Hawaii Real Estate Salesperson Exam — All Questions

A Hawaii buyer who does not deliver written notice of rescission within the fifteen-day period is deemed to have:

• a.Waived all remedies for undisclosed defects
• b.Rejected the disclosure statement by default
• c.Accepted the disclosure statement✓
• d.Extended the examination period by ten days

Failure to deliver the written notification to the seller within the fifteen-day period shall be deemed an acceptance of the disclosure statement. A rescission made within the period is without loss of deposits, which must be immediately returned to the buyer. Cite: Haw. Rev. Stat. Sec. 508D-5(b).

Hawaii's disclosure statute requires a seller to include material fact information when residential real property lies within any of five designated areas. Those areas include a special flood hazard area, an airport noise exposure area, a military Air Installation Compatible Use Zone, a tsunami inundation area, and:

• a.The sea level rise exposure area✓
• b.A lava hazard zone one or two
• c.An agricultural district under state land use law
• d.A county-designated historic preservation district

The five designated areas are the special flood hazard area, the Federal Aviation Regulation part 150 noise exposure area for a public airport, the Air Installation Compatible Use Zone of a military airport, the anticipated inundation areas on the tsunami inundation maps, and the sea level rise exposure area designated by the Hawaii climate change mitigation and adaptation commission. Cite: Haw. Rev. Stat. Sec. 508D-15(a).

Since November 1, 2023, a Hawaii seller of residential real property lying adjacent to the shoreline must also disclose:

• a.The distance from the dwelling to the certified shoreline
• b.Any shoreline setback variance granted in the last ten years
• c.The projected annual rate of coastal erosion at the site
• d.All permitted and unpermitted erosion control structures on the parcel✓

When residential real property lies adjacent to the shoreline, the seller must disclose all permitted and unpermitted erosion control structures on the parcel, the expiration dates of any permitted structures, any notices of alleged violation associated with the parcel, and any fines for expired permits or unpermitted structures. Cite: Haw. Rev. Stat. Sec. 508D-15(b), as added by Act 231, Session Laws of Hawaii 2023, effective November 1, 2023.

Which sale of Hawaii residential real property is exempt from the mandatory seller disclosure chapter?

• a.A sale by an owner-occupant to an unrelated buyer
• b.A sale by the seller to the seller's child✓
• c.A sale of a leasehold single-family residence
• d.A sale of a condominium unit more than ten years old

The chapter does not apply to a sale to a co-owner; to a spouse, parent, or child of the seller; by devise, descent, or court order; by operation of law such as foreclosure or bankruptcy; by a lessor to a lessee on conversion of leased land to fee simple; certain initial sales of new property under chapter 484; sales accompanied by an unexpired developer's public report; or sales of time share interests. Cite: Haw. Rev. Stat. Sec. 508D-3.

Hawaii's conveyance tax is charged at a higher schedule of rates where the transaction is a sale of a condominium or single family residence and:

• a.The property is held in leasehold rather than fee simple
• b.The buyer is not a resident of the State of Hawaii
• c.The purchaser is ineligible for a county homeowner's exemption✓
• d.The property is sold within one year of its last transfer

The conveyance tax rates run from ten cents per $100 up to one dollar per $100 by value; but for the sale of a condominium or single family residence for which the purchaser is ineligible for a county homeowner's exemption on property tax, the higher schedule of fifteen cents per $100 up to one dollar and twenty-five cents per $100 applies. Cite: Haw. Rev. Stat. Sec. 247-2.