A listing agent in Georgetown owes her seller several fiduciary duties beyond loyalty and confidentiality. Which set of duties best completes this core fiduciary list?

Obedience, disclosure, accounting, and reasonable care

Steering, blockbusting, and commingling

Puffing, net listing, and dual compensation

Redlining, kickbacks, and rebates

"Whatever you get above $310,000, you keep as your fee" — a seller in Camden tells her agent as they sign the listing paperwork. This kind of compensation arrangement, which many states restrict or prohibit, is called what?

Exclusive right-to-sell listing

A prospective buyer in Wyoming, Delaware, offers $275,000 for a home. The seller replies that she will only accept $285,000. The buyer then decides he was hasty and tries to accept the original $275,000 figure after all. Is a binding contract formed at $275,000?

No, because the seller's counteroffer rejected and terminated the original offer

Yes, because the buyer's original offer is still open for him to accept

Yes, but only once earnest money has been deposited

No, because acceptance of any real estate offer must be delivered in person

A first-time buyer in Seaford is comparing loan programs and learns that one type requires mortgage insurance premiums regardless of how large the down payment is, while conventional loans can drop that insurance once enough equity is reached. Which loan type is being described?

Conventional loan with 20% down

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PRACTICE ENGINE · DELAWARE REAL ESTATE

Delaware Real Estate Practice Exam.
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QUESTION 1 / 61Property Ownership, Land Use & InterestsEasy0/0

A property owner in Dover discovers that a neighbor's new fence extends eight inches onto her lot. This situation is best described as what?

