24 Del. Admin. Code § 2925-6.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 2925-6.0 - Requirements for the Associate Broker and Broker Licensing Course

6.1 Purpose:

6.1.1 To protect the public by increasing the knowledge and professionalism of brokers.

6.1.2 To provide the Delaware real estate sales agent with the knowledge needed to operate as a Delaware real estate broker.

6.1.3 To prepare the experienced Delaware real estate sales agent to open an independent real estate brokerage firm and employ sales agents in his or her name.

6.1.4 To present a review of basic real estate math.

6.1.5 To prepare the Delaware real estate sales agent to successfully complete the Delaware real estate broker's licensing examination.

6.2 Objectives:

6.2.1 To present the real estate profession's ethics and discuss the integration of these ethics in the professional's everyday business practices.

6.2.2 To provide the prospective licensee with an understanding of:

6.2.2.1 Real property characteristics, definitions, ownership, restrictions and transfer

6.2.2.2 Assessing and explaining property valuation and the appraisal process

6.2.2.3 Contracts, agency relationships with buyers and sellers, and federal requirements

6.2.2.4 Financing, the transaction and settlement

6.2.2.5 Leases, rents, and property management

6.2.2.6 The duties and powers of the Commission

6.2.2.7 Licensing requirements

6.2.2.8 Statutory requirements governing the activities of licensees

6.2.2.9 Other aspects of Delaware law which impact the real estate issues

6.2.2.10 Broker issues including examination of records, eligibility for licensing, and place of business

6.3 Course Outline - a Total of 99 Classroom or on-line program plus Final Examination:

6.3.1 Brokerage (Sales Management and Business Management) (30 Hours):

6.3.1.1 Agency Relationship

6.3.1.2 Operating Philosophy - Listing Control

6.3.1.3 Statutory Requirements Under Delaware Law

6.3.1.4 Settlement Procedures

6.3.1.5 Organizing and Opening an Office

6.3.1.6 Sales Management, Recruiting, and Training

6.3.1.7 Advertising and Promotion

6.3.1.8 MLS Co-Brokerage

6.3.1.9 Multi-Offer, Presenting the Offer, Negotiating

6.3.1.10 Broker Responsibilities Under Licensing Law and Rules and Regulations of the Commission:

1) Escrow Deposits;

2) Licensing Including Display of License and Renewal Responsibility; and

3) Responsibility for Associates

6.3.1.11 Organizing and Opening an Office

6.3.1.12 Risk Reduction - E & O

6.3.1.13 Settlement Procedures

6.3.1.14 Budgeting

6.3.1.15 Future Growth

6.3.1.16 Independent Contractor/Employee

6.3.3 Real Estate Documents (6 Hours):

6.3.3.1 Listing Contracts

6.3.3.2 Sales Contracts & Language of Addenda (Warranty, PMM, 2nd Mortgage, etc.)

6.3.3.3 Escrow Agreements (Letters of Credit)

6.3.3.4 Occupancy Agreements

6.3.3.5 Release of Contracts

6.3.3.6 Buyers - Brokers Agreement

6.3.3.7 Settlement Documents: Deed; Settlement Sheet; Mortgage Inspection Reports; Title Insurance; Site Evaluation; and Note/Bond & Warrant

6.3.3.8 Reporting Procedures & Responsibilities Under the Tax Law (i.e. Title Affidavits & Affidavit of Residence & Gain)

6.3.4 Valuing Real Property (6 Hours):

6.3.4.1 Distinctions and Definitions:

1) Appraisal (Certified);

2) Opinion of Value

3) C.M.A.

