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On the surface, most brokers may seem pretty similar. So it's up to you to do a little probing to discover what makes one broker different than another. That's where you'll start to determine if you and the broker are a good fit. Which five of these areas should you inquire about when looking for a broker? ✔✔1. Reputation
- Policies and Procedures
- Training Program
- Culture
- Specialites One recommendation for finding a broker who works as hard as you will to avoid liability is to review the firm's policies and procedures manual. But what should you be looking for when you crack that manual open? Select the best two answers. ✔✔1. Clear Policies
- Thoroughness One recommendation is to find out about the size of the firm. Why is this an important item to research? ✔✔The size of the firm can affect the ways you can relate to your fellow licensees and your broker. It's a good idea to prepare for your interview with a broker by making a list of the questions you'll ask. Identify each of the following questions as one that should be on your list, and one that you don't want to ask a broker. ✔✔-What will you do to guarantee my success? (Don't ask)
- Are you still a practicing broker? (Ask)
- What strategies do your top producers use to succeed? (Ask)
- What types of marketing materials do you provide to your licensees? (Don't ask)
- What's your floor time policy? (Ask)
Section 1: Delaware Real Estate Orientation
Questions and Answers| Latest 2025
Update| Already Passed
It's a good idea to prepare for your interview with a broker by making a list of the questions you'll ask. Identify each of the following questions as one that should be on your list, and one that you don't want to ask a broker. Part 2 ✔✔-What kind of salary do you offer? (Don't ask)
- What costs would I be responsible for? (Ask)
- What type of technology support do you provide? (Ask)
- Tell me about the training program you provide to new licensees. (ask) Mr. Brady works in real estate for a brokerage firm called Whosit Properties. His broker provides him with training and supervision. His work hours and the work he does aren't set by his broker. As long as Mr. Brady gets the job done, his broker doesn't care how much time it takes. Mr. Brady isn't required to work in the office, and he must pay for his own work supplies. Is Mr. Brady an independent contractor or an employee? ✔✔Independent Contractor Independent Contractor ✔✔-Worker's hours are set by the worker.
- Worker is responsible for expenses and must provide own work tools.
- Worker can choose to work from home or in the broker's office.
- Worker is paid by the job, not by the hour.
- Worker is supervised by the broker, but the broker doesn't direct or control the worker's work. Employee ✔✔-Worker's expenses are covered by the broker.
- Worker's hours are set by the broker.
- Worker is required to work at a specified location chosen by the broker.
- Worker is required to do the work in the order specified by the broker. Ms. Bumblegard receives a regular paycheck each pay period from the brokerage firm for which she works. Her broker withholds money from her paycheck and pays her state unemployment taxes. Ms. Bumblegard cannot file Schedule C to deduct business expenses, and her broker does not send her a 1099 for income-reporting purposes. When she started with the brokerage firm, her broker asked her to fill out a W-4 form. Is Ms. Bumblegard an independent contractor or an employee? ✔✔Employee Worker fills out a W- 9 form. ✔✔Independent Contractor
An independent contractor who's treated as an employee for employment tax purposes, such as a delivery driver paid on commission. ✔✔Statutory employee Because of the lack of control over the individual by the "employing party," this worker is not classified as an employee, such as a doctor. ✔✔Independent contractor Bridget has just passed her licensing exam and is working with a broker. What should she expect to pay in start-up costs? ✔✔$2,000 to $4, Considering the cost of starting in most businesses, this is a fairly reasonable outlay. As you start your own business, you'll make choices about how much to spend and what's necessary or not. A lot depends on what the business benefit will be. One-time costs ✔✔-Pre-licensing education
- Exam fee
- Licensing fee Ongoing costs ✔✔-Business cards
- MLS fee Ongoing expenses ✔✔-Lockbox fee
- Continuing education
- License renewal
- Automobile insurance
- Errors and omissions insurance Bridget has been working as a licensee for 18 months. If she's a typical real estate professional, how much does she spend each month on her business? ✔✔$200 to $1,
So why would anyone become a real estate professional if it's so hard to succeed? Well, because the rewards are there if you work for them. Identify the reasons that real estate is a great career. ✔✔- Potential for good money
- Meet lots of people
- Satisfaction of helping others
- Be your own boss Which of these are types of leisure properties ✔✔Golf courses, hotels, movie theaters, restaurants, and motels Which of these are types of industrial properties? ✔✔Heavy industrial, Light manufacturing & Warehouse buildings Which of the following are considered residential properties? ✔✔-House
- Condo
- Duplex Which of the following is considered retail property? ✔✔-Shopping mall Renata is contacting the people in her sphere to ask them her all-important Mayor Campaign question. What will she be asking? ✔✔If you or someone you know was buying or selling a home, do you have a real estate professional you would refer them to? What's the maximum percentage of your income that you should plan to spend on marketing? ✔✔30% Where are the top two places you should spend your marketing dollars? ✔✔-Farm area
- Sphere of influence What defines the vicarious liability assumed by a supervising broker? ✔✔The broker is responsible for the actions of supervised licensees and can be held liable for those actions, or omissions, as a result.
