Hawaii State Real Estate Questions

lands extending inland from the shoreline as delineated on the maps filed with the counties

Special Management Area (SMA)

A brokerage firm may associate or employ a salesperson or broker- salesperson who resides on an island different from that of the principal place of business, provided that the salesperson or broker-salesperson shall not maintain or advertise a place of b

TRUE

A brokerage firm may associate or employ a salesperson or broker- salesperson who resides on an island different from that of the principal place of business, provided that any advertisements on an island different from that of the principal place of busi

TRUE

A brokerage firm may associate or employ a salesperson or broker- salesperson who resides on an island different from that of the principal place of business, provided that all agency disclosures required by section 16-99-3.1 shall include that the princi

TRUE

What kind of title does Vendee (buyer) initially receive in an agreement of sale?

Equitable Title

Which closing is the conveyance tax paid in an agreement of sale?

First closing

Which closing is legal title given in an Agreement of Sale?

2nd closing, as Equitable is given in the first closing.

Conveyand tax paid on Satisfaction of Agreement of Sale. T or F

False. It is paid on 1st closing when purchased initally. It is also paid when conveyed by a General Warranty Deed.

Time share 7 right of recision allows who to cancel?

buyer or seller

Time share 7 right of recision should be written or just oral?

Both written and oral.

time share acquisition agents who are not licensed as sales persons still must be registered with the Commission as a time share acquisition agent. T or F

TRUE

The maximum allowable rate for USERY loans (person to person) is

1%/month OR 12%/year

The agent of a distressed listing cannot have interest in it how long after the listing agreement?

365 days

DE MINIMUS STRUCTURE limits old survey erros starting at 3 inches for commercial, then...

6 inches residential, 9" agricultural, 18" conservational

Can a landlord charge for a security deposit equal to 1 months rent plus a pet deposit if applicable?

No. The deposit must not exceed 1 months rent period.

Name the additional rotective groups Hawaii's discrimination law has that the Federal Fair House Law excludes.

ancestry, disability, age, HIV infection, and use of guide or signal dog or service animal.

Of the common protected classes in the Federal Fair Housing and Hawaii Discrimination Laws, how do they differ in scope or the type of transactions covered?

Federal applies to housing only, Hawaii Discrimination laws apply to all Real Estate transactions.

According to the Hawaii discrimination laws, how long does one have to file?

180 days for Hawaii Law. Note the Federal law allows 2 years.

How do are private clubs allowed different exemptions in Federal law vs Hawaii?

Federal law allows discrimination for private clubs. Hawaiian law does not exempt such private clubs.

To create a condominium, a developer shall execute and record a ______ together with a master deed or lease of the property, bylaws and a condominium property map. It is the most important document in the creation of a condominium.

declaration

Uniform Land Sales Practices Act (ULSPA) allows how many days for the purchaser to rescind the purchase?

7 days.

Condo bylaws take what percentage to change amendments?

67% of unit owners

If the seller's agent is or becomes aware of any material facts inconsistent with or contradictory to the disclosure statement or the inspection report, the seller's agent shall disclose these facts to

the seller, the buyer and the buyer's agent. (not lender)

Does an agent have to disclose a occupant had AIDS?

No

A purchase contract allows for a section where a seller is required to make repairs necessary before closing? T or F

False. No repairs are required since a purchase contract is as is.

Someone manages real estate for one condo or coop association does not need a license. T or F

False. Someone who manages real estate holding for one owner does not need a license, however it does not apply to condo or coop associations.

What does the developer need to execute to establish a condo complex?

a declaration. (containing # of units, buildings, and land info)

The entities that may be licensed are individuals, partnerships, corporations and LLCs.

True.

EMPLOYEE RETIREMENT SYSTEM (ERS) LOANS must be conventional (no FHA or VA) with not more than 1% point loan fee to borrower. T or F

True.

EMPLOYEE RETIREMENT SYSTEM (ERS) LOANS if leasehold, the terms of the lease must exceed the term of the loan by at least 5 years.

False. if leasehold, the terms of the lease must exceed the term of the loan by at least 10 years

ERS loans are assumable by qualified persons. T or F

True.

The ERS is a good source of loans for members and pensioners of the state and county government Employee Retirement System. T or F

True.

The ERS is available through Government operated lenders. T or F

False. They are available through local lenders.

Hula Mae recipiants must be an occupant of their home for at least 2 years after closing. T or F

False. They must be an occupant for the term of the mortgage.

Hula Mae loans are for a maximum of 35 years. T or F

False. Maximum 30 years.

Where there is a conflict between Hawaii Revised Statute 666, which deals with leases, and the Residential Landlord- Tenant Code, the Code prevails for residential leases.

True.

For tenancies which are less than month-to-month, a written notice must be given to the tenants at least 30 days prior to increasing the rent.

False. For tenancies which are less than month-to-month, a written notice must be given to the tenants at least 15 days prior to increasing the rent.

