Hawaii State Practice Exam 2

What happens if a tenant under a lease stays beyond the lease's terms, and the landlord continues to accept rent from that tenant? A month-to-month tenancy is automatically created. The landlord can evict the tenant without notice. The landlord can raise the rent. The tenant is given 30 days to renew their lease and select a different type of tenancy.

A month-to-month tenancy is automatically created. If a tenant under a lease stays beyond the lease's terms, and the landlord continues to accept rent from that tenant, a month-to-month tenancy is automatically created.

In which of these circumstances would a land trust trustee be prohibited from revealing the beneficiary's identity? A neighboring property owner wants to purchase property that's held in a land trust. City officials intend to issue a citation for accumulation of refuse on an Oahu property. Honolulu County is going to lease Kawai's property that's held in a land trust. Norris applied for a building permit on behalf of the trust's beneficiary.

A neighboring property owner wants to purchase property that's held in a land trust. A trustee may reveal the beneficiary's identity under court order, if a property-related violation occurs, if a government agency purchases or leases the property, or if the property becomes subject to a license, land use, or permit application.

The ______ was Hawaii's early land system. Allodial system Alluvial system Feudal system Sovereignty system

Feudal system Under the feudal system, Hawaii commoners worked the land and gave products of their labor to the kings and high chiefs. However, the King retained ownership of all lands, and there was no private ownership.

The Hawaii Real Estate Recovery Fund paid a claim to one of Jarod's clients. Which of these statements is true? Jarod's license will be forfeited until he reimburses the recovery fund. Jarod's license will be terminated for at least five years. Jarod's license will be terminated indefinitely. Jarod's license will be terminated unless he reimburses the fund within 90 days.

Jarod's license will be terminated for at least five years. The license of any individual on whose behalf the Real Estate Recovery Fund reimburses a consumer will be terminated for a minimum of five years. The licensee will not be eligible for a license until all funds have been reimbursed to the fund.

What's one reason that buyers might need additional cash at closing for a short sale? Interest rates are higher for short sale transactions. Mortgage origination fees are higher for short sale transactions. Short sales don't clear liens from the title, so buyers may have to pay debts at closing. Short sales include a commission premium for the listing agent.

Short sales don't clear liens from the title, so buyers may have to pay debts at closing. When a property is sold through a short sale, it hasn't been through the lien-clearing process. In order to take possession of the title, buyers may have to first pay any debts or liens against the title.

In which of these circumstances would the landlord be required to begin repairs within three business days of being notified of the issue? Sparks fly from the kitchen light every time it's turned on. The kitchen sink won't drain. The oven doesn't operate correctly. There's a small plumbing leak under the kitchen sink.

Sparks fly from the kitchen light every time it's turned on. Landlords must begin emergency repairs within three business days. In this case, hopefully more quickly!

Which of these is the most likely scenario for a closing in Hawaii? The buyers and the sellers sign all closing and mortgage loan documents electronically on the closing date. The buyers and the sellers will meet at the closing table with their agents and the escrow officer to sign all closing and mortgage documents. The buyers will sign closing and loan documents before the seller signs. The sellers sign closing documents first, and the buyers later sign closing and mortgage documents.

The sellers sign closing documents first, and the buyers later sign closing and mortgage documents. In a typical Hawaii closing, the seller signs conveyance documents before the closing date; the buyer signs documents a day or two before the closing date. The closing date is the day that all funds have cleared and all documents are signed and recorded.

What special concern do foreclosed properties often present? Buying the property at a discount may have tax implications. The homeowners may or may not have property insurance. The property sale may be subject to additional fees that will be passed to the new buyer. There could be hidden title issues.

There could be hidden title issues. While a foreclosed property may very well be a fixer-upper, typically you should be more concerned with any hidden title issues it may have.

Regarding the need for consent for a Hawaii contract to be valid, which of the following exists when an act of persuasion overcomes another person's free will and judgment? Duress Fraud Innocent misrepresentation Undue influence

Undue influence Undue influence occurs when persuasion overcomes another person's free will and judgment. Duress occurs when a threat is involved.

When is Hawaii's conveyance tax payable? 30 days after deed recording Upon recording of the deed When an offer to buy is accepted When the inspection report is complete

Upon recording of the deed The conveyance tax must be paid upon recording the deed.

Which of these has the highest allowable interest rate under Hawaii's usury laws? A consumer loan from a financial institution A first mortgage A home business loan An undocumented personal loan

A consumer loan from a financial institution Hawaii permits financial institutions to charge up to 24% interest on consumer transactions and home business loans, provided a written agreement is in place.

In Hawaii, which of the following wouldn't need to be disclosed by the listing agent who noticed it when selling a home? A garage added on to the home without a permit A kitchen cabinet that was installed at a slight angle Electrical wiring performed by a non-licensed homeowner Water damage from a recent basement flood

A kitchen cabinet that was installed at a slight angle Hawaii's statutory definition of a material defect is something that can measurably impact the property's value. A kitchen cabinet that was installed at a slight angle is not a material defect.

The assessed value of a property is ______. A percentage of market value and the value to which the tax rate is applied The same thing as list price The same thing as market value The value of property taxes assessed

A percentage of market value and the value to which the tax rate is applied Assessed value is a percentage of market value, and is also the amount of property value to which the tax rate is applied.

