DEPARTMENT OF STATE

Division of Professional Regulation

FINAL

ORDER

2900 Real Estate Commission

After due notice in the Delaware Register of Regulations and two Delaware newspapers, a public hearing was held on January 15, 2015 at a scheduled meeting of the Delaware Real Estate Commission (“the Commission”) to receive comments regarding proposed amendments to the Commission’s Rules and Regulations. The Commission proposed a new Rule 1.4.1 and revisions to Rule 8.0 which are designed to implement and clarify the auctioneer exemption set forth in 24 Del.C. §2901(e)(4). A new Rule 8.5.5.6 is added to provide advertising requirements for on-site unlicensed salespeople. Finally, Rule 13.0 is amended to clarify the continuing education pro-ration requirements.

Pursuant to the Administrative Procedure Act, 29 Del.C. §10115, notice of the proposed amendments to the Rules and Regulations was published on December 1, 2014 in the Delaware Register of Regulations, Volume 18, Issue 6. Pursuant to 29 Del.C. §10118(a), the date to receive final written comments was January 30, 2015, 15 days following the public hearing. The Commission deliberated on the proposed revisions at its regularly scheduled meeting on February 12, 2015.

Summary of the Evidence and Information Submitted – Public Hearing

The Commission received written and verbal comments at the public hearing on January 15, 2015. The following notices, written comments and documents were admitted as exhibits and made part of the record:

Exhibit 1: News Journal Affidavit of Publication.

Exhibit 2: Delaware State News Affidavit of Publication.

Exhibit 3: December 30, 2014 letter from David S. Swayze, Esquire and Elio Battista, Jr., Esquire, submitted on behalf of the Delaware Auctioneers Association, opposing the rule revisions concerning auctioneers. Specifically, counsel for the Auctioneers Association asserted that the Commission lacked statutory authority to adopt these proposed rules.

Exhibit 4: January 15, 2015 letter from Rob Harmon, President of the Delaware Association of Realtors, requesting that the Commission close a “loophole” in the regulations and prohibit the unlicensed sale of real property by auctioneers, as 48 other states have done.

Exhibit 5: Written documentation from Christopher J. Whitfield, former member and Chairperson of the Commission, urging the Commission to adopt the proposed rule changes pertaining to auctioneers to clarify that the exemption extends to the business of crying sales and that a blanket exemption is dangerous for the public.

The following individuals provided verbal comment at the public hearing:

The first witness to address the Commission was Elio Battista, Jr., Esquire, representing the Delaware Auctioneer Association. Mr. Battista reviewed the content of his correspondence to the Commission (Exhibit 3). He argued that the proposed regulations pertaining to auctioneers must be withdrawn. While the regulations purport to clarify statutory provisions, they instead flatly contradict the clear and unambiguous language of the auctioneer exemption. Mr. Battista further stated that, as an administrative agency, the Commission’s role is to administer the law, not make it. Mr. Battista argued that the Commission can’t make substantive changes to the statute by adopting rules and regulations. The proposed regulations would create a new category of oversight that contradicts the unequivocal exemption for auctioneers in the Commission’s licensing law. Mr. Battista stated that by attempting to adopt the proposed regulations, the Commission is circumventing the legislative process. Mr. Battista added that if the Commission adopts the proposed rules and regulations as written, an appeal will be filed.

The next witness to address the Commission was Rob Harmon, the President of the Delaware Association of Realtors. Mr. Harmon stated that there is a loophole in the law which permits auctioneers to negotiate for the sale of real property after the gavel drops. Negotiating the sale of real property is the practice of real estate, which requires licensure. Mr. Harmon further offered that Delaware is out of sync with the law in other states.

Christopher J. Whitfield, former Commissioner and Chairperson of the Commission, addressed the Commission. Mr. Whitfield explained that he was a Commissioner from 2008 – 2014 and was the Chairperson of the committee addressing the Joint Sunset Review of the Commission. Mr. Whitfield is also a current public member of the Commission’s standing legislative committee. Mr. Whitfield offered that the auctioneer exemption in the licensing law is ambiguous. The language pertaining to the exemption incorporates the definition of “auctioneer” in Title 30. Pursuant to this definition, the exemption is limited to the “crying of sales.” The purpose of the proposed regulations is to clarify that “crying of sales” is limited to the day of auction. Mr. Whitfield further stated that the issue concerns public protection. Mr. Whitfield also offered that he would support a decision by the Commission to strike the proposed amendments to Rule 8.0, concerning cooperation agreements.

Glenn Watson, Jr. next addressed the Commission. Mr. Watson stated his view that the proposed amendments to the regulations would encompass the sale of both real and personal property. The sale of personal property is not the practice of real estate.

David Villabona addressed the Commission, stating that the debate around the auctioneer exemption has been going on a long time and there is misunderstanding on both sides. The auctioneer exemption is absolute and can’t be changed by an administrative body. Mr. Villabona further stated that this is not a public protection issue. Rather it is an issue of the real estate profession losing business. The auctioneers wanted to be regulated for protection. Their proposed bill included licensure and continuing education requirements. DAR [Delaware Association of Realtors] fought the bill. DAR didn’t want the auctioneers to sell real estate the day after the auction, which was unfair to the seller and buyer because there would not be the opportunity to put the deal together. Mr. Villabona offered that the interested parties should work together. The proposed regulations would stifle competition and affect the auctioneers’ ability to make a living.

Andrew Taylor, Esquire was the next witness to address the Commission. Mr. Taylor stated that attorneys are exempt from licensure pursuant to the Commission’s licensing act, at Section 2901(e)(3). However, an Attorney General’s opinion from 1978 states that the attorney exemption doesn’t permit attorneys to sell real estate. Similarly, the auctioneer exemption doesn’t exempt auctioneers completely and needs clarification in the Commission’s regulations. Mr. Taylor offered that technology has broadly expanded what auctioneers can do. An auction used to be limited to the day of sale. Now, if the property doesn’t sell at auction, the auctioneer can get in touch with other bidders after the auction. The regulations need to catch up with technology. Mr. Taylor stated that brokers and salespeople have education and experience which serve public protection. At auctions, there are no disclosures, such as radon and lead. Mr. Taylor asked that the Commission clarify that the auctioneer exemption is limited to the “day of sale.” Mr. Taylor also suggested that the second line of proposed regulation 1.4.1.3 be amended to state bona fide auction.

Joe Fitzgerald, of Fitzgerald Consulting, addressed the Commission. Mr. Fitzgerald stated that the best way to address the auctioneer exemption would be to work out a compromise through the appropriate channels, and regulatory amendment is not the appropriate channel. If the Commission does not intend to regulate the sale of real property, that should be clarified. Mr. Fitzgerald noted that the auctioneers have been voluntarily seeking regulation.

Maria Evans, from DAR, addressed the Commission by stating that she always assumed auctioneers held real estate licenses and that is the public’s perception. Ms. Evans stated that 37 states require that auctioneers either have a real estate license or affiliate with a broker. Ms. Evans offered her view that the auction ends when the gavel drops.

Mr. Whitfield addressed the Commission for a second time to express his understanding that the proposed regulations are intended to apply to real property only and should be amended accordingly.

Mr. Battista addressed the Commission a final time to note that the auctioneer exemption is obviously a legislative issue.

Summary of the Written Comments Submitted After the Public Hearing

The Commission received written comments during the 15 day public comment period after the public hearing on January 15, 2015. The following written comments were admitted as exhibits and made part of the record at the time of deliberations on February 12, 2015:

Exhibit 1 (2/12/15): January 27, 2015 email from Andrew Taylor, Esquire listing points in support of Rule 1.4 revisions pertaining to auctioneers and attachments consisting of HB 438 from 1990 pertaining to the statutory auctioneer exemption and an Attorney General opinion from 1978 concerning the statutory exemption for attorneys.

Exhibit 2 (2/12/15): Written comments and questions from Michele Twilley objecting to the proposed rule revisions pertaining to auctioneers and stating in particular that the auctioneer exemption is clear as written and does not require clarification.

Exhibit 3 (2/12/15): January 27, 2015 letter from Michael Dunning, President of the New Castle County Board of Realtors voicing support for the proposed rules pertaining to auctioneers, stating in particular that auctioneers use a “perceived loophole” to negotiate sales of real property “after the gavel has dropped.”

