Delaware Code Title 24 Sec. 2938 – Consumer information statement; confidentiality
(a) The Commission shall establish by rule and regulation a consumer information statement (“CIS”). The Commission may provide alternative consumer information statements for residential properties, properties that do not contain any residential units, commercial transactions, property management, or other brokerage situations as the Commission deems appropriate. At a minimum, the form shall provide a summary of what a licensee is permitted or prohibited from doing as provided by §§ 2935 and 2936 of this title. The CIS shall explain the circumstances when the consumer may hire the licensee as a common law agent, but that this would require other detailed disclosures of conflicts of interests and could involve significant potential legal liability and financial risk for the consumer.
Terms Used In Delaware Code Title 24 Sec. 2938
- 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
- Brokerage organization: means that individual or business entity which is not licensed but is acting as a broker under § 2901(c) of this title and is the trade name under which the broker operates. See Delaware Code Title 24 Sec. 2902
- CIS: means the disclosure form required by § 2938 of this title. 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.
- Customer: means a member of the general public working with a licensee as a potential buyer, seller, exchangor, exchangee, tenant, or landlord of real property or is consulting with a licensee in 1 of these capacities for the purpose of entering into a brokerage agreement or transaction, but who has not yet entered into a statutory or common law agency relationship with a licensee. See Delaware Code Title 24 Sec. 2902
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- 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
(b) The consumer information statement required by this chapter shall be delivered to the consumer no later than the earlier of:
(1) The first scheduled appointment;
(2) The first showing of a property; or
(3) Making an offer;
unless the consumer has already been given the CIS by another licensee. A listing licensee who knows that the buyer is working with another licensee is not required to give that buyer a CIS. A licensee working with a buyer who knows that the seller is working with another licensee is not required to give a CIS to that seller. The CIS must be signed by the customer or client prior to signing an agreement of sale, listing agreement or any other brokerage agreement, unless otherwise exempt from providing a CIS.
(c) The CIS shall be available to the consumer at open houses, but does not need to be personally presented by the licensee unless the consumer asks for more than factual information about the property or expresses interest in making an offer on the property during the open house.
(d) The duties of confidentiality as required by § 2936(c) of this title begin upon the first contact between a licensee and the customer. The other statutory duties between a licensee and client as required by this subchapter begin upon the earlier of:
(1) The first scheduled appointment;
(2) The first showing of a property;
(3) Making an offer; or
(4) Otherwise working for the client;
unless a CIS is signed indicating there is no agency relationship. For transactions exempt from providing the CIS, the duties of the agent commence when the parties form an agency relationship.
(e) Nonrenewable leases of 120 days or less are exempt from the requirement to provide the CIS to the potential tenant; provided, however, that the duties of confidentiality required by § 2936(c) of this title and the rest of this chapter still apply to those leases. The broker may still choose to provide the CIS as a matter of brokerage organization policy.
(f) Transactions of properties other than those marketed as:
(1) One-to-4 family residential properties; or
(2) Single lot sales of land intended for a 1-to-4 family residence;
are exempt from the requirement to provide the CIS to the potential parties; however the balance of this chapter shall still apply unless specifically exempted. In lieu of providing a CIS, the agreement of sale or lease shall include the following language after the confirmation of the agency relationships:
“The parties acknowledge that they have certain rights and responsibilities under Delaware agency law (Title 24 of the Delaware Code, Chapter 29) and may consult with their legal counsel.”
(g) For rental of residential property not otherwise exempt from the requirement to provide the CIS, the CIS shall be given to the potential tenant no later than the earlier of:
(1) The first scheduled appointment;
(2) The first showing of a property; or
(3) Making an offer,
but does not need to be signed until the potential tenant decides to complete a rental application or the signing of a lease.
75 Del. Laws, c. 277, § ?6; 76 Del. Laws, c. 258, §§ ?3, 4, 10; 78 Del. Laws, c. 166, § ?1;