State of Hawaii Exam Questions With 100% Correct Answers 2024

Tina is negotiating a lease in Hawaii. For which transaction is agency disclosure required? a.)A lease of any length and value b.)A lease that's longer than one year c.)A lease that's six months or longer d.)A lease with a total lease fee of $50,000 or more - ANSb.)A lease that's longer than one year Sean transferred ownership of his Big Island farm to his son. His son agreed to continue farming the property until/unless the land use classification or zoning changed OR until Sean's grandson was old enough to decide if he wanted to keep the property. Which of these statements must be true? a.)This is a covenant that runs with the land. b.)This is a covenant that will be enforced by the Land Use Commission. c.)This is a deed restriction that can only be removed by court action. d.)This is a personal restrictive covenant because it impacts only Sean's son and grandson. - ANSd.)This is a personal restrictive covenant because it impacts only Sean's son and grandson. In Hawaii, both parties have to sign the agreement to demonstrate _____. a.)That an attorney has reviewed the contract. b.)That their agents have agreed to the terms and conditions. c.)That the very first offer was accepted. d.)That they understand the terms. - ANSd.)That they understand the terms. Sandy Cove Real Estate is applying for it's brokerage firm real estate license. The principal broker submits proof of registration with the Business Registration Division. Which of these must be true? a.)Sandy Cove is restoring a forfeited license. b.)Sandy Cove is submitting it's first brokerage firm renewal application. c.)The firm is applying for it's first license under the business name Sandy Cove Real Estate. d.)The firm is renewing it's biennial brokerage firm license. - ANSc.)The firm is applying for it's first license under the business name Sandy Cove Real Estate. Under a Hawaii agreement of sale, which fee will only be paid once? a.)Conveyance tax b.)Origination fee c.)Property tax d.)Recording fees - ANSa.)Conveyance tax Which of these policies best represents an appropriate level of supervision by a principal broker in Hawaii? a.)Becca reviews every contract generated by the licensees in her firm. b.)Jarod enforces strict rules for how his associated licensees may generate leads. c.)Teresa audits the financial records of each of her associated licensees. d.)Willis requires that each of his associated licenses provide a complete transcript of every transaction-related telephone call. - ANSa.)Becca reviews every contract generated by the licensees in her firm. Which of these statements about fair housing laws in Hawaii is true? a.)Hawaii fair housing laws apply only to residential real estate. b.)Hawaii fair housing laws pertain to those who engage in real estate transactions as a vocation, not to property owners. c.)Hawaii names additional protected classes beyond those protected by federal fair housing laws. d.)HIREC is responsible for hearing fair housing complaints. - ANSc.)Hawaii names additional protected classes beyond those protected by federal fair housing laws.(The Hawaii Civil Rights Commission has jurisdiction over discrimination cases, which may be brought against anyone who discriminates in any real property transaction.) Pacific Properties has been in business since 1997 and is renewing its brokerage firm license. Which of these is true? a.)Pacific Properties must submit a certificate of good standing from the Business Registration Division. b.)Pacific Properties needs only to submit the renewal application fee. c.)The firm must register each of its branch offices on all islands. d.)The firm's principal broker must appear before the HIREC. - ANSa.)Pacific Properties must submit a certificate of good standing from the Business Registration Division. Which of these is a general outcome of zoning laws? a.)To control land use in support of land use laws b.)To enforce shoreline setbacks c.)To limit an area's growth and development d.)To permit a government to exercise its right to escheat - ANSa.)To control land use in support of land use laws (Zoning laws, building codes and ordinances, and community planning are all part of a governing body's police power. These laws are designed to support overall land use plans.) Joe possesses a valid certificate for the use of medical marijuana, so he smokes it in his apartment occasionally to manage his severe back pain. Can his landlord prohibit this marijuana use? a.)No, because Joe is legally permitted to use medical marijuana. b.)No, because marijuana use is illegal on the federal level. c.)Yes, if the lease contains a no-smoking policy. d.)Yes, if the lease prohibits the use of drugs on the property. - ANSc.)Yes, if the lease contains a no-smoking policy. Max signed a month-to-month lease agreement for $950 a month and paid the maximum permitted security deposit. He then