Delaware License LawIntermediateDelaware Exam

What is the primary difference between a 'real estate broker' and a 'real estate salesperson' under Delaware law?

ABrokers can only handle commercial transactions; salespersons handle residential

BA broker is independently licensed and can operate their own brokerage; a salesperson must work under the supervision of a licensed broker and cannot practice independentlyCorrect

CBrokers charge higher commissions than salespersons

DA salesperson can handle all the same transactions as a broker without supervision

Why A broker is independently licensed and can operate their own brokerage; a salesperson must work under the supervision of a licensed broker and cannot practice independently Is Correct

Answer B: A broker is independently licensed and can operate their own brokerage; a salesperson must work under the supervision of a licensed broker and cannot practice independently

The key difference: a Delaware broker holds an independent license and can operate their own brokerage, hire and supervise salespersons, and hold client funds. A salesperson is licensed but must work under the supervision of an employing broker — they cannot operate independently or hold client funds outside their broker's escrow.

Key Delaware License Law Terms in This Question

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Escrow

A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.

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Key Terms to Know

Escrow

A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Math Concepts

Commission Calculation

State-Specific Concepts

License Law

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