Consumers compensate brokers for their services, generally in the form of a percentage of the sales price of the property involved in the transaction. ✔✔True A salesperson's compensation comes directly from the client or customer. ✔✔False The industry has a "standard" compensation fee. ✔✔False Brokerage compensation options include a flat fee, fee for service, or percentage of sale. ✔✔True The amount a salesperson is compensated is dependent upon the agreement with the broker. ✔✔True If a licensee is the procuring cause for a sale, that licensee may still earn compensation. ✔✔True Brokerage firms (and you) usually get paid based on a percentage of a property's sales price. The terms "procuring cause" and "protection clause" impact your compensation. Which two of these statements about these terms are correct? ✔✔-Rowena's exclusive-right-to-sell agreement with her seller client Connie guarantees that Connie will pay the brokerage firms fee no matter who sells the property.
- Morey's listing agreement includes a 45-day protection clause. Three days after the agreement ends, Morey sells his house to a buyer that his agent originally brought to the property. Morey may owe this agent a commission. Real Estate Settlement Procedures Act (RESPA) ✔✔You may not receive or give referral fees or finder fees from/to mortgage brokers, title reps, or any other settlement service provider. Referral fees to and from other real estate licensees are perfectly legal—however, they must be disclosed, and such referral fees must go through the brokers first. Chris, a real estate broker, represents Beverly, a seller. Beverly tells Chris, "If you can get my house sold within 30 days, I'll pay you and the buyer's agent a $1,000 bonus." Is this legal? ✔✔-Yes, but it must be disclosed to all parties.
- Yes, but the fee must go through the brokers.
Stephanie, a real estate licensee, received a referral from Gloria, another licensee who's in her office and will be out of town at the time that her buyer wants to go house hunting. Under what two circumstances may Stephanie pay Gloria a referral fee? ✔✔-If she disclosed it to all parties
- If it were paid through Stephanie's and Gloria's broker Kendall's client, Lawrence, is looking for a house on the beach. Lawrence tells Kendall he'll pay him a $2,500 finder's fee if he finds him exactly what he's looking for before the property hits the market. Kendall meets Margot at a neighborhood BBQ and learns that she's thinking of putting her house on the market. He realizes it ideally suits Lawrence's needs. "I can save you a lot of hassle," he tells Margot. "You won't even have to list it. I have a buyer at the ready." What circumstances are required for Kendall to receive the finder's fee? Drag each item to the correct location to indicate whether the circumstance is required in order for Kendall to receive the finder's fee. ✔✔-Both parties would have to agree to dual representation. (Not required)
- Lawrence must pay the finder's fee to Kendall's broker. (Required)
- Margot must be represented by another licensee. (Not Required)
- Margot must list her house on the open market, and then if no other buyers are willing to pay more, she can sell to Lawrence at the price Kendall suggests. (Not Required) Brokerage agreements are between ✔✔the broker and the principal (buyer/seller or landlord/tenant), not the licensee and principal. If a broker's licensee is found guilty of misconduct ✔✔the broker can be held liable for failure to supervise and may also be held liable for the misconduct through the legal concept of vicarious liability. A supervising broker is responsible for ✔✔he business actions of all licensees at the brokerage. Independent contractors and employees are taxed ✔✔differently, and different tax rules apply. Both brokers and independent contractors must ensure that they don't take actions that would classify the independent contractor as an employee. Independent contractors don't have ✔✔income tax or Social Security tax withheld from their commission by the broker.
