In Delaware, what triggers the mandatory purchase of flood insurance for a residential mortgage?
Why The property is located in a FEMA-designated Special Flood Hazard Area and the loan is federally backed Is Correct
Answer B: The property is located in a FEMA-designated Special Flood Hazard Area and the loan is federally backed
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
People Also Study
Related Delaware Questions
- In Delaware, what is the primary concern with properties located in a FEMA-designated 100-year flood zone?Environmental
- Which federal law requires lenders to provide a Loan Estimate to mortgage applicants?Finance
- The Delaware Residential Landlord-Tenant Code requires a landlord to return a tenant's security deposit within:Property Management
- The implied warranty of habitability in Delaware residential rentals requires the landlord to:Property Management
- What is an adjustable-rate mortgage (ARM)?Finance
- Which federal law governs the cleanup of contaminated sites and is commonly known as 'Superfund'?Environmental
- In a Delaware real estate transaction, 'time is of the essence' means:Contracts
- A Delaware homeowner who refinances their primary residence mortgage has a federally mandated right of rescission for how long?Finance
Key Terms to Know
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →