Free Hawaii Real Estate Practice Test (2026) — LicenseIQ

Question 1

A licensee pays the renewal fee on time but has not completed CE. What happens?

Accepted Answer

HRS 467-11.5 places a renewed license on inactive status when CE is not met. Forfeiture is the result of not renewing at all.

Question 2

Which statement about FHA-insured loans is correct?

Accepted Answer

FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.

Question 3

What score is needed to pass the Hawaii salesperson state portion?

Accepted Answer

PSI's Hawaii bulletin sets the salesperson passing score at 70%, which is 35 of the 50 scored state items. Seventy-five percent is a common passing score in other states.

Question 4

A rectangular parcel measures 330 feet by 660 feet. How many acres does it contain?

Accepted Answer

Area = 330 x 660 = 217,800 sq ft; 217,800 / 43,560 = 5 acres.

Question 5

A principal broker will be absent 40 calendar days, and the firm has no other registered broker-in-charge. What must happen?

Accepted Answer

HAR 16-99-3(o) requires designating a temporary PB or BIC when the absence exceeds 30 calendar days. Without one, licensees go on involuntary inactive status under 16-99-5.1.

Question 6

When competing brokerages agree to charge the same commission rate, they commit:

Accepted Answer

Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.

Question 7

A single-family home rents for $2,100 per month. Comparable homes sell at an ANNUAL gross rent multiplier of 12. What is the estimated value?

Accepted Answer

Annual rent = $2,100 x 12 = $25,200; value = $25,200 x 12 = $302,400.

Question 8

After a buyer signs an offer, the buyer's agent notices a typo in the price. The agent may change it:

Accepted Answer

HAR 16-99-3(u) bars changing a signed or initialed instrument without written consent of all parties.

Question 9

A major limitation of an automated valuation model (AVM) is that it:

Accepted Answer

AVMs are fast and inexpensive but assume average condition and struggle with unique homes and thin data.

Question 10

A Hawaii broker may pay a referral fee to which of the following?

Accepted Answer

HRS 467-14(14) allows payments to out-of-state licensed brokers who do not negotiate in Hawaii. Payments to unlicensed persons are prohibited, and payments to another firm's licensee must go to that licensee's firm (HAR 16-99-3(k)).

Question 11

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 12

A claimant suing a licensee, intending to seek Recovery Fund payment, must notify the Commission:

Accepted Answer

HRS 467-18(a)-(b) requires written notice when the action begins and 10 days' written notice before applying to the court. The Commission may intervene and defend.

Question 13

Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

Accepted Answer

Agreeing with competitors to refuse to deal with another business is an illegal group boycott.

Question 14

An owner sells the right to extract copper beneath her land but keeps the surface. She has sold her:

Accepted Answer

Subsurface rights to minerals, oil and gas can be severed and sold separately from the surface and air rights.

Question 15

HAR 16-99-3.1 agency disclosure requirements do NOT apply to which transaction?

Accepted Answer

The rule's definition of 'transaction' excludes leases of one year or less. Sales, exchanges and options of residential, time share, commercial and industrial property are covered.

Question 16

The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

Accepted Answer

Highest and best use is the use producing the greatest value that meets the four tests.

Question 17

Which federal law requires disclosure of the true cost of credit, including APR?

Accepted Answer

The Truth in Lending Act (Regulation Z) requires disclosure of finance charges and the APR. RESPA covers settlement costs.

Question 18

A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?

Accepted Answer

Area = (40 x 30) + (20 x 15) = 1,200 + 300 = 1,500 sq ft; 1,500 x $185 = $277,500.

Question 19

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 20

On an adjustable-rate mortgage, the interest rate after the initial period is determined by:

Accepted Answer

ARM rate = index + margin, subject to periodic and lifetime caps. In a 5/1 ARM the rate is fixed 5 years, then adjusts every year.

Question 21

Annual crops planted and cultivated by a farmer, such as corn and wheat, are called ____ and are treated as ____.

Accepted Answer

Cultivated annual crops are emblements - personal property of the cultivator. Naturally growing plants (trees, grass) are fructus naturales and part of the real estate.

Question 22

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 23

A landlord ending month-to-month tenancies to convert a building to condominiums must give notice of at least:

Accepted Answer

HRS 521-71 requires 120 days for demolition, condo conversion or conversion to transient vacation rentals.

Question 24

A seller negligently fails to provide the required disclosure statement. The buyer may:

Accepted Answer

HRS 508D-16 allows rescission plus actual damages for negligent failure to provide the statement. The Recovery Fund covers licensee fraud, not seller negligence.

Question 25

An offer is accepted July 6. The seller delivers the 508D disclosure July 10. The buyer's last day to rescind (no agreed changes) is:

Accepted Answer

Fifteen calendar days from receipt (July 10) is July 25. July 21 counts from acceptance.

Hawaii real estate practice test

1. A licensee pays the renewal fee on time but has not completed CE. What happens?

2. Which statement about FHA-insured loans is correct?

3. What score is needed to pass the Hawaii salesperson state portion?

4. A rectangular parcel measures 330 feet by 660 feet. How many acres does it contain?

5. A principal broker will be absent 40 calendar days, and the firm has no other registered broker-in-charge. What must happen?

6. When competing brokerages agree to charge the same commission rate, they commit:

7. A single-family home rents for $2,100 per month. Comparable homes sell at an ANNUAL gross rent multiplier of 12. What is the estimated value?

8. After a buyer signs an offer, the buyer's agent notices a typo in the price. The agent may change it:

9. A major limitation of an automated valuation model (AVM) is that it:

10. A Hawaii broker may pay a referral fee to which of the following?

11. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

12. A claimant suing a licensee, intending to seek Recovery Fund payment, must notify the Commission:

13. Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

14. An owner sells the right to extract copper beneath her land but keeps the surface. She has sold her:

15. HAR 16-99-3.1 agency disclosure requirements do NOT apply to which transaction?

16. The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

17. Which federal law requires disclosure of the true cost of credit, including APR?

18. A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?

19. Which is the most common and desirable way a real estate sales contract terminates?

20. On an adjustable-rate mortgage, the interest rate after the initial period is determined by:

21. Annual crops planted and cultivated by a farmer, such as corn and wheat, are called and are treated as .

22. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

23. A landlord ending month-to-month tenancies to convert a building to condominiums must give notice of at least:

24. A seller negligently fails to provide the required disclosure statement. The buyer may:

25. An offer is accepted July 6. The seller delivers the 508D disclosure July 10. The buyer's last day to rescind (no agreed changes) is:

Sources