24 Del. Admin. Code § 2900-8.0

Current through Register Vol. 28, No. 3, September 1, 2024

Section 2900-8.0 - Business Relationships and Practices [24 Del.C. Ch. 29, Subch. II]

8.1 Written Listing Agreements [24 Del.C. § 2930(a)]

8.1.1 Listing Agreements for the sale, lease or exchange of real property, whether exclusive or non-exclusive, shall be in writing and shall be signed by the seller, owner, Broker or Broker's designee.

8.2 Buyer Agency Agreements [24 Del.C. § 2930(a)]

8.2.1 Exclusive buyer agency agreements, or buyer agency agreements that obligate the buyer to pay the Broker, shall be in writing and signed by the buyer.

8.3 Cooperation agreements between Brokers and Auctioneers shall be in writing and signed by both parties.

8.4 Copy of agreements

8.4.1 Every party to a listing agreement, agreement of sale, written buyer agency agreement, cooperation agreement between a Broker and Auctioneer or lease shall be furnished with a copy when the party signs or initials it and a fully executed copy of such agreement or agreements after all parties have signed it. It shall be the responsibility of the Licensee to deliver the fully executed copy of the agreements to the principals within a reasonable length of time after execution by all parties. Copies may be in paper or electronic format.

8.5 Real Estate Teams

8.5.1 "Team" means two or more Licensees who represent themselves to the public as being part of one entity.

8.5.2 Team Names

8.5.2.1 The word "team" or the word "group" or the word "associates" must be included in the Team name.

8.5.2.2 The Team name may not include terms which suggest that the Team is a separate Brokerage Organization, such as "Realty", "Real Estate", or "Realtors".

8.5.3 Broker supervision

8.5.3.1 Team members must:

8.5.3.1.1 Work under the direct supervision of the same Broker in the same primary or branch office; and

8.5.3.1.2 Conduct all real estate activity from the primary or branch office where their individual licenses are displayed.

8.5.3.2 The Team's Broker is responsible for the real estate activities of Team members under such Broker's supervision including advertising and posting of signs.

8.5.3.3 A broker must maintain a current list of Teams and Team members and provide such information upon demand to the Commission or a member of the public.

8.6 Advertising [24 Del.C. §§ 2906(a)(1), 2912(a)]

8.6.1 The purpose of the advertising rules is to protect the general public and to prohibit misrepresentation and false, misleading, untrue or deceptive advertising practices by Licensees.

8.6.2 "Advertising" means the use of any written, visual, printed, or electronically generated advertisement by a real estate Licensee or any other person on behalf of a real estate Licensee including, but not limited to any correspondence, mailing, newsletter, brochure, business card, for sale or for lease signage or sign rider, billboards, promotional items, automobile signage, telephone directory listing, radio and television broadcasts, telephone solicitation and electronic media to include emails, text messaging, public blogs, podcasts, social media networking websites or internet displays.

8.6.3 A Licensee who violates the advertising rules may be in violation of one or more of the provisions set forth in 24 Del.C. § 2912(a) and subject to the disciplinary sanctions set forth in 24 Del.C. § 2914.

8.6.4 A Licensee shall not knowingly use, publish or disseminate misrepresentations or any false, misleading, untrue or deceptive advertising in any manner.

8.6.5 Disclosure

8.6.5.1 Any Licensee who advertises real property personally owned or real property in which the Licensee has any ownership interest shall include in the advertisement that the Licensee is the owner of said property, and that the Licensee is a real estate Licensee. This subsection does not apply to signs.

8.6.5.2 Any Licensee who advertises an offer to purchase real property shall include in the advertisement that the Licensee is a real estate Licensee.

8.6.5.3 Any Licensee who advertises any real property for sale, lease, exchange, or transfer that is listed with a Broker shall include in the advertisement the complete Brokerage Organization name that has been registered with the Commission, and Brokerage Organization phone number registered by the Broker with the Commission for that office location. The advertisement shall prominently display the Brokerage Organization name and phone number in greater size and visibility than the Licensee's name. Nothing contained herein shall preclude the listing of additional licensee names or Team names or phone numbers. All such advertising shall also contain language or abbreviations that clearly identify each phone number listed; examples include, but are not limited to: "Office"; "Home"; "Res."; and "Cell".