- Seller's agent
- Single agent
- Sub-agent
- Tenant's agent
- Property manager Not a real estate agent ✔✔-Double agent
- Secret agent
- Transactional broker Special Agent ✔✔-Broker's agent
- Buyer's agent
- Dual agent
- Seller's agent
- Single agent What's the difference between a dual agent and a dual agent with designated sales agent? ✔✔A dual agent situation exists when one agent represents both buyers and sellers in a transaction. Dual agent with designated sales agent occurs when different agents represent the buyers and sellers, but they both work for the same broker. Natalie is working for the Browns, who own a condo. They just put the condo on the market and are optimistic they'll receive a competitive offer in no time. Natalie is acting as a ✔✔Seller's agent The Grays have been touring local open houses but are now ready to get serious about owning their dream home. Evan is just the agent they need. He's acting as a ✔✔Buyer's agent Alison, an agent with XYZ Agency, is assisting Ryan, the listing agent from RST Brokerage, with marketing a property on 7th Street. ✔✔Broker's agent
Alison has listed just the property her buyer clients, the Lopezes, want. It's the Pinskis' home, which Alison put on the market last week. ✔✔Dual agent Kristy needs an agent to act on her behalf to negotiate a lease on an apartment while she finishes grad school. Andre fits the bill. ✔✔Tenant's agent As the owner of an apartment complex near the college, Bill needs someone to act in his interests. He hired Carter as his agent. ✔✔Property manager Aaron doesn't represent either party in the transaction. He's just there to facilitate. ✔✔Transactional broker Ed represents Delia and John, his buyer clients, while Annie represents Susan, her seller client. ✔✔Single agency Ed is the listing agent for Larry's condo and also represents Kathleen, who is interested in buying it. ✔✔Dual agency Ed is the listing agent for Arlene and Matt, who are selling their four-bedroom Colonial. He also represents several buyers in other transactions. ✔✔Single agency Delaware licensees are, by default, which one of these? ✔✔Statutory agents (independent contractors) According to Delaware law, which four of these events could magically transform them into clients to whom you owe all of the statutory duties prescribed by Delaware law? ✔✔-When they make an offer
- When you show them a house
- When you perform work for them
- At the first scheduled appointment As a Delaware licensee, most of your initial experience will likely be with one- to four-family residential transactions. When it comes to these properties, Delaware law requires you to present the Consumer Information Statement (CIS) to ✔✔all consumers.
Property Two is listed through another brokerage and is being sold by Nancy and Troy. Who's who in this scenario? Indicate whether each of the following individuals in the scenario is your customer or client. ✔✔-Stacey & Mark (client)
- Nancy & Troy (customer)
- Tammy (client) Meeting or violating Statutory Duties? When a client asks Judy if the stains on the ceiling mean there's a water leak, she says, "No, probably not. You know these older houses." ✔✔Violating Meeting or violating Statutory Duties? Judy presents a standard form to all parties that informs them they aren't vicariously liable for anything she does. ✔✔Meeting Meeting or violating Statutory Duties? Judy tells her buyer client that the seller will accept less than list price, even though the seller has asked her not to. ✔✔Violating Meeting or violating Statutory Duties? Judy is just about to leave to spend the weekend on Dewey Beach when she receives an offer for one of her listings. She decides there's no harm in waiting until she returns to present the offer. ✔✔Violating Meeting or violating Statutory Duties? When a buyer asks why a house is for sale, Judy keeps the fact that the sellers are involved in a nasty divorce to herself. ✔✔Meeting When a transaction is completed, the agency relationship terminates. (T/F) ✔✔True. Agency relationships can also be terminated by expiration, breach of contract, or other terms defined in the agreement. Introducing Permitted Actions ✔✔Activities as a licensee aren't restricted to the black-and-white: the musts and the mustn'ts. In fact, there are lots of things you can do if you desire, or if you think it'll help your clients, but you aren't required to do them in order to fulfill your statutory obligations. Real estate is such a nuanced profession, requiring a certain amount of flexibility, so it makes sense that the law is accommodating, as well.
