1. A licensee defrauds three buyers in three separate transactions. Judgments are $30,000, $20,000 and $15,000, and each claimant has exhausted collection. What is the most the fund can pay in total on this licensee's account (excluding costs and fees)?
Answer & explanation
Answer: D. Per-transaction caps limit the claims to $25,000 + $20,000 + $15,000 = $60,000, but HRS 467-24 caps any one licensee at $50,000. $60,000 is the tempting answer if you forget the aggregate cap.
2. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:
Answer & explanation
Answer: A. The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.
3. After passing the exam, a candidate must submit a complete license application within:
Answer & explanation
Answer: D. PSI's bulletin requires a complete application within two years of the exam. The application counts as received only when all filing requirements are met, so an incomplete filing does not stop the clock.
4. 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.
5. In a life estate, the person who receives the property when the life tenant dies is the:
Answer & explanation
Answer: A. The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.
6. A firm forgets to include the AGENCY DISCLOSURE paragraph and the sale closes. Which statement is correct?
Answer & explanation
Answer: A. 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.
7. What score is needed to pass the Hawaii salesperson state portion?
Answer & explanation
Answer: A. 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.
8. A licensee's advertising must generally:
Answer & explanation
Answer: C. Ads must identify the licensed broker/brokerage; salespersons cannot advertise under only their own name.
9. A broker received a 4.2% commission totaling $12,600. What was the sale price?
Answer & explanation
Answer: C. Sale price = commission / rate = $12,600 / 0.042 = $300,000.
10. A candidate sits for the exam two weeks before finishing the prelicense course and passes. What is the result?
Answer & explanation
Answer: C. HRS 467-9.5(b) requires candidates to certify that they met the prerequisites on or before the exam. A candidate who tested without them has the score voided, so finishing the course later does not save it.
11. After receiving the disclosure statement, the buyer has how long to examine it and rescind?
Answer & explanation
Answer: C. HRS 508D-5 gives 15 calendar days after receipt. Seven days is the time share cancellation period.
12. On a closing statement for a nonresident seller, HARPTA withholding appears as:
Answer & explanation
Answer: C. The transferee withholds 7.25% of the seller's amount realized (HRS 235-68). Economically it reduces the seller's proceeds.
13. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:
Answer & explanation
Answer: D. The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.
14. A life estate is measured by:
Answer & explanation
Answer: D. A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).
15. When an owner dies with no will and no heirs, the property passes to the state through:
Answer & explanation
Answer: C. Escheat transfers ownerless property to the state when there is no will and no heirs.
16. How many hours of continuing education must a Hawaii licensee complete for each biennial renewal?
Answer & explanation
Answer: B. HRS 467-11.5 requires at least 20 hours in the two years before renewal, which may include a mandatory core course if the Commission specifies one.
17. What is the maximum the Real Estate Recovery Fund pays per transaction, not counting costs and attorney fees?
Answer & explanation
Answer: C. HRS 467-16 caps recovery at $25,000 per transaction. $50,000 is the aggregate cap per licensee.
18. Which action may a life tenant take WITHOUT the remainderman's consent?
Answer & explanation
Answer: D. A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.
19. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:
Answer & explanation
Answer: B. Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.
20. On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:
Answer & explanation
Answer: A. Earnest money and loan proceeds are sources of funds that reduce what the buyer must bring, so they are buyer credits.
21. On a closing statement, the purchase price is a:
Answer & explanation
Answer: B. The seller receives the price (credit); the buyer owes it (debit).
22. Under the statute of frauds, a real estate sales contract must be:
Answer & explanation
Answer: C. The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.
23. A salesperson receives an earnest money check from a buyer. The salesperson should:
Answer & explanation
Answer: C. The broker manages the trust account; licensees must promptly deliver trust funds to the broker.
24. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:
Answer & explanation
Answer: A. The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.
25. Under an open listing, the seller owes a commission to:
Answer & explanation
Answer: C. Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.
Sources
Source verification pending. Confirm current requirements with your state regulator.