home using an FHA loan. Which of these is a true statement? A. A minimum down payment of 3.5% is required. B. Mortgage insurance is not required. C. The loan -to-value ratio must be less than 80%. D. They must have PMI. ✅A minimum down payment of 3.5% is required. Topic: Financing and Settlement Subtopic: Lender Requirements One person owns the property and all other interests are severed. ✅Estate in severalty Co-ownership where each person is entitled to possession of the whole. An owner's ownership is inheritable and doesn't necessarily pass to the other owners. ✅Tenancy in common Co-ownership where there is equal interest that requires unity of time, title, interest, and possession. Includes the right of survivorship, which means that the surviving co -
owner(s) will own the property if another dies. ✅Joint tenancy Co-ownership type only available to married couples. ✅Tenancy by the entirety Is interest in real property where the owner's possession of the property is of indeterminate duration. ✅Freehold estate The most complete form of ownership and includes entire bundle of rights in real property. ✅Fee simple absolute (a.k.a. fee simple) Property holder owns the property with all legal rights, but subject to a condition. ✅Fee simple defeasible _______ estate is one that ends automatically when the stated event or condition occurs. The original owner retains a possibility of reversion. Property is retained "while", "during", or "so long as" the condition occurs. ✅Fee simple determinable Estate is given on the condition that the owner does or doesn't take a specific action. The grantor has the right of reentry if the condition is violated. The estate doesn't automatically revert to the original owner; it may require legal action on part of original owner. ✅Fee simple condition subsequent A freehold estate in which ownership is limited to someone's lifetime. ✅Life estate
owner(s) will own the property if another dies. ✅Joint tenancy Co-ownership type only available to married couples. ✅Tenancy by the entirety Is interest in real property where the owner's possession of the property is of indeterminate duration. ✅Freehold estate The most complete form of ownership and includes entire bundle of rights in real property. ✅Fee simple absolute (a.k.a. fee simple) Property holder owns the property with all legal rights, but subject to a condition. ✅Fee simple defeasible _______ estate is one that ends automatically when the stated event or condition occurs. The original owner retains a possibility of reversion. Property is retained "while", "during", or "so long as" the condition occurs. ✅Fee simple determinable Estate is given on the condition that the owner does or doesn't take a specific action. The grantor has the right of reentry if the condition is violated. The estate doesn't automatically revert to the original owner; it may require legal action on part of original owner. ✅Fee simple condition subsequent A freehold estate in which ownership is limited to someone's lifetime. ✅Life estate
