(a) As used in this chapter:
(1) ”Associate broker” means any individual who holds an associate broker license from the Commission and who is licensed under a broker to sell or offer to sell, or to buy or to offer to buy, or to negotiate the purchase, sale, or exchange of real estate, or to lease or rent or offer for rent any real estate, or to negotiate leases or rental agreements thereof or of the improvements thereon for others.
(2) ”Broker” means any individual who holds a broker license from the Commission and who for a compensation or valuable consideration, is self-employed or is employed directly or indirectly by a brokerage organization to sell or offer to sell, or to buy or offer to buy, or to negotiate the purchase, sale, or exchange of real estate, or to lease or rent or offer for rent any real estate, or to negotiate leases or rental agreements thereof or of the improvements thereon for others. The broker is responsible for providing real estate services and is primarily responsible for the day to day management and supervision of a brokerage organization as it relates to this chapter.
(3) ”Brokerage organization” means that individual or business entity which is not licensed but is acting as a broker under § 2901(c) of this title and is the trade name under which the broker operates. The individual or business entity shall have a broker licensed under this chapter.
(4) ”Client” means a member of the public who is the principal in the statutory or common law agency relationship.
(5) ”Commission” means the Delaware Real Estate Commission.
(6) ”Competitive market analysis” or “CMA” means a service provided by a licensee for the purpose of providing either a potential listing price or use or a potential offering price or use in a real estate services transaction. In this method, licensees compare properties whose characteristics are similar in location, style, size and amenities to provide an estimated market price or a potential use for a target property or area. The CMA usually consists of an evaluation of similar properties that have recently sold, are currently under agreement to sell and are currently listed or offered for sale. A CMA may also be referred to as a comparative market analysis, a comparable market analysis, a broker price opinion or broker’s market analysis. A CMA is not an appraisal.
(7) ”Consumer information statement” or “CIS” means the disclosure form required by § 2938 of this title.
(8) ”Conviction” means a verdict of guilty by the trier of fact, whether judge or jury, or a plea of guilty or a plea of nolo contendere accepted by the court.
(9) ”Customer” means a member of the general public working with a licensee as a potential buyer, seller, exchangor, exchangee, tenant, or landlord of real property or is consulting with a licensee in 1 of these capacities for the purpose of entering into a brokerage agreement or transaction, but who has not yet entered into a statutory or common law agency relationship with a licensee. A customer is sometimes referred to as a prospect.
(10) ”Designated agent” means a licensee appointed by the broker working with a customer or client as a statutory agent.
(11) ”Designated on-site supervisor” means a licensee who has at least 5 years of continuous real estate services experience and who has been appointed as the full-time supervisor of a branch office by the broker.
(12) ”Division” means the Delaware Division of Professional Regulation.
(13) ”Dual agent” means a salesperson, associate broker, broker and/or brokerage organization which represents both buyer and seller or tenant and landlord as clients in a real estate services transaction.
(14) ”Escrow account”‘ means a separate account established by the brokerage organization used solely for moneys in which a broker’s customers or clients have an interest in accordance with the terms of a real estate services transaction.
(15) ”Licensee” means an individual licensed under this chapter as a broker, associate broker or salesperson without implying what legal relationship they have with a customer or client.
(16) ”Ministerial task” means a task that does not involve discretion or the exercise of the licensee’s own judgment, for example:
a. Performing tasks for a client or customer according to the brokerage agreement or other form of consent before or after the signing of an agreement of sale or lease such as arranging an inspection; or
b. Assisting other persons to perform their part of the transaction such as providing information to the mortgage lender.
(17) ”Person” means an individual, firm, partnership, corporation, association, joint stock company, limited partnership, limited liability company and any other legal entity and includes a legal successor of those entities.
(18) ”Property management services” means those actions taken for others, pursuant to an agreement, in exchange for a fee, commission, compensation or other valuable consideration which include the supervision and the administration of the physical maintenance and/or the financial matters of real property. These supervision services may include assisting the owner in decisions in the selection of tenants, budgeting for the operation of property or properties, collecting of rent or rents, or maintaining security deposits.
(19) ”Psychologically impacted” and “psychological impacts” mean that the property was, or was at any time suspected to have been the site of a homicide, suicide or other felony except arson or that an occupant of real property is or was at any time suspected to be infected or has been infected with human immunodeficiency virus (HIV) or diagnosed with acquired immune deficiency syndrome (AIDS), or any other disease which has been determined by medical evidence to be highly unlikely to be transmitted through the occupancy of a dwelling place.
(20) ”Real estate service provider” means a licensee who is providing real estate services.
(21) ”Real estate services” means those activities performed by a licensee as defined in this chapter. As promulgated under the rules and regulations, real estate services shall also include the marketing and advertising of properties for sale or lease.
(22) ”Rules and regulations” mean those rules and regulations as promulgated by the Commission.
(23) ”Salesperson” means any individual who holds a salesperson license from the Commission and who is licensed under a broker to sell or offer to sell, or to buy or to offer to buy, or to negotiate the purchase, sale, auction or exchange of real estate, or to lease or rent or offer for rent any real estate, or to negotiate leases or rental agreements thereof or of the improvements thereon for others.
(24) ”State” means the State of Delaware.
(25) ”Statutory agent” or “agent” means a licensee functioning as a party in an agency relationship created according to subchapter II of this chapter as an independent contractor and not as a fiduciary. The agent offers real estate services to the public to make a market in real estate by bringing buyer and seller, or landlord and tenant together for the transaction and assisting the parties with advice and negotiations, and performing ministerial tasks to complete the transaction. Every licensee shall be presumed to be a statutory agent and may refer to themselves as agent or statutory agent unless specifically identified as a common aw agent in their brokerage agreement.
(26) ”Substantially related” means the nature of the criminal conduct, for which the individual was convicted, has a direct bearing on the fitness or ability to perform 1 or more of the duties or responsibilities necessarily related to the practice of providing real estate services.
Terms Used In Delaware Code Title 24 Sec. 2902
- Appraisal: A determination of property value.
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Felony: A crime carrying a penalty of more than a year in prison.
- Fiduciary: A trustee, executor, or administrator.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
- real property: is synonymous with the phrase "lands, tenements and hereditaments. See Delaware Code Title 6 Sec. 4307
- State: means the State of Delaware; and when applied to different parts of the United States, it includes the District of Columbia and the several territories and possessions of the United States. See Delaware Code Title 6 Sec. 4307
- Verdict: The decision of a petit jury or a judge.
(b) In applying this chapter to leasing transactions, the word “landlord” may be substituted for “seller”, the word “tenant” may be substituted for “buyer”, and the word “lease” may be substituted for “agreement of sale” where applicable. The terms “rental agreement” and “lease” may be used interchangeably.
35 Del. Laws, c. 63, § 4; Code 1935, § 5476; 24 Del. C. 1953, § 2901; 57 Del. Laws, c. 151; 59 Del. Laws, c. 468, § 2; 67 Del. Laws, c. 121, §§ 1, 2, 23; 67 Del. Laws, c. 381, §§ 2, 9; 67 Del. Laws, c. 438, §§ 1, 2; 74 Del. Laws, c. 262, § 54; 75 Del. Laws, c. 277, §§ 3-5; 76 Del. Laws, c. 258, §§ 1, 2; 78 Del. Laws, c. 166, § 1.;