decided he didn't want to move into the apartment. Based on Hawaii law, can Pima, the landlord, withhold Max's security deposit? a.)No, because Max didn't move into the unit. b.)No, unless the lease agreement specifically permits it. c.)Yes, because Max breached the rental agreement. d.)Yes, unless Pima is able to re-rent the property within the month. - ANSd.)Yes, unless Pima is able to re-rent the property within the month. (If Pima is able to re-rent the property within the month, Max only owes a prorated amount of rent.) In Hawaii, what's the prelicensing education requirement for salespeople? a.)100 hours b.)40 hours c.)60 hours d.)80 hours - ANSc.)60 hours Roberta, an out-of-state licensee who is friends with Kinsey, a licensee with Perfectly at Home, referred one of her buyer friends to Kinsey. Kinsey plans to pay Roberta, who did not engage in any of the negotiations, a referral fee. Which statement about this fee is TRUE? a.)It's illegal for Kinsey to pay an out-of-state licensee a referral fee. b.)Kinsey must pay the fee directly to Roberta since Roberta is an out-of-state licensee. c.)Kinsey must pay the referral fee through Roberta's brokerage firm. d.)Since Roberta didn't participate in negotiations, she can't receive a referral fee. - ANSc.)Kinsey must pay the referral fee through Roberta's brokerage firm. Which of the following properties in Hawaii would be taxed at the highest rate? a.)A residential property assessed at $2.3 million b.)A residential property assessed at $895,000 c.)A resort commercial property assessed at $1.3 million d.)It's impossible to tell from the information provided - ANSc.)A resort commercial property assessed at $1.3 million (Resort commercial properties are assessed at a higher rate than residential properties, so the resort commercial property would be taxed at the highest rate) Which of these would be considered a usurious interest rate on a mortgage loan in Hawaii? a.)10% b.)12% c.)24% d.)None of these - ANSd.)None of these (In general, mortgage loans aren't subject to Hawaii usury laws.) With three months to go on her $1,200-per-month fixed-term lease, Miranda moved out of her unit without notifying her landlord. The landlord discovers her absence when he goes to collect August's rent. It takes him one month to re-rent the unit at $1,300 a month. How much rent does Miranda owe him? a.)$1,000 (the rent due for August less $200 for the additional rent the new tenant will pay) b.)$1,200 (August's rent) c.)$3,200 (the amount owed under the rental agreement less the additional $100 per month amount for the new renter) d.)$3,600 (the full amount due under her rental agreement) - ANSb.)$1,200 (August's rent) Which of these statements about the Hawaii Real Estate Commission is NOT correct? a.)Commissioners are paid a stipend. b.)Commission terms are four years. c.)The commission is made up of nine members. d.)The governor appoints commission members. - ANSa.)Commissioners are paid a stipend. (The governor appoints and the state senate confirms the nine commission members. Each member serves a four-year, uncompensated term.) Which of the following describes a government police power? a.)Exercising the right of eminent domain b.)Exercising the right of escheat c.)Implementing zoning ordinances and building codes to protect citizens d.)Levying property taxes to support infrastructure - ANSc.)Implementing zoning ordinances and building codes to protect citizens (Police power is the government's right to protect citizens through creating and enforcing various controls, including zoning, building, and environmental regulations.) A borrower in Hawaii defaulted on their home loan. The lender foreclosed on the property and sought additional legal action to collect remaining debt that was owed. What type of loan did the borrower have? a.)Judicial loan b.)Non-judicial loan c.)Nonrecourse loan d.)Recourse loan - ANSd.)Recourse loan (With recourse loans, the debtor is personally liable for the debt. This means that if the borrower defaults, the lender can take the collateral (the home) and pursue the borrower for remaining debts. In some cases, this may include levying accounts or garnishing wages to collect what's owed. Hawaii is a recourse state.) Tristan believes that his real estate agent discriminated against him based on gender identity when he was trying to purchase a small manufacturing facility. Which of these statements about Hawaii discrimination laws is correct? a.)Gender identity isn't a protected class, so Tristan has no grounds for a complaint. b.)Tristan can file a complaint with HUD because gender identity is protected under federal law. c.)Tristan can file a complaint with the Hawaii Civil Rights Commission because gender identity is protected under state law. d.)Tristan can't file a complaint because the discriminatory action was related to a commercial property transaction. - ANSc.)Tristan can file a complaint with the Hawaii Civil Rights Commission because gender identity is protected under state law. A person who's eligible for the homeowner's property tax exemption is purchasing a property owned by another individual on the island of Oahu for $500,000. How much conveyance tax must be paid and by whom? a.)