Free Delaware Real Estate Practice Exam

Q1.Which sequence best represents a sustainable property-management risk-control cycle?

• A.Delegate, forget, defend
• B.Identify, assign, document, verify, correct, and monitor
• C.Advertise, collect, distribute, delete
• D.Investigate only after discipline

Q2.A seller breaches a purchase contract by refusing to convey the property after all contingencies have been satisfied. Under contract law principles, which remedy would most likely provide the buyer with the actual property they contracted to purchase?

• A.Specific performance requiring the seller to complete the sale as agreed
• B.Monetary damages equal to the difference between contract price and current market value
• C.Rescission of the contract with return of earnest money
• D.Liquidated damages as specified in the purchase agreement

Q3.In Delaware, the realty transfer tax is generally split between the buyer and seller. What is the total realty transfer tax rate imposed on most residential real estate transactions in Delaware, and how is it typically divided?

• A.A total of 2% of the purchase price, split evenly so each party pays 1%
• B.A total of 4% of the purchase price, with the seller paying the entire amount
• C.A total of 3% of the purchase price, split evenly so each party pays 1.5%
• D.A total of 1% of the purchase price, paid entirely by the buyer

Q4.Under the Delaware Unit Property Act, a purchaser of a condominium unit who does not receive the required public offering statement before signing the purchase agreement has the right to:

• A.Seek a reduction in the common expense assessment
• B.Void the contract within a specified period after receiving the public offering statement
• C.File a complaint with the Delaware Department of Insurance
• D.Request the developer to pay all transfer taxes on the unit

Q5.A licensee wants to advertise with a nickname. What is the soundest instruction?

• A.A nickname is always forbidden.
• B.Use a name carried or authorized on the license record under R4-28-301(D), while satisfying brokerage-name rules.
• C.Any nickname is allowed if popular.
• D.Only the team leader decides.

Q6.Under RESPA, which of the following settlement service provider arrangements is EXEMPT from the Section 8 anti-kickback prohibition?

• A.A fee divided between two settlement service providers who both perform actual, distinct services and split the fee in proportion to the work each performed.
• B.A real estate broker referring buyers exclusively to an affiliated title company in exchange for a 10% referral fee paid at each closing.
• C.A lender paying a mortgage broker a yield spread premium purely for steering the borrower to a higher interest rate loan.
• D.A real estate agent receiving a marketing fee from a home warranty company for placing warranty brochures in the agent's office without performing any additional services.

Q7.Delaware Code Title 25, §81-308 pertains to the landlord's obligation to maintain rental premises. Under this section of the Delaware Residential Landlord-Tenant Code, within how many days must a landlord remediate a condition that constitutes a serious and immediate danger to the health or safety of the tenant after receiving written notice?

• A.24 hours
• B.5 days
• C.10 days
• D.30 days

Q8.A broker supervising a team of affiliated salespersons learns that one of them told a prospective buyer that a particular neighborhood is 'not the right fit for your family' based on the racial composition of the area. Under the federal Fair Housing Act, which party bears primary regulatory liability for this steering violation?

• A.Only the salesperson who made the statement, because the broker was not present
• B.Only the buyer, because they accepted the advice
• C.The broker, because brokers are vicariously liable for the fair housing violations of their supervised licensees
• D.The local MLS, because it controls property listings in the area

Q9.A real estate agent represents the seller in a transaction and learns that the buyer is pre-approved for a loan amount significantly higher than the offered purchase price. Under fiduciary duty principles, what should the agent do with this information?

• A.Share the information with the seller to help negotiate a higher price
• B.Keep the information confidential and not disclose it to the seller
• C.Disclose the information only if directly asked by the seller
• D.Use the information to suggest the buyer increase their offer

Q10.Which federal law requires environmental impact studies for major federal actions that significantly affect the environment?

• A.National Environmental Policy Act (NEPA)
• B.Clean Air Act
• C.Safe Drinking Water Act
• D.Comprehensive Environmental Response Act

Q11.A seller's property condition disclosure statement under Delaware law is delivered to the buyer after the contract is signed. The buyer receives the disclosure and discovers a material defect not previously known. What right does Delaware law give the buyer in this situation?

• A.The buyer must proceed with the purchase and may only seek damages after closing
• B.The buyer may rescind the contract within a specified period after receiving the disclosure
• C.The buyer must immediately notify the Delaware Real Estate Commission to halt settlement
• D.The buyer has no remedy because the contract was already signed

Q12.A broker is audited by the state real estate commission and cannot reconcile her trust account. The three-way reconciliation reveals that the bank statement balance is $47,200, the trust account journal balance is $44,800, and the sum of individual ledger card balances for all open transactions totals $46,500. Outstanding checks total $1,900 and a deposit of $1,100 is in transit. After preparing the adjusted bank balance, which of the following conclusions is most accurate, and what is the broker's primary regulatory exposure?

• A.The adjusted bank balance is $46,400, which does not equal the ledger total of $46,500, indicating a $100 shortage; the broker faces potential disciplinary action for commingling or conversion, and must immediately deposit personal funds to cure the shortage before notifying the commission.
• B.The adjusted bank balance is $46,400, which does not equal the ledger total of $46,500, indicating a $100 shortage; depositing personal funds to cure the shortage before investigation may itself constitute commingling, and the broker's primary obligation is immediate written notification to the commission while preserving all records.
• C.The adjusted bank balance is $47,400, which exceeds the ledger total of $46,500 by $900, indicating an overage that poses no regulatory risk because excess funds protect client interests and cannot constitute a violation.
• D.The adjusted bank balance is $46,400, which matches the trust account journal balance of $44,800 after accounting for in-transit items, so no shortage exists and the broker has no reporting obligation.

Q13.A salesperson represents a seller whose property was previously used as a dry-cleaning facility. The buyer's environmental inspector discovers the presence of chlorinated solvents in the soil. Under CERCLA, who can potentially be held liable for the cleanup of this contamination?

• A.Only the party who originally caused the contamination
• B.Only the current property owner
• C.Current and past owners, operators, and parties who arranged for disposal of the hazardous substances
• D.Only the dry-cleaning company that operated on the site

Q14.An email announces changed wire instructions and supplies a new phone number. What is the best next step?

• A.Call the number in the email.
• B.Reply and ask whether it is genuine.
• C.Verify through a previously known or independently obtained official channel.
• D.Forward it to the buyer without comment.

Q15.Under Delaware's law governing real estate brokers and salespersons (24 Del. C. § 2912), what is the maximum period a Delaware real estate salesperson license may remain on inactive status before it is considered lapsed?

• A.1 year
• B.5 years
• C.2 years
• D.Indefinitely, as long as renewal fees are paid