Erin was having a tough day. She'd just locked up after showing a home to a potential buyer when Dallas, another buyer who was also working with Erin, stopped by the listing. Dallas was furious that Erin was still showing the home to other buyers after she'd already made an offer on his behalf earlier in the day. He claimed it was a conflict of interest. What do you think? Is Erin allowed to show the home to other buyers? ✔✔Yes. Delaware licensees are allowed to show properties that a customer or client is interested in to other customers and clients. Permitted or not permitted action in Delaware. Show the same property to more than one client/customer. ✔✔Permitted Show properties listed by another brokerage. ✔✔Permitted Present offers from two different clients on the same property. ✔✔Permitted Make decisions for a client. ✔✔Not Permitted Rules governing the relationship between the real estate professional and the person being represented are defined in ✔✔Law of agency. A seller's agent is also commonly called the ✔✔Listing agent A seller's agent represents and a buyer's agent represents. ✔✔Seller & buyers Dual agent with designated sales agent occurs when ✔✔two agents from the same firm represent opposing sides of a transaction. A dual agent situation occurs when ✔✔one agent represents both buyers and sellers in a transaction.
Due to transactional nuances inherent in real estate practice, Delaware law lists ✔✔several actions licensees are allowed to take without breaching their statutory duties or breaking the law. Which of these is a duty of a Delaware statutory agent? ✔✔Perform ministerial tasks related to the contract You've presented the CIS to a consumer, who signed the form. Now what? ✔✔You keep the signed form and give the consumer a copy of it. Joy, a Delaware licensee, has her stack of CIS forms out and ready to go. When must the CIS form be provided? ✔✔At the first scheduled appointment Rachel is a Delaware licensee whose buyer client has asked her why the sellers have decided to sell their gorgeous, renovated home. Which of the following is a true statement? ✔✔She can't disclose the information without the sellers' permission. Which of the following is a true statement about Delaware's statutory duties? ✔✔The duty of confidentiality lasts forever. It's the policy of Kathleen's brokerage to only practice single agency. Which of the following best describes this? ✔✔Representing either the buyer or the seller in a transaction, but never both at the same time As a Delaware licensee, you'll be a statutory agent by default. What does that mean? ✔✔You owe the duty of confidentiality to customers and all of the statutory duties, including confidentiality, to clients. Soriyah was busy, so she didn't update her clients on how their transaction was progressing. What statutory duty did Soriyah fail to fulfill? ✔✔Keep the parties involved in a transaction informed as to its progress. Delaware licensee Teresa has been contacted by another licensee whose client wants to view one of Teresa's listings. Does Teresa have to give the buyer a copy of the Consumer Information Statement?
✔✔No, the buyer is represented by another licensee, so Teresa doesn't need to present the CIS to this consumer. Which of these Delaware licensees has breached the duty of confidentiality? ✔✔Peggy, who explains to visitors at her open house that the sellers are moving out of the country, although she doesn't have explicit permission from the sellers to tell anyone this. Chip represents Ginger, the buyer. Raphael represents Tom, the seller. If Chip and Raphael are from the same brokerage, what is their agency relationship with their clients? ✔✔They're designated agents; their broker is a dual agent. Which of these actions is a Delaware statutory agent allowed to take? ✔✔Assist clients in negotiating an offer Which body of law contains the rules governing the relationship between a real estate professional and the person being represented? ✔✔Law of agency Which of these is exempt from the requirement to provide the CIS to a potential tenant? ✔✔Nonrenewable leases of 120 or fewer days John is selling his rental property to Tony. Marcus represents John, and Meredith is working with Tony, though there is no agency relationship between them. In this scenario, who is/are the principal(s) in an agency relationship? ✔✔John Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. Who is David in this scenario? ✔✔A dual agent A person who facilitates the paperwork, but doesn't actually represent either party to the transaction, may be a. ✔✔Transactional broker Leigh is holding an open house for her listing. She talks to several visitors. To which of these visitors should she present the CIS? ✔✔Kyle, who asks, "Who do I see about making an offer?"
Which of the following statements regarding buyer and seller agency is true? ✔✔A seller's agent represents the seller, while the buyer's agent represents the buyer. Mike, a Delaware licensee, is sitting down with a potential buyer for their first scheduled appointment. What must he make sure they do when he meets with her? ✔✔Sign the CIS. Dorcas is a Delaware licensee, so she's not allowed to as a statutory agent. ✔✔Draft legal forms presenting offers and counter-offers on behalf of her clients
