HI State Real Estate Practice Exam QUESTIONS WITH A
100% VERIFIED ANSWERS//////UPDATED VERSION 2025
When does the Hawai'i Good Funds act state that closing
can occur?======When all buyer and lender funds have
cleared and have been deposited (unless the parties
agree otherwise).
How long is a real estate license revoked if a client is
given funds from the Hawaii Real Estate Recovery
fund?======The license of any individual on whose
behalf the Real Estate Recovery Fund reimburses a
consumer will be terminated for a minimum of five years.
The licensee will not be eligible for a license until all
funds have been reimbursed to the fund
What is conveyance tax based on?======Homeowner
exemption status of buyer and sale price of the property.
What form is required in a short sale?======standard
Hawaii property disclosure form
What does a mortgage with a 'Power of Sale' clause
permit?======permits the lender to use a non-judicial
foreclosure process if forced to foreclose on Kindra.
,What is the protocol with military members breaking
their lease for deployment?======A military tenant in a
fixed-term lease may terminate on the last day of the
month following the month in which the landlord was
properly notified if proper notice is presented to the
landlord and deployment will be for more than 90 days.
Hawaii's Land Reform Act of 1974======permitted the
government to require conversion of some leasehold
properties to fee simple properties through eminent
domain proceedings.
What's the purpose of Hawaii's rent trust
fund?======Landlords or tenants may request that rent
be deposited into the trust fund if the court has been
brought into a rent dispute.
pre-FIRM property======built before flood zone
management was in place, so any major renovations will
require that it be brought up to code.
Section S: General Provisions of the HAR Purchase
Contract======stipulates that the purchase contract
constitutes the entire agreement between the
contracting parties and that any prior negotiations or
agreements between the parties are cancelled
,The Professional and Vocational Licensing
Act======prohibits leading others to believe one is
licensed when no active license exists.
Section R of Hawaii's purchase contract======includes a
description of the brokerage's scope of services, including
limitations on providing advice and a recommendation
that contracting parties confer with other experts as
necessary to protect themselves.
What's the purpose of the additional checkboxes in
Section T of the HAR Purchase Contract that identify
parties to the contract as a foreign, non-resident, or
owner occupant?======To identify the status of the
contracting parties to escrow and other responsible
parties so closing withholdings and charges can be made
properly
Hawaii is a _______ theory state======Hawaii is a lien
theory state, which means the mortgage is used to create
a lien against the property.
Purchase Money Mortgage======seller financing
typically used to bridge the gap between the buyer's
available down payment and the institutional loan,
though it can also be used to finance the entire purchase
price.
, How long do contractors have to file a mechanic's
lien?======45 days
Bylaws======Detail owner's rights related to
condominium governance as well as the board's scope of
authority
Suzanne's lender sold her foreclosed home at auction,
receiving less for it than Suzanne owed against it. Her
lender is seeking a deficiency judgment. Which of these
must be true?======Suzanne's lender used a judicial
foreclosure process. Lenders may file for a deficiency
judgment only if they used a judicial foreclosure process.
In which of these situations does a Hawaii licensee have a
disclosable ownership interest in the
property?======Kennedy is representing his LLC in the
purchase of a commercial building. Kennedy is part of the
LCC that's purchasing a commercial building, so he must
disclose this interest to all parties to the transaction.
Which of these is an example of a ground lease in
Hawaii?======A landowner leases undeveloped land to
another party, who then builds on that land. With a
ground lease, the landowner leases the land to the
tenant, who builds on the property. Ground leases are
written for long periods so the tenant can recoup
100% VERIFIED ANSWERS//////UPDATED VERSION 2025
When does the Hawai'i Good Funds act state that closing
can occur?======When all buyer and lender funds have
cleared and have been deposited (unless the parties
agree otherwise).
How long is a real estate license revoked if a client is
given funds from the Hawaii Real Estate Recovery
fund?======The license of any individual on whose
behalf the Real Estate Recovery Fund reimburses a
consumer will be terminated for a minimum of five years.
The licensee will not be eligible for a license until all
funds have been reimbursed to the fund
What is conveyance tax based on?======Homeowner
exemption status of buyer and sale price of the property.
What form is required in a short sale?======standard
Hawaii property disclosure form
What does a mortgage with a 'Power of Sale' clause
permit?======permits the lender to use a non-judicial
foreclosure process if forced to foreclose on Kindra.
,What is the protocol with military members breaking
their lease for deployment?======A military tenant in a
fixed-term lease may terminate on the last day of the
month following the month in which the landlord was
properly notified if proper notice is presented to the
landlord and deployment will be for more than 90 days.
Hawaii's Land Reform Act of 1974======permitted the
government to require conversion of some leasehold
properties to fee simple properties through eminent
domain proceedings.
What's the purpose of Hawaii's rent trust
fund?======Landlords or tenants may request that rent
be deposited into the trust fund if the court has been
brought into a rent dispute.
pre-FIRM property======built before flood zone
management was in place, so any major renovations will
require that it be brought up to code.
Section S: General Provisions of the HAR Purchase
Contract======stipulates that the purchase contract
constitutes the entire agreement between the
contracting parties and that any prior negotiations or
agreements between the parties are cancelled
,The Professional and Vocational Licensing
Act======prohibits leading others to believe one is
licensed when no active license exists.
Section R of Hawaii's purchase contract======includes a
description of the brokerage's scope of services, including
limitations on providing advice and a recommendation
that contracting parties confer with other experts as
necessary to protect themselves.
What's the purpose of the additional checkboxes in
Section T of the HAR Purchase Contract that identify
parties to the contract as a foreign, non-resident, or
owner occupant?======To identify the status of the
contracting parties to escrow and other responsible
parties so closing withholdings and charges can be made
properly
Hawaii is a _______ theory state======Hawaii is a lien
theory state, which means the mortgage is used to create
a lien against the property.
Purchase Money Mortgage======seller financing
typically used to bridge the gap between the buyer's
available down payment and the institutional loan,
though it can also be used to finance the entire purchase
price.
, How long do contractors have to file a mechanic's
lien?======45 days
Bylaws======Detail owner's rights related to
condominium governance as well as the board's scope of
authority
Suzanne's lender sold her foreclosed home at auction,
receiving less for it than Suzanne owed against it. Her
lender is seeking a deficiency judgment. Which of these
must be true?======Suzanne's lender used a judicial
foreclosure process. Lenders may file for a deficiency
judgment only if they used a judicial foreclosure process.
In which of these situations does a Hawaii licensee have a
disclosable ownership interest in the
property?======Kennedy is representing his LLC in the
purchase of a commercial building. Kennedy is part of the
LCC that's purchasing a commercial building, so he must
disclose this interest to all parties to the transaction.
Which of these is an example of a ground lease in
Hawaii?======A landowner leases undeveloped land to
another party, who then builds on that land. With a
ground lease, the landowner leases the land to the
tenant, who builds on the property. Ground leases are
written for long periods so the tenant can recoup
