Free Hawaii Real Estate Practice Exam

Q1.At a real estate closing, a seller who has already paid the full year's property taxes would receive what type of closing adjustment from the buyer?

• A.A debit, because the seller owes the buyer money
• B.A credit, because the buyer must reimburse the seller for taxes covering the buyer's period of ownership
• C.No adjustment is necessary for prepaid taxes
• D.A credit to the buyer for the seller's overpayment

Q2.Under federal fair housing laws, which of the following fiduciary duties could potentially conflict with an agent's obligation to avoid discriminatory practices?

• A.Confidentiality of client information
• B.Loyalty to the client's interests
• C.Reasonable care and skill
• D.Accounting for funds received

Q3.A comparable home sold for $200,000. It has a feature worth $5,000 that the subject property lacks. Using the sales comparison approach, what is the adjusted sale price of the comparable?

• A.$195,000
• B.$205,000
• C.$200,000
• D.$210,000

Q4.Under 42 U.S.C. § 3604(c), a licensee posts a listing that reads "Perfect for a young Christian family." What is the violation?

• A.No violation — preferences in advertising are protected commercial speech
• B.Steering only
• C.Discriminatory advertising — § 3604(c) prohibits any statement that indicates preference based on a protected class (here: religion AND familial status)
• D.Violation only if a complaint is filed by a member of the affected class

Q5.Under Hawaii Revised Statutes §467-1.6, which of the following activities requires a real estate license in Hawaii?

• A.A property manager who collects rent and negotiates lease terms on behalf of another person for compensation
• B.An attorney acting in the performance of their duties as an attorney
• C.A property owner who sells their own property without the assistance of a broker
• D.A trustee selling property under a court order

Q6.A real estate licensee is helping a buyer purchase a home in a neighborhood that has historically been predominantly one racial group. The licensee steers the buyer away from viewing homes in a neighboring area because the licensee assumes the buyer would be uncomfortable there based on the buyer's race. This practice is known as:

• A.Redlining
• B.Blockbusting
• C.Steering
• D.Commingling

Q7.A landlord refuses to rent to a family with children under 18 years old. This practice violates which provision of the Fair Housing Act?

• A.Familial status discrimination
• B.Disability discrimination
• C.Age discrimination
• D.Sex discrimination

Q8.Under the federal Fair Housing Act, which of the following property owners is most likely EXEMPT from the Act's prohibitions against discrimination in the sale of residential housing?

• A.A real estate broker selling a 20-unit apartment complex
• B.An owner of three single-family homes who uses a real estate agent to sell one of them
• C.An owner of one single-family home who sells it without using a broker or agent and does not engage in discriminatory advertising
• D.A housing developer selling newly constructed condominiums

Q9.Under the Fair Housing Act, a landlord who owns a 10-unit apartment building and personally manages it WITHOUT a real estate broker wishes to refuse to rent to families with children. Which statement CORRECTLY describes the legal situation?

• A.The landlord is exempt from the Fair Housing Act's familial status protections because the building has fewer than 15 units
• B.The landlord may refuse families with children only if the building qualifies as housing for older persons under 42 U.S.C. § 3607
• C.The landlord is fully exempt from the Fair Housing Act because the building has fewer than five units and the landlord personally manages it without a broker
• D.The landlord may refuse families with children because familial status is not a federally protected class under the Fair Housing Act

Q10.A real estate agent shows properties only in certain neighborhoods to Hispanic families, claiming it's to help them find homes "where they'll be more comfortable." This practice violates the Fair Housing Act and is known as:

• A.Redlining
• B.Blockbusting
• C.Panic selling
• D.Steering

Q11.A real estate agent publishes an advertisement for a home that states, 'Perfect for Christian families — located near churches and ideal for a wholesome lifestyle.' Under the Fair Housing Act, this advertisement is:

• A.Permissible because it simply describes the neighborhood amenities
• B.Permissible because freedom of speech protects advertising language
• C.Illegal because it expresses a preference based on religion, a protected class
• D.Illegal only if the seller is a licensed real estate professional

Q12.Under RESPA, when must a lender provide the Loan Estimate to a borrower applying for a federally related mortgage loan?

• A.Within 24 hours of receiving the loan application
• B.At the time of loan application
• C.Within 7 calendar days of receiving the loan application
• D.Within 3 business days of receiving the loan application

Q13.Under HRS Chapter 508D, which of the following properties is EXEMPT from the mandatory seller disclosure requirements?

• A.A single-family home sold through a conventional real estate transaction to an owner-occupant
• B.A transfer of residential real property by a trustee in bankruptcy
• C.A residential condominium unit sold with the assistance of a licensed real estate salesperson
• D.A single-family home sold by its owner without the assistance of a licensee

Q14.An agent calls homeowners in a neighborhood warning that 'people from another group are moving in and your property values will drop — sell now.' This practice is called:

• A.Legitimate market advisory — agents must warn clients of demographic trends
• B.Blockbusting — a Fair Housing Act violation that uses fear of demographic change to induce sales
• C.Redlining — the practice of denying services to residents of specific areas
• D.Puffery — exaggerated statements not actionable under fair housing law

Q15.A property generates $24,000 in annual gross rental income. If the gross rent multiplier (GRM) for the area is 10, what is the estimated value of the property?

• A.$240,000
• B.$24,000
• C.$2,400
• D.$120,000