Findings of Fact and Conclusions

The Commission considered the written and verbal comments provided at the public hearing and the exhibits submitted during the written comment period.

As a threshold matter, the Commission considered the legal argument presented by several members of the public that the Commission does not have the authority to promulgate and adopt the proposed rule revisions pertaining to the auctioneer exemption. (See, for example, Exhibit 3 and testimony of Mr. Battista). The argument is that the auctioneer exemption is a clear, unambiguous, blanket exemption, and the Commission does not have the legal authority to limit the exemption through rule-making. Rather, this is an issue for the legislature.

Review of the language in the exemption shows that it is not a blanket exemption. In fact, the exemption is limited by explicit incorporation of the statutory definition of “auctioneer” in Section 2301(a)(3) of Title 30. The auctioneer exemption, set forth in 29 Del.C. §2901(e)(4) provides as follows:

(e) This chapter shall not apply to:

(4) An "auctioneer" as defined in §2301(a)(3) of Title 30.

In Section 2301(a)(3) of Title 30, “auctioneer” is defined as follows:

§2301 Occupations requiring licenses; definitions; fees; exemptions.

(a) "Persons" as defined in § 2701 of this title engaged in the occupations listed and defined in this section shall pay annual license taxes at the rates specified below. In addition to the license fee indicated below, each such person shall pay a fee of $25 for each additional branch or business location, except that a finance or small loan agency as defined in this section shall pay the basic annual fee for each place of business.

(3) Auctioneer, $75. "Auctioneer" includes every person engaged in the business of crying sales of real or personal property on behalf of other persons for profit, except as otherwise provided by the provisions of this chapter.

It is meaningful that the legislature limited the auctioneer exemption to the “business of crying sales” by explicit incorporation of the definition of “auctioneer” from 30 Del.C. §2301(a)(3). This language makes it clear that the exemption is not an unambiguous, blanket exemption. Rather, the exemption is unambiguously limited to the “crying of sales.”

As set forth in the Commission’s list of “Powers and Duties” the Commission has the authority to promulgate rules and regulations that “implement or clarify” a specific statutory provision:

§2906 Powers and duties.

(a) The Commission shall have the authority to:

(1) Formulate rules and regulations, with appropriate notice to those affected; all rules and regulations shall be promulgated in accordance with the procedures specified in the Administrative Procedures Act, Chapter 101 of Title 29. Each rule or regulation shall implement or clarify a specific section of this chapter.

As set forth in the proposed Rule 1.4.1, the purpose of the amendments pertaining to auctioneers is to implement and clarify the term “business of crying sales” with respect to the auctioneer exemption only. In short, the Commission is acting within its statutory authority in promulgating the rules and regulations pertaining to the auctioneer exemption.

During deliberations, the Commission addressed each proposed rule revision individually and in sequence. First, the Commission discussed Rule 1.4 – “Exemptions.” Finding that Rule 1.4.1 simply states the auctioneer definition found in Section 2301(a)(3) of Title 30, the Commission considered Rule 1.4.1.1 which presents the point of disagreement with respect to the proposed regulations. Specifically, Rule 1.4.1.1 clarifies and implements the term “the business of crying sales” as follows:

1.4.1.1 For the purpose of the Auctioneer exemption set forth in 24 Del. C. § 2901(e)(4), the “business of crying sales of real or personal property” shall mean the public event or sale occurring on an advertised date, when an auctioneer engages in the act of crying or calling for, the recognition of, and the acceptance of bids where the sale price of the property offered is determined by the increasing of competitive bids until the highest accepted bidder becomes the purchaser. The exemption shall only apply to the day of the auction.

The issue presented in Rule 1.4.1.1 is whether an auctioneer needs a real estate license if he or she conducts negotiations after the auction. The last sentence of proposed Rule 1.4.1.1 states that the auctioneer exemption “shall only apply to the day of auction.” The Commission found that this provision served to protect the public while permitting the auctioneer the opportunity to complete the transaction by the end of the day. In support of this conclusion, the Commissioners discussed that public perception is that the auction encompasses the actual day of the auction. Once the highest bidder is selected, the auction is over. If the auctioneer is permitted to negotiate with other bidders after the actual auction, the auctioneer will be practicing real estate without a license. Requiring licensure for the practice of real estate ensures accountability pursuant to the jurisdiction of the Commission. Thirty-seven states require an auctioneer to have either a real estate license or broker affiliation. The proposed rule will put Delaware in line with the majority of other states. The Commission agreed that the “day of auction” would conclude at midnight and that the auctioneer exemption shall only encompass acceptance of the highest bid. The “day of auction” language will permit the auctioneer and purchaser to wrap up the details of the transaction by the end of the day. Further, Rule 1.4.1.1.1 explicitly permits an auctioneer to advertise the auction prior to the date of the auction.

With respect to Rule 1.4 the Commission also addressed proposed Rule 1.4.1.2:

1.4.1.2 Notwithstanding the Auctioneer exemption set forth in 24 Del.C. §2901(e)(4), a Licensee acting or providing service under this exemption, may be subject to discipline for violation of 24 Del.C. §2912.

The intent of this Rule is to clarify the language in 24 Del.C. §2912(e) to the effect that a licensee acting as an auctioneer is still a real estate licensee and is subject to the range of disciplinary sanctions available under Section 2912.

The Commission found that Rule 1.4.1.3 was confusing in terms of the wording and needed grammatical revision in the interests of clarity. The Commission approved the following revised language which merely provides clarity and is therefore a non-substantive change that does not require further rule-making:

1.4.1.3 An Auctioneer actively engaged by written agreement with an owner of real property to sell real property at auction may enter into a written cooperation agreement with a licensed Broker to cooperate in selling the property pursuant to the terms of a written Listing Agreement between the Broker and the property owner. In the event the property is sold by the broker, either before or after the auction date, the Auctioneer may be paid compensation from the sale of the property according to the terms of the written cooperation agreement, where an Auctioneer is actively engaged by written agreement with an owner of real property to sell real property at auction.

Having reviewed and deliberated on Rule 1.4, the Commission unanimously voted to approve the proposed additions to the rules and regulations, with the non-substantive revision to Rule 1.4.1.3 noted herein.

The Commission next considered the proposed revisions to Rule 8.0. The Commission found that Rule 8.3 is added to specify that cooperation agreements between Brokers and Auctioneers, referenced in Rule 1.4.1.3, must be in writing. Further, Rule 8.4.1 is amended to state that executed copies of such cooperation agreements must be provided to all parties to the agreement. Rule 8.7.1 is amended to state that, while generally licensees can’t pay fees to non-licensees, such fees may be paid pursuant to a written cooperation agreement signed by the parties.

Rule 8.5.5.6 is added to address unlicensed salesperson conducting on-site sales. This rule requires that in this situation, any advertising shall disclose that “On-site unlicensed salespeople represent the seller only.” This proposed rule will serve to enhance public protection by ensuring that consumers understand that the unlicensed salespeople do not represent such consumers.

Having reviewed and deliberated on the changes and additions to Rule 8.0, the Commission voted unanimously to approve such changes and additions as proposed.

Finally, the Commission considered proposed changes to Rule 13.0. These changes serve to clarify the standards for pro ration of continuing education completed by new licensees. The Commission voted unanimously to approve these changes.

The Law

The Commission’s rulemaking authority is provided by 24 Del.C. §2906(a)(1).

Decision and Effective Date

The Commission hereby adopts the proposed amendments to the Rules and Regulations, with the non-substantive amendment to Rule 1.4.1.3 noted herein, as effective 10 days following publication of this Order in the Delaware Register of Regulations.

Text and Citation

The text of the revised Rules and Regulations is attached hereto as “Exhibit A.”

SO ORDERED this 12th day of March 2015.

DELAWARE REAL ESTATE COMMISSION

2900 Real Estate Commission

1.1 Authority [24 Del.C. §2906(a)(1)]

1.1.1 Pursuant to 24 Del.C. §2906(a)(1), the Delaware Real Estate Commission is authorized and empowered and hereby adopts these Rules and Regulations.

1.1.2 Pursuant to the Administrative Procedure Act, 29 Del.C. Ch. 101, the Commission reserves the right to make any amendments, modifications or additions to the Rules and Regulations that, in its discretion, are necessary or desirable.

1.1.3 The Commission reserves the right to grant exceptions to the requirements of the Rules and Regulations upon a showing of good cause by the party requesting such exception, provided such exception is not inconsistent with the requirements of 24 Del.C. Ch. 29.

