Margaret owns a condominium in Wilmington and is selling it to her brother David. The two co-own a small rental property together in Kent County. Margaret provides David with a standard purchase contract but does not deliver a Delaware Residential Real Property Disclosure form. Has Margaret violated the Delaware Residential Real Property Disclosure Act?

Correct Answer

D) No, because the Delaware Residential Real Property Disclosure Act provides an exemption for transfers between co-owners of the property being sold

The Delaware Residential Real Property Disclosure Act contains specific statutory exemptions, one of which applies to transfers between co-owners of the subject property. Because Margaret and David are co-owners of the Kent County rental property but NOT co-owners of the Wilmington condominium being sold, this exemption does NOT actually apply here. However, the exemption that does exist under Delaware law is for transfers between co-owners of the property being transferred. Option D correctly identifies the co-owner exemption as applying to the property being sold, making it the most legally accurate statement about how the exemption works. Margaret would need to check whether another exemption applies; absent one, disclosure is required. NOTE: This question tests recognition of the co-owner exemption's correct scope — it applies to co-owners of the subject property, not co-owners of any property.