Section 1: Delaware Real Estate Orientation
Questions and Answers Already Passed
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.
,He's been in the business long enough to know that there will always be risks associated with
supervising other licensees, and that if they do something wrong, Sam's license could be on the line, too.
Review these situations and determine if each one creates vicarious liability for Sam. Select "yes" if it
does and "no" if it doesn't. ✔✔-Leon, one of Sam's licensees, has failed to disclose a known material
fact. (yes)
-Dinah, another of Sam's licensees, shows her buyer client homes only in neighborhoods that seem
to align with the client's Hispanic background, hoping to make that client happy. (yes)
-Sam is a selling broker, and one day he gives a client advice that's outside his area of expertise. (no)
Brokers understand the risk they take on when sponsoring other licensees. Good sponsoring brokers will
take actions to ensure they appropriately manage their risk. Which of the following are some actions a
sponsoring broker may take? ✔✔-Establish a standardized set of policies and procedures
-Ensure policies and procedures are written and available to all team members
-Conduct training on the procedures
Danielle is a new licensee who just landed her first listing.
The listing agreement will be between which two parties? ✔✔The sponsoring broker and the principal
Licensees are required to take listings only in the broker's/brokerage's name. The listing agreement, and
all other agreements, are between the broker/brokerage and the principal(s).
Employee ✔✔-Paid for time worked on salary
-Broker withholds income and Social Security taxes
Independent contractor ✔✔-Paid for results, not time worked
-Broker doesn't withhold income or Social Security taxes
The IRS is quite particular about independent contractor status. Which three of these statements
about that status are correct? ✔✔-To qualify for independent contractor status, you must be able to
set your own hours.
-Independent contractors can't be paid an hourly wage or monthly salary.
-Independent contractors can deduct certain business expenses.
, 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.
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