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1. A property owner in Dover discovers that a neighbor's new fence extends eight inches onto her lot. This situation is best described as what?
- A. A deed restriction
- B. An encroachment
- C. A lien
- D. An easement
Show answer & explanation
Answer: B
An encroachment occurs when a structure or improvement physically crosses over a property boundary onto a neighbor's land. It differs from an easement, which is a legal right to use another's land, and from a lien, which is a financial claim rather than a physical intrusion.
2. "Nobody's ever questioned that fence line — it's been mine to graze since long before I bought the place," a landowner near Laurel tells a title examiner, describing more than a decade of open, continuous, and hostile use of a sliver of the neighboring parcel without the record owner's permission. Which doctrine might eventually let her claim legal title to that sliver?
- A. Adverse possession
- B. Eminent domain
- C. Escheat
- D. Constructive notice
Show answer & explanation
Answer: A
Adverse possession allows someone who possesses land openly, continuously, exclusively, and hostilely (without the true owner's permission) for a sufficiently long statutory period to eventually gain legal title, distinguishing it from eminent domain, which involves a government taking with compensation rather than a private possession claim.
3. A listing agent in Georgetown owes her seller several fiduciary duties beyond loyalty and confidentiality. Which set of duties best completes this core fiduciary list?
- A. Redlining, kickbacks, and rebates
- B. Obedience, disclosure, accounting, and reasonable care
- C. Puffing, net listing, and dual compensation
- D. Steering, blockbusting, and commingling
Show answer & explanation
Answer: B
Core fiduciary duties owed by an agent to a principal are commonly summarized as care, obedience, loyalty, disclosure, confidentiality, and accounting, giving the client full protection throughout the transaction. Practices like steering, blockbusting, and commingling are prohibited conduct, not fiduciary duties an agent is supposed to perform.
4. During a broker-training session in Harrington, a trainer poses this scenario: one licensee at a firm works exclusively for the seller while a different licensee at that same firm works exclusively for the buyer on the very same deal. What is this arrangement called?
- A. Gratuitous agency
- B. Designated agency
- C. Implied agency
- D. Subagency
Show answer & explanation
Answer: B
Designated agency lets a brokerage assign two different licensees within the same firm to represent the buyer and seller separately, so each party still receives individual representation instead of the entire firm acting as a single dual agent.
5. "Whatever you get above $310,000, you keep as your fee" — a seller in Camden tells her agent as they sign the listing paperwork. This kind of compensation arrangement, which many states restrict or prohibit, is called what?
- A. Net listing
- B. Exclusive agency listing
- C. Exclusive right-to-sell listing
- D. Open listing
Show answer & explanation
Answer: A
A net listing lets the agent keep any sale proceeds above an agreed minimum price as compensation, creating an incentive that can work against maximizing the seller's proceeds, which is why many jurisdictions restrict or prohibit this arrangement between agent and seller.
6. A prospective buyer in Wyoming, Delaware, offers $275,000 for a home. The seller replies that she will only accept $285,000. The buyer then decides he was hasty and tries to accept the original $275,000 figure after all. Is a binding contract formed at $275,000?
- A. Yes, because the buyer's original offer is still open for him to accept
- B. No, because acceptance of any real estate offer must be delivered in person
- C. Yes, but only once earnest money has been deposited
- D. No, because the seller's counteroffer rejected and terminated the original offer
Show answer & explanation
Answer: D
A counteroffer operates as a rejection of the original offer and terminates it, so once the seller countered at $285,000, the original $275,000 offer was no longer available for the buyer to accept; he would instead need the seller to renew it or make an entirely new offer.
7. A seller in Dover wants to give the buyer the strongest possible guarantee against title defects, covering the entire prior chain of title rather than only her own period of ownership. Which deed should be used?
- A. Bargain and sale deed
- B. Quitclaim deed
- C. General warranty deed
- D. Special warranty deed
Show answer & explanation
Answer: C
A general warranty deed provides the broadest protection because the grantor warrants title against defects arising during the entire history of the property, not just during the grantor's own period of ownership, unlike a special warranty deed or a quitclaim deed, which offer more limited or no warranties.
8. A divorcing couple in Milford needs to remove one spouse's name from title to the marital home quickly, without any warranty of clear title being made. Which deed is most appropriate?
- A. General warranty deed
- B. Quitclaim deed
- C. Special warranty deed
- D. Deed of trust
Show answer & explanation
Answer: B
A quitclaim deed conveys whatever interest the grantor may currently hold in a property, without making any warranties or guarantees about the validity of that title, making it the fast, low-commitment tool typically used to remove a spouse's name from title in a divorce.
9. "Locking in that lower rate will cost you some points up front," a loan officer tells a business owner financing the $518,000 purchase of a mixed-use building in Bridgeville with 2.4 discount points. How much will the points cost at closing?
- A. $20,720.00
- B. $5,180.00
- C. $12,432.00
- D. $124,320.00
Show answer & explanation
Answer: C
Discount points are calculated as a percentage of the loan amount, so 2.4 percent of a $518,000 loan equals $12,432.00. Using a mistaken 1 percent instead of 2.4 percent, shifting a decimal point, or applying a mistaken 4 percent instead all produce the other incorrect figures shown.
10. A first-time buyer in Seaford is comparing loan programs and learns that one type requires mortgage insurance premiums regardless of how large the down payment is, while conventional loans can drop that insurance once enough equity is reached. Which loan type is being described?
- A. FHA loan
- B. Conventional loan with 20% down
- C. VA loan
- D. Home equity line of credit
Show answer & explanation
Answer: A
FHA-insured loans generally require mortgage insurance premiums for a lengthy period or the life of the loan regardless of down payment size, while conventional loans generally allow private mortgage insurance to be removed once sufficient equity has accumulated, a key distinction between the two programs.
11. A qualified veteran buying a home in Wilmington is told he may not need to make any down payment at all. Which loan program most likely offers this benefit?
- A. VA loan
- B. Conventional loan
- C. FHA loan
- D. USDA loan
