Hawaii Real Estate Salesperson Licensing
Exam Practice Questions And Correct
Answers (Ver
1. Under HRS §467-14, which action by a Hawaii real estate salesperson would
constitute unlicensed activity?
A. Negotiating a lease for a commercial property under a broker's supervision
B. Independently listing a residential property without a broker's affiliation
C. Providing a comparative market analysis to a prospective seller
D. Assisting a buyer in obtaining financing pre-approval
Answer: B. Independently listing a residential property without a broker's affiliation
Rationale: Hawaii law requires salespersons to work under a licensed broker; independent
listing without broker affiliation is unlicensed activity. Options A, C, and D are permissible
under supervision or as ancillary services.
2. A broker agrees to represent a seller but also shows the property to a buyer with
whom the broker has a buyer-agency agreement. What is this dual agency called in
Hawaii, and what is required?
A. Dual agency; written consent from both parties is required
B. Limited representation; verbal disclosure is sufficient
C. Transaction brokerage; no consent needed if disclosed
D. Subagency; automatic consent implied by law
Answer: A. Dual agency; written consent from both parties is required
Rationale: Hawaii recognizes dual agency when a broker represents both buyer and seller;
HRS §467-14 requires written consent from both parties after full disclosure. Limited
representation and transaction brokerage are not statutory terms in Hawaii.
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,3. A Hawaii property is sold for $1,200,000. The commission is 6% split 50/50 between
listing and buyer's brokers. The listing salesperson receives 40% of the listing broker's
share. What is the salesperson's commission?
A. $14,400
B. $28,800
C. $36,000
D. $72,000
Answer: A. $14,400
Rationale: Total commission = $1,200,000 × 0.06 = $72,000. Listing broker's share =
$36,000. Salesperson's share = $36,000 × 0.40 = $14,400. Option B is 40% of total
commission; C is listing broker's share; D is total commission.
4. Which Hawaii land use district allows for the most intensive urban development
and is administered by the Hawaii Community Development Authority in specific
areas?
A. Conservation District
B. Agricultural District
C. Urban District
D. Rural District
Answer: C. Urban District
Rationale: The Urban District is designated for urban development and is managed by the
Land Use Commission, with HCDA overseeing special areas like Kakaako. Conservation,
Agricultural, and Rural districts have stricter development limits.
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,5. A buyer obtains a 30-year fixed-rate mortgage for $800,000 at 6% annual interest.
What is the monthly principal and interest payment using the amortization formula?
(Use factor: 0.006 per $1,000 borrowed)
A. $4,800
B. $5,200
C. $4,400
D. $5,600
Answer: A. $4,800
Rationale: Monthly payment = ($800,000 / $1,000) × $6.00 = 800 × $6 = $4,800. The
factor 0.006 per $1,000 means $6 per $1,000. Other options miscalculate the factor or
principal.
6. Under the Hawaii Residential Landlord-Tenant Code, what is the maximum
security deposit a landlord may collect for a residential unit?
A. One month's rent
B. One and a half month's rent
C. Two month's rent
D. No statutory limit
Answer: A. One month's rent
Rationale: HRS §521-44 limits security deposits to one month's rent for residential units.
Options B and C exceed the statutory cap; D is incorrect as the law imposes a limit.
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, 7. Which appraisal principle holds that a property's value is influenced by the value of
surrounding properties, and is critical in Hawaii's heterogeneous neighborhoods?
A. Principle of substitution
B. Principle of conformity
C. Principle of contribution
D. Principle of anticipation
Answer: B. Principle of conformity
Rationale: The principle of conformity states that value is maximized when properties
conform to neighborhood standards. Substitution relates to buyer alternatives; contribution
measures a component's value; anticipation considers future benefits.
8. A Hawaii salesperson fails to disclose a known material defect in a property. Under
HRS §467-14, what is the likely consequence?
A. License revocation and possible fine
B. Verbal warning only
C. Mandatory arbitration with no penalty
D. No consequence if the buyer did not ask
Answer: A. License revocation and possible fine
Rationale: HRS §467-14 mandates disclosure of material defects; failure can result in
license revocation, suspension, or fines. Options B, C, and D understate the legal
consequences.
