Key Takeaways
- Delaware salespersons must work under a broker who is responsible for supervising all their real estate activities
- Associate brokers are licensed brokers who choose to work under another broker rather than independently
- Brokers must maintain supervision and are responsible for the conduct of affiliated licensees
- Delaware requires brokers to maintain a definite place of business
- Branch offices must be registered with the Commission
Delaware License Types and Broker Supervision
Delaware recognizes several types of real estate licenses, each with specific requirements and authorities.
License Types
Individual Licenses
| License Type | Authority | Supervision Required |
|---|---|---|
| Salesperson | Must work under broker | Yes - by employing broker |
| Associate Broker | Broker working under another broker | Yes - by employing broker |
| Broker | Can operate independently | No - supervises others |
Salesperson
A salesperson is licensed to perform real estate activities but must work under a licensed broker. Salespersons cannot:
- Operate independently
- Receive compensation directly from clients
- Supervise other licensees
- Maintain their own escrow accounts
All commissions must be paid through the employing broker.
Associate Broker
An associate broker holds a broker license but chooses to work under another broker. They:
- Have broker qualifications
- Work under supervision like a salesperson
- May have additional responsibilities as delegated by the employing broker
Broker
A broker can operate independently and supervise salespersons and associate brokers. Brokers may:
- Operate their own real estate company
- Supervise affiliated licensees
- Collect and distribute commissions
- Maintain escrow accounts
- Operate branch offices
Broker Supervision Requirements
Delaware law places significant responsibility on brokers to supervise their affiliated licensees.
Written Policies
Brokers must maintain written policies and procedures covering:
- Supervision of all licensed activities
- Escrow fund handling procedures
- Advertising guidelines
- Transaction review processes
- Document retention
Broker Responsibility
The broker is responsible for:
- Acts of affiliated licensees within scope of employment
- Proper handling of escrow funds
- Ensuring proper disclosures are made
- Maintaining accurate records
- Ensuring compliance with Delaware law
Key Point: The broker can be disciplined for acts of affiliated licensees even if the broker was unaware, if the acts resulted from inadequate supervision.
Definite Place of Business
Delaware requires each broker to maintain a definite place of business:
| Requirement | Detail |
|---|---|
| Physical Location | Must have a definite street address |
| Signage | Broker's name prominently displayed |
| Accessibility | Reasonably accessible to the public |
| Records | Must maintain required records at office |
Branch Offices
Brokers operating from multiple locations must:
- Register each branch with the Commission
- Designate supervision for each location
- Display signage at each branch
- Maintain records appropriately
License Transfer Between Brokers
When a salesperson changes employing brokers:
- Terminating broker notifies Commission
- New broker submits transfer documentation
- Salesperson cannot practice between termination and transfer
- License remains valid during transfer process
Compensation Rules
In Delaware:
- Salespersons receive compensation only from their employing broker
- No direct payment from clients to salespersons
- Referral fees only to properly licensed persons
- All compensation flows through licensed channels
Who can a Delaware salesperson receive compensation from?
What is required when a Delaware broker operates multiple office locations?