Delaware General Assembly : Delaware Regulations : Monthly Register of Regulations : January 2014

Authenticated PDF Version

DEPARTMENT OF STATE

Division of Professional Regulation

Statutory Authority: 24 Delaware Code, Section 2906(a)(1) (24 Del.C. §2906(a)(1))

24 DE Admin. Code 2900

PROPOSED

PUBLIC NOTICE

2900 Real Estate Commission

Pursuant to 24 Del.C. §2906(a)(1), the Delaware Real Estate Commission has proposed revisions to its rules and regulations.

A public hearing will be held on February 13, 2014 at 9:30 a.m. in the second floor conference room A of the Cannon Building, 861 Silver Lake Boulevard, Dover, Delaware, where members of the public can offer comments. Anyone wishing to receive a copy of the proposed rules and regulations may obtain a copy from the Delaware Real Estate Commission, 861 Silver Lake Boulevard, Dover, Delaware 19904. Persons wishing to submit written comments may forward these to the Commission at the above address. Pursuant to 29 Del.C. §10118(a), the final date to receive written comments will be February 28, 2014, which is 15 days following the public hearing. The Commission will deliberate on all of the public comments at its regularly scheduled meeting on March 13, 2014 at 9:30 a.m., at which time the Commission will decide whether to adopt the revisions as proposed.

The Commission has proposed an amendment to Rule 13.0 to add a new Rule 13.2.1.4 to clarify the CE hours required where an individual has been licensed for at least eighteen months but less than twenty-four months.

2900 Real Estate Commission

1.0 Introduction

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.

15 DE Reg. 1185 (02/01/12)

2.0 Requirements for Obtaining a Salesperson's License [24 Del.C. §2907]

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.

5 DE Reg. 1387 (1/01/02)

15 DE Reg. 1185 (02/01/12)

16 DE Reg. 99 (07/01/12)

3.0 Requirements for Obtaining an Associate Broker's License [24 Del.C. §2907]

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.

4 DE Reg. 846 (11/01/00)

5 DE Reg. 1387 (1/01/02)

15 DE Reg. 1185 (02/01/12)

16 DE Reg. 99 (07/01/12)

4.0 Requirements for Obtaining a Broker's License [24 Del.C. §2907]

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 DE Reg. 1387 (1/01/02)

15 DE Reg. 1185 (02/01/12)

5.0 Requirements for Obtaining a Reciprocal License [24 Del.C. §2909]

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.

5 DE Reg. 1070 (11/1/01)

4 DE Reg. 457 (9/1/00)

15 DE Reg. 1185 (02/01/12)

6.0 Escrow Accounts [24 Del.C. §2923]

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.

15 DE Reg. 1185 (02/01/12)

7.0 Transfer of Licensees

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.

5 DE Reg. 1387 (1/01/02)

15 DE Reg. 1185 (02/01/12)

8.0 Business Relationships and Practices [24 Del.C. Chapter 29, Subchapter II]

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

8.1.1 Listing Agreements for the sale, lease or exchange of real property, whether exclusive or 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 Copy of agreements

8.3.1 Every party to a listing agreement, agreement of sale, written buyer agency agreement 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.

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

8.4.1 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.

8.4.2 "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.

8.4.3 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.

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

8.4.5 Disclosure

8.4.5.1 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.

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

8.4.5.3 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".

8.4.5.4 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.

8.4.5.5 In the case of Internet electronic communication, the disclosures required in Rule 8.4.5.3 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.

8.4.6 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.

8.5 Office Permits [24 Del.C. §2919]

8.5.1 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.

8.5.2 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.

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

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

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

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

8.6.1 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.

8.6.2 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.

8.6.3 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.

8.6.4 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.

8.6.5 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.

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

8.6.7 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:

8.6.7.1 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

8.6.7.2 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.

5 DE Reg. 1387 (1/01/02)

11 DE Reg. 87 (07/01/07)

15 DE Reg. 1185 (02/01/12)

9.0 Disclosure

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.

15 DE Reg. 1185 (02/01/12)

10.0 Open Houses [24 Del. C. §2901(a)]

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 DE Reg. 87 (07/01/07)

15 DE Reg. 1185 (02/01/12)

11.0 Renewal of Licenses [24 Del.C. §2910]

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.

15 DE Reg. 1185 (02/01/12)

16 DE Reg. 99 (07/01/12)

12.0 Reinstatement of Licenses [24 Del.C. §2910]

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.

15 DE Reg. 1185 (02/01/12)

13.0 Continuing Education [24 Del.C. §§2909(a)(7), 2910(d)]

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 licensees, other than new 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 Licensees:

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.

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 twenty-four 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 two of the following modules: Modules 1, 5, or 6.

13.2.1.45 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 persons who have successfully completed the pre-licensing course but who have not yet made application:

13.2.2.1 Twelve (12) hours of continuing education are required more than twelve months but less than eighteen months after course completion.

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

13.2.2.3 For more than eighteen 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.