Page 4 of 86
Exam Practice Questions And Correct
Answers (Ver
1. Under HRS §467-14, which action by a Hawaii real estate salesperson would
constitute unlicensed activity?
A. Negotiating a lease for a commercial property under a broker's supervision
B. Independently listing a residential property without a broker's affiliation
C. Providing a comparative market analysis to a prospective seller
D. Assisting a buyer in obtaining financing pre-approval
Answer: B. Independently listing a residential property without a broker's affiliation
Rationale: Hawaii law requires salespersons to work under a licensed broker; independent
listing without broker affiliation is unlicensed activity. Options A, C, and D are permissible
under supervision or as ancillary services.
2. A broker agrees to represent a seller but also shows the property to a buyer with
whom the broker has a buyer-agency agreement. What is this dual agency called in
Hawaii, and what is required?
A. Dual agency; written consent from both parties is required
B. Limited representation; verbal disclosure is sufficient
C. Transaction brokerage; no consent needed if disclosed
D. Subagency; automatic consent implied by law
Answer: A. Dual agency; written consent from both parties is required
Rationale: Hawaii recognizes dual agency when a broker represents both buyer and seller;
HRS §467-14 requires written consent from both parties after full disclosure. Limited
representation and transaction brokerage are not statutory terms in Hawaii.
Page 1 of 86
,3. A Hawaii property is sold for $1,200,000. The commission is 6% split 50/50 between
listing and buyer's brokers. The listing salesperson receives 40% of the listing broker's
share. What is the salesperson's commission?
A. $14,400
B. $28,800
C. $36,000
D. $72,000
Answer: A. $14,400
Rationale: Total commission = $1,200,000 × 0.06 = $72,000. Listing broker's share =
$36,000. Salesperson's share = $36,000 × 0.40 = $14,400. Option B is 40% of total
commission; C is listing broker's share; D is total commission.
4. Which Hawaii land use district allows for the most intensive urban development
and is administered by the Hawaii Community Development Authority in specific
areas?
A. Conservation District
B. Agricultural District
C. Urban District
D. Rural District
Answer: C. Urban District
Rationale: The Urban District is designated for urban development and is managed by the
Land Use Commission, with HCDA overseeing special areas like Kakaako. Conservation,
Agricultural, and Rural districts have stricter development limits.
Page 2 of 86
,5. A buyer obtains a 30-year fixed-rate mortgage for $800,000 at 6% annual interest.
What is the monthly principal and interest payment using the amortization formula?
(Use factor: 0.006 per $1,000 borrowed)
A. $4,800
B. $5,200
C. $4,400
D. $5,600
Answer: A. $4,800
Rationale: Monthly payment = ($800,000 / $1,000) × $6.00 = 800 × $6 = $4,800. The
factor 0.006 per $1,000 means $6 per $1,000. Other options miscalculate the factor or
principal.
6. Under the Hawaii Residential Landlord-Tenant Code, what is the maximum
security deposit a landlord may collect for a residential unit?
A. One month's rent
B. One and a half month's rent
C. Two month's rent
D. No statutory limit
Answer: A. One month's rent
Rationale: HRS §521-44 limits security deposits to one month's rent for residential units.
Options B and C exceed the statutory cap; D is incorrect as the law imposes a limit.
Page 3 of 86
, 7. Which appraisal principle holds that a property's value is influenced by the value of
surrounding properties, and is critical in Hawaii's heterogeneous neighborhoods?
A. Principle of substitution
B. Principle of conformity
C. Principle of contribution
D. Principle of anticipation
Answer: B. Principle of conformity
Rationale: The principle of conformity states that value is maximized when properties
conform to neighborhood standards. Substitution relates to buyer alternatives; contribution
measures a component's value; anticipation considers future benefits.
8. A Hawaii salesperson fails to disclose a known material defect in a property. Under
HRS §467-14, what is the likely consequence?
A. License revocation and possible fine
B. Verbal warning only
C. Mandatory arbitration with no penalty
D. No consequence if the buyer did not ask
Answer: A. License revocation and possible fine
Rationale: HRS §467-14 mandates disclosure of material defects; failure can result in
license revocation, suspension, or fines. Options B, C, and D understate the legal
consequences.
Page 4 of 86
