Hawaii Real Estate License Law
Hawaii real estate practice is governed by HRS Chapter 467 and administered by the Hawaii Real Estate Commission within the Department of Commerce and Consumer Affairs. This chapter covers the Commission's authority, the principal-broker and broker-in-charge structure, and the Real Estate Recovery Fund.
The Hawaii Real Estate Commission
The Hawaii Real Estate Commission licenses and regulates real estate brokers and salespersons under HRS Chapter 467, operating within the Department of Commerce and Consumer Affairs (Professional and Vocational Licensing). A license is required for anyone who, for compensation, lists, sells, leases, or negotiates real estate for others unless a statutory exemption applies. The Commission adopts rules, investigates complaints, and may deny, suspend, or revoke a license and impose penalties.
Principal Broker and Broker-in-Charge
Each Hawaii brokerage firm must have a principal broker who is responsible for the firm's real estate operations, and each branch office must have a broker-in-charge who supervises the licensed activity conducted there. A salesperson works under and is supervised by a broker, and licensed activity is conducted for that brokerage. Compensation must be paid through the employing broker; a salesperson may not accept a fee directly from a buyer, seller, or another licensee.
The Real Estate Recovery Fund
Hawaii maintains a Real Estate Recovery Fund that may reimburse a member of the public who obtains a final court judgment against a licensee for an actual loss caused by fraud, misrepresentation, deceit, or conversion of trust funds in a licensed transaction and cannot otherwise collect, subject to statutory limits. When the fund pays a claim, the licensee's license is suspended until the fund is repaid. The fund protects consumers but is not an insurance program.