Kathryn and Wayne own a timeshare in Hawaii. They want to be able to allow others to use it while they use timeshares in other parts of the country. Which of these individuals will provide the best assistance? Acquisition agent Exchange agent Plan manager Timeshare agent

Exchange agent Exchange agents specialize in facilitating the exchange of timeshare uses.

In Hawaii, the ______ separates public from private land at the shoreline. Buoy marker High wash of the waves Low tide mark Mean high water mark

High wash of the waves In Hawaii, the high water mark is used, which is usually at the debris or natural vegetation line.

Under which of these circumstances can Leilani, the landlord, enter Joanna's Honolulu apartment without providing notice and receiving consent? It appears that a major water leak is emanating from Joanna's unit. Joanna has gone on vacation for two weeks. Leilani has a prospective tenant for the unit after the current tenant's lease expires. The painters have arrived to paint Joanna's unit.

It appears that a major water leak is emanating from Joanna's unit. Landlords can enter a tenant's unit without notice or permission in case of emergency or if the tenant has been absent for more than 20 days without notifying the landlord and without paying rent due.

The judicial foreclosure sale on Morgan's property is scheduled for May 12. By what date must he exercise his equitable right of redemption? May 1 May 12 May 5 May 9

May 9 Borrowers may exercise an equitable right of redemption up until three days before a non-judicial foreclosure sale.

When are Hawaii licensees required to disclose their licensed status to the seller of a property in which the licensee is personally interested in purchasing? Before signing a final purchase contract Prior to any negotiations Prior to closing When first visiting the property

Prior to any negotiations Licensees must disclose their status prior to the start of any negotiations.

How many days does a seller of a leasehold property have to provide the buyer with a disclosure that the property is leasehold and that certain risks accompany its purchase? 10 days after receipt of the purchase contract Five days after receipt of the purchase contract This may be done at closing, or before Three days prior to closing

10 days after receipt of the purchase contract The seller has 10 days to provide the disclosure and must obtain a statement from the buyer acknowledging its receipt. After receipt, the buyer has 10 days to terminate.

What's the minimum age required to qualify for earning a salesperson's license in Hawaii? 16 18 21 25

18 Hawaii potential licensees must be 18 to qualify for a real estate license. The age requirement is the same for brokers, but with the required three years of practical experience, brokers can't get their licenses until they're 21.

The Hawaii Condominium Property Act requires that developers designate which percentage of condo developments to initially be sold to buyers who plan to occupy their units? 20% 40% 50% 60%

50% Developers are required to designate at least 50% of the units to be sold to owner-occupants.

Which of these is an example of leasehold ownership in Hawaii? A landowner allows Kevin to harvest crops on his property. A landowner gives Spectrum, Incorporated, permission to explore the geologic formations on her land. A landowner sells a property to Martin, who will own only the property improvements after the sale closes. A landowner temporarily provides Icarus mineral rights to a property.

A landowner sells a property to Martin, who will own only the property improvements after the sale closes. A leasehold purchase means that the buyer purchases or builds the property improvements subject to a long-term ground lease.

Sissy and her landlord have been having a spat over what the landlord claims is Sissy's failure to maintain her rental unit. Sissy claims the failure is due to the landlord not making necessary repairs. When Sissy got home from work one day, the landlord had changed the locks on her doors. This is an example of what specific type of eviction? Actual eviction A lockout Constructive eviction Legal eviction

A lockout A lockout occurs when a landlord illegally removes or excludes a tenant from the leased property.

Adam purchased the property at 125 Bay Lane. After the deed was recorded at the county courthouse, Adam notified all involved parties of the recordation by a certified letter. What kind of notice is this? Actual notice Constructive notice Express notice Implied notice

Actual notice This is actual notice, because the notice was given to and received by the relevant parties. Had Adam recorded the deed but not informed anyone, this would have been constructive notice.

In Hawaii, which commercial transactions require agency disclosure? All sales, and leases for one year or longer Neither sales nor leases Sales, but not leases Transactions above $1 million in value

All sales, and leases for one year or longer Sales and leases for one year or longer require agency disclosure.

What's a quiet title action? A lien placed against a potential land owner for property purchased by another An action to locate and notify all who may have some claim on the title, and determine the validity of all claims A type of title insurance that reimburses the policyholder if the neighborhood is noisier than normal A way to anonymously purchase property without filing the title or transfer on record

An action to locate and notify all who may have some claim on the title, and determine the validity of all claims A quiet title action involves locating a person who may have some claim on the title and determining the validity of any claims on title.

The Island Hoppers Development Corporation plans to develop a new dining, shopping, and luxury hotel complex within a special management area near Waikiki. It will likely be required to ______. Apply for a county special use permit. Apply for a SMA major use permit. Apply for a SMA minor use permit. Apply for a zoning variance

Apply for a SMA major use permit. SMA major permits are for projects with a substantial adverse impact on the area's environment or ecology or that will contribute significantly to the cumulative impact of area development. SMA minor permits are for projects valued at less than $500,000.

In Hawaii, who's required to take 80 hours of prelicensing education and pass a licensing exam with a score of 75% or higher? Brokers Management level licensees Managing partners Salespeople

Brokers Brokers are required to take 80 hours of prelicensing education and pass the broker's exam with a score of 75% or higher. In addition, they must prove they have worked as an active real estate salesperson for three of the last five years.

Before closing, the ______ should get a home inspection. Buyer Lender Seller Title insurance company

Buyer All buyers should be advised to obtain a professional home inspection to determine the condition of the property.