Show answer & explanation
Answer: A
VA loans, backed by the Department of Veterans Affairs, commonly allow eligible veterans to finance a home with no down payment at all, a benefit not typically offered by conventional loans and reserved for VA-eligible borrowers rather than the general population of homebuyers.
12. A home sale in Milford closes on the fifteenth of the month, and property taxes are prorated between buyer and seller at settlement. What is the primary purpose of this proration?
- A. Require the buyer to prepay the following year's taxes in full
- B. Transfer the seller's tax exemption to the buyer
- C. Let the seller avoid paying any taxes for the year
- D. Ensure each party pays only for the days they actually own the property during the tax period
Show answer & explanation
Answer: D
Prorating shared expenses like property taxes at closing divides the cost between buyer and seller based on how much of the covered tax period each party will actually own the property, rather than letting one party bear the full annual burden or transferring an unrelated exemption between the parties.
13. "You're not signing title straight over to us — a neutral trustee holds it as collateral until the note's paid off," a loan officer tells a borrower refinancing a home near Dagsboro through a three-party security instrument rather than a traditional two-party mortgage. Who typically holds that legal title until the debt is satisfied?
- A. The borrower alone
- B. The county recorder
- C. The real estate agent
- D. A neutral third-party trustee
Show answer & explanation
Answer: D
A deed of trust is a three-party financing arrangement in which the borrower conveys legal title to a neutral trustee, who holds it as security for the lender until the debt is repaid — unlike a traditional two-party mortgage held directly between borrower and lender.
14. A five-bedroom home in Newark has only one bathroom, a layout considered undesirable compared to today's typical floor plans. An appraiser would classify this loss in value as what type of depreciation?
- A. Economic life expiration
- B. Physical deterioration
- C. Functional obsolescence
- D. External obsolescence
Show answer & explanation
Answer: C
Functional obsolescence is a loss in value caused by an outdated or inadequate design or feature within the property itself, such as too few bathrooms for the number of bedrooms, distinguishing it from physical deterioration, which involves actual wear and damage, and from external obsolescence, which stems from factors outside the property.
15. A quiet subdivision in Bear loses value after the state builds a busy highway off-ramp directly adjacent to it. This value loss, caused by factors outside the property itself, is called what?
- A. External obsolescence
- B. Curable depreciation
- C. Physical deterioration
- D. Functional obsolescence
Show answer & explanation
Answer: A
External obsolescence is depreciation caused by negative influences located outside the property's own boundaries, such as a new highway off-ramp built next to a quiet neighborhood, which the owner cannot control or cure through repairs, unlike functional obsolescence, which stems from a flaw within the property itself.
16. A seller in Smyrna knows the home's foundation has a significant crack that has never been repaired. What must the seller generally do regarding this known material fact?
- A. Withhold it since the sale is "as-is"
- B. Disclose it only to the listing agent, not the buyer
- C. Disclose it only if directly asked by the buyer
- D. Disclose it to the buyer as a known material defect
Show answer & explanation
Answer: D
Sellers generally have a duty to disclose known material defects, such as an unrepaired foundation crack, because this information could reasonably affect a buyer's decision to purchase or the price offered, and that duty does not depend on the buyer first asking the exact right question or on an "as-is" sale clause.
17. Is a seller in Seaford generally required to disclose that a death, unrelated to the property's physical condition, occurred in the home years earlier if a curious buyer asks?
- A. Many states do not require disclosure of such non-material stigma
- B. It must be recorded in the deed
- C. It automatically voids any pending contract
- D. It must always be disclosed like a structural defect
Show answer & explanation
Answer: A
Many jurisdictions distinguish stigmatized property issues, which are unrelated to the physical condition or safety of the home, from true material defects, and often do not legally require their disclosure the way an actual structural or safety problem must be disclosed to a buyer.
18. A fair-lending compliance review in Sussex County uncovers that a bank has been automatically denying mortgage applications for homes in several zip codes with predominantly minority residents, without regard to each applicant's individual creditworthiness. What is this lending practice called?
- A. Steering
- B. Panic peddling
- C. Redlining
- D. Blockbusting
Show answer & explanation
Answer: C
Redlining refers to a lender or institution denying or limiting services, such as mortgages, to residents of certain areas based on the racial or ethnic composition of those areas rather than the individual creditworthiness of each applicant seeking financing.
19. A rental listing description in Ellendale reads: "Ideal for a mature single professional — no kids, please." Under the Fair Housing Act, what is the problem with this wording?
- A. It only raises a concern under state law, not federal law
- B. It unlawfully expresses a preference or limitation based on familial status, which can itself violate the Act as discriminatory advertising
- C. It is fine as long as the landlord ultimately rents to a family with children anyway
- D. It is permitted because it only states a preference rather than an outright refusal to rent
Show answer & explanation
Answer: B
The Fair Housing Act prohibits advertising that indicates a preference, limitation, or discrimination based on a protected class such as familial status, and this prohibition applies to the wording of the ad itself, regardless of whether the phrasing stops short of an outright refusal or whether the landlord's eventual rental decision turns out not to discriminate.
20. A 17-year-old aspiring agent in Dover wants to apply for a Delaware real estate salesperson license. What is the minimum age requirement she must meet before applying?
- A. 18 years
- B. 21 years
- C. 16 years
- D. 19 years
Show answer & explanation
Answer: A
Delaware law requires salesperson license applicants to be at least eighteen years old before they may apply, so a seventeen-year-old would need to wait until reaching that minimum age before beginning the formal licensing application process.
21. Before sitting for the licensing exam, a candidate in Newark must complete Delaware's prelicensing coursework. How many hours of prelicensing education are required?
- A. 99 hours
- B. 75 hours
- C. 120 hours
- D. 60 hours
Show answer & explanation
Answer: A
