Delaware License LawIntermediateDelaware Exam
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 partiesCorrect
CObtain written approval from the Delaware Real Estate Commission before proceeding
DHave their broker sign all documents on their behalf
Why Disclose their licensed status and personal interest in writing to all parties Is Correct
Answer B: Disclose their licensed status and personal interest in writing to all parties
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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