1.1.4 The Commission's Rules and Regulations are available on the Division of Professional Regulation's website, www.dpr.delaware.gov.

1.2 Applicability

1.2.1 The Commission's Rules and Regulations are applicable to all current Licensees and to all applicants for licensure.

1.3 Broker's Responsibilities [24 Del.C. §§2902(a)(2), 2902(a)(11), 2919(d)]

1.3.1 It is the responsibility of the employing Broker to insure that his or her Licensees comply with the Commission's Rules and Regulations. Every Broker is responsible for making certain that all of his or her Salespersons and Associate Brokers are currently licensed, make timely application for license renewal, and meet the Commission's continuing education requirements. The Broker shall maintain copies of continuing education certificates for his or her Salespersons and Associate Brokers for at least three years after the conclusion of each renewal period. A Broker's failure to meet these responsibilities may result in a civil fine against the Broker of up to $1,000.00 per violation.

1.3.2 Each office location shall be under the direction of a Broker, who shall provide complete and adequate supervision of that office. A Broker shall apply for and obtain a license in his or her name for each office and for each branch office. An application for an additional license shall state the location of the branch office and the name of the Designated On-Site Supervisor, who shall be a Delaware Licensee and who shall be in charge of managing the branch office on a full time basis. For new office applications submitted after February 3, 2012, pursuant to 29 Del.C. §2919(d), the Designated On-Site Supervisor shall be a Licensee with a minimum of five (5) years of continuous Real Estate Services experience, which shall be documented on the office application.

1.3.3 Where an unforeseen event, such as a resignation or termination from employment, death, emergency, illness, call to military service or training, or a sanction imposed by the Commission, causes or necessitates the removal of the sole licensed Broker in an office, a written request shall be submitted to the Division of Professional Regulation for substitution of another Broker for said office on a temporary basis.

1.3.4 The employment of a Designated On-Site Supervisor, sales manager, administrative manager, trainer, or other similar administrator shall not relieve the Broker of the responsibilities contained and defined in these Rules and Regulations.

1.3.5 The failure of any Licensee to comply with the provisions of 24 Del.C. Ch. 29 and the Commission's Rules and Regulations may also result in disciplinary action against his or her Broker's license.

1.4 Exemptions [24 Del.C. §2901(e)(4)]

1.4.1 Pursuant 24 Del.C. §2901(e)(4), Auctioneers are exempt from the Commission's licensing law, as the term "Auctioneer" is defined in 30 Del.C. §2301(a)(3): "every person engaged in the business of crying sales of real or personal property on behalf of others for profit."

1.4.1.1 For the purpose of the Auctioneer exemption set forth in 24 Del.C. §2901(e)(4), the "business of crying sales of real or personal property" shall mean the public event or sale occurring on an advertised date, when an auctioneer engages in the act of crying or calling for, the recognition of, and the acceptance of bids where the sale price of the property offered is determined by the increasing of competitive bids until the highest accepted bidder becomes the purchaser. The exemption shall only apply to the day of the auction.

1.4.1.1.1 Rule 1.4.1.1 does not prohibit an Auctioneer from advertising the auction prior to the date of the event.

1.4.1.2 Notwithstanding the Auctioneer exemption set forth in 24 Del.C. §2901(e)(4), a Licensee acting or providing service under this exemption, may be subject to discipline for violation of 24 Del.C. §2912.

1.4.1.3 [An Auctioneer actively engaged by written agreement with an owner of real property to sell real property at auction may enter into a written cooperation agreement with a licensed Broker to cooperate in selling the property pursuant to the terms of a written Listing Agreement between the Broker and the property owner.] In the event the property is sold by the broker, either before or after the auction date, the Auctioneer may be paid compensation from the sale of the property according to the terms of the written cooperation agreement[, where an Auctioneer is actively engaged by written agreement with an owner of real property to sell real property at auction].

The Commission shall consider any Salesperson applicant who meets the requirements of 24 Del.C. §2907(b) and the requirements of this Rule:

2.1 Has successfully completed the accredited Salesperson pre-licensing course through an approved course provider, as set forth in the Commission's Real Estate Education Guidelines.

2.2 Has passed in no more than 3 attempts, both the general and State portions of the Salesperson real estate examination, through the approved professional testing service.

2.2.1 The applicant shall obtain an original licensure application from the Division of Professional Regulation's website, www.dpr.delaware.gov, for use in making application for licensure.

2.2.2 An applicant shall retake the Salesperson pre-licensing course if the applicant is unable to pass the applicable portion(s) of the examination in 3 or less attempts.

2.3 Has submitted the licensure application within 12 months of completing the Salesperson pre-licensing course. If the application is not submitted within 12 months of completing the Salesperson pre-licensing course, the applicant shall submit proof of completion of continuing education, pro-rated pursuant to the pro-ration requirements of Rule 13.2.2.

2.3.1 The licensure application shall be complete and notarized and include the following:

2.3.1.1 A copy of the original school certificate(s) provided at course completion by the approved course provider(s).

2.3.1.2 If the applicant is currently licensed in another jurisdiction, or has ever been licensed in another jurisdiction, a licensure history provided by each licensing jurisdiction dated within 30 days of the application.

2.3.1.3 Written acceptance by a sponsoring Broker.

2.4 Applicants should refer to the Commission website for information on approved pre-licensing courses, course providers, fees, the professional testing service and testing application instructions. http://dpr.delaware.gov/boards/realestate/index.shtml.

The Commission shall consider any Associate Broker applicant who meets the requirements of 24 Del.C. §2907(c) and the requirements of this Rule:

3.1 Has been actively licensed in Delaware or another jurisdiction for 5 continuous years immediately preceding application.

3.1.1 Licensure shall be considered continuous even where the license has been renewed late, as long as the late renewal occurs within 60 days of the expiration date.

3.2 Has successfully completed the accredited Broker pre-licensing course through an approved course provider as set forth in the Commission's Real Estate Education Guidelines.

3.2.1 If the applicant is actively licensed as a Broker in another jurisdiction, Broker pre-licensing course hours completed in that jurisdiction may be used towards the course hour requirement.

3.3 Has passed in no more than 3 attempts, both the general and State portions of the Broker real estate examination through the approved professional testing service.

3.3.1 The applicant shall obtain an original licensure application from the Division of Professional Regulation's website, www.dpr.delaware.gov, for use in making application for licensure.

3.3.2 An applicant shall retake the Broker pre-licensing course if the applicant is unable to pass the applicable portion(s) of the examination in 3 or less attempts.

3.4 Has submitted the application within 12 months of completing the Broker pre-licensing course. Pre-licensing courses included in Rule 3.2.1 are exempt from this 12 month requirement. If the application is not submitted within 12 months of completing the Broker pre-licensing course, the applicant shall submit proof of completion of continuing education, pro-rated pursuant to the pro-ration requirements of Rule 13.2.2.

3.4.1 The licensure application shall be complete and notarized and include the following:

3.4.1.1 A copy of the original school certificate(s) provided at course completion by the approved course provider(s).

3.4.1.2 If the applicant is currently licensed in another jurisdiction, or has ever been licensed in another jurisdiction, licensure history provided by each licensing jurisdiction dated within 30 days of the application.

3.4.1.3 Written acceptance by a sponsoring Broker.

3.4.1.4 The Guaranty Fund fee shall not be required if the applicant has already paid the fee when obtaining their Salesperson license.

3.4.1.5 A list of at least thirty sale or lease transactions completed by the applicant in a licensed capacity within the 5 years immediately preceding application. Upon approval of the Commission, the thirty transactions may include real estate services performed for an employer, while licensed, during the 5 years immediately preceding application. If the applicant, as a designated agent or team leader, has directly supervised licensees who completed the transactions, then the transactions completed by those supervised licensees may be a part of this list. The list of transactions shall be signed by the Broker(s) who supervised the transactions.

3.4.1.5.1 The list shall contain the sale or lease completion date, property address, purchaser/lessee name, seller/lessor name, specify if completed by the applicant or designated agent subordinates and be signed by the applicant.

3.4.1.5.2 Time share and property management transactions are not considered as eligible sale or lease transactions.

3.5 Applications shall include the applicable fees as described in 24 Del.C. §2907(g) as a financial prerequisite for licensure.

