Hawaii Real Estate Broker Exam — All Questions

Under Hawaii's mandatory seller disclosure law (HRS Chapter 508D), the seller of residential real property must give the buyer a written disclosure statement:

• a.Only at closing, together with the deed
• b.Covering all material facts known to the seller, generally provided before the buyer's rescission period ends✓
• c.Only if the buyer is using a Hawaii-licensed broker
• d.Only for leasehold properties

HRS Chapter 508D requires the seller to provide a written disclosure statement covering material facts about the residential property that are within the seller's knowledge and could affect value or desirability. The statute gives the buyer a period to review the disclosure and, in some circumstances, to rescind. A broker must make sure the disclosure is completed and delivered on time to avoid misrepresentation liability.

A supervising Hawaii broker learns that a licensee failed to disclose a known material defect to a buyer. The broker's best course of action is to:

• a.Ignore it because only the seller is responsible for disclosures
• b.Instruct the licensee to conceal the defect to protect the sale
• c.Wait until after closing and then notify the buyer
• d.Ensure the material fact is disclosed to the buyer promptly and document the correction✓

Both the seller and the licensee have duties regarding material facts, and the supervising broker is responsible for the conduct of affiliated licensees. Known material defects must be disclosed; concealment exposes the licensee and the broker to discipline and civil liability. Prompt correction and documentation protect the consumer and the firm.

Hawaii requires a specific written agency disclosure so that consumers understand who a licensee represents. This disclosure should be provided:

• a.At or before the first substantive contact, before confidential information is exchanged✓
• b.Only after an offer has been accepted
• c.Within 30 days after closing
• d.Only when the client asks for it in writing

Hawaii requires licensees to disclose agency relationships in writing so buyers and sellers understand whether the licensee represents the seller, the buyer, or is acting as a dual agent. The disclosure must be made early, before confidential negotiating information is shared, so consumers can make an informed choice about representation.