6.3.4.2 Three Approaches of Real Property Valuation

6.3.5 Financing (9 Hours):

6.3.5.1 Overview of Government Loans

6.3.5.2 Federal Housing Administration

6.3.5.3 Farmers Home Administration

6.3.5.4 Veterans Administration

6.3.5.5 Government agencies & acts pertaining to real estate finance -- include Regulation A/Truth -in-Lending

6.3.5.6 Anatomy of a mortgage to include special clauses

6.3.5.7 Finance Instruments

6.3.5.8 Conditions & procedures involved in default & foreclosure

6.3.5.9 Non-federal insured mortgages, IRB's

6.3.5.10 Purchase money mortgage

6.3.5.11 Conventional mortgage - Fixed ARM

6.3.5.12 Secondary mortgage market

6.3.5.13 Assistance in arranging financing

6.3.5.14 Other ways to finance - Bridge, Construction, etc.

6.3.5.15 Sources of junior or secondary loans

6.3.6 Landlord Tenant Code/Property Management/Condominiums (9 Hours):

6.3.6.1 Landlord-Tenant Code:

1) Rights and remedies of landlord and tenant; and

2) The process of landlord/tenant litigation

6.3.6.2 Property Management:

1)Types of tenancies and leases; negotiating leases: and

2) Aspects of property management

6.3.6.3 Condominiums:

1)Condominiums/cooperatives; conversion requirements; types of ownerships; and

2) State statutes dealing with condominiums

6.3.7 Legal and Governmental Aspects of Real Estate (15 Hours):

6.3.7.1 The Delaware Real Estate License Law and the Rules and Regulations

6.3.7.2 The Federal & State Fair Housing Acts (include record-keeping responsibilities VAMA)

6.3.7.3 The Law of Agency

6.3.7.4 Interest in Real Property & Types of Property Ownership

6.3.7.5 Statute of Frauds

6.3.7.6 Mechanic's and Materialman's Liens

6.3.7.7 Federal and State Environmental Regulatory Policies (site evaluation, septic process, well, bulkhead & piers)

6.3.7.8 Planning, subdivisions, zoning, deed restrictions, covenants, right of ways and access

6.3.7.9 Legal implications of public powers over real property (eminent domain, escheat, police power, taxation, etc.)

6.3.7.10 Surveys (types and uses)

6.3.7.11 Assessment, Property Taxes & Taxes, Transfers

6.3.7.12 Tax aspects of buying and selling real estate (Highlights of current law)

6.3.8 Real Estate Investment (12 Hours):

6.3.8.1 Characteristics of Investment Real Estate

6.3.8.2 Investment analysis

6.3.8.3 Syndication

6.3.9 Ethics (6 Hours):

6.3.9.1 Ethics Issues Addressed in the Real Estate License Act and the Rules and Regulations

6.3.9.2 Discussion of Ethics as Promulgated by Professional Trade Organizations

6.3.10 Math (3 Hours): Review of Basic Real Estate Math

6.4 Successful Completion: Successful completion is defined as (1) has attended or on line program taken, and (2) has successfully completed an end-of-course examination. Definitions for attendance and examination completion are set forth in subsections 6.5 and 6.6. Following successful completion, students shall receive from the institution verification of this status. Verification shall be in certificate form as set forth in subsection 9.6.4.

6.5 Attendance: Where the course is given in a school, it is strongly recommended that students do not miss any sessions. However, students may miss four sessions, (a session is equivalent to three classroom hours) and still successfully complete the course. Being absent from a session will not relieve a student of the responsibility for the material covered.

6.6 Examinations: An end-of-course examination shall be developed and administered by the respective educational institution and/or instructor(s). The score for successful examination completion will be 75 percent correct.

6.6.1 An institution will allow a student take one retake examination to sit for one retake examination prior to documenting course failure. A new examination shall be developed for students who request the retake.

6.6.2 Institutions may elect, and it is encouraged that practice examinations be administered during the conduct of the course.

6.7 Facilities: It is strongly recommended that course material be presented in a classroom setting conducive to learning, except where the course is being provided in a distance education format.

6.8 The total 99 required broker prelicensing hours may be taken through distance education.

6.9 Instruction:

6.9.1 The following three individuals, each of whom shall have at least five years' experience in their area of expertise, are required for instruction of the course:

6.9.1.1 A Delaware attorney who has been practicing in the area of Delaware real estate law or real estate transactions,

6.9.1.2 A practicing Delaware broker or Delaware associate broker, and

6.9.1.3 An individual knowledgeable in performing real estate business mathematics.

6.9.2 When a specialized topic is presented, it is encouraged that a specialist be used for that particular session, e.g., an environmentalist to cover environmental concerns including soil analysis, septic systems, etc.

6.9.2.1 No more than 10 hours of the 99 hour course may be taught by a specialist, and

6.9.2.2 At least one approved instructor must be present when the specialist is providing instruction.

6.9.3 Except for a mathematics instructor, prior to making application, an applicant for approval to teach pre-licensing must have obtained at least 60 positive instructor evaluations within the 5 years immediately preceding application.

6.9.4 Because there is some overlapping of material among the three major topics, it is desirable, where appropriate, that the course coordinator schedule a meeting of the instructors prior to orientation to:

(1) coordinate the presentation of material, and

(2) decide who will give major emphasis to specific topics.

6.9.5 Multiple approved instructors may co-teach a course provided there is a designated primary instructor.

6.10 Texts and Materials:

6.10.1 Text(s) covering broker aspects of real estate practice as selected by the course provider.

6.10.2 Chapter 29, Title 24, Real Estate License Act

6.10.3 Rules and Regulations of the Delaware Real Estate Commission

6.10.4 Delaware Real Estate Candidate Handbook

6.10.5 Instructors may and are encouraged to use additional references and hand out materials as they feel these materials are needed.

6.11 The License Law and the Rules and Regulations of the Commission are readily available on the Commission's web site at www.dpr.delaware.gov. The current Delaware Code is available on line at www.delcode.delaware.gov.

24 Del. Admin. Code § 2925-6.0

19 DE Reg. 1028 (5/1/2016)
23 DE Reg. 777 (3/1/2020) (Final)