DELAWARE REAL ESTATE TEST PAPER EXAM 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔What is a Mechanics Lien? - ✔✔A specific involuntary lien where contractor hasn't
been payed for services on a property
- lien goes against property worked on
✔✔What is a Foreclosure Sale? - ✔✔When a borrower doesn't pay their mortgage bank
sues (forecloses) and sells house to recover outstanding balance of mortgage
✔✔What are liquidated damages? - ✔✔When entering a contract 2 parties agree if
either party breeches contract, a specific amount of money will be reward to other party
by the breaching party
✔✔What are the powers of the Real Estate Commission? - ✔✔License agents, renew
licenses, set standards for competency, hold hearings and contract with national testing
service
- protects public against price fixing and services that are anti competitive
✔✔What is a Cooperative (Co Op) form of ownership? - ✔✔When you buy property in a
Co Op, You do not own real estate. You own a share of stock of a company that owns
the property
(essentially you get lease from property?)
✔✔What is a Condominium form of ownership? - ✔✔You own your unit and % of all
common elements
✔✔Who is the Dominant Tenement in easements? - ✔✔party who gets right of use of
property
(dominates other party)
✔✔Who is the Servient Tenement in easements? - ✔✔party that gives up right of
property to other party
(serves other party)
✔✔What is Psychologically impacted property Law of Delaware? (Heebie Jeebie
Factors) - ✔✔If the property is sight of homicide suicide, or any felony except arson, it
doesn't have to be disclosed to buyer unless requested in writing.
- If it is requested in writing, question must be answered to best of ability.
If property was occupied or suspected of someone who had AIDS/HIV never has to be
disclosed, even if requested in writing.
, ✔✔What is Fee Simple Absolute title? - ✔✔The highest and best interest in ownership -
contains the bundle of legal rights
✔✔Is there the Right of Survivorship under Joint Tenancy? - ✔✔Yes, Joint Tenancy has
right of survivorship
✔✔What is Homestead Law? - ✔✔Law where the owner of a home is protected from
creditors foreclosing on home.
(No Homestead Law in DE)
✔✔What are Surface & Subsurface Rights? - ✔✔You own up to heavens down to the
center of earth applies to all minerals/ oil under surface of property
✔✔What is the Bundle of Legal Rights? - ✔✔Right of possession, Right to exclude,
Right of enjoyment, Right of use,
Right to disposition
✔✔What are the Legal Requirements of an Agreement of Sale? - ✔✔Has to be mutual
assent (offer and acceptance must be identical)
Has to be fully signed (by buyer and seller)
should be supported by consideration (usually money)
terms have to be specific
✔✔What is a Life Estate? - ✔✔gives possession to life tenant based on either life of
tenant or (per autre vie) the life of another, at death of tenant property reverts back to
original grantor or if grantor is dead to grantors heirs
✔✔Who pays the Delaware Realty Transfer Tax? - ✔✔Transfer tax is split between
buyer and seller
✔✔What is a note? - ✔✔Note - a personal promise to pay back debt
✔✔What is a Mortgage? - ✔✔collateral for the debt to property
✔✔What is the primary objective of the real estate commission? - ✔✔It protects the
public against practices that fix prices and prohibit competition
✔✔What is an Encroachment? - ✔✔Where an improvement on one persons property is
over lot line onto another persons property
QUESTIONS AND SOLUTIONS RATED A+
✔✔What is a Mechanics Lien? - ✔✔A specific involuntary lien where contractor hasn't
been payed for services on a property
- lien goes against property worked on
✔✔What is a Foreclosure Sale? - ✔✔When a borrower doesn't pay their mortgage bank
sues (forecloses) and sells house to recover outstanding balance of mortgage
✔✔What are liquidated damages? - ✔✔When entering a contract 2 parties agree if
either party breeches contract, a specific amount of money will be reward to other party
by the breaching party
✔✔What are the powers of the Real Estate Commission? - ✔✔License agents, renew
licenses, set standards for competency, hold hearings and contract with national testing
service
- protects public against price fixing and services that are anti competitive
✔✔What is a Cooperative (Co Op) form of ownership? - ✔✔When you buy property in a
Co Op, You do not own real estate. You own a share of stock of a company that owns
the property
(essentially you get lease from property?)
✔✔What is a Condominium form of ownership? - ✔✔You own your unit and % of all
common elements
✔✔Who is the Dominant Tenement in easements? - ✔✔party who gets right of use of
property
(dominates other party)
✔✔Who is the Servient Tenement in easements? - ✔✔party that gives up right of
property to other party
(serves other party)
✔✔What is Psychologically impacted property Law of Delaware? (Heebie Jeebie
Factors) - ✔✔If the property is sight of homicide suicide, or any felony except arson, it
doesn't have to be disclosed to buyer unless requested in writing.
- If it is requested in writing, question must be answered to best of ability.
If property was occupied or suspected of someone who had AIDS/HIV never has to be
disclosed, even if requested in writing.
, ✔✔What is Fee Simple Absolute title? - ✔✔The highest and best interest in ownership -
contains the bundle of legal rights
✔✔Is there the Right of Survivorship under Joint Tenancy? - ✔✔Yes, Joint Tenancy has
right of survivorship
✔✔What is Homestead Law? - ✔✔Law where the owner of a home is protected from
creditors foreclosing on home.
(No Homestead Law in DE)
✔✔What are Surface & Subsurface Rights? - ✔✔You own up to heavens down to the
center of earth applies to all minerals/ oil under surface of property
✔✔What is the Bundle of Legal Rights? - ✔✔Right of possession, Right to exclude,
Right of enjoyment, Right of use,
Right to disposition
✔✔What are the Legal Requirements of an Agreement of Sale? - ✔✔Has to be mutual
assent (offer and acceptance must be identical)
Has to be fully signed (by buyer and seller)
should be supported by consideration (usually money)
terms have to be specific
✔✔What is a Life Estate? - ✔✔gives possession to life tenant based on either life of
tenant or (per autre vie) the life of another, at death of tenant property reverts back to
original grantor or if grantor is dead to grantors heirs
✔✔Who pays the Delaware Realty Transfer Tax? - ✔✔Transfer tax is split between
buyer and seller
✔✔What is a note? - ✔✔Note - a personal promise to pay back debt
✔✔What is a Mortgage? - ✔✔collateral for the debt to property
✔✔What is the primary objective of the real estate commission? - ✔✔It protects the
public against practices that fix prices and prohibit competition
✔✔What is an Encroachment? - ✔✔Where an improvement on one persons property is
over lot line onto another persons property
