State guide

Buying or Selling a Home in Delaware: What You Need to Know

Delaware is an attorney-state with the highest statewide realty transfer tax in the country — 4% of the purchase price, typically split 2%/2% between buyer and seller at closing.

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TL;DR

Delaware is an attorney-state with the highest statewide realty transfer tax in the country — 4% of the purchase price, typically split 2%/2% between buyer and seller at closing. Sellers must complete a Real Property Condition Report covering radon, lead paint, flood, well water, and other known issues before a buyer is bound to a contract. Following the 2024 NAR settlement, buyers must sign a written representation agreement before touring any home, and buyer-agent compensation can no longer be posted in the MLS.

10 things every Delaware buyer or seller should know

  • Delaware is an attorney-state: a Delaware-licensed attorney must prepare the deed and oversee title transfer at closing. Title companies can issue title insurance and run settlement, but the deed itself is the practice of law.

  • Delaware's realty transfer tax is 4% of the purchase price — the highest statewide rate in the United States — split 2.5% to the state and 1.5% to the county or municipality, and by contract custom shared 2% buyer / 2% seller at settlement.

  • Sellers of residential property in Delaware must complete and deliver the Seller's Disclosure of Real Property Condition Report under 6 Del. C. §2570 before a buyer is bound by a purchase contract; late delivery gives the buyer a defined right to rescind.

  • At first substantive contact, Delaware agents must hand the consumer a Consumer Information Statement that explains seller agency, buyer agency, dual agency, and designated agency — before any discussion of price or property strategy.

  • Under the NAR settlement rules effective August 17, 2024, a buyer in Delaware must sign a written buyer-representation agreement before touring any home — including unlisted properties — that spells out the agent's services, the fee, and the fact that compensation is negotiable.

  • Following the August 17, 2024 NAR settlement, MLS participants in Delaware may not publish offers of buyer-agent compensation in MLS fields; any seller contribution toward a buyer's agent fee must be negotiated into the purchase contract outside the MLS.

  • The Delaware Fair Housing Act protects four classes beyond federal law — sexual orientation, gender identity, source of income, and age — so agents cannot steer buyers, refuse to show homes, or decline to present offers on those grounds.

  • Delaware's seller disclosure form under 6 Del. C. §2570 requires sellers to disclose known radon test results, lead-based paint hazards in homes built before 1978, and any FEMA flood zone designation or flood insurance requirement.

  • Many Sussex County beach properties — including in Rehoboth, Dewey, Bethany, and Fenwick Island — sit in FEMA AE or VE flood zones, requiring National Flood Insurance and, in VE zones, elevation engineered for wave action.

  • Homes served by a private well in Delaware must have a potable water quality test from a state-certified lab through DNREC's Well Water Testing Program before closing, covering bacteria, nitrates, and other contaminants set by state regulation.

The guides

Common questions

Do I need a real estate attorney to buy or sell a home in Delaware?
Yes. Delaware is an attorney-state, so a Delaware-licensed attorney must prepare the deed and handle title transfer at closing. Title companies can issue title insurance and run settlement logistics, but the deed itself is the practice of law and an attorney must be involved. Many buyers and sellers each retain their own attorney, though a single neutral closing attorney is also common.
What is Delaware's realty transfer tax and who pays it?
Delaware charges a 4% realty transfer tax — the highest statewide rate in the country — composed of 2.5% to the state and 1.5% to the county or municipality. By standard contract custom, buyer and seller split it 2% / 2%, though the contract can allocate it differently. The tax is collected at settlement and must be paid before the deed can be recorded.
What does Delaware's seller disclosure form cover?
The Seller's Disclosure of Real Property Condition Report under 6 Del. C. §2570 covers structural components, roof, basement, plumbing, electrical, HVAC, water source, sewage, and known environmental conditions like radon, lead-based paint, underground tanks, and flood history. You must complete it honestly and deliver it before the buyer is bound by a contract. Late delivery gives the buyer a defined right to rescind.
Do I have to sign a buyer-agent agreement before touring homes in Delaware?
Yes — under the NAR practice changes effective August 17, 2024, a written buyer-representation agreement must be in place before any home tour, including unlisted properties. The agreement spells out the agent's services, the compensation amount or rate, and that compensation is negotiable and not set by any association. You can still negotiate the fee or shop other agents before signing.
Why can't I see the buyer-agent commission in the Delaware MLS anymore?
As of August 17, 2024, MLS systems can no longer publish offers of compensation to a buyer's agent — this is the NAR settlement rule that applies nationwide. A seller who wants to contribute toward the buyer's agent fee can still do so, but only as a seller concession negotiated into the purchase contract. Ask your agent how the seller is handling that on any home you're considering.
Are flood risks a real concern when buying in Delaware?
Yes, especially in Sussex County beach towns like Rehoboth, Dewey, Bethany, and Fenwick Island, where many homes sit in FEMA AE or VE flood zones. VE zones face wave action and carry the highest National Flood Insurance premiums, plus elevation requirements for new construction. Pull the FEMA flood map for any coastal property and budget for insurance — lenders will require it in mapped high-risk zones.
Can the same agent represent both me and the other side in a Delaware deal?
Yes, but only with written informed consent from both parties before the dual-agency relationship begins — not retroactively. Standard practice is to authorize potential dual agency up front in the listing or buyer-representation agreement, so it's not a surprise mid-transaction. A dual agent can't favor either side, which means giving up the undivided advocacy you'd get from an agent who only represents you.
I'm selling a Delaware condo — what extra paperwork do I need?
Delaware's Uniform Common Interest Ownership Act requires you to obtain and deliver a resale certificate from the association before closing. The certificate shows the current monthly assessment, any unpaid fees on the unit, the budget and reserve fund status, pending special assessments, and copies of the declaration, bylaws, and recent meeting minutes. Order it early — associations can take a couple of weeks to produce it.
Does Delaware protect more groups than federal fair-housing law?
Yes. The Delaware Fair Housing Act adds four protected classes beyond the federal list: sexual orientation, gender identity, source of income (so an agent can't refuse to work with you because you use a housing voucher), and age beyond familial status. Agents cannot steer, refuse to show homes, or decline to present offers on any of those grounds. Both state and federal protected classes apply in every Delaware transaction.
If my Delaware home has a private well, do I have to test the water before selling?
Yes — the Delaware Well Water Testing Program through DNREC requires a potable water quality test from a state-certified lab within a defined window before closing on any home served by a private well. The test covers bacteria (coliform and E. coli), nitrates, and other contaminants set by state rules. Who pays is negotiable in the contract, and results above action levels usually trigger treatment or price negotiation.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.