Delaware License LawIntermediateDelaware Exam
Under Delaware law, a licensee who is involved in a transaction where they have a conflict of interest must:
AWithdraw from all agency relationships involving that transaction
BFully disclose the conflict in writing to all parties and obtain their informed consent before proceedingCorrect
COnly disclose the conflict to their employing broker
DDo nothing if the conflict is unlikely to affect the outcome
Why Fully disclose the conflict in writing to all parties and obtain their informed consent before proceeding Is Correct
Answer B: Fully disclose the conflict in writing to all parties and obtain their informed consent before proceeding
Delaware license law requires licensees with conflicts of interest to fully disclose the nature of the conflict in writing to all affected parties and obtain their informed consent before proceeding. Failure to disclose conflicts violates fiduciary duty and can result in license discipline, rescission of the transaction, and civil liability.
Key Delaware License Law Terms in This Question
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
State-Specific Concepts
License Law
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