3.6 Applicants should refer to the Commission website for information on approved pre-licensing courses, course providers, fees, the professional testing service and testing application instructions. http://dpr.delaware.gov/boards/realestate/index.shtml.

The Commission shall consider the application for a Broker license provided the applicant meets all of the requirements of 24 Del.C. §2907(d), Rule 3.0, and:

4.1 Submits evidence that the applicant has been actively engaged in the practice of Real Estate Services, either as a licensed Salesperson or licensed Associate Broker for 3 years immediately preceding application.

4.2 Submits a completed Application for a Real Estate Office Permit along with the fees as set forth in 24 Del.C. §2907(g).

4.3 An application shall include evidence to support that the Broker applicant has complied with, and will continue to comply with, the Escrow Account provisions set forth in 24 Del.C. §2923(a) and Rule 6.0.

4.4 The Broker shall attest that he or she is responsible for the day to day management and supervision of the office, as set forth in 24 Del.C. §2907(d).

4.5 If applying to be a replacement Broker for an established real estate office, the Broker shall submit with the application a letter signed by the current Broker naming the applicant as the replacement Broker. If the replacement Broker cannot supply a letter signed by the current Broker, the replacement Broker shall submit a letter of explanation.

5.1 Each applicant for a reciprocal license shall submit a complete and notarized application and the application fee.

5.2 In addition to meeting the requirements set forth in 29 Del.C. §2909(b), a Salesperson applicant who is seeking licensure pursuant to §2909(b)(1) shall provide a list of at least twenty sale or lease transactions completed by the applicant in a licensed capacity within the 3 years immediately preceding application. Upon approval of the Commission, the twenty transactions may include real estate services performed for an employer, while licensed, during the 3 years immediately preceding application. If the applicant, as a designated agent or team leader, has directly supervised licensees who completed the transactions, then the transactions completed by those supervised licensees may be a part of this list. The list of transactions shall be signed by the Broker(s) who supervised the transactions.

5.2.1 The list shall contain the sale or lease completion date, property address, purchaser/lessee name, seller/lessor name, specify if completed by the applicant or designated agent subordinates and be signed by the applicant.

5.2.2 Time share and property management transactions are not considered as eligible sale or lease transactions.

5.3 In addition to meeting the requirements set forth in 29 Del.C. §2909(c), an Associate Broker applicant shall provide a list of at least thirty sale or lease transactions completed by the applicant in a licensed capacity within the 5 years immediately preceding application. Upon approval of the Commission, the thirty transactions may include real estate services performed for an employer, while licensed, during the 5 years immediately preceding application. If the applicant, as a designated agent or team leader, has directly supervised licensees who completed the transactions, then the transactions completed by those supervised licensees may be a part of this list. The list of transactions shall be signed by the Broker(s) who supervised the transactions.

5.3.1 The list shall contain the sale or lease completion date, property address, purchaser/lessee name, seller/lessor name, specify if completed by the applicant or a designated agent subordinate and be signed by the applicant.

5.3.2 Time share and property management transactions are not considered as eligible sale or lease transactions.

5.4 In addition to meeting the requirements set forth in 29 Del.C. §2909(d), a Broker applicant shall also meet the requirements of Rules 4.3 and 5.3.

6.1 When the real estate transaction is a non-recurring residential rental agreement of one hundred twenty (120) days or less, the Broker may, in accordance with written authorization from his or her principal, transfer from the escrow account a management fee and an amount specified up to a stated dollar amount for authorized repairs or cleaning expenses. Any amounts transferred in accordance with this shall be reconciled and reflected in a written full accounting.

6.2 Unless agreed to in writing by the parties, a Licensee shall not accept, as a good faith or earnest money deposit in connection with a real estate transaction, a photocopy, facsimile, or other copy of a personal check or draft, nor shall a Licensee accept as a good faith or earnest money deposit a check or draft that is postdated.

6.3 A Broker shall maintain in his or her office, or have available electronically in his or her office, a complete record of all moneys received or escrowed on real estate transactions, including the sources of the money, the date of receipt, depository, and date of deposit; and when a transaction has been completed, the final disposition of the moneys. The records shall clearly show the amount of the Broker's personal funds in escrow at all times. Such records shall be retained for at least 3 years.

6.4 An Escrow Account shall be opened and maintained by the Broker in a bank with an office located in Delaware in order to receive and maintain a valid license.

6.5 Interest accruing on money held in escrow belongs to the owner(s) of the funds unless otherwise stated in the agreement of sale or lease.

7.1 All Licensees who transfer to another office, or Brokers who open their own offices, but who were associated previously with another Broker, shall present a completed Change Form to the Commission signed by the individual Broker with whom they were formerly associated, before the license will be transferred.

7.2 The Commission reserves the right to waive the requirement of Rule 7.1 upon a determination of good cause.

7.3 All Brokers who move the physical location of their office shall notify the Commission in writing at least 30 days, or as soon as practical, prior to such move by filing a new office application.

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 open, 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.

8.34 Copy of agreements

8.34.1 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 an executed copy of such agreement or agreements. It shall be the responsibility of the Licensee to deliver an executed copy of the agreements to the principals within a reasonable length of time after execution.

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

8.45.1 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.

8.45.2 "Advertise" or "advertising" shall mean a Licensee's use of Internet electronic communication, print, or other media, business cards, signs and billboards to publish information to promote a Real Estate Services provider or the sale or lease of real estate. Internet electronic communication shall include, but is not limited to, websites, social networks, e-mail, e-mail discussion groups and bulletin boards.

8.45.3 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.

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

8.45.5 Disclosure

8.45.5.1 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 he or she is the owner of said property, and that he or she is a real estate licensee. This Rule does not apply to signs.

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

8.45.5.3 Any Licensee who advertises any real property for sale, lease, exchange, or transfer that is listed with a Broker shall include in legible print 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. Nothing contained herein shall preclude the listing of additional licensee names and/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".

8.45.5.4 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.

8.45.5.5 In the case of Internet electronic communication, the disclosures required in Rule 8.45.5.3 shall be included in every viewable page or message 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.

8.5.5.6 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."

8.45.6 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.

8.56 Office Permits [24 Del.C. §2919]

8.56.1 For each office location, the Broker shall submit an application and applicable fee. The application shall include a telephone number, and, as applicable, a fax number, e-mail address and web address.

8.56.2 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.

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

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

8.56.5 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.

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

8.67.1 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 this Chapter.

8.67.2 This Rule 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.

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

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

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

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

8.67.7 A licensed salesperson or broker from another jurisdiction may represent a client in a transaction involving a Delaware property if the licensee affiliates with a Delaware Licensee, provided that one of the following requirements is met:

8.67.7.1 For 1-4 family residential property, all of the showings and negotiations are performed by the Delaware Licensee, with the licensee from another jurisdiction participating in discussions with the client as the client requests, in writing, with terms of compensation, if any, in writing; or

8.67.7.2 For property that 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.

9.1 A Licensee who is the owner, the prospective purchaser, lessor or lessee or who has any personal interest in a transaction, shall disclose his or her status as a Licensee to all persons with whom he or she is transacting such business, prior to the execution of any agreements and shall include on the agreement such status.

9.2 Any Licensee advertising real estate for sale stating in such advertisement, "If we cannot sell your home, we will buy your home", or words to that effect, shall disclose in the original listing agreement at the time he or she obtains the signature on the listing agreement, the price he will pay for the property if no sales agreement is executed during the term of the listing. Said Licensee shall have no more than sixty (60) days to purchase and settle for the subject property upon expiration of the original listing or any extension thereof.

9.3 A written confirmation of the agency relationship shall be included in the agreement for the real estate transaction regardless of whether the relationship is a statutory agency relationship or a common law agency relationship.

9.4 Consumer Information Statement ("CIS") [24 Del.C. §2938(b)]

9.4.1 The Commission shall approve a CIS which will be available on its website for use by Licensees. The Commission may also approved alternative CIS's, which also will be posted on its website. Any changes to a CIS shall be approved by a quorum of the Commission.

9.5 Common Law Agency Relationships [24 Del.C. §2932]

9.5.1 When acting as a common law agent, the disclosure as to whom the Licensee represents shall be made at the first substantive contact to each party to the negotiation or transaction. In all cases such disclosure shall be made prior to the presentation of an offer to purchase.

