Delaware License LawIntermediateDelaware Exam
A Delaware real estate broker operates without maintaining errors and omissions (E&O) insurance. Under Delaware law, this is:
APermissible — E&O insurance is optional in Delaware
BA violation — Delaware requires all active real estate licensees to maintain E&O insuranceCorrect
CPermissible only if the broker has been licensed for more than 10 years
DOnly required for brokers who supervise more than five salespersons
Why A violation — Delaware requires all active real estate licensees to maintain E&O insurance Is Correct
Answer B: A violation — Delaware requires all active real estate licensees to maintain E&O insurance
Delaware requires all active real estate licensees (brokers and salespersons) to maintain errors and omissions (E&O) insurance as a condition of license activation. E&O insurance protects consumers and licensees against claims of professional negligence or mistakes in real estate transactions.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Math Concepts
State-Specific Concepts
License Law
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