$5,000 must be paid by the seller. b.)$500 must be paid by the buyer. c.)$500 must be paid by the seller. d.)$750 must be paid by the seller. - ANSc.)$500 must be paid by the seller. When is Hawaii's conveyance tax payable? a.)30 days after deed recording b.)Upon recording of the deed c.)When an offer to buy is accepted d.)When the inspection report is complete - ANSb.)Upon recording of the deed Mariah is in year 23 of a 55-year leasehold interest in her Hawaii property. She wants to move out of state. Which of these is true? a.)Her landlord must buy her out of her ownership interest. b.)Her landlord must convert the property to fee simple ownership. c.)She may sell her leasehold interest, and the lease term resets to the original number of years. d.)She may sell her leasehold interest subject to the years remaining on her lease. - ANSd.)She may sell her leasehold interest subject to the years remaining on her lease. A brokerage firm's principal broker was involved in an auto accident and will be absent from the firm for at least two months. How does this impact the firm? a.)A temporary PB must be appointed within 30 days of the injured PB's absence. b.)The broker-in-charge automatically becomes the temporary PB. c.)The firm can continue to operate as usual. d.)The firm's license will be placed on involuntary inactive status as soon as the principal broker's absence is discovered. - ANSa.)A temporary PB must be appointed within 30 days of the injured PB's absence. (If a principal broker is to be absent for more than 30 days, a temporary PB must be appointed; if this appointment doesn't occur, HIREC will place the firm's license on involuntary inactive status.) The contract didn't specify any deadlines, so Lance didn't think there was a problem with his waiting to apply for a loan to help purchase the property. He was therefore a little surprised and not very happy when the seller sued him for breach of contract, stating that the delay was impacting the seller's ability to purchase a new home. What did Lance fail to do? a.)Complete his loan application correctly. b.)Notify the seller that he had a loan contingency. c.)Perform his contractual obligations within a reasonable time. d.)Talk to the seller about the seller's contingency to sell his house in order to buy another property. - ANSc.)Perform his contractual obligations within a reasonable time. What must you have to apply as a real estate salesperson in Hawaii? a.)A 90% or better on prelicensing education exams b.)A bachelor's degree c.)A principal broker to provide supervision d.)A six-month reserve of operating funds - ANSc.)A principal broker to provide supervision What does Hawaii de minimis encroachment law protect? a.)Native Hawaiians' rights to preserve historical encroachments on private property. b.)Private property owners' rights to leave encroachments under a specific distance in place on neighboring property. c.)The state's right to acquire encroached-upon property through eminent domain. d.)The state's right to prohibit encroachments on state land. - ANSb.)Private property owners' rights to leave encroachments under a specific distance in place on neighboring property. (Recognizing that older land measurement techniques were less accurate than today's standards, the de minimis encroachment law permits encroachments within defined limits if they're discovered after a more accurate survey.) Makani's 18-month, fixed-term lease expired on May 31, but he continues to live in the property with his landlord's permission. Which of these statements is true? a.)Makani and the landlord are now operating under a month-to-month tenancy. b.)Makani is an illegal holdover tenant since there's no rental agreement in place. c.)Makani is subject to immediate eviction if the landlord chooses to do so. Makani can also legally terminate his occupancy with no notice. d.)Since the landlord gave Makani permission to remain, Makani now has another fixed-term lease under the same terms as the previous lease. - ANSa.)Makani and the landlord are now operating under a month-to-month tenancy. The Hawaii Uniform Probate Code of 1977 replaced dower and curtesy with which of these protections? a.)Elective share b.)Homestead laws c.)Inheritance laws d.)Probate - ANSa.)Elective share (A surviving spouse may take an elective share of the decedent's augmented estate, the amount of which ranges from 3% to 50% of the estate, depending on the length of the marriage.) Which of these property descriptions is most likely to appear in a Hawaii purchase contract? a.) CPR23 b.)Commencing at the intersection of Routes