9.5.2 A written confirmation of disclosure in the agreement shall be worded as follows:

9.5.2.1 With respect to agent for seller: "This Broker, any cooperating Broker, and any Associate Broker or Salesperson working with either, are representing the seller's interest and have fiduciary responsibilities to the seller, but are obligated to treat all parties with honesty. The Broker, any cooperating Broker, and any Associate Broker or Salesperson working with either, without breaching the fiduciary responsibilities to the seller, may, among other services, provide a potential purchaser with information about the attributes of properties and available financing, show properties, and assist in preparing an offer to purchase. The Broker, any cooperating Broker, and any Associate Broker or Salesperson working with either, also have the duty to respond accurately and honestly to a potential purchaser's questions and disclose material facts about properties, submit promptly all offers to purchase and offer properties without unlawful discrimination."

9.5.2.2 With respect to agent for buyer: "This Broker, and any Associate Broker or Salesperson working for this Broker, is representing the buyer's interests and has fiduciary responsibilities to the buyer, but is obligated to treat all parties with honesty. The Broker, and any Associate Broker or Salesperson working for the Broker, without breaching the fiduciary responsibilities to the buyer, may, among other services, provide a seller with information about the transaction. The Broker, and any Associate Broker or Salesperson working for the Broker, also has the duty to respond accurately and honestly to a seller's questions and disclose material facts about the transaction, submit promptly all offers to purchase through proper procedures, and serve without unlawful discrimination."

9.5.2.3 In the case of a transaction involving a lease in excess of 120 days, substitute the term "lessor" for the term "seller", substitute the term "lessee" for the terms "buyer" and "purchaser", and substitute the term "lease" for "purchase" as they appear above.

9.6 If a property is the subject of an agreement of sale or lease but being left on the market for backup offers, or is the subject of an agreement of sale or lease which contains a right of first refusal clause, the existence of such agreement shall be disclosed by the listing Broker to any individual who makes an appointment to see such property at the time such appointment is made.

9.7 Seller's Disclosure of Real Property Condition Report ("Condition Report") [6 Del.C. Ch. 25]

9.7.1 Licensees shall obtain a Condition Report from the seller of residential property prior to accepting a written listing agreement and shall make the Condition Report available to any buyer. The Condition Report shall be completed by the seller on the form approved by the Commission. Licensees shall provide the seller's most recent Condition Report to a buyer before the buyer enters into an agreement of sale and make the Condition Report a part of any agreement of sale.

9.7.1.1 For any residential property that is being offered for sale and which has not yet been issued a certificate of occupancy, the Condition Report approved by the Commission for New Construction shall be used in place of the standard Condition Report. If a certificate of occupancy is received by a seller prior to entering into an agreement of sale, then the Licensee shall obtain the standard Condition Report from the seller and make it available to any prospective buyer.

9.7.1.2 Exempt Property Certification. A Condition Report shall not be required from a seller of residential property if the seller meets one of the exemptions contained in the Seller's Disclosure of Real Property Condition Report and Radon Disclosure Exempt Property Certification. Licensees shall obtain a certification in lieu of the Condition Report and Radon Disclosure prior to accepting a written listing agreement and shall make the certification readily available to any prospective buyer. Licensees shall provide the certification to a buyer before the buyer enters into an agreement of sale and make the certification a part of any agreement of sale.

9.8 Radon Disclosure [6 Del.C. §2572A]

9.8.1 Licensees shall obtain a Radon Disclosure from the seller of residential property prior to accepting a written listing agreement, unless the property qualifies for exemption as outlined in 9.7.1.2, and shall make the Radon Disclosure readily available to any prospective buyer. Licensees shall provide the seller's most recent Radon Disclosure along with a copy of "Radon Rights, Risks and Remedy for the Home Buyer" to a buyer before the buyer enters into an agreement of sale and make the Radon Disclosure a part of any agreement of sale.

10.1 For any property listed with a Broker for sale, lease or exchange, only a Licensee shall be permitted to host or staff an open house or otherwise show a listed property. That Licensee may be assisted by non-licensed persons provided a Licensee is on site. This Rule shall not prohibit a seller from showing their own house.

10.2 For new construction, subdivision, or development listed with a Broker for sale, lease or exchange, a Licensee shall always be on site when the site is open to the general public, except where a builder and/or developer has hired a non-licensed person who is under the direct supervision of said builder and/or developer for the purpose of staffing said project.

11.1 All licenses shall be renewed biennially. Licenses shall expire on April 30 of each even numbered year. A Licensee who fails to renew a license before the expiration date may renew on a late basis for a period not to exceed sixty days with submission of a late fee. The failure of the Commission to give, or the failure of the Licensee to receive, notice of the expiration date of a license shall not prevent the license from becoming invalid after its expiration date.

11.2 As a condition of renewal, all Licensees shall be required to satisfy the continuing education requirements set forth in Rule 13.0 and pay the renewal fee.

11.3 A Licensee shall not practice Real Estate Services after a license has expired.

11.4 License renewal shall be completed online at www.dpr.delaware.gov.

12.1 A license expired for more than sixty days shall be reinstated only after the Licensee pays the necessary fees and passes any examinations required by the Commission and provides proof of completion of the required continuing education. If the Licensee fails to apply for renewal within 6 months of the expiration date, the Licensee shall be required to take the state portion of the examination. If the Licensee fails to apply for renewal before the next renewal period commences (two years), the Licensee shall be required to pass both the state and the general portions of the examination.

12.2 No person whose license has been revoked will be considered for the issuance of a new license for a period of at least two (2) years from the date of the revocation of the license. Such person shall then fulfill the following requirements: he or she shall attend and pass the applicable real estate course for Salespersons or Brokers; take and pass the Commission's applicable examination for Salespersons or Brokers; and any other criteria established by the Commission. Nothing above shall be construed to allow anyone to take the course for the purpose of licensing until after the waiting period of two (2) years. Nothing contained herein shall require the Commission to issue a new license upon completion of the above mentioned requirements, as the Commission retains the right to deny any such application. Where a person's license has been permanently revoked by the Commission, the person is not eligible for issuance of a new license at any time.

13.1 Effective as of the license renewal period beginning May 1, 2012, Licensees shall meet the following CE requirements:

13.1.1 During each licensure renewal period, Licensees shall complete the following twenty-one (21) hours of CE:

13.1.1.1 Three (3) hours in agency and fair housing (Module 1).

13.1.1.2 Three (3) hours in professional standards (Module 2).

13.1.1.3 Three (3) hours in real estate documents (Module 3).

13.1.1.4 Three (3) hours in office management (Module 4).

13.1.1.5 Three (3) hours in legislative issues (Module 5).

13.1.1.6 Three (3) hours in practices of real estate (Module 6).

13.1.1.7 Three (3) hours in elective courses (Module 7).

13.1.2 New Salesperson Licensees, other than new Salesperson Licensees previously licensed in another state, shall complete the following twelve (12) hours of CE during the first twelve months of licensure. These twelve (12) hours of CE will be applied to the total amount of required CE hours pursuant to the pro-ration schedule in Rule 13.2:

13.1.2.1 Three (3) hours in professional standards.

13.1.2.2 Three (3) hours in agreement of sale and buyer representation.

13.1.2.3 Three (3) hours in real estate documents and seller representation.

13.1.2.4 Three (3) hours in real estate professionalism.

13.1.3 Courses approved for Modules 1 – 6 automatically qualify for credit for Module 7. Students are not required to submit a separate application for Module 7 approval for courses in Modules 1 – 6. This Rule does not apply to out-of-state courses.

13.2 CE hours shall be prorated in accordance with the following schedule:

13.2.1 For new Salesperson Licensees, other than new Salesperson Licensees previously licensed in another state:

13.2.1.1 No continuing education is required for fewer than six months of licensure.

13.2.1.2 Six (6) hours of continuing education are required after at least six months but less than twelve months of licensure. The required six hours shall consist of two different modules, as set forth in Rule 13.1.1.

13.2.1.3 The twelve (12) hours of continuing education set forth in Rule 13.1.2 are required after at least twelve months but less than eighteen months of licensure.

13.2.1.4 Eighteen (18) hours of continuing education are required after at least eighteen months but less than twenty-four months of licensure. The required eighteen hours shall include the twelve (12) hours of continuing education set forth in Rule 13.1.2 and two of the following modules: Modules 1, 5, or 6.

