Contracts
Seven items, more than the salesperson exam allocates, under four subtopics: timing, contingencies, validity and provisions. Half the answers are in the statute of frauds and the conduct rule, and half in the chapter-specific cancellation rights.
Validity: what has to be in writing
HRS 656-1 bars an action rather than voiding the agreement: no action may be brought or maintained unless the promise, or a memorandum of it, 'is in writing, and is signed by the party to be charged'. Paragraph (4) covers any contract for the sale of land or an interest in it, and paragraph (6) covers any agreement employing an agent or broker to buy or sell real estate for compensation or commission, which is why an oral listing supports no commission suit. HAR 16-99-3(f) reinforces the point from the licensing side: the licensee must see that financial obligations and commitments are in writing, express the exact agreement, set out the essential terms, and are placed in the hands of all parties at the time of execution.
Provisions the rules require, and changes they forbid
HAR 16-99-3(t): 'An exclusive listing shall state a definite termination date.' No rule caps the term at any number of days; the requirement is a date. HAR 16-99-3(u) forbids a licensee to add to or modify the terms of an instrument previously signed or initialed by a party without the written consent of all the parties, so a change to an executed contract belongs in an addendum or counter offer. HAR 16-99-3(j) governs movement: all written offers go immediately to the listing broker and immediately from the listing broker to the seller, any further formal written offer received before acceptance 'shall be immediately transmitted to the owner for decision', and a rejection must be noted on the document and a copy returned immediately to the originator.
Timing: the cancellation and rescission clocks
Four different windows appear in Hawaii transactions and candidates are expected to keep them apart. A purchaser buying from a condominium developer may cancel up to midnight of the thirtieth day after signing and delivery of the public report and the prescribed cancellation notice (HRS 514B-86). Either party to a time share purchase may cancel within seven calendar days (HRS 514E-8). A buyer of residential property has fifteen calendar days from receipt of the seller's disclosure statement (HRS 508D-5(b)), and a further fifteen calendar days from discovering an omitted or inaccurate material fact that directly, substantially and adversely affects value, but not once the sale has been recorded (HRS 508D-6).
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State-specific details
State exam facts
- State regulator
- Hawaii Real Estate Commission (DCCA)
- Exam vendor
- PSI
- Scored questions
- 125
- Time limit
- 240 minutes
Who regulates real estate brokers in Hawaii?
The Hawaii Real Estate Commission, within the Department of Commerce and Consumer Affairs (DCCA), licenses brokers and salespersons. The Commission contracts with PSI to deliver the exams.
What experience do I need before the Hawaii broker exam?
Broker applicants must have been a Hawaii-licensed salesperson associated with a Hawaii-licensed broker for at least three of the five years immediately before applying, and must obtain an approved Broker Experience Certificate before registering for the exam — otherwise the exam score is invalidated.
How is the Hawaii broker exam structured?
The Hawaii broker exam has about 125 questions in a uniform (general) portion and a Hawaii-specific portion, delivered by PSI over 4 hours. Confirm the current passing score for the broker exam with the Commission.
Sources: https://cca.hawaii.gov/reb/real_ed/real_ed-exam_lic/, https://cca.hawaii.gov/reb/16-99-19-2-experience-certificate-application/
In the Hawaii Real Estate Broker guide: A 60-question national practice exam, with a key that explains all four options and not just the right one. Practice here stays free.