A Delaware-licensed real estate broker only performs real estate brokerage activity and is not compensated by a lender, mortgage broker, MLO, or their agents. Which statement is most accurate under Delaware MLO definitions?
Correct Answer
D) The person is excluded from the MLO definition for that activity
Delaware excludes a person or entity that only performs real estate brokerage activity and is properly licensed or registered, unless compensated by a lender, mortgage broker, MLO, or their agent.
Why This Is the Correct Answer
The person is excluded from the MLO definition for that activity is correct. Delaware excludes a person or entity that only performs real estate brokerage activity and is properly licensed or registered, unless compensated by a lender, mortgage broker, MLO, or their agent. Delaware excludes a person or entity that only performs real estate brokerage activity and is properly licensed or registered, unless compensated by a lender, mortgage broker, MLO, or their agent.
Why the Other Options Are Wrong
Option A: The person automatically becomes an MLO because all real estate licensees are MLOs
Delaware does not automatically classify every real estate licensee as an MLO.
Option B: The person must obtain an MLO license solely because the property is residential
Residential property alone does not override the real estate brokerage exclusion when its conditions are met.
Option C: The person is exempt only if the loan is a commercial loan
The Delaware exclusion is not limited to commercial loans.
Memory Technique
DE-C004 -> Delaware-definitions-and-exemptions
Exam Tip
For real estate brokerage activity, watch the compensation source.
Common Mistakes to Avoid
- -Importing another state requirement into Delaware
- -Confusing NMLS baseline requirements with Delaware-specific rules
- -Treating operational assumptions as legal authority
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