Free Hawaii Property Practice Test — LicenseIQ

Question 1

Which owner-occupied property qualifies for the HRS 515-4(a)(1) exemption?

Accepted Answer

515-4(a)(1) covers buildings of no more than two families living independently with the owner or lessor residing there. The federal four-unit exemption is broader, which makes the fourplex a trap.

Question 2

In a mortgage, the borrower who pledges the property as security is the:

Accepted Answer

The mortgagor (borrower) gives the mortgage to the mortgagee (lender) in exchange for the loan.

Question 3

Three joint tenants own a property. One dies leaving a will that gives her share to her son. The son receives:

Accepted Answer

Survivorship operates outside the will; the deceased's interest goes to the surviving joint tenants.

Question 4

After a nonjudicial power-of-sale foreclosure of an owner-occupant's residence secured only by that property, the lender:

Accepted Answer

HRS 667-38 bars deficiency judgments against owner-occupants after nonjudicial foreclosure, except where other collateral secures the debt. Associations are excluded.

Question 5

A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

Accepted Answer

Real property tax liens take priority over all others regardless of recording date; other liens generally follow in order of recording.

Question 6

A special warranty deed warrants title only against defects that:

Accepted Answer

Special (limited) warranty deeds protect only against problems created during the grantor's ownership; general warranty deeds cover the entire history.

Question 7

A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

Accepted Answer

EGI = $240,000 - 8% = $220,800; value = $220,800 x 6 = $1,324,800.

Question 8

Marketable title means title that is:

Accepted Answer

Marketable title is reasonably free from defects and insurable - not necessarily perfect.

Question 9

A licensee managing a rental gets a 10% rebate from the plumber she hires. This is permitted only if:

Accepted Answer

HAR 16-99-3(h) prohibits commissions, rebates or profits on expenditures without the owner's and the principal broker's knowledge and consent.

Question 10

An investor buys a property for $180,000 and sells for $216,000. What is the percent of profit on cost?

Accepted Answer

Profit = $36,000; $36,000 / $180,000 (cost) = 20%. Dividing by the sale price ($216,000) would give 16.7%.

Question 11

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

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.)

Question 12

In a deed, the party conveying title is the ____ and the party receiving title is the ____.

Accepted Answer

The seller (grantor) conveys to the buyer (grantee). A deed is the document; title is the ownership rights it transfers.

Question 13

Who may perform an appraisal of real property for a lender?

Accepted Answer

Only licensed or certified appraisers perform appraisals. Licensees may prepare a CMA, which is not an appraisal.

Question 14

Private restrictions placed in a deed by a developer are called:

Accepted Answer

Deed restrictions (covenants, conditions and restrictions) are private controls enforced by owners or associations, not government. Zoning and building codes are public controls.

Question 15

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 16

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 17

A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

Accepted Answer

A variance grants relief from a specific zoning requirement; a setback deviation is an area variance. A building permit only authorizes construction that complies with the rules.

Question 18

A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

Accepted Answer

The abstract summarizes the recorded history; the chain of title lists successive owners; an attorney's opinion of title evaluates it.

Question 19

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 20

Seller deeds a lot to A, who does not record or take possession. Seller then sells to B, who pays value, has no notice of A, and records first in the Regular System. Who prevails?

Accepted Answer

Under 502-83's race-notice rule, an unrecorded deed is void against a later good-faith purchaser for value without actual notice who records first.

Question 21

All Hawaii real estate licenses expire on:

Accepted Answer

HRS 467-11(b) sets a uniform biennial expiration of December 31 of even-numbered years. June 30 is when Commission member terms end.

Question 22

Under HARPTA, the buyer of Hawaii real property from a nonresident generally must withhold what percentage of the amount realized?

Accepted Answer

HRS 235-68(b) sets 7.25%. Fifteen percent is the federal FIRPTA general rate.

Question 23

If it is unclear from a large-scale map whether a property is inside a 508D-15(a) area, the ambiguity is:

Accepted Answer

508D-15(c) construes ambiguity in the seller's favor, conditioned on a good-faith effort.

Question 24

For property subject to a recorded declaration, when must the seller provide the association documents under HRS 508D-3.5?

Accepted Answer

508D-3.5(c) ties the deadline to the title report. The buyer then has 15 days to review and rescind.

Question 25

How many members serve on the Hawaii Real Estate Commission?

Accepted Answer

HRS 467-3 creates a nine-member Commission. Seven is a tempting distractor because the statute names seven county seats (four Honolulu, one each for Hawaii, Maui and Kauai), but the total is nine.

Hawaii real estate property practice test

1. Which owner-occupied property qualifies for the HRS 515-4(a)(1) exemption?

2. In a mortgage, the borrower who pledges the property as security is the:

3. Three joint tenants own a property. One dies leaving a will that gives her share to her son. The son receives:

4. After a nonjudicial power-of-sale foreclosure of an owner-occupant's residence secured only by that property, the lender:

5. A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

6. A special warranty deed warrants title only against defects that:

7. A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

8. Marketable title means title that is:

9. A licensee managing a rental gets a 10% rebate from the plumber she hires. This is permitted only if:

10. An investor buys a property for $180,000 and sells for $216,000. What is the percent of profit on cost?

11. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

12. In a deed, the party conveying title is the and the party receiving title is the .

13. Who may perform an appraisal of real property for a lender?

14. Private restrictions placed in a deed by a developer are called:

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

16. In a lease, the tenant holds a estate and the landlord holds a .

17. A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

18. A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

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

20. Seller deeds a lot to A, who does not record or take possession. Seller then sells to B, who pays value, has no notice of A, and records first in the Regular System. Who prevails?

21. All Hawaii real estate licenses expire on:

22. Under HARPTA, the buyer of Hawaii real property from a nonresident generally must withhold what percentage of the amount realized?

23. If it is unclear from a large-scale map whether a property is inside a 508D-15(a) area, the ambiguity is:

24. For property subject to a recorded declaration, when must the seller provide the association documents under HRS 508D-3.5?

25. How many members serve on the Hawaii Real Estate Commission?

Sources