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Hawaii Real Estate > Licensing Laws > Flashcards

Licensing Laws Flashcards

1
Q

Money may be paid out of the Recovery Fund in the event:

I. A seller suffers a monetary loss when he sells to a broker who doesn’t disclose his interest in the property
II. A salesperson does not get paid by his broker in accordance with his written agreement.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - A seller suffers a monetary loss when he sells to a broker who doesn’t disclose his interest in the property

A broker must always disclose in writing his interest (such as his corporation is the buyer). The Recovery Fund does not protect licensees.

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2
Q

The following are subject to licensing laws:
I. A receiver in bankruptcy
II. An individual charging finder’s fees for referral of information leading to a listing.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - An individual charge finder’s fees for referral of information leading to a listing.

467-14 (14)

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3
Q

If a principal broker or broker in charge absents himself for a period of more than thirty calendar days from his place of business:
I. The principal broker shall notify the commission in writing
II. A replacement broker must be from the same firm

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - The principal broker shall notify the commission in writing

16-99-3(O)

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4
Q

A partnership engaged in real estate brokerage:
I. Must have all of its active brokerage partners maintain their broker licenses
II. Must submit annual credit reports

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - Must have all of its active brokerage partners maintain their broker licenses

467-14

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5
Q

If a seller rejects an offer by a prospective buyer:
I. The agent must have seller note on the offer such rejection or he must note it on the offer himself and return to buyer
II. The prospective buyer must acknowledge the rejection

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - The agent must have seller note on the offer such rejection or he must note it on the offer himself and return to buyer

16-99-3(j)

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6
Q

In the event that a salesperson fails to pay the renewal fee when due, which license will automatically be forfeited?
I. Salesperson
II. Broker of the salesperson

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - Salesperson

467-11

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7
Q

Which of the following acts on the part of the broker can constitute improper conduct under the Commission’s rules and regulations?
I. Advising the principal who has expressed his desire to consult an attorney that he doesn’t really need an attorney
II. Acquiring a listing in which the broker gets to keep all moneys in the purchase price above a specified amount.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - Advising the principal who has expressed his desire to consult an attorney that he doesn’t really need an attorney

Net listings are discouraged

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8
Q

Which of the following can file suit to obtain an earned commission?
I. A broker who is now a salesperson but who was a broker at the time the commission was earned
II. An inactive salesperson who wants to sue his former broker to obtain payments for commissions earned while he was active.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

C) Both I and II -
I. A broker who is now a salesperson but who was a broker at the time the commission was earned

II. An inactive salesperson who wants to sue his former broker to obtain payments for commissions earned while he was active

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9
Q

What is/are the responsibilities of a broker concerning moneys entrusted to him in a real estate transaction?
I. Deposit all moneys in a neutral depository or trust fund by the first business day after receipt of such funds
II. Provide a full accounting to each party of all receipts and disbursements of any funds entrusted to him by the parties.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

C) Both I and II
I. Deposit all moneys in a neutral depository or trust fund by the first business day after receipt of such funds

II. Provide a full accounting to each party of all receipts and disbursements of any funds entrusted to him by the parties.

16-99-4

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10
Q

Unless a biennial renewal application is received by the Dept. of Commerce and Consumer Affairs by the first working day of the appropriate calendar year, the license is:
I. Voided
II. Forfeited

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

D) Neither I nor II

16-99-7. Must bear postmark of first working day of the year.

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11
Q

Under Hawaii’s licensing laws, which is true?
I. In advertising real property, the broker may use a trade name previously registered with the REC rather than use his personal name
II. In selling his own real property, an inactive licensee can advertise “For Sale By Owner”

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - In advertising real property, the broker may use a trade name previously registered with the REC rather than use his personal name

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12
Q

When a broker prepares a document pertaining to a real estate transaction:
I. He must give a copy to the parties signing it at the time the signature is obtained
II. The broker must have an attorney review the document

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - He must give a copy to the parties signing it at the time the signature is obtained

467-18

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13
Q

Which of the following is true:
I. The broker needs to submit to the owner only the highest written offer
II. The broker may place a “For Sale” sign on the property listed with him without any authorization from the owner

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

D) Neither I nor II

16-99-3

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14
Q

If you wish to re-establish your terminated real estate license, you must pay the Real Estate Commission
I. The amount paid out of the Recovery Fund
II. Interest Only

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - The amount paid out of the Recovery Fund

467-18

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15
Q

A Broker, regarding the commission from a transaction, may be part of the commission to:

I. A broker from another state
II. An unlicensed business associate who referred the listing to him.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - A broker from another state

467-14 Provided the broker does not negotiate in Hawaii.

