Hawaii Real Estate Salesperson Exam — All Questions
21 questions
Real estate salespersons in Hawaii are licensed and regulated by:
- a.The Hawaii Housing Finance and Development Corporation
- b.The Hawaii Association of Realtors
- c.The Hawaii Land Court
- d.The Hawaii Real Estate Commission, within the Department of Commerce and Consumer Affairs✓
The Hawaii Real Estate Commission licenses and disciplines brokers and salespersons under HRS Chapter 467, operating within the Department of Commerce and Consumer Affairs (Professional and Vocational Licensing). A trade association is a private membership group and has no licensing authority.
In Hawaii, the licensee responsible for supervising the licensed activity conducted at a brokerage branch office is the:
- a.Designated agent
- b.Broker-in-charge✓
- c.Salesperson of record
- d.Commission investigator
Each Hawaii brokerage must have a principal broker responsible for the firm, and each branch office must have a broker-in-charge who supervises the licensed activity at that location. Salespersons work under and are supervised by a broker at the brokerage.
The Hawaii Real Estate Recovery Fund is used primarily to:
- a.Pay the Commission's operating budget
- b.Reimburse a consumer for an actual loss from certain fraudulent acts of a licensee when a judgment cannot be collected✓
- c.Provide down-payment assistance to buyers
- d.Insure the value of homes sold through licensed brokers
The Recovery Fund may reimburse a member of the public who obtains a final judgment against a licensee for an actual loss from fraud, misrepresentation, deceit, or conversion of trust funds and cannot otherwise collect, subject to statutory limits. When the fund pays, the licensee's license is suspended until the fund is repaid. It is not an insurance or assistance program.
A Hawaii salesperson may accept compensation for brokerage services from:
- a.The buyer directly at closing
- b.The Recovery Fund
- c.The broker with whom the salesperson is licensed✓
- d.Any cooperating salesperson
A Hawaii salesperson is paid only through the broker who holds the salesperson's license and supervises the licensed activity. A salesperson may not accept a fee or commission directly from a buyer, seller, or another licensee.
Before renewing a Hawaii real estate licence, the licensee must show continuing education completed during the preceding two-year period of at least:
- a.Ten hours
- b.Fifteen hours
- c.Twenty hours✓
- d.Thirty hours
Prior to renewal, a real estate broker or salesperson must provide the commission with proof of having attended at least twenty hours of continuing education, or its equivalent as determined by the commission, during the two-year period preceding the application for renewal. Cite: Haw. Rev. Stat. Sec. 467-11.5(a).
A Hawaii licensee who has not satisfied the continuing education requirement by the licence expiration date will find that the renewed licence is:
- a.Automatically placed on inactive status✓
- b.Forfeited, requiring a new original application
- c.Suspended until the commission holds a hearing
- d.Issued on probation for the balance of the biennium
Failure to satisfy the continuing education requirement by the licence expiration date results in the renewed licence being automatically placed on inactive status; to reactivate it the licensee submits proof of the continuing education, a complete application, and the proper fee. Cite: Haw. Rev. Stat. Sec. 467-11.5(a), (b).
The Hawaii real estate recovery fund may pay an aggrieved person, per transaction, damages of not more than:
- a.Fifteen thousand dollars
- b.Twenty-five thousand dollars✓
- c.Fifty thousand dollars
- d.One hundred thousand dollars
A person aggrieved by fraud, misrepresentation or deceit of a licensee may recover from the fund an amount of not more than $25,000 per transaction for damages sustained, including court costs and fees set by law and reasonable attorney fees as determined by the court. Cite: Haw. Rev. Stat. Sec. 467-16(a).
Regardless of the number of claims, the total liability of the Hawaii real estate recovery fund for any one licensee is limited to:
- a.Twenty-five thousand dollars
- b.Thirty-five thousand dollars
- c.Fifty thousand dollars✓
- d.Seventy-five thousand dollars
Notwithstanding any other provision, the liability of the real estate recovery fund shall not exceed $50,000 for any one licensee. Cite: Haw. Rev. Stat. Sec. 467-24.
If a Hawaii licensee fails to pay a special assessment to the real estate recovery fund within sixty days of assessment, the consequence is:
- a.A fine of one thousand dollars per month of delay
- b.Referral of the debt to the attorney general for collection
- c.A ninety-day suspension
- d.Forfeiture of the licence✓
If the fund balance is less than $350,000 the department assesses every licensee an additional payment, and failure to pay the assessment within sixty days from the date of assessment constitutes a forfeiture of the licence. Cite: Haw. Rev. Stat. Sec. 467-17.
An action for a judgment that may later result in collection from the Hawaii real estate recovery fund must be started no later than:
- a.Two years from the accrual of the cause of action✓
- b.Three years from the accrual of the cause of action
- c.Six years from the accrual of the cause of action
- d.One year from the date the licence was revoked
No action for a judgment that subsequently results in an order for collection from the real estate recovery fund shall be started later than two years from the accrual of the cause of action, and the aggrieved person must notify the commission in writing when the action is commenced. Cite: Haw. Rev. Stat. Sec. 467-18(a).