13.2.1.5 Twenty-one (21) hours of continuing education are required after twenty-four months of licensure, consisting of: the twelve (12) hours of CE set forth in Rule 13.1.2, three (3) hours in agency and fair housing (Module 1), three (3) hours in legislative issues (Module 5) and three (3) hours in practices of real estate (Module 6).

13.2.2 For all new Salesperson, Associate Broker and Broker Licensees, who were licensed through reciprocity:

13.2.2.1 No continuing education is required for fewer than six months of licensure.

13.2.2.2 Six (6) hours of continuing education are required after at least six months but less than twelve months of licensure. The required six hours shall consist of two different modules, as set forth in Rule 13.1.1.

13.2.2.3 Twelve (12) hours of continuing education are required after at least twelve months but less than eighteen months of licensure. The required twelve hours shall consist of four different modules, as set forth in Rule 13.1.1.

13.2.2.4 Eighteen (18) hours of continuing education are required after at least eighteen months but less than twenty-four months of licensure. The required eighteen hours shall consist of six different modules, as set forth in Rule 13.1.1.

13.2.2.5 Twenty-one (21) hours of continuing education are required after twenty-four months of licensure, as set forth in Rule 13.1.1.

13.2.23 For persons who have successfully completed the either the broker or salesperson pre-licensing course but who have not yet made application:

13.2.23.1 Twelve (12) hours of continuing education are required more than twelve months but less than eighteen months after course completion. The required twelve hours shall consist of four different modules, as set forth in Rule 13.1.1.

13.2.23.2 Twenty-one (21) hours of continuing education are required more than eighteen months but less than twenty-four months after course completion, in compliance with the requirements of Rule 13.1.1.

13.2.23.3 For more than eighteen twenty-four months after course completion, twenty-one (21) hours of CE are required for each biennial renewal period, in compliance with the requirements of Rule 13.1.1.

13.3 At the time of renewal, the Licensee shall attest to completion of the required CE. Attestation shall be completed electronically.

13.3.1 The Licensee's attestation as to completion of CE does not relieve the Broker of his or her duty to ensure that the Licensee has completed the required CE during the licensure renewal period. Each Broker shall maintain copies of CE certificates for his or her Salespersons and Associate Brokers for at least three years after the conclusion of each renewal period.

13.3.2 Licensees selected for random audit are required to supplement the attestation with attendance verification as provided in Rule 13.3.6.

13.3.3 Random audits shall be performed by the Commission to ensure compliance with the CE requirements.

13.3.4 The Commission shall notify Licensees within sixty (60) days after June 30 of each biennial renewal period that they have been selected for audit.

13.3.5 Licensees selected for random audit shall be required to submit verification within twenty (20) business days of receipt of notification of selection for audit.

13.3.6 Verification shall include such information necessary for the Commission to assess whether the course meets the CE requirements in Rule 13.0. While course brochures may be used to verify CE hours, they are not considered to be acceptable proof for use of verification of course attendance. Verification shall include the official certificate of completion, as provided by the course provider.

13.3.7 The Commission shall review all documentation submitted by Licensees pursuant to the continuing education audit. If the Commission determines that the Licensee has met the continuing education requirements, his or her license shall remain in effect. If the Commission determines that the Licensee has not met the continuing education requirements, the Licensee shall be notified and a hearing may be held pursuant to the Administrative Procedure Act. The hearing will be conducted to determine if there are any extenuating circumstances justifying noncompliance with the continuing education requirements. Unjustified noncompliance with the continuing education requirements set forth in these Rules and Regulations shall constitute a violation of 24 Del.C. §2912(a)(9) and the Licensee may be subject to one or more of the disciplinary sanctions set forth in 24 Del.C. §2914.

13.3.8 Licensees who renew their licenses under the late renewal provision shall be audited for CE completion. These Licensees shall submit documents that evidence satisfactory completion of their CE requirements for the prior licensure period.

13.4 Definition of Acceptable Continuing Education Credits:

13.4.1 All CE activities shall be pre-approved by the Commission, pursuant to the Commission's Real Estate Education Guidelines.

13.4.2 Activities shall be a minimum of one (1) hour and delivered in one (1) hour increments.

13.5 The Commission may waive or postpone all or part of the continuing education requirements of these Rules and Regulations if a Licensee submits a written request for a waiver and provides evidence to the satisfaction of the Commission of an illness, injury, financial hardship, family hardship, or other similar extenuating circumstance which precluded the Licensee's completion of the requirements. Application for waiver or postponement shall be made in writing to the Commission and shall be received by the Commission no later than 60 days prior to the biennial license renewal date.

13.6 The Commission may appoint a committee to assist in the Commission's educational objectives.

13.7 Members of the Real Estate Commission who attend at least eighty percent (80%) of Commission meetings during a biennial licensure period may receive one hour of CE for each Commission meeting attended and said hour may be applied to any CE required for licensure renewal.

13.8 Completion of broker’s licensing course.

13.8.1 Delaware broker’s licensing course: Upon successful completion of an approved Delaware broker’s licensing course, a licensee shall receive 21 hours of continuing education credit. These 21 hours shall satisfy the continuing education requirements (Modules 1 – 7) for the biennial licensing period in which the course was completed. The course provider shall provide the licensee with a certificate stating that Modules 1 – 7 have been satisfied upon successful completion of the broker’s licensing course. This Rule shall be retroactive for all licensees who have successfully completed the broker’s licensing course after May 1, 2012.

13.8.2 Out-of-state broker’s licensing course: Upon successful completion of a broker’s licensing course in a state outside of Delaware, consisting of at least 99 hours of education, a licensee shall receive 18 hours of continuing education credit, satisfying Modules 1 – 4 and 6 – 7, for the biennial licensing period in which the course was completed. This Rule shall be retroactive for all licensees who have successfully completed the broker’s licensing course after May 1, 2012.

13.9 Licensees successfully completing a minimum of 6 hours of a National Accreditation Program during a licensure renewal period and receiving a nationally recognized designation or providing proof of successfully completing a section towards a nationally recognized designation may submit pursuant to 7.2 for six (6) credit hours to satisfy Modules 6 and 7. The instructor shall be considered an approved instructor.

14.1 If the report is received by the chairperson of the regulatory Board, that chairperson shall immediately notify the Director of Professional Regulation or his/her designate of the report. If the Director of Professional Regulation receives the report, he/she shall immediately notify the chairperson of the regulatory Board, or that chairperson's designate or designates.

14.2 The chairperson of the regulatory Board or that chairperson's designate or designates shall, within 7 days of receipt of the report, contact the individual in question and inform him/her in writing of the report, provide the individual written information describing the Voluntary Treatment Option, and give him/her the opportunity to enter the Voluntary Treatment Option.

14.3 In order for the individual to participate in the Voluntary Treatment Option, he/she shall agree to submit to a voluntary drug and alcohol screening and evaluation at a specified laboratory or health care facility. This initial evaluation and screen shall take place within 30 days following notification to the professional by the participating Board chairperson or that chairperson's designate(s).

14.4 A regulated professional with chemical dependency or impairment due to addiction to drugs or alcohol may enter into the Voluntary Treatment Option and continue to practice, subject to any limitations on practice the participating Board chairperson or that chairperson's designate or designates or the Director of the Division of Professional Regulation or his/her designate may, in consultation with the treating professional, deem necessary, only if such action will not endanger the public health, welfare or safety, and the regulated professional enters into an agreement with the Director of Professional Regulation or his/her designate and the chairperson of the participating Board or that chairperson's designate for a treatment plan and progresses satisfactorily in such treatment program and complies with all terms of that agreement. Treatment programs may be operated by professional Committees and Associations or other similar professional groups with the approval of the Director of Professional Regulation and the chairperson of the participating Board.

14.5 Failure to cooperate fully with the participating Board chairperson or that chairperson's designate or designates or the Director of the Division of Professional Regulation or his/her designate in regard to the Voluntary Treatment Option or to comply with their requests for evaluations and screens may disqualify the regulated professional from the provisions of the Voluntary Treatment Option, and the participating Board chairperson or that chairperson's designate or designates shall cause to be activated an immediate investigation and institution of disciplinary proceedings, if appropriate, as outlined in section 15.8.

14.6 The Voluntary Treatment Option may require a regulated professional to enter into an agreement which includes, but is not limited to, the following provisions:

14.6.1 Entry of the regulated professional into a treatment program approved by the participating Board. Board approval shall not require that the regulated professional be identified to the Board. Treatment and evaluation functions must be performed by separate agencies to assure an unbiased assessment of the regulated professional's progress.