Clint was looking for alternatives to the traditional vacation condo rental for his family. He purchased the right to use a given set of facilities at any point throughout the year. What did Clint purchase? Campground membership Condo estate Timeshare estate Timeshare use

Campground membership A campground membership gives the purchaser the right to use all of the campground facilities, such as water or electric hookups, restrooms, and recreational facilities, like pools or playgrounds. Members may use the facilities at any time during the year.

Which Hawaii tax is applied when property changes ownership from one person to another? Conveyance tax Income tax Property tax Sales tax

Conveyance tax A conveyance tax is payable when property changes ownership from one person to another.

Cornelius is a licensed broker in Hawaii. He works as an independent contractor. What can he do as an IC that he couldn't do as an employee? Deduct business expenses on his income tax return. Expect the same amount of compensation each month. Ignore his broker's policies and procedures manual. Take advantage of his firm's health insurance coverage.

Deduct business expenses on his income tax return. Independent contractors aren't subject to the same level of oversight as employees but are still required to follow the firm's policies related to license law issues. As an IC, Cornelius can deduct his business expenses on his income tax return.

Which task is NOT the responsibility of an escrow officer? Determine how earnest money is to be distributed in case of a dispute. Manage transaction documents from all parties. Prepare closing documents and manage the closing meeting. Verify funding of the buyer's loan.

Determine how earnest money is to be distributed in case of a dispute. The escrow officer is responsible for distributing the earnest money as outlined by the parties or the courts in case of dispute but doesn't have the authority to determine how it should be distributed.

Which of these statements regarding Ohana dwellings is true? Each county enforces its own Ohana regulations. Ohanas may house only family members. Ohanas may not be sold as separate living units. The state of Hawaii regulates the size and construction of Ohana dwellings.

Each county enforces its own Ohana regulations. Counties set their own regulations related to the construction and use of Ohana dwellings.

Local authorities lack police power over which of the following? Budgeting Federal government construction projects Subdivision development Zoning

Federal government construction projects Local authorities have police power over budgeting, zoning, and subdivision development, but they lack police power over federal government construction projects.

Which of the following actions could be seen as a real estate violation? Hailey ran out of copies of the brokerage engagement form. She drafts a copy on a blank sheet of paper. Igor suggests his clients talk with an attorney about whether purchasing a property as tenants in common is a good idea. Jesse is working with an executor who asks what certain language in a will may mean. Jesse refers the executor to a lawyer for clarification. Kevin's clients ask whether a paper they have is a legal deed. He suggests they contact a lawyer.

Hailey ran out of copies of the brokerage engagement form. She drafts a copy on a blank sheet of paper. Performing services that would be considered practicing law (such as drafting an agreement) are violations.

Carlton signed a contract to build an addition to Tom's Oahu house on March 1. He began work March 15. He completed work on May 21. On May 31, he filed an application for a lien. If approved, what is the date the lien attaches to the property? March 1 March 15 May 21 May 31

March 15 If the court approves a mechanic's lien, the attachment date is the date visible work on the project began.

Hawaii's laws around consent require that Hawaii contracts be signed without undue influence or duress. Which of these situations is an example of duress? Lokelani cries and acts as if she's distraught over her mother's safety to get her mother to move out of the family home. Lono describes to his mother the reasons that her property won't sell for as much as she thinks it should. Maik shows her grandmother information from properties that really aren't comparable to hers to convince her to sell the property at a reduced price. Nalani threatens to expose a family secret if Oke refuses to agree to sell their house.

Nalani threatens to expose a family secret if Oke refuses to agree to sell their house. Undue influence differs from duress because duress includes the use or threat of force, such as blackmail or bodily harm. Undue influence uses persuasion to overcome free will, and usually involves a position of trust.

Mary is 68 years old and employed full time. She's of Spanish descent, is raising her 12-year-old grandson, and lives with her partner, Sue. Mary uses a wheelchair. Based on this information, which of these lists all the classes under which Mary be protected if she faces housing discrimination? Age, employment status, national origin, familial status, and sexual identity Age, race, familial status, sexual identity, and disability National origin, sex, sexual orientation, disability, and familial status Religion, familial status, and disability

National origin, sex, sexual orientation, disability, and familial status Mary would be protected under federal law if she experienced housing discrimination based on her national origin, sex, disability, or familial status. State law also protects her based on sexual orientation.

If a Hawaii company forfeits its real estate license, how long does the company have to restore it before the license is terminated? 30 days 90 days One year Six months

One year If a company forfeits its real estate license and fails to restore it within one year, the license is terminated.

The contract didn't specify any deadlines, so Lance didn't think there was a problem with his waiting to apply for a loan to help purchase the property. He was therefore a little surprised and not very happy when the seller sued him for breach of contract, stating that the delay was impacting the seller's ability to purchase a new home. What did Lance fail to do? Complete his loan application correctly. Notify the seller that he had a loan contingency. Perform his contractual obligations within a reasonable time. Talk to the seller about the seller's contingency to sell his house in order to buy another property.

Perform his contractual obligations within a reasonable time. When a contract doesn't provide specific dates for the terms of the contract that need to be met, performance must take place within a "reasonable time."

______ taxes are a reliable source of income for the state because they are difficult to conceal, their value tends to remain steady, and people tend to pay them. Alcohol Income Property Sales

Property Property values generally remain steady. Because people don't want to risk losing their home, they are highly likely to pay their property taxes. Also, because property taxes are connected to tangible property, they are very difficult to conceal.