Delaware requires candidates to complete ninety-nine hours of approved prelicensing coursework before they become eligible to sit for the salesperson licensing examination, a specific requirement that does not match any of the other commonly assumed hour totals.
22. A candidate in Wilmington finishes her coursework and is ready to test for her Delaware salesperson license. What must she pass to qualify for licensure?
- A. Both a national and a Delaware state portion of the examination
- B. A background check in lieu of any exam
- C. Only a state-specific portion
- D. Only a national portion
Show answer & explanation
Answer: A
Delaware salesperson candidates must pass both a national portion covering general real estate principles and a state-specific portion covering Delaware law, since passing only one of the two portions is not sufficient on its own to qualify a candidate for licensure.
23. A candidate in Middletown begins the Delaware salesperson license application process. Within what time frame must she submit the completed application once she begins?
- A. 30 days
- B. 6 months
- C. 90 days
- D. 1 year
Show answer & explanation
Answer: B
Once a candidate begins the Delaware salesperson application process, the completed application generally must be submitted within six months, so waiting significantly longer than that window can require restarting portions of the process rather than simply picking up where she left off.
24. A newly licensed salesperson in Georgetown must complete required new-salesperson course modules shortly after receiving her license. How many hours must she complete, and within what window after licensure?
- A. 12 hours within 90 days of licensure
- B. 6 hours within 30 days of licensure
- C. 12 hours before taking the state exam
- D. 24 hours within 6 months of licensure
Show answer & explanation
Answer: A
A newly licensed Delaware salesperson must complete twelve hours of required new-salesperson course modules within ninety days of the date her license is issued, a distinct post-licensure requirement separate from the ninety-nine hours of prelicensing education completed before the exam.
25. A candidate in Smyrna fails the state portion of her exam but passes the national portion. Within what period must she retake only the failed portion, measured from completing her prelicensing education?
- A. 90 days
- B. 2 years
- C. 6 months
- D. 1 year
Show answer & explanation
Answer: D
A candidate who fails only one portion of the Delaware exam may retake just that portion, but must generally do so within one year of completing the required prelicensing education, rather than being given an indefinite or much longer amount of time to schedule the retake.
26. A candidate in Milford has failed both portions of the Delaware exam three times. What must she generally do before she may attempt the exam again?
- A. Pay a doubled examination fee only
- B. Retake the required pre-licensing course
- C. Apply directly for a broker license instead
- D. Wait one additional year with no other action
Show answer & explanation
Answer: B
After three unsuccessful attempts at passing the examination, a Delaware candidate must retake the required prelicensing course before being permitted to attempt the exam again, rather than simply waiting out an additional period or paying a higher fee without completing any further coursework.
27. A broker in Lewes regularly receives client deposits related to property transactions handled by her office. Delaware license law generally requires such funds to be handled how?
- A. Held in a properly maintained trust or escrow account separate from the broker's own funds
- B. Kept as cash in the brokerage office safe
- C. Immediately forwarded to the state treasury
- D. Deposited into the broker's personal savings account for convenience
Show answer & explanation
Answer: A
Client funds such as deposits and earnest money must be held in a properly maintained trust or escrow account that is kept separate from the broker's personal or operating funds, protecting clients from the risk of those funds being misused or lost through commingling with the brokerage's own money.
28. A homeowner in Wilmington deeds her rowhouse to her nephew "for life, then to my granddaughter." What type of estate does the nephew receive?
- A. Estate at will
- B. Life estate
- C. Fee simple absolute
- D. Leasehold estate
Show answer & explanation
Answer: B
A life estate grants use and possession of the property only for the duration of a measuring life, here the nephew's, after which title passes automatically to the named remainderman. A fee simple absolute would instead give the nephew permanent, inheritable ownership, which is not what the "for life, then to" language creates.
29. Two beachfront lots near Rehoboth Beach share a paved driveway that was granted by recorded deed to benefit the adjoining parcel. This right runs with the land as which type of interest?
- A. Easement in gross
- B. License
- C. Easement by necessity
- D. Easement appurtenant
Show answer & explanation
Answer: D
An easement appurtenant benefits a specific adjoining parcel and automatically transfers to future owners whenever that parcel is sold, unlike an easement in gross, which benefits a person rather than land, or a license, which is merely revocable permission that does not run with the property.
30. A parcel fronting the Delaware Bay near Lewes gives its owner rights to use the water and shoreline up to the mean high-water mark. These rights are known as what?
- A. Littoral rights
- B. Riparian rights
- C. Avulsion rights
- D. Prescriptive rights
Show answer & explanation
Answer: A
Littoral rights apply to land bordering oceans, bays, and other tidal or large standing bodies of water, extending to the mean high-water mark, while riparian rights instead apply specifically to land along flowing waterways such as rivers and streams.
31. A subdivision in New Castle records a covenant limiting fence height to four feet throughout the community. A buyer who later purchases a lot there is bound by this limit because of what?
- A. Zoning ordinance
- B. Easement by prescription
- C. Deed restriction running with the land
- D. Building code
Show answer & explanation
Answer: C
A restrictive covenant recorded against a subdivision runs with the land, meaning every subsequent buyer of a lot is automatically bound by it, unlike a zoning ordinance, which is a government regulation rather than a private agreement recorded against the deed.
32. The City of Newark needs to acquire a strip of a homeowner's front yard to widen a busy road. Under what power may the city take the land if it pays just compensation?
- A. Taxation
- B. Escheat
- C. Eminent domain
- D. Police power
Show answer & explanation
Answer: C
Eminent domain is the government's power to take private property for public use, such as widening a road, provided the owner receives just compensation. Police power instead refers to regulating property use for health and safety without requiring the government to take title or pay for the land.
33. To lawfully represent both sides of a single sale out of one office in Clayton, a brokerage handling both the buyer and the seller in the same deal must generally obtain what?
