Free Delaware Agency Practice Test — LicenseIQ

Question 1

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 2

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 3

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 4

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 5

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 6

A buyer walks into a builder's on-site new-construction sales office. The licensee there is presumed to represent:

Accepted Answer

§2933 presumes on-site new-construction licensees represent the builder/seller.

Question 7

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 8

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 9

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 10

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 11

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 12

How can a consumer rebut a presumed agency relationship in Delaware?

Accepted Answer

§2933 permits rebuttal through a signed CIS. Payment source does not determine agency (§2930).

Question 13

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 14

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 15

A buyer's agent is asked by the listing agent, 'Why is your buyer moving?' The buyer is relocating because of a divorce. The buyer's agent should:

Accepted Answer

§2936(c)(3) protects personal motivating factors absent consent.

Question 16

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 17

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 18

In a 1–4 family residential sale, a licensee who works with both the buyer and the seller in the same transaction is presumed to be:

Accepted Answer

§2933 presumes a licensee working with both to be a dual agent.

Question 19

A listing salesperson knows the seller's bottom line. Is that knowledge imputed to the broker and other agents in the firm?

Accepted Answer

§2936(f).

Question 20

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 21

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 22

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 23

A broker is hired as a common-law agent for a single-family home sale. Which statement is true?

Accepted Answer

§2932: for 1–4 family transactions, common-law agency must be written and the broker's policy must be single-side representation, never dual.

Question 24

A lender asks a listing agent for a CMA on a property already under a signed agreement of sale. The agent should:

Accepted Answer

§2931.

Question 25

Unless a written brokerage agreement provides otherwise, a Delaware licensee is presumed to be a:

Accepted Answer

§2902 and §2933: licensees are presumed statutory agents; common-law agency requires a written agreement.

Delaware real estate agency practice test

1. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

2. Which statement about dual agency is correct?

3. A material defect that a seller/agent must disclose is one that:

4. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

5. The best way to create an agency relationship is a(n):

6. A buyer walks into a builder's on-site new-construction sales office. The licensee there is presumed to represent:

7. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

8. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

9. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

10. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

11. Which fiduciary duty continues even after the agency relationship has ended?

12. How can a consumer rebut a presumed agency relationship in Delaware?

13. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

14. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

15. A buyer's agent is asked by the listing agent, 'Why is your buyer moving?' The buyer is relocating because of a divorce. The buyer's agent should:

16. An agency relationship can be terminated by all of the following EXCEPT:

17. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

18. In a 1–4 family residential sale, a licensee who works with both the buyer and the seller in the same transaction is presumed to be:

19. A listing salesperson knows the seller's bottom line. Is that knowledge imputed to the broker and other agents in the firm?

20. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

21. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

22. A property manager owes fiduciary duties primarily to the:

23. A broker is hired as a common-law agent for a single-family home sale. Which statement is true?

24. A lender asks a listing agent for a CMA on a property already under a signed agreement of sale. The agent should:

25. Unless a written brokerage agreement provides otherwise, a Delaware licensee is presumed to be a:

Sources