The Smiths are being foreclosed on after failing to make their mortgage payments for several months. In addition to the mortgage, they owe back property taxes, association fees, and a mechanic's lien. Which lien takes priority? Homeowners association Mechanic's Mortgage Property tax

Property tax Property tax liens always take priority over any other lien type.

Ele, a property manager in Kapalua, understands that she can only pay for certain items from funds deposited in a trust account. Which of the following is a legal use of funds from the account? Administrative expenses for Ele's office Monthly invoice for building-wide internet service Repair of a damaged wall after the tenant in 3B moves out Weekly salary checks for the maintenance staff

Repair of a damaged wall after the tenant in 3B moves out Trust accounts hold tenant security deposits, which can be used to make repairs if the tenant moves out without leaving the unit in good condition.

Upon reviewing the Hawaii seller's property disclosure, Rhianna decided to cancel her purchase contract with the seller. She notifies the seller in writing within 15 days of receiving the disclosure. Which of the following statements describes Rhianna's earnest money deposit? Rhianna gets the entire deposit back. The seller and Rhianna split the deposit. The seller and seller's agent split the deposit. The seller may retain the deposit.

Rhianna gets the entire deposit back. A buyer who notifies the seller in writing within 15 days of receiving the disclosure is entitled to the return of all deposits paid.

In Hawaii, who's required to take 60 hours of prelicensing education and pass the exam with a score of 70% or higher? Brokers Management level licensees Managing partners Salespeople

Salespeople Salespeople are required to take 60 hours of prelicensing education and pass the exam with a score of 70% or higher. In addition, they must be sponsored by a Hawaii broker.

Hawaii requires licensees to take at least 20 continuing education credits during each licensing biennium. Which of these statements is true? CE credits must be completed by December 31 of each biennial licensing period (even-numbered years). Six of the 20 CE hours must be the commission's designated core course. The 25 required CE credits include 14 elective credits. The licensing biennium runs from January 1 of even-numbered years through December 31 of the next odd-numbered year.

Six of the 20 CE hours must be the commission's designated core course. The 20 required CE credits include 6 hours of core coursework and 14 hours of electives. All CE must be completed by November 30 for each biennial licensing period.

Jacob owns rental property on Maui but lives in Arizona. He must designate an agent to act on his behalf. Which of these statements best describes this requirement? The agent must be a professional property management company. The agent must live in the Hawaiian Islands. The agent must live on Maui. The agent must live within 15 minutes of the property.

The agent must live on Maui. The agent for an absentee owner must live on the same island as the property.

What does it mean when your broker tells you a valid Hawaii contract must be for a legal purpose? The contract is written for a lawful objective. The contract must be presented for attorney consideration. The contract must be written on a legally recognized form. The parties must be mentally capable of entering into a contract.

The contract is written for a lawful objective. Legal purpose means that contracts must be written for a lawful objective. A contract for an illegal purpose is void.

Morris purchased one of the first units in a Maui condominium developer's project. Six months after the project, he's seeking to rescind his purchase contract. Under which of these situations is he likely to be permitted to do this? His condo, which he purchased for $479,000, has lost more than 20% of its value since purchase. Morris has been transferred to Arizona for his job. The developer has eliminated the originally proposed swim-up bar, clubhouse, and weight-room from the development plans. The developer has purchased the area adjacent to the original condominium structure to begin a second phase of development.

The developer has eliminated the originally proposed swim-up bar, clubhouse, and weight-room from the development plans. The Hawaii Condominium Property Act provides for contract rescission if the project materially changes after an owner has purchased a unit.

Joe possesses a valid certificate for the use of medical marijuana, so he smokes it in his apartment occasionally to manage his severe back pain. Can his landlord prohibit this marijuana use? No, because Joe is legally permitted to use medical marijuana. No, because marijuana use is illegal on the federal level. Yes, if the lease contains a no-smoking policy. Yes, if the lease prohibits the use of drugs on the property.

Yes, if the lease contains a no-smoking policy. Landlords can't prohibit tenants who possess a valid certificate for medical marijuana use from using the drug, but they can prohibit them from smoking it if there's a general no-smoking policy.

Which of the following is a possible title issue with a real estate owned transaction? Evictions of existing tenants Foreclosure process delays Internal audit delays Unpaid liens against the title

Internal audit delays Internal audits may cause delays in the title transfer process. REO properties have already been through the foreclosure process, and the bank has therefore likely paid any liens and dealt with any eviction issues.

What levels of real estate licensure does the State of Hawaii recognize? Broker and associate broker Broker and principal broker Salesperson and broker Salesperson, broker, and broker in charge

Salesperson and broker Hawaii law defines two levels of licensing: salesperson and broker.

Shira bought a condominium in a planned unit development. The development has a small playground, tennis and basketball courts, and a putting green. Who owns these recreational facilities? The businesses located in the PUD The condo owners The development investors The PUD developer

The condo owners A condo owned inside a PUD is similar to a condo owned outside a PUD. All common areas are jointly owned and maintained by the condo owners or the HOA.

Which of these scenarios most likely describes who controls the condo association during the early phases of development? The developer controls the association until all units in the project have been sold. The developer or his agent can appoint and remove association board members. The first five purchases form the first condo association board of directors. The REC appoints a board of directors to manage the association.