- A. Only the buyer's agent may negotiate price
- B. Both parties must give informed consent to the dual representation
- C. The broker must waive all fiduciary duties
- D. The buyer must pay a reduced commission
Show answer & explanation
Answer: B
Dual agency creates an inherent conflict because a single brokerage owes fiduciary loyalty to two parties with opposing interests in the same deal, so both the buyer and seller must be informed of the arrangement and give consent before the firm can lawfully proceed representing both sides.
34. At closing on a home sale in Millsboro, the seller insists the commission line should be zeroed out because she lined up the buyer herself through a family friend, without any broker involvement. Her listing agreement was an exclusive right to sell. Is she correct that no fee is owed?
- A. Yes, but only a referral fee is owed to a cooperating broker
- B. No, the exclusivity clause entitles the broker to a fee on any sale during the term, including one the seller arranges herself
- C. Only if the buyer's attorney reviewed the contract first
- D. Yes, because the broker performed no work to produce this particular buyer
Show answer & explanation
Answer: B
An exclusive-right-to-sell listing entitles the broker to a commission on any sale during the listing term, including one the seller arranges personally, because the seller has granted the broker the sole right to earn a fee regardless of who actually produces the buyer.
35. A salesperson working under a broker in Wilmington makes a careless misstatement about a property's square footage to a buyer. Under agency law, who else may bear legal responsibility for that statement?
- A. The supervising broker, through vicarious liability
- B. Only the salesperson personally
- C. The title company
- D. The buyer, for not verifying it
Show answer & explanation
Answer: A
A supervising broker can be held vicariously liable for the acts and statements of a salesperson made while acting within the scope of the affiliation, since the salesperson operates under the broker's license and authority, meaning liability is not limited to the individual who made the misstatement.
36. A listing agreement in Seaford reaches its stated expiration date without the property having sold. What happens to the agency relationship at that point?
- A. It terminates unless the parties agree to extend it
- B. It becomes a net listing
- C. It converts into an open listing automatically
- D. It automatically renews for another term
Show answer & explanation
Answer: A
When a listing agreement reaches its stated expiration date without a completed sale, the agency relationship simply ends unless both parties affirmatively agree to extend or renew it; it does not automatically renew, nor does it convert into any other type of listing arrangement on its own.
37. A cooperating broker in Dover shows a seller's listed home to a buyer but has not entered into any buyer-agency agreement. If that cooperating broker is acting as a subagent, whose interests must the broker legally represent?
- A. The buyer's
- B. Neither party, as a transaction facilitator only
- C. Both equally as a dual agent
- D. The seller's, even though the broker is working with the buyer
Show answer & explanation
Answer: D
A subagent who has not entered into a buyer-agency relationship still owes fiduciary duties to the seller, since the subagent's authority derives from the listing broker's agreement with the seller, even while physically working with and showing homes to a prospective buyer.
38. Despite making a genuine, good-faith effort to qualify, a buyer under contract on a Claymont home cannot obtain loan approval by the deadline set in the financing contingency. What is the typical result?
- A. The contract automatically converts to a cash sale
- B. The seller keeps the earnest money regardless
- C. The buyer forfeits the property to the seller
- D. The buyer can usually cancel and recover the earnest money deposit
Show answer & explanation
Answer: D
A financing contingency protects the buyer by making the contract conditional on obtaining loan approval, so a buyer who makes a genuine effort but is still denied by the deadline can typically cancel the contract and have the earnest money deposit returned rather than forfeiting it to the seller.
39. "Once it's stamped and filed with the county, the whole world is on notice that you own it," a recorder's-office clerk in Milton explains to a first-time buyer right after her deed is recorded following closing. What is the main legal purpose she's describing?
- A. To transfer equitable title only
- B. To give constructive notice of ownership to the public
- C. To satisfy the buyer's home inspection contingency
- D. To finalize the mortgage interest rate
Show answer & explanation
Answer: B
Recording a deed with the county puts the general public on constructive notice of the new owner's interest, protecting that owner's priority against later competing claims, rather than serving any role in setting mortgage terms or satisfying an inspection contingency negotiated separately in the contract.
40. Two neighbors in Bear orally agree that one will sell three acres to the other for a set price, with no writing of any kind. If a dispute arises later, what is the likely legal outcome?
- A. The buyer automatically gains equitable title after thirty days
- B. The agreement becomes binding once the buyer pays any deposit
- C. The agreement is generally unenforceable because real estate contracts must be in writing
- D. The oral agreement is fully enforceable if witnessed by a friend
Show answer & explanation
Answer: C
The statute of frauds requires contracts for the sale of real property to be in writing and signed to be enforceable, so a purely oral agreement to sell land generally cannot be enforced in court, regardless of witness testimony or a deposit paid, since neither substitutes for the required written contract.
41. "You signed, we performed, and now you want out — a judge can force this closing," a buyer's attorney warns a commercial property owner in Townsend who is refusing to convey title after fully backing out of a contract the buyer has already performed on. What remedy is the attorney describing?
- A. Automatic transfer of title without any court order
- B. Specific performance, compelling completion of the sale
- C. Forfeiture of the buyer's own earnest money
- D. Criminal prosecution of the owner for breach of contract
Show answer & explanation
Answer: B
Because every parcel of real estate is considered legally unique, courts may order specific performance, compelling a breaching seller to complete the transaction, rather than limiting the buyer to money damages alone as might occur when the subject matter of a contract is an ordinary, replaceable good.
42. Months after closing on a home in Middletown, a decades-old unreleased mechanic's lien surfaces against the property. The buyer's lender is protected from the cost of defending against this claim by which safeguard obtained at closing?