Which one is NOT true under Hawaii's Landlord Tenant Code? A. The lease may require that the tenant notify the landlord if he is to be absent for an extended period. B. Hawaii's rent control laws are among the best in the nation. C. A landlord can lock a

B. Hawaii's rent control laws are among the best in the nation.

The order of the TMK (Tax Map Key) numbers are Division, Section, Zone, Plat-Parcel, CPR. T or F

False. The order: Division, ZONE, Section, Plat-Parcel, CPR

When is Deed in Land Court (Torrens System) officially recorded?

When its been assigned a number a the bureau.

In land court, title is transferred upon registration, not upon delivery of the deed as in the regular system. T or F

True.

Land trust is an alternative to Agreement of Sale. T or F

True.

What type of contract has 2 closings?

Agreement of Sale. 1st closing conveyance tax is paid. 2nd closing (when loan is paid back) title is transferred.

What happens to a tenant's lease when property is sold?

It does not affect the tenants lease.

If the seller finds an inaccuracy in the disclosure statement the seller shall provide the buyer an amended disclosure statement within 10 calendar days of the discovery.

True. And the buyer shall have 15 calendar days to examine the amended statement

Hawaii usury law applies to interest charged on loans by _____.

Private parties.

Usury law protects borrower. T or F

True.

Real Estate Broker can share commission with the mortgage broker. T or F

False.

What does an appraiser use that the market value (CMA) doesn't?

Highest and best use.

Person who is employed by an association will start to rent on units on behalf of the association. What DOESNT have to happen for the employee to rent of units? (a) employee needs to live in the building; (b) need 67% of owners to approve; (c) employee ne

A

How long does an owner get to claim a home back, if it was repossessed because you didn't pay your taxes?

1 year

What are the two types of foreclosures in Hawaii?

Judicial & Non-judicial

What happens to a contract when one party cannot fulfill their terms? (a) void; (b) voidable; (c) terminated; (d) valid.

C. terminated

If a buyer wants to purchase leasehold property with hula mae financing, what are the requirements for the leasehold property? Minimum of ___ years left on the lease and ___ years of fixed lease rent.

Minimum of 35 years left on the lease and 10 years of fixed lease rent.

Who's signature needs to be on a deed?

Grantor

An agent moves to Hawaii from another state. Six years later, the agent receives a disciplinary notice from the state he/she came from? How many days does the agent have to notify the Real Estate Commission about the disciplinary action?

30 days

Who would need to have a real estate license? (a) resident manager of an 18 unit apartment, who shows vacant units to prospective renters; (b) property manager who takes care of 3 dwellings for one owner and is the owner's only employee.

(a) Someone who manages real estate holding for one owner does not need a license. The condo/coop resident manager does tho.

Your CPA recommends that you create an LLC. What should you do? (a) take his advice, create the LLC and immediately remit your commissions through the LLC; (b) run your commissions through the LLC after reporting to the licensing commission that you have

(b)?

What doesn't have to do Shorelines? (a) vegetation line; (b) accretion; (c) riparian rights; (d) survey dept., Dept. of Land and Natural Resources.

(d)?

If a mortgage broker calls a broker for an opinion on the value of property which is not listed by the broker's company, what is the broker entitled to in the way of compensation? (a) reimbursement of travel cost and incidentals incurred while visiting th

(b)

Who does Title by Entirety apply to? (a) Husband and Wife only; (b) Reciprocal Beneficiaries.

(b)

What is a broker responsible for? (a) all actions of his salespersons; (b) an experienced sales person who conducting his transaction all on is own without any supervision.

(b)

When is "time is of the essence" most critical? (a) when a Seller needs to close soon because he is moving to the mainland; (b) when a Buyer needs to close soon because his current rental lease will expire soon; (c) when either the Buyer or Seller is near

(c.)

In Land Trust versus an Agreement of Sale, the Buyer as beneficiary would have the property revert back to personal property (benefiting the buyer). T or F

TRUE

Fair Housing protects discrimination of protected classes. The Hawaii Fair Housing included what other protected classes?

Marriage, Age, Sex

Who is responsible for HARTPA withholding?

Buyer

What doesn't a condo association employee need to do if he rents out units for the various owners?

Live in the condo

If a Seller paid all taxes through June 30 and closes on July 1st, how much taxes should be prorated to him if the Buyer is responsible for taxes on the day of closing?

Nothing.

Who handles the preparation of closing and settlement statements?

Escrow

Who selects the Title company?

Buyer

Which land classification is the counties in Hawaii able to change zoning and building codes on without state approval?

Urban

If a homeowner rents out 4 of the rooms in his home and lives in the 5th room, can he discriminate against any protected class?

Yes

If a Buyer and Seller cannot reach an agreement on who should be responsible for a new assessment on the property, how many days do they have to negotiate this until one of the parties can rescind the contract?

5 DAYS (C-14)

When does the "Good Funds Act" requires that closing funds be deposited into escrow?

2 DAYS PRIOR TO CLOSING

Can you advertise Fee Simple property without noting that it is Fee Simple?

YES (note: Leasehold property must spell out "Leasehold" in any advertisting)