The developer or his agent can appoint and remove association board members. The declaration may provide an initial period of developer association control, during which the developer may appoint or remove board of directors' members. The declaration and state law dictate the length of the developer's control period.

Under which of these circumstances would developer control over an association board NOT be automatically terminated? The developer has conveyed 80% of the project's common interest. The developer's rights to add new units expired three years ago The developer stopped offering units for sale (all units were sold) a year ago. The first unit sold 250 days ago, and 50% of units have been sold.

The first unit sold 250 days ago, and 50% of units have been sold.

Hawaii fair housing laws require that multi-family properties built after March 13, 1991, meet all but which of these requirements? All common areas must be accessible. All door openings must be wheelchair accessible. All entrances must be accessible. All light switches, outlets, and thermostats must be accessible.

All entrances must be accessible. Regulations require that at least one entrance be accessible unless the terrain or site characteristics make it impossible.

Hawaii state law stipulates how cooperative bylaws can be amended. Which of these statements is true? Amendment requires a majority board of directors' vote. Amendment requires a two-thirds affirmative shareholder vote. Developers must agree to any bylaws amendments. The corporation must approve any bylaws amendments.

Amendment requires a two-thirds affirmative shareholder vote. HRS 421-I requires a two-thirds affirmative shareholder vote in order to amend the cooperative bylaws.

Willis just bought and moved to a condominium unit in Hawaii. He'd love to learn more about how the project is governed and plans to attend the upcoming association board of directors meeting. Which of these statements is true? As association members, all unit owners may attend and participate in any association board meeting that's held in open session. Association board of directors' meetings are held in executive session, so unit owners may not attend. Willis can't attend or participate in the board of directors meeting until he's been a resident for six months. Willis may attend the board of directors' meetings, but unless he's specifically on the meeting agenda, he may not participate in any discussions.

As association members, all unit owners may attend and participate in any association board meeting that's held in open session. All unit owners are association members, and association members may attend and participate in any board of directors' meeting unless the board goes into executive session to discuss a personnel or other confidential issue.

It's January, and the pool at Roger's listing has been prepped for winter for several weeks. The homeowner assures Roger that it's in good working order. Roger has no reason to disbelieve the homeowner, so he tells prospective buyers that the pool is fine. The property sells, spring comes, and the new owners call to complain that the pump doesn't work, and the pool drain appears to be clogged. What did Roger commit? Fraud Negligent misrepresentation Puffery Unintentional misrepresentation

Unintentional misrepresentation Roger took his client's word as the truth and ended up committing unintentional misrepresentation, which isn't fraud—but isn't good!

With three months to go on her $1,200-per-month fixed-term lease, Miranda moved out of her unit without notifying her landlord. The landlord discovers her absence when he goes to collect August's rent. It takes him one month to re-rent the unit at $1,300 a month. How much rent does Miranda owe him? $1,000 (the rent due for August less $200 for the additional rent the new tenant will pay) $1,200 (August's rent) $3,200 (the amount owed under the rental agreement less the additional $100 per month amount for the new renter) $3,600 (the full amount due under her rental agreement)

$1,200 (August's rent) If tenants abandon a property, the landlord may collect the lesser of the entire rent for the remainder of the lease term or the daily rent for the time it takes to re-rent the unit, plus a reasonable commission, plus any difference between the previous rental rate and the current fair rental value.

Luke just purchased a property for $325,000, which was over list price. The Hawaii County assessed property value is $318,000. He's eligible for a $40,000 homeowner exemption and other exemptions of $5,000. His GET for the year was $80. On what amount will his property tax be calculated? $272,920 $273,000 $278,000 $318,000

$273,000 Luke's assessed value will be reduced by the amount of his exemptions. The GET doesn't impact his property taxes. Thus, his property tax will be calculated on $273,000 ($318,000 - $45,000 = $273,000).

SueAnn uses her Hawaii property as a short-term rental. Her latest guests paid $4,200 in rental fees, $250 as a cleaning and maintenance fee, a $441 TAT charge, and a $210 GET, with both TAT and GET invoiced as a separate line item on the bill. What is the gross rental income on which SueAnn will pay the TAT? $4,200 $4,450 $4,891 $5,101

$4,450 Gross rental income includes rental income and the cleaning/maintenance fees charged. Because SueAnn listed both GET and TAT as separate charges on the client's bill, she's not required to pay TAT on those charges.

Prachi bought a Hawaii home that was assessed at $628,000. She paid $592,000, plus the required GET and TAT. She's not eligible for any exemptions. The property tax rate in her county will be applied to what amount? $157,000 $592,000 $628,000 $942,000

$628,000 A county's tax rate is applied to the entire assessed value of a property in Hawaii. GET and TAT don't apply to real estate purchased.

Which of these is the best example of an estate from period to period? After Morgan's one-year lease expired, he continued to lease the property with no defined end date. John's lease terminates automatically and is inheritable. Peggy's lease expired, but she wouldn't leave the apartment. Ricardo's lease has no specified end date and requires reasonable notice to terminate.

After Morgan's one-year lease expired, he continued to lease the property with no defined end date. An estate from period to period (periodic) typically begins with a defined term and then, at the end of the term and with both parties' permission, continues on a periodic basis (e.g., month to month).

At what point may a developer begin selling condominium units? After filing the public report with the REC After the Declaration of Condominium Property Regime is executed After the REC issues an effective date After the site map is finalized

After the REC issues an effective date Building can commence when the REC issues an effective date; the effective date isn't issued until all necessary documentation is in place.

Which of these is a type of seller financing used in Hawaii? Agreement of sale Conforming loan FHA-insured loan Seller co-sign mortgage

Agreement of sale Hawaii uses an agreement of sale for seller-financed loans, typically when the buyer isn't able to obtain a conventional loan.

Alaina runs a gift shop in Hawaii. She doesn't pass the GET on to her customers, and she advertises that purchases made in her shop are GET free. Which of these statements is true? Alaina can advertise that purchases in her shop are tax free as long as she verbally informs customers that she pays the tax herself. Alaina can advertise this since she pays the GET herself. Alaina can advertise this was as long as her gross annual income is less than $50,000. Alaina is breaking the law by advertising that there's no GET tax on purchases in her shop.

Alaina is breaking the law by advertising that there's no GET tax on purchases in her shop. Hawaii law specifically prohibits advertising "No GET" or "No tax."

As an unlicensed assistant for Brock, the principal broker at Hawaii Homes, which of these would Alyssa NOT be able to perform? Calculate commission checks. Clarify simple contract details for a client. Distribute flyers about a neighborhood open house. Photocopy documents for a closing.

Clarify simple contract details for a client. Unlicensed individuals may provide fact-based information about listings only; they may not explain or clarify legal document provisions.

Which of these situations is NOT a violation of Hawaii license law? Claude placed Marvel's home on the MLS but didn't make it public until the listing agreement was on file. Marvin's seller is desperate to sell his home. Marvin can't reach him, and a seller offers $10,000 less than the list price. Marvin verbally agrees to the offer. Nicole placed a brokerage sign in a customer's yard before the listing agreement was signed. Trent placed property flyers in the display box on Rob's yard sign.

Claude placed Marvel's home on the MLS but didn't make it public until the listing agreement was on file. Because licensees can't advertise a property without the owner's permission, Claude acted appropriately in waiting for the signed listing agreement.

What does CAN-SPAM Act stand for? Calling All Numbers Special Prohibition and Marketing Act Controlling and Negating Special Programs and Marketing Act Controlling the Assault of Non-Solicited Pornography and Marketing Act Curbing Actions of Negligent Solicitors, Petitioners, and Marketers Act

Controlling the Assault of Non-Solicited Pornography and Marketing Act CAN-SPAM Act stands for the Controlling the Assault of Non-Solicited Pornography and Marketing Act.

What must a broker applicant do in Hawaii in addition to passing the exam and applying for the license? Have a definite place of business or be employed by another licensed broker Pass the salesperson exam Take 30 post-licensing credit hours Work under the supervision of a broker with 10 or more years of experience

Have a definite place of business or be employed by another licensed broker Brokers must have a definite place of business in Hawaii where their licenses are displayed, or they may be employed by other licensed brokers as broker-salespersons.

Which of these statements most accurately reflects Hawaii laws related to rent payment and increases? Hawaii doesn't regulate rent increases but does mandate tenant notification. Hawaii statutes address rent increase notifications for fixed-term rentals but not for month-to-month rentals. Hawaii statutes don't address rent increases. Hawaii statutes include a rent control provision that limits the percentage by which rents can increase from year to year.

Hawaii doesn't regulate rent increases but does mandate tenant notification. Hawaii statutes don't include rent control, but they do mandate tenant notification of rent increases for all periodic tenancies.

Which of these statements about fair housing laws in Hawaii is true? Hawaii fair housing laws apply only to residential real estate. Hawaii fair housing laws pertain to those who engage in real estate transactions as a vocation, not to property owners. Hawaii names additional protected classes beyond those protected by federal fair housing laws. HIREC is responsible for hearing fair housing complaints.

Hawaii names additional protected classes beyond those protected by federal fair housing laws. The Hawaii Civil Rights Commission has jurisdiction over discrimination cases, which may be brought against anyone who discriminates in any real property transaction.

Conveyance tax rates in Hawaii vary based on the sales price of the property as well as the ________. County in which the property is located Homeowner exemption status of the buyer School district of the property Style of the property

Homeowner exemption status of the buyer Whether or not the buyer qualifies for a homeowner exemption will affect the conveyance tax rate in Hawaii.

Your clients, Yuliana and Moe, are looking to buy a new house to accommodate their growing family of eight. They don't have enough money to put down for the home they'd like to purchase and are thinking about applying for a down payment assistance program. What eligibility requirement they might encounter would you need to inform them of? Age of potential homebuyer Household income threshold Number of minors living in the residence Square footage of new home

Household income threshold When applying for a down payment assistance program, both the buyer and the home must meet eligibility requirements.

Alexandra has a mortgage contingency in his sales contract with the seller. Based on this information, which of the following statements is true? If Alexandra can't meet the terms of the agreement due to the inability to obtain a loan, the agreement is terminated. If Alexandra can't obtain a loan, his broker will loan him the money so that the deal can go through. If Alexandra can't obtain a loan, the agreement is placed on hold until he can find a lender who will lend him the money. If Alexandra can't obtain a loan, the seller is forced to drop the price of the property so Kahuna can afford to purchase the home.

If Alexandra can't meet the terms of the agreement due to the inability to obtain a loan, the agreement is terminated. If a buyer can't meet the terms of the agreement due to the inability to obtain a loan, and a mortgage contingency is in effect, the agreement is terminated unless the buyer can come up with the cash to make the purchase.

In which of these situations does a Hawaii licensee have a disclosable ownership interest in the property? Carson represents both the buyer and the seller in a transactions. Kennedy is representing his LLC in the purchase of a commercial building. Rebecca is listing her neighbor's vacation home. Roger is listing a property that he sold to the current owner eight years ago.

Kennedy is representing his LLC in the purchase of a commercial building. Kennedy is part of the LCC that's purchasing a commercial building, so he must disclose this interest to all parties to the transaction.

Which of these statements best describes the history of Hawaii's land use and control system? Hawaii's early allodial system of land ownership made way for the feudal system that permitted private land ownership. King Kamehameha was the first ruler in Hawaii to recognize the feudal system of land use and control. King Kamehameha was the last in a long line of Hawaiian rulers to rule under the feudal system of land use and control. When the Land Commission was formed in 1845, it immediately began to distribute land to commoners.

King Kamehameha was the last in a long line of Hawaiian rulers to rule under the feudal system of land use and control. King Kamehameha began his rule under the feudal system, but soon charged the Land Commission with distributing land to commoners. The process began in 1850.

Roberta, an out-of-state licensee who is friends with Kinsey, a licensee with Perfectly at Home, referred one of her buyer friends to Kinsey. Kinsey plans to pay Roberta a referral fee. Which statement about this fee is true? It's illegal for Kinsey to pay an out-of-state licensee a referral fee. Kinsey must pay the fee directly to Roberta since Roberta is an out-of-state licensee. Kinsey must pay the referral fee through Roberta's brokerage firm. Since Kinsey is paying (not receiving) the referral fee, there are no disclosure requirements.

Kinsey must pay the referral fee through Roberta's brokerage firm. As long as the payment goes through both brokerage firms, it's legal to pay an out-of-state licensee a referral fee. Kinsey would only need to disclose the compensation if she were receiving the referral fee.

Hawaii statutes specifically prohibit parties to a rental agreement from waiving certain rights that are protected by law. Based on these regulations, which of these rights or prohibitions would either the landlord or the tenant be able to waive? Landlord's prohibition on the tenant's painting of a unit. Landlord's right to collect more than the statutorily allowed security deposit Landlord's right to reasonable property access Tenant's right to proper litigation in the case of a dispute

Landlord's prohibition on the tenant's painting of a unit. As long as the landlord and tenant agree, the parties could agree to waive the landlord's right to prevent the tenant from painting the unit.

Which of these best states the difference between laws and ethics? Ethics are expressed and published in writing; laws are more likely to be abstract. Laws are a set of guidelines; ethics is a set of rules and regulations. Laws are a systematic body of rules; ethics relate to the moral philosophy by which an individual or group functions. Laws are defined by individual, legal, and professional norms; ethics are defined by governments.

Laws are a systematic body of rules; ethics relate to the moral philosophy by which an individual or group functions. Laws are a systematic body of rules governing society; they're typically created and enforced by governmental bodies and expressed in writing.

A "legally competent party" in Hawaii, according to contract law, is a party who has the ______ to enter into a contract. Financial resources Legal and mental capacity Legal background Motivation and means

Legal and mental capacity A legally competent party means that a party has the capacity, legally and mentally, to enter into a contract. This includes, among other requirements, that the person be of majority age.

Land trusts in Hawaii provide which of the following benefits? Classification as public property No taxation Privacy of ownership Trustee anonymity

Privacy of ownership Land trust beneficiaries are afforded a certain amount of anonymity in Hawaii.

How does tenancy differ from leasehold ownership? No notice is required to terminate a tenancy; 60 days' notice is required to terminate a leasehold ownership. Tenancy has a defined end date; leasehold ownership does not. Tenants likely pay a monthly lease payment as well as a mortgage payment on a financed leasehold purchase. Tenants may not make improvements to a property without permission; leasehold owners may.

Tenants may not make improvements to a property without permission; leasehold owners may. A leasehold is an ownership interest in a property; leaseholders "own" the property improvements for an extended period (up to 99 years) and can convey their property interest. Tenants don't have ownership rights.

Barbara is purchasing a residential property in Hawaii. She's had a general property inspection as well as termite and lead-based-paint inspections performed. The inspection uncovered some issues she's concerned about. Which of these is NOT an option available to Barbara? Move forward with the contract without asking for repairs Negotiate with the seller for repair of the items of concern Terminate the contract by calling the seller's agent Terminate the contract in writing before the stated deadline

Terminate the contract by calling the seller's agent If Barbara intends to terminate the contract, she must do so in writing before the deadline stated in the contract. She may also negotiate with the seller for repairs, or she can choose to move forward with the contract.

What provisions does the Professional and Vocational Licensing Act make for real estate license suspension and revocation? The act makes no provisions, instead leaving that to Hawaii license law. The act permits individuals whose license has been revoked to re-apply three years after the revocation. The act prohibits license revocation for any but the most grievous license offenses. The act prohibits license suspension for a period of more than five years.

The act prohibits license suspension for a period of more than five years. The act prohibits license suspension for terms of more than five years and stipulates that an individual whose license has been revoked may not reapply for licensure until after five years from the revocation date.

Why would Hawaii brokers prefer the exclusive right-to-sell agreement? It allows the opportunity to cooperate with other brokers. The broker will receive compensation when the house sells, no matter who finds the buyer. The commission or fee paid is greater. The seller agrees to let only the listing agent show the property.