8.6.5.4 Team advertising shall prominently display the name of the supervising broker's brokerage organization adjacent to the team name in greater size and visibility than the team name.

8.6.5.5 All advertisements for personal promotion of Licensees shall include the complete Brokerage Organization name that has been registered with the Commission, and office phone number registered by the Broker with the Commission for that office location.

8.6.5.6 In the case of Internet electronic advertising, the disclosures required in subsection 8.6.5.3 shall be included and may be made by link to a full disclosure. In addition, the disclosures shall include the city and state in which the Broker's main office is located and the Broker's jurisdiction of licensure.

8.6.5.7 A Licensee advertising for sale for an exempted party under 24 Del.C. § 2901, where an unlicensed salesperson conducts on-site sales, shall disclose in any advertising that: "On-site unlicensed salespeople represent the seller only."

8.6.6 The publisher of advertising provided by a Licensee pursuant to agreement between the publisher and the licensee is not subject to discipline under these Rules.

8.7 Office Permits [24 Del.C. § 2919]

8.7.1 For each office location, the Broker shall apply for an office permit. The application shall include a telephone number, and, as applicable, a fax number, e-mail address and web address.

8.7.2 At each office location, the Broker shall place, in a conspicuous location, a permanent sign indicating the name under which the office is registered with the Commission. Effective six (6) months after the effective date of this Regulation, the permanent sign at the office location shall prominently display the name of the supervising broker's brokerage organization. A team name may be included on the permanent sign, but the name of the brokerage must appear first on the sign and must be of greater size and visibility than the team name.

8.7.3 Prior to commencing business, an office located in a private home shall be approved by the Commission and have a separate entrance.

8.7.4 Licensees may interact by electronic means with other licensees or members of the public from places other than an approved office location.

8.7.5 Brokerage Organizations may share facilities approved by the Commission with other businesses, such as insurance, banking, Auctioneers or others that the Commission shall deem compatible.

8.8 Compensation and Inducements [24 Del.C. § 2930]

8.8.1 Licensees cannot use commissions or income received from commissions as rebates or compensation paid to or given to non-licensed persons, partnerships or corporations as inducements to do or secure business, or as a finder's fee, unless those fees are paid pursuant to a written cooperation or affiliation agreement signed by all parties as permitted under 24 Del.C. Ch. 29 and these Rules and Regulations. A Broker may pay compensation to a retired or terminated Licensee which was earned while the Licensee had an active license. A Broker may pay compensation to the estate of a deceased Licensee which was earned while the Licensee had an active license.

8.8.2 This subsection does not prohibit a Licensee from giving a rebate or discount or any other thing of value directly to the purchaser or seller of real estate.

8.8.3 A Licensee has an affirmative obligation to make timely disclosure, in writing, to the Licensee's principal of any rebate or discount that may be made to the other party.

8.8.4 Licensees shall not accept compensation from more than one party to a transaction, even if permitted by law, without disclosure to all parties to the transaction.

8.8.5 When acting as agent, a Licensee shall not accept any commission, rebate, or profit on expenditures made for the Licensee's principal without the principal's knowledge and informed consent.

8.8.6 A Licensee may pay a referral fee to a person licensed as a real estate broker in another jurisdiction.

8.8.7 A licensed salesperson or broker from another jurisdiction may represent a client as a buyer or tenant in a transaction involving a Delaware property if the licensee affiliates with a Delaware Licensee, provided that the property is not predominantly 1-4 family residential, the licensee from another jurisdiction affiliates with a Delaware Licensee and agrees, in writing, as to the responsibilities of each broker and agrees, in writing, as to the terms of compensation, if any. The Delaware Licensee, and the Licensee's Broker, where the Licensee is a Salesperson or Associate Broker, shall be responsible for the out-of-state licensee's compliance with the Commission's Practice Act, 24 Del.C. Ch. 29, and rules and regulations.

24 Del. Admin. Code § 2900-8.0

5 DE Reg. 1387 (01/01/02)
11 DE Reg. 87 (07/01/07)
15 DE Reg. 1185 (02/01/12)
18 DE Reg. 789 (4/1/2015)
24 DE Reg. 493 (11/1/2020)
25 DE Reg. 1151 (6/1/2022) (Final)