14.6.2 Consent to the treating professional of the approved treatment program to report on the progress of the regulated professional to the chairperson of the participating Board or to that chairperson's designate or designates or to the Director of the Division of Professional Regulation or his/her designate at such intervals as required by the chairperson of the participating Board or that chairperson's designate or designates or the Director of the Division of Professional Regulation or his/her designate, and such person making such report will not be liable when such reports are made in good faith and without malice.

14.6.3 Consent of the regulated professional, in accordance with applicable law, to the release of any treatment information from anyone within the approved treatment program.

14.6.4 Agreement by the regulated professional to be personally responsible for all costs and charges associated with the Voluntary Treatment Option and treatment program(s). In addition, the Division of Professional Regulation may assess a fee to be paid by the regulated professional to cover administrative costs associated with the Voluntary Treatment Option. The amount of the fee imposed under this subparagraph shall approximate and reasonably reflect the costs necessary to defray the expenses of the participating Board, as well as the proportional expenses incurred by the Division of Professional Regulation in its services on behalf of the Board in addition to the administrative costs associated with the Voluntary Treatment Option.

14.6.5 Agreement by the regulated professional that failure to satisfactorily progress in such treatment program shall be reported to the participating Board's chairperson or his/her designate or designates or to the Director of the Division of Professional Regulation or his/ her designate by the treating professional who shall be immune from any liability for such reporting made in good faith and without malice.

14.6.6 Compliance by the regulated professional with any terms or restrictions placed on professional practice as outlined in the agreement under the Voluntary Treatment Option.

14.6.7 The regulated professional's records of participation in the Voluntary Treatment Option will not reflect disciplinary action and shall not be considered public records open to public inspection. However, the participating Board may consider such records in setting a disciplinary sanction in any future matter in which the regulated professional's chemical dependency or impairment is an issue.

14.6.8 The participating Board's chairperson, his/her designate or designates or the Director of the Division of Professional Regulation or his/her designate may, in consultation with the treating professional at any time during the Voluntary Treatment Option, restrict the practice of a chemically dependent or impaired professional if such action is deemed necessary to protect the public health, welfare or safety.

14.6.9 If practice is restricted, the regulated professional may apply for unrestricted licensure upon completion of the program.

14.6.10 Failure to enter into such agreement or to comply with the terms and make satisfactory progress in the treatment program shall disqualify the regulated professional from the provisions of the Voluntary Treatment Option, and the participating Board shall be notified and cause to be activated an immediate investigation and disciplinary proceedings as appropriate.

14.6.11 Any person who reports pursuant to this section in good faith and without malice shall be immune from any civil, criminal or disciplinary liability arising from such reports, and shall have his/her confidentiality protected if the matter is handled in a nondisciplinary matter.

14.6.12 Any regulated professional who complies with all of the terms and completes the Voluntary Treatment Option shall have his/her confidentiality protected unless otherwise specified in a participating Board's rules and regulations. In such an instance, the written agreement with the regulated professional shall include the potential for disclosure and specify those to whom such information may be disclosed.

15.1 Conviction of any of the following crimes, or conviction of the attempt to commit or of a conspiracy to commit or conceal or of solicitation to commit any of the following crimes, is deemed to be substantially related to the practice of Real Estate Services in the State of Delaware without regard to the place of conviction:

15.1.1 Aggravated menacing. 11 Del.C. §602(b)

15.1.2 Reckless endangering in the first degree. 11 Del.C. §604

15.1.3 Abuse of a pregnant female in the second degree. 11 Del.C. §605

15.1.4 Abuse of a pregnant female in the first degree. 11 Del.C. §606

15.1.5 Assault in the second degree. 11 Del.C. §612

15.1.6 Assault in the first degree. 11 Del.C. §613.

15.1.7 Assault by abuse or neglect. 11 Del.C. §615

15.1.8 Gang participation. 11 Del.C. §616

15.1.9 Terroristic threatening; felony. 11 Del.C. §621(a) and (b)

15.1.10 Unlawfully administering controlled substance or counterfeit substance or narcotic drugs. 11 Del.C. §626

15.1.11 Murder by abuse or neglect in the second degree; class B felony. 11 Del.C. §633

15.1.12 Murder by abuse or neglect in the first degree; class A felony. 11 Del.C. §634

15.1.13 Murder in the second degree; class A felony. 11 Del.C. §635

15.1.14 Murder in the first degree; class A felony. 11 Del.C. §636

15.1.15 Unlawful sexual contact in the third degree; class A misdemeanor. 11 Del.C. §767

15.1.16 Unlawful sexual contact in the second degree; class G felony. 11 Del.C. §768

15.1.17 Unlawful sexual contact in the first degree; class F felony. 11 Del.C. §769

15.1.18 Rape in the fourth degree; class C felony. 11 Del.C. §770

15.1.19 Rape in the third degree; class B felony. 11 Del.C. §771

15.1.20 Rape in the second degree; class B felony. 11 Del.C. §772

15.1.21 Rape in the first degree; class A felony. 11 Del.C. §773

15.1.22 Sexual extortion. 11 Del.C. §776

15.1.23 Continuous sexual abuse of a child; class B felony. 11 Del.C. §778

15.1.24 Dangerous crime against a child; class B felony. 11 Del.C. §779

15.1.25 Unlawful imprisonment in the first degree. 11 Del.C. §782

15.1.26 Kidnapping in the second degree; class C felony. 11 Del.C. §783

15.1.27 Kidnapping in the first degree; class B felony. 11 Del.C. §783A

15.1.28 Arson in the third degree; class G felony. 11 Del.C. §801

15.1.29 Arson in the second degree; class D felony. 11 Del.C. §802

15.1.30 Arson in the first degree; class C felony. 11 Del.C. §803

15.1.31 Criminal mischief. 11 Del.C. §811

15.1.32 Trespassing with intent to peep or peer. 11 Del.C. §820

15.1.33 Burglary in the third degree. 11 Del.C. §824

15.1.34 Burglary in the second degree; class D felony. 11 Del.C. §825

15.1.35 Burglary in the first degree; class C felony; class B felony. 11 Del.C. §826

15.1.36 Possession of burglar's tools or instruments facilitating theft. 11 Del.C. §828

15.1.37 Robbery in the second degree; class E felony. 11 Del.C. §831

15.1.38 Robbery in the first degree; class B. 11 Del.C. §832

15.1.39 Carjacking in the second degree. 11 Del.C. §835

15.1.40 Carjacking in the first degree; class C felony; class B felony. 11 Del.C. §836

15.1.41 Shoplifting; felony. 11 Del.C. §840

15.1.42 Theft. 11 Del.C. §841

15.1.43 Theft; lost or mislaid property; mistaken delivery. 11 Del.C. §842

15.1.44 Theft; false pretense. 11 Del.C. §843

15.1.45 Theft; false promise. 11 Del.C. §844

15.1.46 Theft of services. 11 Del.C. §845

15.1.47 Extortion; class E felony. 11 Del.C. §846

15.1.48 Misapplication of property; class G felony. 11 Del.C. §848

15.1.49 Use, possession, manufacture, distribution and sale of unlawful telecommunication and access devices; felony. 11 Del.C. §850