The broker will receive compensation when the house sells, no matter who finds the buyer. Under the exclusive right-to-sell agreement, the broker is entitled to compensation no matter who sells the property.

Who should review the settlement statement before closing? Only the buyer Only the seller The buyer and the lender's attorney The buyer and the seller

The buyer and the seller The buyer and seller are both responsible for reviewing the settlement statement before closing.

Under which of these circumstances would developer control over an association board NOT be automatically terminated? The developer has conveyed 80% of the project's common interest. The developer's rights to add new units expired three years ago. The developer stopped offering units for sale (all units were sold) a year ago. The first unit sold 250 days ago, and 50% of units have been sold.

The first unit sold 250 days ago, and 50% of units have been sold. Within 180 days of the first unit's sale, assuming at least 40% of all units have been sold, the unit owners become members of the association and elect a board of directors.

Who appoints the members of Hawaii's Land Use Commission? The director of the DLNR The governor The house of representatives The real estate commission

The governor The governor appoints the nine members of the Land Use Commission, and the senate confirms those members.

The Kauai Development Group, which owns Kauai Hilltop Apartments, has decided to convert the property to condominiums. They've provided the existing month-to-month tenants with a 45-day written notice. Based on landlord-tenant laws, the tenants have filed a grievance with the Department of Commerce and Consumer Affairs. What's the most likely reason? By law, the tenants have the first right of refusal to purchase the unit they're currently renting. It's illegal for the landlord to convert the property until all existing leases have terminated. The landlord didn't provide the required 120-day notice. They're protesting the property conversion

The landlord didn't provide the required 120-day notice. Landlords must provide 120 days' notice to tenants who are under a month-to-month lease agreement if they plan to convert the property to condominium units.

Sean had a five-year lease that began on January 1, 2013, and ended on December 31, 2018. Three years into the lease, Sean died. Which of these statements best describes what happened to the lease? Sean's heirs had to renegotiate the lease. The lease passed to Sean's heirs. The lease terminated or continued at the lessor's discretion. The lease terminated upon Sean's death.

The lease passed to Sean's heirs. Sean's lease was an estate for years, which is an inheritable lease.

Olivia has learned that the LUC just approved her special permit. Which of the following must be true? Her project is in an urban district. Her project must now be approved by the county. The permit area is greater than 15 acres. The State Board of Land must also approve her project.

The permit area is greater than 15 acres. In an agricultural or rural district, a proposed special use area that's larger than 15 acres must be approved first by the county planning commission, then by the LUC.

The TMK for Olivia's property is 2-2-3-004-128 CPR023. Which of these statements is true? The property is a condominium in Kauai county. The property is a detached, single family residence. The property is in a condominium regime located in Maui county. The property is in Hawaii County.

The property is in a condominium regime located in Maui county. The "2" at the beginning of the TMK indicates that the property is located on Maui. The CPR designation at the end of the number indicates that the property is in a condominium property regime. The unit number may follow the CPR designation.

Carla is weighing the pros and cons of purchasing a ground lease in Hawaii. Which of these is a benefit of such a purchase? All maintenance and upkeep are the lessor's responsibility. Mortgage interest rates for leasehold properties are lower than for fee simple properties. The lease terms are consistent over the life of the ground lease. The purchase price is generally lower than for a fee simple property.

The purchase price is generally lower than for a fee simple property. Due to the nature of the leasehold arrangement, the purchase price for a leasehold property is typically less than for a similar fee simple property.

What are the main ways that Hawaii license laws ensure consumer protection? They define standards, develop education standards, and create recurring revenue. They establish requirements, assess fees, and build education. They establish requirements, assess fees, and create recurring revenue. They establish requirements, define activities, and set standards.

They establish requirements, define activities, and set standards. License laws ensure consumer protection by establishing basic requirements for entry to the profession, defining licensable activities, and setting conduct standards.

Vivian is selling her Oahu property. She has a certificate of title that verifies her ownership. How will title to the property be conveyed to the new owner? Through a deed and a lien letter Through a deed and TCT Through a deed recorded in Hawaii's regular system Through a deed, TCT, and lien letter

Through a deed and TCT Properties registered through the Land Court are transferred using the deed and a transfer certificate of title (TCT). All encumbrances must be noted on the TCT.

Rob and Rachel vacation on Maui every year. They purchased the right to stay in a beach condo for the first two weeks in May, in perpetuity. They don't actually own a share of the unit. What did they purchase? Condo estate Cooperative unit Timeshare estate Timeshare use

Timeshare use A timeshare use, also called a right-to-use timeshare, doesn't convey ownership but instead conveys the right to occupy the property for a given amount of time. Timeshares sold as timeshare estates convey fee simple ownership.

Corinne, an escrow agent, is preparing for the Thomas/Trenton closing in four days. Which of these documents will Corinne prepare? She'll prepare a seller net sheet to disclose the seller's net profit on the sale. Working with the lender, she'll prepare the Loan Estimate, which details the costs the buyer and seller will pay at closing. Working with the lender, she'll prepare the settlement statement, which details the costs the buyer and seller will have at closing. Working with the title company attorney, she'll prepare the preliminary title commitment.

Working with the lender, she'll prepare the settlement statement, which details the costs the buyer and seller will have at closing. Just prior to closing, the closing agent will prepare all the closing documents, including settlement statements that detail all the money changing hands on closing day.