Delaware License Law
Under Delaware law, what must a real estate licensee do if they have a personal interest in a property they are involved in buying or selling?
ANothing — agents are allowed to buy and sell properties freely
BDisclose their licensed status and personal interest in writing to all parties✓ Correct
CObtain written approval from the Delaware Real Estate Commission before proceeding
DHave their broker sign all documents on their behalf
Explanation
Delaware real estate licensees who have a personal interest in a transaction (buying property for themselves, selling their own property, or having a financial interest) must disclose their licensed status and the nature of their interest in writing to all parties. Failure to disclose is a violation of license law.
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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.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Math Concepts
State-Specific Concepts
License Law
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