Free Delaware Real Estate Practice Exam

Q1.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

Q2.A property generates an annual gross rental income of $96,000. The vacancy and collection loss rate is 5%, and operating expenses total $38,000 annually. If an investor requires a 9% capitalization rate, what is the indicated value of the property using the income approach?

• A.$591,111
• B.$636,667
• C.$653,333
• D.$622,222

Q3.When does an agency relationship typically terminate by operation of law?

• A.When the client becomes dissatisfied with the agent's performance
• B.When either the principal or agent dies
• C.When the agent finds a buyer for the property
• D.When the listing agreement expires

Q4.When documenting witnessed harassment, which record is most useful in an enforcement action?

• A.A summary written weeks later with your legal conclusions included
• B.A detailed emotional account describing your personal reaction
• C.A general note stating that 'a potential fair housing violation occurred'
• D.A factual, specific record created the same day (contemporaneous) using exact words and observable conduct

Q5.Under the Real Estate Settlement Procedures Act (RESPA), a mortgage broker receives a $500 'marketing services agreement' payment from a title company for every loan the broker closes using that title company. The broker provides no actual marketing services in exchange. How is this arrangement classified under RESPA?

• A.A permissible affiliated business arrangement (AfBA) because the broker and title company have a written agreement disclosing the relationship.
• B.An illegal kickback under Section 8(a) of RESPA because it is a fee paid for the referral of settlement service business with no genuine services rendered in exchange.
• C.A permissible fee-splitting arrangement under Section 8(c) of RESPA because both parties are licensed settlement service providers.
• D.A violation of TILA's anti-steering provisions because it influences the broker to direct consumers toward higher-cost settlement services.

Q6.Which federal law requires lenders to provide a Good Faith Estimate of closing costs to borrowers?

• A.Fair Housing Act
• B.Real Estate Settlement Procedures Act (RESPA)
• C.Truth in Lending Act
• D.Equal Credit Opportunity Act

Q7.Under the Fair Housing Act, which of the following would constitute illegal steering?

• A.Refusing to show homes above a buyer's stated price range
• B.Showing homes only in certain neighborhoods based on the buyer's race
• C.Recommending homes based on the buyer's specific lifestyle preferences
• D.Showing only homes that meet the buyer's requested square footage

Q8.Under Delaware Real Estate Commission rules, a broker who operates a real estate office must ensure which of the following regarding the office's physical location?

• A.The office must be located within the county where the majority of listings are held
• B.The office must be staffed by at least two licensed salespersons at all times during business hours
• C.The office must display the broker's license in a conspicuous place accessible to the public
• D.The office must maintain a separate conference room exclusively for client meetings

Q9.A property manager collects security deposits and monthly rent from tenants on behalf of the property owner. Where should these funds be held?

• A.In a separate trust or escrow account, kept apart from the property manager's personal and operating funds
• B.In the property manager's personal checking account for easy access
• C.In the property owner's personal savings account
• D.In a single account that combines all managed properties' funds for efficiency

Q10.A lender denies a loan application submitted by a married couple and provides a Notice of Adverse Action. Under the Equal Credit Opportunity Act (ECOA) and Regulation B, within how many days must the lender provide the adverse action notice after taking adverse action on a completed application?

• A.30 days
• B.60 days
• C.3 business days
• D.10 business days

Q11.A buyer is purchasing a home built in 1976. Under the EPA's Lead-Based Paint Disclosure Rule (40 CFR Part 745), which of the following statements correctly describes the seller's obligations before the contract becomes binding?

• A.The seller must provide the buyer with any known information about lead-based paint hazards, the EPA-approved pamphlet 'Protect Your Family From Lead in Your Home,' and allow a 10-day opportunity for a lead-based paint inspection before the buyer is obligated under the contract.
• B.The seller is exempt from lead-based paint disclosure requirements because the home was built in 1976, and the rule only applies to homes built before 1974.
• C.The seller must order a professional lead inspection at seller's expense and provide the results to the buyer at least 30 days before closing.
• D.The seller's obligation is limited to checking a box on the sales contract acknowledging awareness of the federal lead disclosure law; no pamphlet or inspection period is required.

Q12.Which federal act prohibits a property manager from discriminating against a rental applicant because she is pregnant?

• A.Equal Credit Opportunity Act (ECOA)
• B.Truth-in-Lending Act (TILA)
• C.Fair Housing Act (FHA)
• D.Real Estate Settlement Procedures Act (RESPA)

Q13.When managing residential rental properties, which federal law requires property managers to provide tenants with disclosure about known lead-based paint hazards in properties built before 1978?

• A.Fair Housing Act
• B.Truth in Lending Act
• C.Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
• D.Residential Lead-Based Paint Hazard Reduction Act

Q14.Under RESPA (Real Estate Settlement Procedures Act), which of the following actions by a real estate licensee would be prohibited?

• A.Recommending a specific lender to a client based on competitive rates
• B.Providing clients with a list of preferred service providers
• C.Attending closing meetings with clients
• D.Receiving a referral fee from a mortgage broker for directing clients to their services

Q15.Under Delaware Real Estate Commission regulations, if a licensed salesperson wishes to appeal a Commission decision to suspend their license, to which body must the appeal be filed?

• A.The Delaware Superior Court
• B.The Delaware Supreme Court
• C.The Delaware Court of Common Pleas
• D.The Division of Professional Regulation's Internal Appeals Board