15.1.50 Receiving stolen property. 11 Del.C. §851

15.1.51 Theft of rented property; class G felony. 11 Del.C. §849

15.1.52 Identity theft; class E felony; class D felony. 11 Del.C. §854

15.1.53 Forgery; class F felony; class G felony. 11 Del.C. §861

15.1.54 Possession of forgery devices; class G felony. 11 Del.C. §862

15.1.55 Falsifying business records. 11 Del.C. §871

15.1.56 Tampering with public records in the first degree; class E felony. 11 Del.C. §876

15.1.57 Offering a false instrument for filing. 11 Del.C. §877

15.1.58 Issuing a false certificate; class G felony. 11 Del.C. §878

15.1.59 Defrauding secured creditors. 11 Del.C. §891

15.1.60 Fraud in insolvency. 11 Del.C. §892

15.1.61 Interference with levied-upon property. 11 Del.C. §893

15.1.62 Issuing a bad check; felony. 11 Del.C. §900

15.1.63 Unlawful use of credit card; felony. 11 Del.C. §903

15.1.64 Reencoder and scanning devices. 11 Del.C. §903A

15.1.65 Deceptive business practices. 11 Del.C. §906

15.1.66 Criminal impersonation. 11 Del.C. §907

15.1.67 Criminal impersonation, accident related. 11 Del.C. §907A

15.1.68 Criminal impersonation of a police officer. 11 Del.C. §907B

15.1.69 Unlawfully concealing a will. 11 Del.C. §908

15.1.70 Securing execution of documents by deception. 11 Del.C. §909

15.1.71 Debt adjusting. 11 Del.C. §910

15.1.72 Fraudulent conveyance of public lands; class G felony. 11 Del.C. §911

15.1.73 Fraudulent receipt of public lands; class G felony. 11 Del.C. §912

15.1.74 Insurance fraud; class G felony. 11 Del.C. §913

15.1.75 Health care fraud. 11 Del.C. §913A

15.1.76 Home improvement fraud; class G felony. 11 Del.C. §916

15.1.77 New home construction fraud; class C felony, class F felony, class G felony. 11 Del.C. §917

15.1.78 Unauthorized access. 11 Del.C. §932

15.1.79 Theft of computer services. 11 Del.C. §933

15.1.80 Interruption of computer services. 11 Del.C. §934

15.1.81 Misuse of computer system information. 11 Del.C. §935

15.1.82 Destruction of computer equipment. 11 Del.C. §936

15.1.83 Unrequested or unauthorized electronic mail or use of network or software to cause same. 11 Del.C. §937

15.1.84 Failure to promptly cease electronic communication upon request. 11 Del.C. §938

15.1.85 Dealing in children; class E felony. 11 Del.C. §1100

15.1.86 Endangering the welfare of a child; class E or G felony. 11 Del.C. §1100

15.1.87 Sexual exploitation of a child; class B felony. 11 Del.C. §1108.

15.1.88 Unlawfully dealing in child pornography; class D felony. 11 Del.C. §1109

15.1.89 Possession of child pornography; class F felony. 11 Del.C. §1111

15.1.90 Sexual offenders; prohibitions from school zones. 11 Del.C. §1112

15.1.91 Sexual solicitation of a child; class C felony. 11 Del.C. §1112A

15.1.92 Bribery; class E felony. 11 Del.C. §1201

15.1.93 Receiving a bribe; class E felony. 11 Del.C. §1203

15.1.94 Giving unlawful gratuities. 11 Del.C. §1205

15.1.95 Receiving unlawful gratuities. 11 Del.C. §1206

15.1.96 Improper influence. 11 Del.C. §1207

15.1.97 Official misconduct. 11 Del.C. §1211

15.1.98 Profiteering. 11 Del.C. §1212

15.1.99 Perjury in the second degree; class F felony. 11 Del.C. § 1222

15.1.100 Perjury in the first degree; class D felony. 11 Del.C. §1223

15.1.101 Making a false written statement. 11 Del.C. §1233

15.1.102 Terroristic threatening of public officials or public servants; felony. 11 Del.C. §1240

15.1.103 Hindering prosecution; felony. 11 Del.C. §1244

15.1.104 Falsely reporting an incident; felony. 11 Del.C. §1245

15.1.105 Escape in the second degree. 11 Del.C. §1252

15.1.106 Escape after conviction. 11 Del.C. §1253

15.1.107 Promoting prison contraband; felony. 11 Del.C. §1256

15.1.108 Bribing a witness. 11 Del.C. §1261

15.1.109 Bribe receiving by a witness. 11 Del.C. §1262

15.1.110 Tampering with a witness. 11 Del.C. §1263

15.1.111 Interfering with child witness. 11 Del.C. §1263A

15.1.112 Bribing a juror. 11 Del.C. §1264

15.1.113 Bribe receiving by a juror. 11 Del.C. §1265

15.1.114 Tampering with a juror. 11 Del.C. §1266

15.1.115 Misconduct by a juror. 11 Del.C. §1267

15.1.116 Tampering with physical evidence; class G felony. 11 Del.C. §1269

15.1.117 Unlawful grand jury disclosure. 11 Del.C. §1273

15.1.118 Hate crimes; class G felony, class F felony, class E felony, class D felony, class C felony, class B felony, class A felony. 11 Del.C. §1304

15.1.119 Stalking; felony. 11 Del.C. §1312A

15.1.120 Violation of privacy; felony. 11 Del.C. §1335

15.1.121 Bombs, incendiary devices, Molotov cocktails and explosive devices. 11 Del.C. §1338

15.1.122 Carrying a concealed deadly weapon. 11 Del.C. §1442

15.1.123 Possessing a destructive weapon. 11 Del.C. §1444

15.1.124 Unlawfully dealing with a dangerous weapon; felony. 11 Del.C. §1445

15.1.125 Possession of a deadly weapon during commission of a felony; class B felony. 11 Del.C. §1447

15.1.126 Possession of a firearm during commission of a felony; class B felony. 11 Del.C. §1447A

15.1.127 Possession and purchase of deadly weapons by persons prohibited. 11 Del.C. §1448.

15.1.128 Giving a firearm to person prohibited. 11 Del.C. §1454

15.1.129 Engaging in a firearms transaction on behalf of another. 11 Del.C. §1455

15.1.130 Removing a firearm from the possession of a law enforcement officer; class C felony. 11 Del.C. §1458

15.1.131 Organized Crime and Racketeering, Class B Felony. 11 Del.C. §1504

15.1.132 Victim or Witness Intimidation 11 Del.C. §3532 and 3533

15.1.133 Abuse of patient or resident in nursing home; Class D felony; Class G felony; Class A felony. 16 Del.C. §1136(a)

15.1.134 Abuse of patient or resident in nursing home; Class D felony; Class G felony; Class A felony. 16 Del.C. §1136(a)

15.1.135 Financial exploitation of residents or patients; felony. 16 Del.C. §1136(b)

15.1.136 Drug dealing - aggravated possession; class B felony. 16 Del.C. §4752

15.1.137 Drug dealing - aggravated possession; class C felony. 16 Del.C. §4753

15.1.138 Trafficking in marijuana, cocaine, illegal drugs, methamphetamines, Lysergic Acid Diethylamide (L.S.D.), designer drugs, or 3,4-methylenedioxymethamphetamine (MDMA). 16 Del.C. §4753A

15.1.139 Any offense under the Uniform Controlled Substances Act, Title 16 of the Delaware Code, in violation of the aggravating factors in 16 Del.C. §4751A

15.1.140 Drug paraphernalia; felony. 16 Del.C. §4771 (b) and (c) [manufacture and sale, delivery to a minor]

15.1.141 Third or more conviction for driving a vehicle while under the influence or with a prohibited alcohol or drug content; felony. 21 Del.C. §4177(a); 21 Del.C. §4177(d)(3)-(7)

15.1.142 Attempt to evade or defeat tax. 30 Del.C. §571

15.1.143 Failure to collect or pay over tax. 30 Del.C. §572

15.1.144 Failure to file return, supply information or pay tax. 30 Del.C. §573

15.1.145 Fraud and false statements. 30 Del.C. §574

15.1.146 Misdemeanors [tax related]. 30 Del.C. §576

15.1.147 Obtaining benefit under false representation; felony. 31 Del.C. §1003

15.1.148 Reports, statements and documents; felony. 31 Del.C. §1004

15.1.149 Kickback schemes and solicitations. 31 Del.C. §1005

15.1.150 Conversion of payment. 31 Del.C. §1006

15.1.151 Violations of the Securities Act. 6 Del.C. §7322

15.1.152 Attempt to Intimidate. 11 Del.C. §3534

15.1.153 Alteration, Theft or Destruction of Will. 12 Del.C. §210

15.1.154 Financial exploitation of infirm adult; felony. 31 Del.C. §3913

15.1.155 Prohibited trade practices against infirm or elderly. 6 Del.C. §2581

15.1.156 Prohibition of intimidation [under the Fair Housing Act]; felony. 6 Del.C. 9

15.1.157 Knowing or reckless abuse of an infirm adult; Class D felony; Class E felony; Class G felony; Class A felony. 31 Del.C. §3913

15.2 Crimes substantially related to the practice of Real Estate Services shall be deemed to include any crimes under any federal law, state law, or valid town, city or county ordinance, that are substantially similar to the crimes identified in this Rule.