- A. A lender's title insurance policy
- B. The buyer's earnest money deposit
- C. The homeowner's hazard insurance policy
- D. The seller's disclosure statement
Show answer & explanation
Answer: A
A lender's title insurance policy protects the lender against financial loss, including legal defense costs, arising from title defects such as old unreleased liens that were not discovered before closing, distinguishing it from hazard insurance, which covers physical damage to the structure rather than defects in title.
43. A relocation firm structuring financing for an employee's move to Lewes arranges a $370,000 home purchase with a $92,500 down payment, financing the balance with a mortgage. What loan-to-value ratio is the lender extending on this deal?
- A. 25%
- B. 70%
- C. 80%
- D. 75%
Show answer & explanation
Answer: D
Loan-to-value ratio is the loan amount divided by the property's price; subtracting the $92,500 down payment from the $370,000 price leaves a $277,500 loan, which is 75 percent of value. The 25 percent figure is instead the down-payment percentage, not the loan-to-value ratio the lender is extending.
44. One year into a 30-year fixed loan on her New Castle home, a homeowner pulls her amortization schedule and notices most of each payment is still going toward interest rather than principal. Why does this happen?
- A. The lender made an error in the schedule
- B. Discount points are repaid first before any principal
- C. Property taxes are front-loaded into early payments
- D. In early years, the outstanding loan balance is highest, so more of the payment covers interest
Show answer & explanation
Answer: D
In early years of a fixed-rate amortization schedule, the outstanding loan balance is at its highest, so a larger share of each payment covers interest charged on that balance, while the principal portion gradually grows as the balance shrinks and the interest owed each month decreases over time.
45. A property management firm underwriting a beach rental in Bethany Beach reports net operating income of $88,200 for the year, with comparable rentals nearby trading at 6.3% capitalization rates. Applying the income approach, what is the property's indicated value?
- A. $1,764,000
- B. $1,102,500
- C. $1,400,000
- D. $555,660
Show answer & explanation
Answer: C
The income approach derives value by dividing net operating income by the capitalization rate: $88,200 divided by 0.063 equals $1,400,000. An 8 percent cap rate, a 5 percent cap rate, or mistakenly multiplying instead of dividing produce the other three figures shown.
46. Comparing a $342,000 sale price against $2,850 in monthly rent on a Rehoboth Beach rental home, a relocation-company analyst wants the gross rent multiplier. What figure should she calculate?
- A. 12,000
- B. 120
- C. 10
- D. 1.2
Show answer & explanation
Answer: B
Gross rent multiplier equals sale price divided by monthly rent: $342,000 divided by $2,850 equals 120. Dividing by an annualized rent figure instead of the monthly rent, or a decimal-placement slip, produce the other incorrect figures shown here.
47. "I'm pulling three recently sold homes nearby and adjusting for how they differ from yours," an appraiser tells a homeowner refinancing a typical single-family house in Camden. Which appraisal approach is she using?
- A. Cost approach
- B. Gross rent multiplier approach
- C. Sales comparison approach
- D. Income approach
Show answer & explanation
Answer: C
The sales comparison approach values a property by analyzing recent sales of similar nearby properties and adjusting for relevant differences, making it the primary method appraisers use for typical owner-occupied single-family homes rather than income-producing or unique custom properties.
48. A vacant corner lot in Milton could support either a small retail shop or remain residential, and the retail use would generate significantly more income while still being legally permitted and feasible on that lot. This use represents what appraisal concept?
- A. Replacement cost
- B. Assessed value
- C. Market value
- D. Highest and best use
Show answer & explanation
Answer: D
Highest and best use is the reasonably probable, legally permissible, physically possible, and financially feasible use of a property that produces the greatest value, which in this case is the retail use generating more income than continuing the lower-value residential use of the same lot.
49. A buyer submits an earnest money deposit along with an offer on a home in Middletown. Where should the agent's brokerage place these funds while the transaction is pending?
- A. In the agent's personal checking account
- B. In the brokerage's escrow or trust account
- C. In a joint account with the buyer's name only
- D. Directly to the seller upon offer acceptance
Show answer & explanation
Answer: B
Earnest money deposits must be placed into a properly maintained brokerage escrow or trust account rather than an agent's personal funds, protecting the buyer's deposit and keeping client money clearly separate from the brokerage's own operating funds until the transaction closes or terminates.
50. A licensee in Dover posts a for-sale ad online listing only a phone number, with no mention of the brokerage she works for. What ethical or regulatory problem does this create?
- A. It is a prohibited "blind ad" because the brokerage affiliation is not disclosed
- B. It violates fair housing law automatically
- C. None, as long as the price listed is accurate
- D. It voids the seller's listing agreement
Show answer & explanation
Answer: A
Advertising real estate without identifying the responsible brokerage is generally considered a prohibited blind ad, since consumers and other licensees are entitled to know which firm is actually representing the property, regardless of whether the advertised price itself happens to be accurate.
51. "That earnest money needs its own account — it can't sit in the same pot we pay the electric bill from," a compliance officer in Milton tells a broker who has been depositing buyers' earnest money into the brokerage's regular operating account. What is this violation called, and why does it matter?
- A. Steering, which relates to fair housing
- B. Prorating, a normal part of closing
- C. Escrow banking, which is required by law
- D. Commingling, because client funds must be kept separate from the broker's own money
Show answer & explanation
Answer: D
Commingling occurs when client trust funds, such as earnest money, are mixed with a broker's operating funds instead of being kept in a separate account, and it is treated as a serious violation because it exposes money that isn't the brokerage's own to the risk of misuse or loss.
52. A salesperson in Newark wants to pay a cash "thank you" referral fee to an unlicensed friend who sent a buyer her way. What is the general ethical and legal concern with this arrangement?
- A. Real estate compensation generally may only be paid to licensed individuals for licensed activity
- B. There is no concern as long as the amount is small
- C. The fee must be paid directly to the buyer instead
- D. The friend must be added to the listing agreement
Show answer & explanation
Answer: A
Real estate license laws generally restrict compensation for real estate activity to licensed individuals, meaning paying a referral fee to an unlicensed person for helping generate a transaction is typically prohibited regardless of the amount involved or how informal the arrangement feels.
53. An agent in Milford wants to purchase her own listing for herself at a discount from the asking price. What must she do to handle this situation ethically?
- A. Have a friend purchase it instead to avoid disclosure
- B. Cancel the listing agreement only after closing
- C. Nothing, since she is the listing agent
- D. Fully disclose her interest as the buyer and her role as agent to the seller in writing
Show answer & explanation
Answer: D
An agent who wants to purchase her own listing has a clear conflict of interest and must fully disclose in writing that she is acting as both the buyer and the listing agent, allowing the seller to make a fully informed decision before proceeding, rather than hiding the conflict through a friend's name or delayed cancellation.
54. "We just don't rent to families with little kids — too much wear and tear," a property manager in Smyrna tells an applicant while declining her rental application. Which federally protected class does this refusal most likely violate?
- A. Source of income
- B. Occupation
- C. Familial status
- D. Marital status
Show answer & explanation
Answer: C
Familial status, which includes households with children under eighteen, is a class protected under federal fair housing law, making a blanket refusal to rent based on the presence of children generally unlawful discrimination rather than a permissible screening criterion.
55. An agent in Wilmington only shows a Black homebuying couple properties in certain neighborhoods, avoiding others the couple specifically asked to see. This practice is known as what?
- A. Steering
- B. Blockbusting
- C. Puffing
- D. Redlining
Show answer & explanation
Answer: A
Steering occurs when an agent influences a buyer's housing choices based on a protected characteristic such as race, limiting or directing the areas shown rather than fully honoring the buyer's stated preferences, which is a violation of fair housing principles.
56. A real estate agent tells homeowners in a Newark neighborhood that they should sell quickly because a particular minority group is about to move in and property values will fall. This illegal tactic is called what?
- A. Commingling
- B. Steering
- C. Blockbusting
- D. Redlining
Show answer & explanation
Answer: C
Blockbusting is the practice of encouraging property owners to sell, often at a discount, by suggesting that the entry of a particular protected group into the neighborhood will lower property values or change its character, which is exactly the tactic described here.
57. "My no-pets rule is in the bylaws, but this is a trained service animal for my disability, not a pet," a resident tells the board of a strict no-pets condo association near Fenwick Island. What is the association generally required to do under fair housing law?
- A. Grant a reasonable accommodation allowing the service animal
- B. Charge the resident a pet deposit before deciding
- C. Deny the request because the policy applies to everyone equally
- D. Require the resident to move to a different unit
Show answer & explanation
Answer: A
Fair housing law generally requires housing providers to grant a reasonable accommodation, such as waiving a no-pets policy, for a resident's disability-related service or assistance animal, since the animal is treated as an accommodation rather than an ordinary pet, and no extra pet deposit is typically permitted.
58. A licensee in Dover is found to have repeatedly violated Delaware real estate license law. Which entity has the authority to investigate the licensee and impose discipline, including suspension or revocation?
- A. The National Association of Realtors
- B. The local police department
- C. The buyer's title company
- D. The Delaware Real Estate Commission
Show answer & explanation
Answer: D
The Delaware Real Estate Commission is the state body charged with overseeing licensees and has the authority to investigate complaints and impose discipline, including suspension or revocation of a license, for violations of license law, rather than the police, a title company, or a private trade association.
59. A newly licensed agent in Selbyville quits her sponsoring brokerage and begins signing her own listing agreements directly with sellers, without affiliating with any other broker. Which statement best describes her standing under Delaware license law?
- A. She only needs to notify the Commission by mail to keep working independently
- B. She may act as her own broker automatically after two years of sales experience
- C. She may continue transacting business independently since she already holds a valid license
- D. Her license becomes inactive until she affiliates with a supervising broker again
Show answer & explanation
Answer: D
Under real estate license law, a salesperson is required to remain affiliated with and supervised by a licensed broker to actively engage in licensed activity, so a salesperson who leaves her sponsoring brokerage without joining another one generally has her license go inactive until she re-affiliates, rather than being permitted to continue operating on her own.
60. An unlicensed individual in Dover offers to help a friend sell her house for a fee, performing tasks that normally require a real estate license. What is the legal problem with this arrangement?
- A. It is allowed once per year as a courtesy
- B. Performing licensed real estate activities for compensation without a license is prohibited
- C. There is no problem as long as no advertising occurs
- D. It is allowed if the fee is under $500
Show answer & explanation
Answer: B
Performing licensed real estate activities, such as negotiating or arranging a sale, in exchange for compensation generally requires holding an active real estate license, and doing so without one is a violation of license law regardless of the fee amount, frequency of the arrangement, or whether any advertising took place.
61. A property manager in Newark, who holds no real estate license, wants to receive a commission for helping negotiate the sale of a rental property she manages. What must generally happen first?
- A. She can receive it as a management fee instead, with no license needed
- B. She must simply disclose the arrangement to the buyer
- C. She may receive the commission since she manages the property
- D. She would generally need to hold a real estate license to lawfully receive that commission
Show answer & explanation
Answer: D
Receiving compensation for helping negotiate a real estate sale is generally considered a licensed activity, so a property manager without a real estate license would typically need to obtain one before lawfully accepting such a commission, regardless of her existing management role or a simple disclosure to the buyer.

