1. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:
Answer & explanation
Answer: B. 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.)
2. Under HRS 467-3, how many Commission members must be public members?
Answer & explanation
Answer: D. The statute calls for two public members. Four is the minimum number of broker members, which is why it is a tempting wrong answer.
3. A borrower pays $4,500 for 1.5 discount points. What is the loan amount?
Answer & explanation
Answer: C. Loan = cost of points / points as a percentage = $4,500 / 0.015 = $300,000.
4. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):
Answer & explanation
Answer: B. In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)
5. A buyer purchases a $300,000 home with a $60,000 down payment. What is the loan-to-value (LTV) ratio?
Answer & explanation
Answer: B. Loan = $300,000 - $60,000 = $240,000; $240,000 / $300,000 = 80% LTV. (20% is the down payment percentage.)
6. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?
Answer & explanation
Answer: C. Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.
7. 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?
Answer & explanation
Answer: C. Area = (40 x 30) + (20 x 15) = 1,200 + 300 = 1,500 sq ft; 1,500 x $185 = $277,500.
8. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?
Answer & explanation
Answer: B. LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.
9. A cooperating firm owes a commission to a salesperson at another firm. It must pay:
Answer & explanation
Answer: A. HAR 16-99-3(k) requires payment to the other licensee's firm. Paying the salesperson directly is also barred from the salesperson's side by HRS 467-14(5).
10. A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?
Answer & explanation
Answer: A. Loan = $275,000 x 0.80 = $220,000; points = $220,000 x 0.025 = $5,500. ($6,875 wrongly applies points to the price.)
11. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:
Answer & explanation
Answer: B. Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.
12. Both parties receive the title report on July 14. The seller delivers the governing documents on the last allowed day. The buyer's rescission period ends:
Answer & explanation
Answer: B. The documents are due July 14 + 10 = July 24. The buyer has 15 days from receipt, so July 24 + 15 = August 8. July 29 wrongly counts 15 days from the title report.
13. A nonresident sells a fee simple home to an owner-occupant for $750,000. Payoff is $400,000, commission is 5%, conveyance tax is at the standard rate, and HARPTA applies. Ignoring other costs, the seller's net cash at closing is:
Answer & explanation
Answer: C. Commission 37,500; tax 7,500 x 0.20 = 1,500; HARPTA 0.0725 x 750,000 = 54,375. 750,000 - 400,000 - 37,500 - 1,500 - 54,375 = 256,625. $311,000 forgets HARPTA.
14. One discount point equals what percentage of the loan amount?
Answer & explanation
Answer: B. One point = 1% of the loan amount (not the purchase price), paid to lower the interest rate.
15. A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?
Answer & explanation
Answer: B. LTV = loan / price = $361,250 / $425,000 = 0.85 = 85%. (15% is the down payment percentage.)
16. Annual taxes are $3,650. Using a 365-day year, what is the daily proration amount?
Answer & explanation
Answer: D. $3,650 / 365 = $10 per day. (The course's default convention is a 360-day year; this question specifies 365.)
17. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?
Answer & explanation
Answer: A. At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.
18. A buyer signs a developer's contract June 1 and receives the public report and cancellation notice June 10. The cancellation period ends at midnight on:
Answer & explanation
Answer: B. The 30 days run from the later date, June 10, so they end July 10. July 1 wrongly counts from signing.
19. When competing brokerages agree to charge the same commission rate, they commit:
Answer & explanation
Answer: D. Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.
20. An offer is accepted on May 1. The disclosure statement is delivered on May 6. What is the last day for the buyer to deliver written rescission (no agreed changes)?
Answer & explanation
Answer: B. The 15-day rescission period runs from receipt, May 6, so it ends May 21. May 16 wrongly counts 15 days from acceptance.
21. The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?
Answer & explanation
Answer: B. Daily = $4,320 / 360 = $12. Seller owned Jan 1-Apr 20 = 3 months + 20 days = 110 days, so the buyer owes for 360 - 110 = 250 days. 250 x $12 = $3,000, credited to the seller (who prepaid) and debited to the buyer.
22. A salesperson moves to a new home address. Within how many days must she notify the Commission in writing?
Answer & explanation
Answer: D. HAR 16-99-5(a) requires written notice of name, address and firm changes within ten days. Thirty days is the PB-absence threshold.
23. An investor, ineligible for the homeowner's exemption, buys a condo for $850,000. The conveyance tax is:
Answer & explanation
Answer: D. $600,000 to under $1M at the higher schedule is 25 cents per $100: 8,500 x $0.25 = $2,125. $1,700 uses the 20-cent standard rate.
24. The seller is paying the buyer's agent's commission. Under Hawaii rules, this means:
Answer & explanation
Answer: B. HAR 16-99-3.1(j) states that the obligation to pay compensation does not decide whom the licensee represents.
25. An owner-occupant buys a single-family home for $550,000 (eligible for the homeowner's exemption). The conveyance tax is:
Answer & explanation
Answer: A. Under $600,000 the standard rate is 10 cents per $100: 5,500 x $0.10 = $550. $825 uses the 15-cent non-owner-occupant rate.
Sources
Source verification pending. Confirm current requirements with your state regulator.