Delaware Real Estate Law Final Exam
Questions with Verified Detailed Answers
Loan to Value Ratio - ✔✔Amount of the loan vs value of real estate
Who is the Devisee under a Will? - ✔✔Devisee under will is person who receives
property under a will (maker of will is devisor)
What are the Requirements for a valid deed in DE - ✔✔The deed has to be in
writing
The deed has to describe property with specificity
The deed must have the name of grantor and grantee
The deed must be signed and must be acknowledged(notarized)
What are the advantages vs. disadvantages of investing in Real Estate? -
✔✔Disadvantage - investment is not liquid (there is no cash out advantage)
Advantage - ability to control investment (sole decision maker of what happens
with property)
Page 1 of 21
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT
,What is a Subordination Agreement? - ✔✔An agreement that changes lien
priority
Who gets the money left over after a mortgage foreclosure sale? - ✔✔The
person who took out the loan is entitled to remaining balance if property sale
amount exceeds existing mortgage owed
What is equity in a property? - ✔✔the difference between amount of debt on
the property and the value of the property
What title does the buyer have when the buyer and seller have a fully signed
agreement of sale? - ✔✔equitable title
What does rescind mean? - ✔✔It means to cancel (rescinded offer = cancelled
offer)
What is an Executory contract - ✔✔A contract that has a number of conditions
that have to be satisfied
- you don't have a fully executed contract until all conditions are fulfilled
What is Power of Attorney? - ✔✔One person designates another person to
represent and sign documents on their behalf
Who signs the deed? - ✔✔Only the Grantor(seller) signs the deed
Page 2 of 21
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT
, What is joint Tenancy? - ✔✔(has the right of survivorship) If 2 people own
property and one dies, other owner automatically gets ownership interest of
the dead person
Both people own 100% of property (no fractional control) -
1 joint tenant can sell or lien their interest without the consent of the other
person
What is Tenancy by the Entirety? - ✔✔(has right of survivorship)
Husband and Wife one spouse CANNOT sell or lien without the consent of their
partner
What are the continuing education requirements for Real Estate Agents in DE? -
✔✔21 hours biannually (every 2 years - 12 must be completed in first year of
license)
must be completed by April 30th
What is Leverage? - ✔✔Using others money to acquire real estate
-if property is 100k and you borrow 100k you are 100% leveraged
Page 3 of 21
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT
Questions with Verified Detailed Answers
Loan to Value Ratio - ✔✔Amount of the loan vs value of real estate
Who is the Devisee under a Will? - ✔✔Devisee under will is person who receives
property under a will (maker of will is devisor)
What are the Requirements for a valid deed in DE - ✔✔The deed has to be in
writing
The deed has to describe property with specificity
The deed must have the name of grantor and grantee
The deed must be signed and must be acknowledged(notarized)
What are the advantages vs. disadvantages of investing in Real Estate? -
✔✔Disadvantage - investment is not liquid (there is no cash out advantage)
Advantage - ability to control investment (sole decision maker of what happens
with property)
Page 1 of 21
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT
,What is a Subordination Agreement? - ✔✔An agreement that changes lien
priority
Who gets the money left over after a mortgage foreclosure sale? - ✔✔The
person who took out the loan is entitled to remaining balance if property sale
amount exceeds existing mortgage owed
What is equity in a property? - ✔✔the difference between amount of debt on
the property and the value of the property
What title does the buyer have when the buyer and seller have a fully signed
agreement of sale? - ✔✔equitable title
What does rescind mean? - ✔✔It means to cancel (rescinded offer = cancelled
offer)
What is an Executory contract - ✔✔A contract that has a number of conditions
that have to be satisfied
- you don't have a fully executed contract until all conditions are fulfilled
What is Power of Attorney? - ✔✔One person designates another person to
represent and sign documents on their behalf
Who signs the deed? - ✔✔Only the Grantor(seller) signs the deed
Page 2 of 21
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT
, What is joint Tenancy? - ✔✔(has the right of survivorship) If 2 people own
property and one dies, other owner automatically gets ownership interest of
the dead person
Both people own 100% of property (no fractional control) -
1 joint tenant can sell or lien their interest without the consent of the other
person
What is Tenancy by the Entirety? - ✔✔(has right of survivorship)
Husband and Wife one spouse CANNOT sell or lien without the consent of their
partner
What are the continuing education requirements for Real Estate Agents in DE? -
✔✔21 hours biannually (every 2 years - 12 must be completed in first year of
license)
must be completed by April 30th
What is Leverage? - ✔✔Using others money to acquire real estate
-if property is 100k and you borrow 100k you are 100% leveraged
Page 3 of 21
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT
