Real Estate Law Examination Study Guide 2025-2026, Exams of Real Estate Management

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Real Estate Law Examination Study Guide 2025 - 2026

How many years must commission members have resided in Delaware prior to their appointment? Sandra and Dwight are neighbors who share a common driveway, but the driveway is on Dwight’s What kind of ownership rights does Dwight have of the driveway? - CORRECT propert Annette really wants to move to San Francisco, but she’s unsure whether she'll be able to afford to live there. Housing is very expensive because there simply is no room to build any new housing unils. Which economic characteristic doos this reflect? - CO. Searcity In order for a Adroc Development Corp. to receive approval to build a new subdivision, it is required to create a community park bordering the development. The developer agreed to do so, but what may the city require to ensure the park actually gets completed? A completion bond In which method of involuntary alienation does a court decide how the proceeds from the sale of tenants in common will be distributed? - CORRECT ANSWER-Court ordered partition of property land owned by Which one of the following options provides three valid examples of a private land use control? - CORRECT ANSWER-Easoment, lien, deed rest: clion Which of the following is one of many red flags that may signal mortgage fraud? - ANSWET-Information is hidden from the lender ORRECT Which of the following may a person who doesn’t hold a Delaware real estate license do? - CORRECT ANSWER-Sell property as an executor of will How should a Delaware real estate licensee request a name change? - CORRECT ANSWER Submit the change with the renewal application during the renewal period, or submit a name change request outside the renewal period The protects Delaware citizens from fraud and scams. - CORRECT ANSWER-consumer protcclion act Which of the following describes a right-ol-way casement? - CORR! ‘ER-land thal. a railroad company runs its tracks through In title theory states, which of the following is true? - CORRECT ANSWER-the borrower doesn’t hold the legal title to the property until the loan is paid in full What must Delaware landlords provide to all new tenants when they sign a lease? - CORRECT The state took possession of Oliver’s farm when he passed away because he did not have a will or any heirs. Whal right did the state exercise? - Serena tells her new clients that the home they’re about to see was once owned by a famous celebrity, even though it wasn’t. She's hoping that it will entice them to make an offer. In what Delaware licensee Wendy is helping a buyer who is in search of a one-bedroom condo. They find the perfect unit from seller Shania, who's lived there for five years, and are prepared to make an offer. Wendy advises her buyer to review the resale certificate. What information is NOT included with the resale cerlificale? - CORRECT ANSWEF-a history of the unil’s ownership since the community was first develop ame a common interest community Randolph has a leasehold estate that automatically renews at the end of each lease period. What type of leasehold estate does Randolph hold? - CORRECT ANSWEF-periodic estate The first step in the subdivision development. process is the market study. This step includes .- CORRECT ANSWER-a (casibilily study What are improvements with regard to property? ANSWER- Artificial attachments to land that include items such as fencing, buildings, and walkways Through which method of voluntary alienation does the grantor convey real property and transfer title to the grantee? - CORRECT ANSWER. d Ron’s company leased a building so that it could build an escape room experience. After operating for two years, attendance (and thus its profits) started to drop significantly, so it decided Lo close the location. When the workers started taking down the installation, they realized that some of the structures would damage the walls if they were to try to remove them. Which of these i ?- CORRECT ANSWER-ron may take the fixtures as long as he repairs any damage caused by rei struc aboul those wade fixture Which of the following is a triggering term when used in advertising financing? - CORRECT What language may be included in a contract after the assignor’s name to make it clear that the contract is assignable? - CORRECT ANSWER-and/or assigns Frank owns a property on which there is walkway to the beach shared by his neighbors on either Buyer Darrin believes his real estate agent talked him into paying too much for the condo he hat. should he do? - file a written complaint with the licensee’s name and details of the bought. He’s angry and wants to file a complaint against the agen alleged license law violation, with the dclaware division of professional regulation Why would a liconsee want to perform a CMA?- CORRECT ANSWER-1o understand the current market and comparable (competi ) sales What phrase do many real estate contracts contain that reminds the parties to avoid unnecessary delays to the transaction, and to adhere to all contract dates?- CORRECT ANSWER-time is of ence What does CC&R stand for? - CORR. ANSWER-covenants, conditions, and restrictions Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as propert Donald is purchasing a property and wants Lo determine whelher any cncroachmonts cxist. Which of the following will help him make this determination? - C ANSWER-survey Which of the following options describes a subordination agreement? - CORRECT ANSWER-an agreement between two lien holders to modify the order of lien priority Carl and Sadie, who are neighbors, got into a disagreement about early-morning noise on the weekends. The two came to an agreement: Carl promised to not mow the lawn before 10 a.m., and Sadie promised to put bark collars on her dogs in the early morning hours. Their promises represent the _ in their agreement. - CORRECT ANSWER-consideration Which of the following is one of many red flags that may signal mortgage fraud? - CORRECT Jonathon is selling his home to Chris and Samantha. He’s al closing, and the underwriling foc must be paid. Who pays for that? - ER-chris and samantha Non-lawful possession after the expiration of a lease is called estate at sufferance How many parlics docs a morlgage involve? - CORRECT ANSWER-Two: borrower and lender Which of the following is NOT a right of the government to lake private properly? - CORRECT: Cher1 is the lessee of a house with a detached garage. Harriett has leased only the garage from Cheri. However, Cheri remains bound by the terms of the lease agreement with the lessor. This is an example of _- & WER-sublease What is the name of the process of substituting one party to an existing contract with a new party, releasing the original party from all contractual obligations and rights? Which of the following is a characteristic of predatory lending? - ORRECT ANSWER-making loans the consumer can't afford Which type of legal description do courts prefer? - CORR! ANSWER-lot and block Ina mortgage, the property is used as collateral for the loan. What’s the term for the process of pledging something as collateral? provide a limited right to use a property for a specified purpose. - CORR’ ANSWEF-easements While Martha’s paying off her loan, her lender is holding on to something that includes her name, property address, the interest rate on her loan, what the late charge amount would be, and the amount and Lerm of the loan. When her loan is paid off, the lender returns il lo Mary, marked paid in full. What is this item? - CORR. Grace found herself in a breach of contract situation where the other party met some of the terms but not others. Grace thought it would cost a lot of time and money to sue, so she decided to accept the work that had been done and call it good. This is an example of ae T Tn local land use, the connection of utililics is considered a. - CORRECT ANSWER- developmental cost Shira bought a condominium ina planned unit development. The development has a small yeround, tennis and basketball courts, and a putting green. Who owns these recreational CORRECT ANSWER-\he condo owners Sussex County taxes at CORRECT ANSWER-50% What’s the best definition of real property? - CORRECT ANSWER-Real estate, plus all of the interests, benefits, and rights included in ownership Once buyers submit their loan application, they must be given their Loan Estimate. At the very least, they must receive the Loan Estimate within .- CORR! three business days after submitting the loan application Mary contracted to buy her mother’s house when her mother moves to a senior living community, Vith their but now Mary has to move because of work and no longer wants to buy the house: mother’s agreement, Mary’s sister, Tina, steps in, releasing Mary from her obligation. They write up anew contract, with the only change being that Tina is now the party to the contract rather than Mary. What's happened here? - ¢ ‘Novation A legally competent party means that an individual has the capacity, legally and , to enter into a contract. - CORRECT ANSWER-mentally The right to access ponds, lakes, oceans, and other stationary bodies of water is .- CORRECT ANSWER littoral The Delaware Real Estate Commission has the authorily Lo impose which of these sanctions on a licensee who's violated license law? each violation What would an investor get after subtracting the adjusted basis from an investment property’s CT sales price? - | ‘capital gains or capital loss Which of the following is a true statement about police power and public land use controls? - CORRECT ANSWEF-local governments and their planning boards control budgeting, site plan , and building codes What is one of the steps you need to take if you choose to affiliate with more than one Delaware broker? - CORRECT ANSWER-g affiliated that you plan to affiliate with an additional broker © wrillen notice Lo cach broker wilh whom you're currently What's true about an escrow closing? - All settlement services are handled by a clasing agent. Which one of the following says thal real > acquired by cithor spouse during a marriage (in most cases) is considered community property? - CORRECT ANSWER-community property rights What's the purpose of the ECOA?- CORRECT ANS What's the purpose of a chain of title? - CORRECT A. ownership Alluvion describes new deposits of land that are the result of what natural process? - CORRECT accreLion In Delaware, which of these is a logal spol to place a sign advertising one of your listings? - C ‘Feat least 10 feet from the edge of a public road Delaware licensees must follow _____ stipulations when placing their advertising signage outdoors. - CORRECT ANSWER- Delaware licensee Jennifer has just met with prospective tenant, Aaron, who wants to find a house to rent in Dover for a year. She provides him with the Consumer Information Statement for Consumers Secking to Rent Residential Property. Was she required by law Lo do this? - CORRECT ANSWER-yes, because the CIS must be provided to all prospective tenants who wish to obtain leases for 120 days or more What is as of property valuc to which the tax rate is applied ssed value? \ percentage of market value; also the amount With this type of commercial lease, any improvement made to the property by the tenant belongs to the landowner when the lease expires. - C. EF-ground lease Margie and Scott want to buy some unimproved land so they can build their dream home and hobby farm. They obstacles to creating their dream is NOT found as a disclosure in the Delaware Agreement of Sale for Unimproved Land? - CORRECT ANSWEF-rural property is subject Lo nuisance wildlife, and buyers are warned of lav find a perfect property at a surprisingly low price. ch of these potential protecting such wildlife Which clause in a commercial lease determines how the tenant may use the space? - CORRECT After operating the firm for 17 years, Trethlon Manufacturing just sold its cntire operation for $5.7 million. The adjusted purchase price was $3.9 million. While the corporation ran the business, it spent $970,000 on capital improvements. Real estate commissions and other costs of the sale were $358,000. What is Trethlon’s capital gain? - CORRECT ANSWER-472,000 What's the difference between reversionary interest and remainder interest in a property? - CORRECT ANSWER- death of the life ter vith reversionary interest, the property reverts to the owner after the nant. What is a red flag for an Equal Credit Opportunity Act violation? - CORRECT ANSWER-a person was denied ercdit withoul explanation or given resources that cxplain why Chadwick is a developer considering purchasing a large piece of unimproved land for a subdivision development. What should he do before committing to the project? A. ER-conducl. a [oasibility suudy You're on a planning board that’s discussing how to keep the cily more livable by reducing building density. The subject of bulk zoning comes up. What is your response? - CORRECT ANSWER-“that's a great way to meet our objectives" When Jasmine and Neal bought their Delaware home, they received the type of deed recommended by statute and specified in their agreement of sale. What type of deed did they receive? - CORRECT ANSWER special warranty deed Back in the 1939s, the house at 192 Barbour Street was the only one in sight. Since then, however, lhe town has grown considerably and the once-residential Barbour Strect is an industrial zone, with the residence at 102 Barbour Street in the middle of it all. What type of zoning docs the residence demonstrate? - CO. ‘non-conforming zoning Which type of legal description is this: “Plat of Block 28, Woodmen Heights Tract, recorded in Map Book 27, page 68, at the Eldor County Records Office"? - CORRECT ANSWER-lot and block Which of the following would be considered a foreign person according to FIRPTA? - CORRECT ANSWER-a company incorporated in France with regional development offices in the U.S. Which one of th tatements accurate. CORRECT ANSWER the decd includes an acl of conveyance Nancy is buying an old building downtown in a historic district, in hopes of opening her own vintage clothing boutique. Which of the following is a true statement? - CORRECT ANSWER- local zoning ordinance and the historic preservation commission may prevent he the changes ¢ What is the best and most efficient way to destroy a hard drive so information won't be accessible? ompletely destroy it Tf downzoning occurs in one area, reducing property values in adjacent areas, what can the homeowners in those adjacent areas do? - C' condemnation What ty) permission of the property owner, such as a siluation in which a tenant continues Lo accnpy an apartment after the lease has terminated? - CORRECT ANSWET-estate of sufferance pe of leasehold is characterized by possession of a property without the express Which method of involuntary alienation involves accession, accretion, reliction, or avulsion? - CORRECT ANSWER nauural processes Which Lype of property londs ilsclf more lo farming and agriculture? - large, flat acreage properties in rural communities Terry has a costume shop in a commercial building. He has a one-year lease that automatically renews for another year unless either Terry or the landlord terminate: at type of leasehold Amanda helps her neighbor sell his home in Wilmington by assisting with negotiations. She receives no compensation lor her assistance. Based on this one lransaclion, Amanda a= CORRECT ANSWER must have at least a delaware salesperson's license George has passed his pre-licensing course, and is ready to complete the requirements for a salesporson license. Which of these is NOT a requirement Lo obtain his Delaware license? - CORRECT ANSWER obtain approval from the delaware socialion of roallars If home repairs are agreed upon in the sales contract, who's responsible for making them? - ‘Fethe seller Which of the following is true about air rights? - CORRECT ANSWEF-They allow the owner to use the open space above buildings. Which of the following is true regarding express agreements? - agreements may be written or verbal Which of the following is true regarding cxpress agreements’ CORRECT ANSWER-cscrow Related to the legal description of land, whal. is a monument? permanent land marker sometimes used in legal descriptions Which one of the following pieces of information should all commercial leases contain? - CORRECT ANSWEF-the lease agreement. start and end dates Matt and Rita were married in June and bought a Delaware house together in August. Since they didn’t specify the form of ownership they wanted, they took title to the property as .- CORRECT ANSWER -tenants by the entiret Landlord Katerina accepts cash payments for rent from several of her tenants. For how long must she maintain records of all cash receipts? - CORRECT ANSWER-3 years Sander and Ginny bought an old industrial site and plan to get grant money to put an environmental education center on the site. There are a few structures on the property, but they are in disrepair, and it will likely be less expensive to tear them down and build new than to rehabilitate them. However, the new owners are sure that tl e made a great investment because the land is in great shape. This reflects which physical characteristic of real property? - ER indestructibility Which of the following is an example of constructive eviction? - moves out of the apartment after repeated unsuccessful requests to repair the broken water heater Which of thes cnsure all license is NOT a Delaware broker of record’s responsibility? - CORRECT ANSWER-to sful business modcl that follows NAR gnide. cs develop a succe Which of these types of tenanis most often uses a porecnlage lease? - CORRECT ANSWER- retail Ifa landlord removes the tenant's right of __ . the tenant can claim constructi tion and vacate the property with no further financial responsibility to the landlord. - CORRECT A town passes a zoning ordinance preserving the architectural style of an area and requiring plantings in the parking strips. This is an example of zoning Seller John has a contract with Sue. John is providing Sue with financing for the property and will hold onto the property title until Suc’s paid off the loan. Whal. type of contracl. is Lis? - CORRECT ANSWER land contract er the title to her. DeeAnna met all of her obligations per the wrillon contract she and the seller signed. She DeeAnna thought she purchased an investment property, but the seller refused to deliv decided Lo take the seller Lo court in an effort. to foree him to hand over the title. This is an example of_____. - CORRECT. ANS When a government entity exercises its powers to create zoning ordinances, what must be followed? - ( TANS ‘the area's comprehensive plan When a government entity exercises its powers to create zoning ordinances, what must be followed? - CORRECT ANSWER-it protects the lender from loss due to defective titles When Emma turned 70, she sold her ranch home and moved to a senior living community. Her onc-bedroom apartment is on the third floor of a building thal houses a fitness cent convenience store, music room, and café on the first floor. What type of facilit CORRECT ANSWER-planned unit development. Zack enters into a contract Lo buy Olivia’s home. Per the torms of the contract, Zack must pul. down a $10,000 earnest money deposit and have the property inspected within five days. In reality, he puts down a $12,000 deposit and has the property inspected within two days. Of what is this an example? - CORRECT ANSWEF-performance of the contract