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16
Q

Under the licensing laws:
I. A salesperson can work for two separate brokers providing separate properties are involved.
II. If the salesperson’s license is suspended, the supervising broker’s license is subject to automatic revocation

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

D) Neither I nor II

467-14

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17
Q

A broker may deposit to his client trust account:
I. A small amount of his money to keep his client’s accounting system open
II. His commission which has been paid to him

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - A small amount of his money to keep his client’s accounting system open

16-99-4

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18
Q

Which of the following needs a real estate license
I. A builder-owner developer who sells his own developments
II. A salaried person working for said building-owner who sells real estate for the builder

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

C) Both I and II
I. A builder-owner developer who sells his own developments
II. A salaried person working for said building-owner who sells real estate for the builder

467-2(1) The rules do not define however, what is a “development”

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19
Q

A broker taking an earnest money deposit in the form of a check can:
I. Place it in his general account
II. Hold it until acceptance of the offer if directed to do so by the buyer or offer

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - Hold it until acceptance of the offer if directed to do so by the buyer or offer

16-99-4

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20
Q

When a Realtor’s branch office is moved from one location to another, he must:
I. Notify all affected licensees within 10 days
II. Notify the Commission of the move within 10 days

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - Notify the Commission of the move within 10 days

16-99-5

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21
Q

A licensed salesperson may:
I. Deposit money in a trust account upon written instructions from the broker
II. Withdraw money from a trust account upon instructions from the broker

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - Deposit money in a trust account upon written instructions from the broker

16-99-4

22
Q

Which of the following is true?
I. Under no circumstance may a broker be a party to the naming of a nominal consideration
II. If a broker sells a property listed by his firm to his father, he must state that fact to the listing owner in writing

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - If a broker sells a property listed by his firm to his father, he must state that fact to the listing owner in writing

16-99-3(c); 16-99-3(g)

23
Q

To be appointed a Real state Commissioner, one must be:
I. A citizen of the United States
II. A practicing real estate broker

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - A citizen of the United States

467-3. Note that licensees need not be citizens (need work VISA)

24
Q

Which of the following is true about uncashed deposit checks?
I. It does not constitute commingling to hold an uncashed check until acceptance of an offer when directed to do so by the seller (offeree)
II. The broker need not disclose to the seller before he accepts the offer that the deposit check is being held in an uncashed form.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

D) Neither I nor II

16-99-4. The buyer is typically the offeror, the seller is the offeree

25
Q

A licensee selling his own property must do which of the following:
I. List the property with is own broker
II. Inform the prospective buyer that he is a licensee

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - Inform the prospective buyer that he is a licensee

While he must inform his broker, he need not (by law) list with his broker.

26
Q

A person calls a broker and states he wants to have his house advertised in Sunday’s newspaper. After discussing price and terms, the broker can immediately:
I. Advertise the house in the broker’s classified ad in the paper
II. Place a for sign sale on the property

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

D) Neither I nor II

The broker needs written authorization to advertise and specific authorization to place a for-sale sign

27
Q

Which of the following statements is (are) true?
I. A broker on Oahu cannot employ a salesperson residing on another island even if the broker has an office on that island.
II. A project model can be considered a site office

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - A project model can be considered a site office

16-99-2; 16-99-5-f

28
Q

A licensee may have his license revoked for:
I. Representing more than one party in a transaction without the knowledge and written consent of both parties.
II. Accepting a fee for negotiating a loan

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - Representing more than one party in a transaction without the knowledge and written consent of both parties.

467-14(4); 16-99-3.1, 467-1(6)

29
Q

In advertising real property for sale, a Broker must:
I. Set forth his license number
II. State his license status

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

C) Both I and II

30
Q

A salesperson can accept compensation directly from:
I. Buyer
II. Seller

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

D) Neither I nor II

467-14

31
Q

Brokerage activity includes:
I. The purchase and sale of options
II. