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Practice Of Real EstateLicense LawHARD

The Delaware Real Estate Commission may initiate disciplinary proceedings against a licensee for a variety of grounds under 24 Del. C. Chapter 29. All of the following are recognized grounds for disciplinary action by DREC EXCEPT:

Correct Answer

C) Negotiating a commission rate with a client that is lower than the industry average in the area

Negotiating a commission rate lower than the industry average is NOT a ground for disciplinary action by DREC. Commission rates in Delaware are freely negotiable between brokers and their clients — there is no minimum commission set by law or by DREC. In fact, attempting to enforce a minimum commission rate would constitute price-fixing in violation of federal antitrust law. DREC's disciplinary grounds focus on licensee conduct, ethics, and consumer protection — not on the pricing of services.

Answer Options
A
Commingling client funds with the licensee's personal funds in a trust account
B
Making a material misrepresentation to a buyer regarding the physical condition of a property
C
Negotiating a commission rate with a client that is lower than the industry average in the area
D
Engaging in conduct that demonstrates unworthiness or incompetency to act as a real estate licensee

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Related Topics & Key Terms

Key Terms:

disciplinary_groundsantitrustcommission_ratestrust_accountreverse_question

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