Free Delaware Real Estate Practice Exam

Q1.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.

Q2.In Delaware, a salesperson wishes to advertise real estate services on a personal social media page. Which of the following statements best reflects the Delaware Real Estate Commission's requirement for this type of advertising?

• A.The salesperson may advertise freely on social media without any disclosure as long as no property address is listed
• B.The salesperson's advertising must clearly identify the employing broker's name so the public knows the salesperson is affiliated with a licensed brokerage
• C.The salesperson may advertise independently of the broker because social media is not considered a formal advertisement under Delaware law
• D.The salesperson only needs to disclose the broker's name if the advertisement includes a listed price

Q3.Under the Delaware Unit Property Act, when a condominium unit is being sold, the seller is required to provide the buyer with a resale certificate. Which of the following is typically included in the resale certificate?

• A.The projected appreciation value of the unit over the next five years
• B.The current amount of the monthly common expense assessment and any unpaid assessments owed by the seller
• C.A guarantee that no special assessments will be levied within one year of closing
• D.A list of all current unit owners and their purchase prices

Q4.A licensee refuses to show a property to a buyer because the seller said "I don't want my home shown to families with young children." Which of the FHA's "six things you cannot do" has the licensee violated?

• A.Steering only
• B.Blockbusting
• C.Nothing — the licensee was following the seller's lawful instruction
• D.42 U.S.C. § 3604(a) — refusal to sell or rent based on familial status, AND § 3604(d) — making housing unavailable

Q5.A buyer in Delaware receives the Seller's Disclosure of Real Property Condition Report after signing the purchase contract. Under the Delaware Real Estate Seller Disclosure Act, the buyer's recourse is to:

• A.Accept the property as disclosed, because the contract has already been signed
• B.Rescind the contract within a specified period after receiving the disclosure
• C.Notify the Delaware Real Estate Commission, which will void the contract automatically
• D.Demand a price reduction equal to the cost of any disclosed defects

Q6.A Delaware broker is managing a transaction where the broker's own company represents both the seller and the buyer. The broker wishes to designate Salesperson A to represent the seller and Salesperson B to represent the buyer under a designated agency arrangement. Under 24 Del. C. § 2938, which of the following is a mandatory requirement for this designated agency to be lawful?

• A.Both the seller and buyer must provide prior written informed consent to designated agency, and the broker must act as a neutral facilitator with respect to confidential information.
• B.Designated agency is automatically created once two different salespersons from the same brokerage are involved, without any additional disclosure or consent.
• C.The broker must obtain verbal consent from both parties at the time of offer presentation, and written consent is optional.
• D.Only the seller needs to provide written consent, as the buyer is represented by the licensee's principal duty of care.

Q7.A Delaware broker received a written complaint from a former client alleging that the broker failed to maintain required transaction records. During the Commission's investigation, the broker claims the records were routinely destroyed after one year as part of an office document retention policy. Which of the following BEST reflects Delaware's statutory recordkeeping requirement for brokers under 24 Del. C. § 2932 and Commission regulations?

• A.Delaware law requires brokers to retain all transaction records, including contracts, closing statements, and trust account records, for a minimum of five years, and destruction after one year constitutes a statutory violation subject to disciplinary action.
• B.Delaware law requires brokers to retain transaction records for a minimum of three years; a one-year retention policy therefore violates the statute, but only if a complaint has been filed within that period.
• C.Delaware law sets no specific retention period for transaction records; the broker's one-year office policy is legally permissible as long as it is applied consistently.
• D.Delaware law requires transaction records to be retained for two years from the closing date, and the broker's one-year policy violates this requirement regardless of whether a complaint was filed.

Q8.At closing, which party typically pays for the owner's title insurance policy in most standard real estate transactions?

• A.The buyer
• B.The listing agent
• C.The mortgage lender
• D.The seller

Q9.Under RESPA, when must a lender provide the Closing Disclosure (CD) to the borrower?

• A.At least 3 business days before consummation of the loan
• B.At least 7 business days before consummation of the loan
• C.At the closing table
• D.Within 3 business days after loan application

Q10.A property manager discovers environmental contamination on a rental property that may require CERCLA (Superfund) involvement. What is the manager's primary federal obligation regarding current tenants?

• A.Immediately terminate all leases without notice to protect tenants
• B.Continue normal operations until EPA formally designates the site
• C.Report the contamination to EPA and potentially face liability as a current operator of the facility
• D.Transfer ownership to avoid CERCLA liability before EPA investigation

Q11.A property is being purchased for $350,000 with a loan amount of $280,000. If the state transfer tax is $0.50 per $500 of consideration and the county transfer tax is 0.1% of the purchase price, what is the total transfer tax due?

• A.$350
• B.$700
• C.$280
• D.$1,050

Q12.A Delaware real estate salesperson license that is not renewed by its expiration date will be placed in what status under Delaware Code Title 24, Chapter 29?

• A.Revoked status, requiring the licensee to re-apply as a new applicant
• B.Suspended status, allowing the licensee to continue practicing for 90 days
• C.Expired status, prohibiting the licensee from performing licensed activities until the license is reinstated
• D.Inactive status, allowing the licensee to continue practicing under broker supervision

Q13.A broker is asked to list a property where the seller discloses that underground storage tanks (USTs) were removed 10 years ago and a Phase I Environmental Site Assessment was conducted at that time. A prospective buyer's broker inquires about potential residual contamination. Under CERCLA principles, which statement most accurately describes the broker's and seller's potential liability exposure?

• A.Even with a prior Phase I, the seller may remain a potentially responsible party (PRP) under CERCLA if contamination is later discovered, because CERCLA imposes strict, joint, and several liability on past and present owners; the broker's duty is to disclose known material facts about the environmental history without rendering a legal opinion.
• B.A completed Phase I Environmental Site Assessment fully immunizes the seller from any future CERCLA liability, so the broker need not disclose the UST history because it has been legally resolved.
• C.CERCLA liability applies only to current property owners at the time of EPA action, so a seller who has already transferred title has no continuing liability exposure.
• D.The broker must order a new Phase II Environmental Site Assessment on the seller's behalf before listing the property, because federal law requires updated environmental testing every 10 years.

Q14.Under the Supreme Court's 2020 Bostock v. Clayton County decision as applied to housing, federal sex protections extend to:

• A.Sexual orientation and gender identity
• B.Only biological sex, not sexual orientation or gender identity
• C.Only gender identity, not sexual orientation
• D.Only state law covers LGBTQ+ housing discrimination

Q15.A broker applicant challenges a Commission decision denying their broker license application. Under Delaware's Administrative Procedures Act (29 Del. C. Ch. 101) and the Real Estate Commission's enabling statute (24 Del. C. Ch. 29), to which court would the broker initially appeal the Commission's final order?

• A.Delaware Superior Court
• B.Delaware Court of Chancery
• C.Delaware Supreme Court
• D.Delaware Justice of the Peace Court