Free Hawaii Real Estate Practice Exam

Q1.The most important thing a listing agent can ask a buyer's agent when reviewing a financed offer is:

• A.Whether the buyer has a pre-qualification, pre-approval, or loan commitment — and from what type of lender
• B.Whether the buyer has made offers before
• C.Whether the buyer's agent will reduce their commission
• D.Whether the buyer will waive the inspection contingency

Q2.Under Hawaii's Residential Landlord-Tenant Code (HRS Chapter 521), a landlord uses a licensed broker to manage a residential rental unit. The tenant vacates and the landlord claims the security deposit for alleged unpaid rent and cleaning costs. Under HRS Chapter 521, within what period must the landlord or the landlord's property manager provide the tenant with a written itemized statement of deductions and return any remaining deposit balance?

• A.Within 14 days after the tenant surrenders the premises.
• B.Within 45 days after the tenant surrenders the premises.
• C.Within 30 days after the tenant surrenders the premises.
• D.Within 60 days after the landlord discovers the damage.

Q3.In the eviction process, which federal constitutional protection must landlords ensure they do not violate when seeking to remove tenants for lease violations?

• A.Fourteenth Amendment due process requirements
• B.First Amendment right to free speech
• C.Fourth Amendment protection against unreasonable searches
• D.Eighth Amendment protection against cruel and unusual punishment

Q4.A buyer in Hawaii is concerned about whether the seller can deliver 'marketable title' at closing. Which of the following BEST describes marketable title in the Hawaii context?

• A.Title that is completely free of any easements, covenants, or deed restrictions of any kind
• B.Title that is reasonably free from doubt and that a prudent buyer would accept without fear of litigation
• C.Title that has been insured by a Hawaii-licensed title insurance company for at least one year
• D.Title that has been registered in the Land Court for a minimum of five years

Q5.A tenant's lease expires on December 31st, but they continue to occupy the premises and the landlord accepts rent for January. What type of tenancy has been created?

• A.Tenancy for years
• B.Tenancy at will
• C.Tenancy by sufferance
• D.Periodic tenancy

Q6.A property in Hawaii is located in an area known to have elevated levels of naturally occurring volcanic emissions (known locally as 'vog') and may be subject to lava flow hazard zone designations by the Hawaii County Lava Flow Hazard Zone maps. How should a listing salesperson handle this information when preparing to market the property?

• A.The salesperson need not disclose lava flow hazard zone information because buyers are responsible for conducting their own due diligence on geological conditions
• B.The salesperson should disclose the lava flow hazard zone designation and relevant environmental conditions as material facts affecting the value and desirability of the property
• C.Disclosure of lava hazard zone information is only required if the property is located in Lava Hazard Zone 1 and not in any other zone
• D.The salesperson should disclose vog concerns verbally only and is not required to include environmental hazard information in the Seller's Real Property Disclosure Statement

Q7.A Hawaii residential leasehold property has a lease with only 15 years remaining. Compared to a fee simple property of similar market value, a buyer should expect which of the following when seeking financing?

• A.Lenders will generally require that the lease term extend well beyond the loan maturity date, making financing more difficult to obtain.
• B.Leasehold properties in Hawaii are treated identically to fee simple properties for mortgage underwriting purposes.
• C.No lender may legally finance a leasehold property in Hawaii under any circumstances.
• D.The buyer may convert the leasehold to fee simple automatically upon loan approval under the Leasehold Reform Act.

Q8.In Hawaii, a buyer purchases a condominium unit and receives a fee simple interest in the unit itself along with an undivided interest in the common elements. Which Hawaii statute primarily governs the creation and operation of this type of ownership?

• A.Hawaii Revised Statutes Chapter 514B
• B.Hawaii Revised Statutes Chapter 501
• C.Hawaii Revised Statutes Chapter 516
• D.Hawaii Revised Statutes Chapter 502

Q9.Under the Truth-in-Lending Act (TILA), lenders must disclose which key information to borrowers?

• A.Property tax amounts only
• B.Neighborhood crime statistics
• C.Previous owners' payment history
• D.Annual Percentage Rate (APR) and finance charges

Q10.Hawaii's conveyance tax is collected before a deed can be recorded. Which agency or office collects the conveyance tax and certifies that it has been paid?

• A.The county real property tax office where the property is located
• B.The Hawaii Department of Taxation
• C.The Bureau of Conveyances within the Department of Land and Natural Resources
• D.The Hawaii Real Estate Commission

Q11.Which of the following is the primary purpose of zoning ordinances?

• A.To generate revenue for local government
• B.To determine property tax assessments
• C.To regulate and control the use of land within a municipality
• D.To establish building construction standards

Q12.A Hawaii listing salesperson learns from neighbors that a property's basement has flooded repeatedly during heavy rains, but the seller has not disclosed this on the HRS Chapter 508D statement. Under HRS Chapter 467 and Chapter 508D, what is the salesperson's BEST course of action?

• A.Remain silent, because the seller's disclosure statement is the seller's legal responsibility alone
• B.Disclose the flooding information to prospective buyers as a material fact and advise the seller to amend the disclosure statement
• C.Disclose only to the buyer's agent but not directly to any buyer, to preserve client confidentiality
• D.Wait until the buyer's home inspection uncovers the defect before raising the issue

Q13.A Hawaii buyer's agent is working with a customer—not a client—who is purchasing a property listed by another brokerage. Under Hawaii Real Estate Commission rules governing agency duties, which of the following duties does the buyer's agent owe to this customer?

• A.Full fiduciary duties identical to those owed to a represented buyer-client, including undivided loyalty and confidentiality
• B.Honest and fair dealing and disclosure of all material facts known to the licensee that affect the value or desirability of the property
• C.No duties whatsoever, because the licensee represents only the seller in a co-brokerage transaction
• D.A duty of confidentiality regarding the seller's asking price and negotiating position

Q14.Under the Fair Housing Act, which of the following actions by a real estate licensee would constitute illegal discrimination?

• A.Requiring all applicants to meet the same income qualifications
• B.Showing only properties within a client's stated price range
• C.Refusing to show properties in certain neighborhoods based on a client's race
• D.Requiring a security deposit from all tenants

Q15.A Hawaii property management agreement must be in writing and signed by the property owner in order to be enforceable. This requirement is MOST directly supported by which legal principle applicable in Hawaii?

• A.The Hawaii Condominium Property Regime Act (HRS Chapter 514B)
• B.The Statute of Frauds as applied in Hawaii, requiring real estate agency agreements to be in writing
• C.The Hawaii Consumer Protection Act (HRS Chapter 480)
• D.The federal Fair Housing Act