A Delaware seller signs a listing agreement and accepts an offer on her home. Before closing, she discovers that the buyer's agent never provided a written agency disclosure at their first substantive contact, as required by 24 Del. C. § 2973. The buyer's agent claims that the disclosure was given verbally at the initial meeting. Which of the following is the most accurate statement about the consequences of this omission under Delaware law?
Correct Answer
B) The buyer's agent has violated Delaware license law and may be subject to disciplinary action by DREC, but the purchase agreement itself remains enforceable
Under 24 Del. C. § 2973, the agency disclosure must be made in writing at or before first substantive contact. A verbal disclosure does not satisfy this statutory requirement. However, the failure to provide a written agency disclosure is a violation of the licensee's duties under Delaware license law — subject to disciplinary action by DREC — but it does not automatically void the underlying purchase agreement between the buyer and seller. The contract's validity is governed by contract law principles, and the licensee's regulatory violation is a separate matter addressed through the licensing disciplinary process.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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