Delaware Real Estate Law Final Exam questions and
answers 2025\2026 A+ Grade
Loan to Value Ratio
- correct answer Amount of the loan vs value of real estate
Who is the Devisee under a Will?
- correct answer Devisee under will is person who receives property under a will (maker of will is
devisor)
What are the Requirements for a valid deed in DE
- correct answer The deed has to be in writing
The deed has to describe property with specificity
The deed must have the name of grantor and grantee
The deed must be signed and must be acknowledged(notarized)
What are the advantages vs. disadvantages of investing in Real Estate?
- correct answer Disadvantage - investment is not liquid (there is no cash out advantage)
Advantage - ability to control investment (sole decision maker of what happens with property)
What is a Subordination Agreement?
- correct answer An agreement that changes lien priority
,Who gets the money left over after a mortgage foreclosure sale?
- correct answer The person who took out the loan is entitled to remaining balance if property sale
amount exceeds existing mortgage owed
What is equity in a property?
- correct answer the difference between amount of debt on the property and the value of the property
What title does the buyer have when the buyer and seller have a fully signed agreement of sale?
- correct answer equitable title
What does rescind mean?
- correct answer It means to cancel (rescinded offer = cancelled offer)
What is an Executory contract
- correct answer A contract that has a number of conditions that have to be satisfied
- you don't have a fully executed contract until all conditions are fulfilled
What is Power of Attorney?
- correct answer One person designates another person to represent and sign documents on their behalf
Who signs the deed?
- correct answer Only the Grantor(seller) signs the deed
What is joint Tenancy?
- correct answer (has the right of survivorship) If 2 people own property and one dies, other owner
automatically gets ownership interest of the dead person
Both people own 100% of property (no fractional control) -
1 joint tenant can sell or lien their interest without the consent of the other person
, What is Tenancy by the Entirety?
- correct answer (has right of survivorship)
Husband and Wife one spouse CANNOT sell or lien without the consent of their partner
What are the continuing education requirements for Real Estate Agents in DE?
- correct answer 21 hours biannually (every 2 years - 12 must be completed in first year of license)
must be completed by April 30th
What is Leverage?
- correct answer Using others money to acquire real estate
-if property is 100k and you borrow 100k you are 100% leveraged
- The higher the leverage the riskier the loan is
What are the elements of a valid real estate contract?
- correct answer A valid contract must:
Be a voluntary agreement between two competent parties
Be supported by consideration to perform some legal act (consideration = compensation)
What is an Encumbrance?
- correct answer Any right of a third party over your property (judgement, deed restriction, mortgage)
What is the lien priority of unpaid real estate taxes?
- correct answer - Real estate taxes are always first in terms of lien priority
- Real estate taxes are super priority lien-
How is commission on a real estate transaction determined?
- correct answer Commission is determined by a negotiation between broker and client
answers 2025\2026 A+ Grade
Loan to Value Ratio
- correct answer Amount of the loan vs value of real estate
Who is the Devisee under a Will?
- correct answer Devisee under will is person who receives property under a will (maker of will is
devisor)
What are the Requirements for a valid deed in DE
- correct answer The deed has to be in writing
The deed has to describe property with specificity
The deed must have the name of grantor and grantee
The deed must be signed and must be acknowledged(notarized)
What are the advantages vs. disadvantages of investing in Real Estate?
- correct answer Disadvantage - investment is not liquid (there is no cash out advantage)
Advantage - ability to control investment (sole decision maker of what happens with property)
What is a Subordination Agreement?
- correct answer An agreement that changes lien priority
,Who gets the money left over after a mortgage foreclosure sale?
- correct answer The person who took out the loan is entitled to remaining balance if property sale
amount exceeds existing mortgage owed
What is equity in a property?
- correct answer the difference between amount of debt on the property and the value of the property
What title does the buyer have when the buyer and seller have a fully signed agreement of sale?
- correct answer equitable title
What does rescind mean?
- correct answer It means to cancel (rescinded offer = cancelled offer)
What is an Executory contract
- correct answer A contract that has a number of conditions that have to be satisfied
- you don't have a fully executed contract until all conditions are fulfilled
What is Power of Attorney?
- correct answer One person designates another person to represent and sign documents on their behalf
Who signs the deed?
- correct answer Only the Grantor(seller) signs the deed
What is joint Tenancy?
- correct answer (has the right of survivorship) If 2 people own property and one dies, other owner
automatically gets ownership interest of the dead person
Both people own 100% of property (no fractional control) -
1 joint tenant can sell or lien their interest without the consent of the other person
, What is Tenancy by the Entirety?
- correct answer (has right of survivorship)
Husband and Wife one spouse CANNOT sell or lien without the consent of their partner
What are the continuing education requirements for Real Estate Agents in DE?
- correct answer 21 hours biannually (every 2 years - 12 must be completed in first year of license)
must be completed by April 30th
What is Leverage?
- correct answer Using others money to acquire real estate
-if property is 100k and you borrow 100k you are 100% leveraged
- The higher the leverage the riskier the loan is
What are the elements of a valid real estate contract?
- correct answer A valid contract must:
Be a voluntary agreement between two competent parties
Be supported by consideration to perform some legal act (consideration = compensation)
What is an Encumbrance?
- correct answer Any right of a third party over your property (judgement, deed restriction, mortgage)
What is the lien priority of unpaid real estate taxes?
- correct answer - Real estate taxes are always first in terms of lien priority
- Real estate taxes are super priority lien-
How is commission on a real estate transaction determined?
- correct answer Commission is determined by a negotiation between broker and client
