Free Hawaii Agency Practice Test — LicenseIQ

Question 1

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 2

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 3

A firm forgets to include the AGENCY DISCLOSURE paragraph and the sale closes. Which statement is correct?

Accepted Answer

HAR 16-99-3.1(f) and (k) subject the firm and licensee to discipline but state that noncompliance does not by itself invalidate title.

Question 4

When must a licensee disclose to a buyer, orally or in writing, whom the licensee represents?

Accepted Answer

HAR 16-99-3.1(c) requires disclosure to the buyer at least once before preparing the buyer-seller contract. Disclosure to the seller comes before the contract is presented.

Question 5

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 6

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 7

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 8

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 9

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 10

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 11

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 12

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 13

The agency disclosure must be confirmed in the purchase contract in a separate paragraph titled:

Accepted Answer

HAR 16-99-3.1(e) specifies a separate 'AGENCY DISCLOSURE' paragraph in no less than ten-point bold print. No exact wording is mandated.

Question 14

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 15

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 16

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 17

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 18

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 19

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 20

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 21

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 22

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 23

The seller is paying the buyer's agent's commission. Under Hawaii rules, this means:

Accepted Answer

HAR 16-99-3.1(j) states that the obligation to pay compensation does not decide whom the licensee represents.

Question 24

Which satisfies Hawaii's dual agency consent requirement?

Accepted Answer

HAR 16-99-3.1(g) requires written consent from both parties that describes the representation. It expressly says a general statement is insufficient.

Question 25

A buyer's agent who plans to buy the property herself must disclose that intent to the seller or listing firm:

Accepted Answer

HAR 16-99-3.1(h) requires a buyer's agent to disclose both the agency and whether she is, or intends to become, the buyer before negotiations begin.

Hawaii real estate agency practice test

1. Which statement about dual agency is correct?

2. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

3. A firm forgets to include the AGENCY DISCLOSURE paragraph and the sale closes. Which statement is correct?

4. When must a licensee disclose to a buyer, orally or in writing, whom the licensee represents?

5. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

6. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

7. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

8. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

9. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

10. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

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

12. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

13. The agency disclosure must be confirmed in the purchase contract in a separate paragraph titled:

14. A property manager owes fiduciary duties primarily to the:

15. An agency relationship can be terminated by all of the following EXCEPT:

16. The client a broker represents is the:

17. The best way to create an agency relationship is a(n):

18. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

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

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

21. Which fiduciary duty continues even after the agency relationship has ended?

22. A material defect that a seller/agent must disclose is one that:

23. The seller is paying the buyer's agent's commission. Under Hawaii rules, this means:

24. Which satisfies Hawaii's dual agency consent requirement?

25. A buyer's agent who plans to buy the property herself must disclose that intent to the seller or listing firm:

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