Delaware Code Title 24 Sec. 2932 – Common law of agency
(a) For transactions where the consumer hires a broker as a common law agent, and the broker agrees to become the consumer’s common law agent, the common law of agency applies to the extent it is not inconsistent with applicable provisions of this chapter.
Terms Used In Delaware Code Title 24 Sec. 2932
- agent: means a licensee functioning as a party in an agency relationship created according to subchapter II of this chapter as an independent contractor and not as a fiduciary. See Delaware Code Title 24 Sec. 2902
- Broker: means any individual who holds a broker license from the Commission and who for a compensation or valuable consideration, is self-employed or is employed directly or indirectly by a brokerage organization to sell or offer to sell, or to buy or offer to buy, or to negotiate the purchase, sale, or exchange of real estate, or to lease or rent or offer for rent any real estate, or to negotiate leases or rental agreements thereof or of the improvements thereon for others. See Delaware Code Title 24 Sec. 2902
- Client: means a member of the public who is the principal in the statutory or common law agency relationship. See Delaware Code Title 24 Sec. 2902
- Commission: means the Delaware Real Estate Commission. See Delaware Code Title 24 Sec. 2902
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
- Dual agent: means a salesperson, associate broker, broker and/or brokerage organization which represents both buyer and seller or tenant and landlord as clients in a real estate services transaction. See Delaware Code Title 24 Sec. 2902
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Licensee: means an individual licensed under this chapter as a broker, associate broker or salesperson without implying what legal relationship they have with a customer or client. See Delaware Code Title 24 Sec. 2902
- Person: means an individual, firm, partnership, corporation, association, joint stock company, limited partnership, limited liability company and any other legal entity and includes a legal successor of those entities. See Delaware Code Title 24 Sec. 2902
(b) The duties of a licensee as a common law agent and corresponding liabilities of the client begin and terminate based upon the common law of agency.
(c) Common law agency disclosure. — (1) All licensees in a common law agency relationship must disclose, in writing, whom they represent. This disclosure shall be made to all parties to a transaction who the licensee does not represent but with whom the licensee has substantive contact, such as prospective sellers, lessors, buyers and lessees.
(2) This disclosure referenced in subsection (a) of this section shall be made at the first substantive contact between the licensee and the person the licensee does not represent. A listing broker who is not also the selling Broker and who has no substantive contact with the prospective buyer or lessee, need not make any agency disclosure to the prospective buyer or lessee.
(3) The Commission may adopt rules and regulations to prescribe the form of disclosure to be used by licensees or minimum criteria for the form of disclosure.
(4) Licensees shall not function in the capacity of a common law agent for transactions concerning a 1-to-4 family residential property unless they have established that relationship in writing and the policy of the broker is to represent only the seller or buyer as a single agent for each transaction and never as a dual agent.
68 Del. Laws, c. 166, § ?1; 71 Del. Laws, c. 103, § ?4; 75 Del. Laws, c. 277, §§ ?1, 2, 6; 78 Del. Laws, c. 166, § ?1;