A person whose Hawaii real estate broker's licence was revoked and who later becomes eligible to be licensed again must apply:
- a.As a real estate broker, after repaying the recovery fund
- b.As a real estate salesperson✓
- c.Only after a rehearing
- d.For a conditional broker's licence limited by the commission
A person whose licence has been revoked or automatically terminated may apply as a new applicant after the revocation or termination period and any required repayment to the recovery fund. Any person previously licensed as a real estate broker shall apply as a real estate salesperson. Cite: Haw. Rev. Stat. Sec. 467-15.5.
The fine for a person who violates Hawaii's real estate licensing chapter is not more than:
- a.One thousand dollars for each violation
- b.Two thousand five hundred dollars for each violation
- c.Five thousand dollars for each violation✓
- d.Ten thousand dollars for each violation
Any person violating chapter 467 shall be fined not more than $5,000 for each violation. Cite: Haw. Rev. Stat. Sec. 467-26.
Which duty does Hawaii law place squarely on the principal broker of a brokerage firm?
- a.Personally signing every listing the firm accepts
- b.Attending each closing conducted by the firm
- c.Reviewing every advertisement the firm publishes before it appears
- d.Maintaining a training programme for all associated licensees✓
The principal broker has direct management and supervision of the firm and is responsible for the client trust accounts and accounting practices, the firm's records and contracts, written policies and procedures, ensuring licences are current and active, and establishing and maintaining a training programme for all associated licensees. Cite: Haw. Rev. Stat. Sec. 467-1.6(a), (b).
A Hawaii principal broker may delegate management and supervision duties to one or more brokers in charge, provided that:
- a.The delegation is subject to the principal broker's written policies and procedures✓
- b.The commission approves each delegation in advance and in writing on its form
- c.The brokers in charge each hold a separate brokerage firm licence
- d.No more than one broker in charge serves at any one location
The principal broker may delegate management and supervision duties to one or more brokers in charge subject to the principal broker's written policies and procedures, and remains responsible for the education, enforcement and records required of those policies. Cite: Haw. Rev. Stat. Sec. 467-1.6(c).
Which activity is expressly excepted from Hawaii's real estate broker and salesperson licensing requirement?
- a.Selling time share interests for a developer
- b.Managing, renting, or operating a hotel✓
- c.Negotiating a commercial lease for a fee
- d.Selling a neighbour's home for a flat fee
The licensing requirement does not apply to an owner or a person acting under a power of attorney within limits, a receiver, trustee or personal representative, a custodian or caretaker who leases or rents the property, any person who manages, rents or operates a hotel, or a provider agency operating a homeless facility. Cite: Haw. Rev. Stat. Sec. 467-2(4).
A corporation may conduct real estate brokerage in Hawaii only if its brokerage business is under the direct management of a principal broker who:
- a.Owns a controlling interest in the corporation's outstanding voting shares
- b.Holds an inactive broker licence in good standing
- c.Is an officer or employee and holds a current active broker's licence✓
- d.Has been licensed in Hawaii for at least ten years
No licence shall be issued to a corporation unless its real estate brokerage business is under the direct management of a principal broker who is an officer or employee of the corporation and holds a current active real estate broker's licence; a partnership requires a general partner or employee in that role. Cite: Haw. Rev. Stat. Sec. 467-8(a)(4), (5).
A Hawaii real estate broker must maintain a definite place of business in the State and must:
- a.Display the broker's licence there✓
- b.Post the commission's roster of licensees there
- c.Keep the office open during normal business hours
- d.File a floor plan of the office with the commission
A licensed broker must have and maintain a definite place of business in the State, display the broker's licence there, and on request make available any associating salesperson's licence. No branch office may operate without a registration previously obtained. Cite: Haw. Rev. Stat. Sec. 467-12.
Under Hawaii's statewide licence rule, a salesperson who resides on an island different from the firm's principal place of business:
- a.May open a satellite office on that island with the principal broker's written consent
- b.Shall not maintain or advertise a place of business other than the principal office✓
- c.Must register that island office as a branch office with the commission
- d.Must transfer to a brokerage firm located on the same island
A firm may associate a salesperson or broker-salesperson who lives on a different island provided the principal broker maintains supervision, the licensee does not maintain or advertise a place of business other than the principal place of business, and advertisements on the other island disclose the firm name and the address and phone number of the principal place of business. Cite: Haw. Admin. R. Sec. 16-99-5.2.
A leasehold property advertised for sale in Hawaii in any medium must be identified by:
- a.The remaining term of the lease
- b.The fee owner
- c.The annual lease rent amount
- d.The word leasehold✓
A leasehold property advertised for sale in any medium shall be identified by the word leasehold. Cite: Haw. Admin. R. Sec. 16-99-11(d).
Hawaii's advertising rule expressly forbids a licensee from advertising property using the phrase:
- a.Priced to sell
- b.Motivated seller
- c.For Sale by Owner✓
- d.Below appraised value
No licensee shall advertise For Sale by Owner, For Rent by Owner, For Lease by Owner, or For Exchange by Owner. Cite: Haw. Admin. R. Sec. 16-99-11(b).
A Hawaii real estate licensee selling his or her own home must disclose licensee status in all advertising:
- a.Whether the licence is active or inactive✓
- b.Only while the licence is on active status
- c.Only if the property is listed with a brokerage firm
- d.Only where the advertisement names a brokerage firm
Current individual real estate licensees, whether active or inactive, shall disclose the licensee's status as a real estate licensee in all advertising and promotional material. Cite: Haw. Admin. R. Sec. 16-99-11(c).