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Key facts: Delaware Real Estate exam

Scaled 70 (0-100 scale)

To pass

Time limit

$88

Exam fee

The Delaware Real Estate is administered by Delaware Real Estate Commission, with a 4 hours time limit and a Scaled 70 (0-100 scale) result.

This free Delaware Real Estate practice test has 61 original questions written to Delaware Real Estate Commission's official content outline, last checked against it on August 11, 2026. Every question shows a worked explanation, and nothing here requires a signup.

As of 2026, the Delaware Real Estate exam fee is $88.

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Official sources

Every exam fact on this page traces to a primary document published by the body that administers the exam.

Pearson VUE — Delaware Real Estate National/General and State Content Outlines (#090802, Effective April 1, 2025 / June 1, 2020)Delaware Real Estate Commission (Division of Professional Regulation)home.pearsonvue.com
Pearson VUE — Delaware Real Estate Candidate Handbook (#090800, January 2026)Delaware Real Estate Commission (Division of Professional Regulation)home.pearsonvue.com
Delaware Division of Professional Regulation — Real Estate Commission: Salesperson LicenseDelaware Real Estate Commission (Division of Professional Regulation)dpr.delaware.gov
Delaware Code Online — Title 24, Chapter 29, § 2907: Qualifications of applicant; application; examinationDelaware Real Estate Commission (Division of Professional Regulation)delcode.delaware.gov
Delaware Division of Professional Regulation — Real Estate Commission: Fee ScheduleDelaware Real Estate Commission (Division of Professional Regulation)dpr.delaware.gov

Last verified against the official exam content outline: August 11, 2026

Frequently asked questions

How many questions are on the real Delaware real estate salesperson exam?

The exam has two portions: a national/general portion with 80 scored items (plus 5 unscored pretest items), and a Delaware state-law portion with 40 scored items (plus 10 unscored pretest items). Practicing with questions split the same way helps you gauge readiness for each portion separately.

What score should I be hitting on practice tests before sitting the real exam?

The Delaware exam uses a scaled passing score of 70 (on a 0-100 scale) for each portion. Aim to consistently clear that mark on practice sets for both the national and state-law content before scheduling your test date.

What topics should my practice questions focus on?

Weight your practice toward the heaviest national content areas, such as Real Estate Contracts and Agency (16 items) and Real Property Characteristics, Legal Descriptions, and Property Use (11 items), while also drilling Delaware-specific statutory requirements (17 items) and other state topics (16 items).

How should I use a practice test to prepare, rather than just take it once?

Treat practice tests as diagnostic tools: take one early to find weak content areas, review every missed question against the reasoning behind the correct answer, then retest only the weak areas before attempting a full timed run.

Is this Delaware real estate salesperson practice test free and does it require signup?

Yes, you can work through the practice questions on this page without creating an account or entering payment information.

Should I time myself during practice runs?

Yes. Candidates are given four hours total to complete the real examination, so running a full practice set under that same time pressure builds the pacing you will need on test day.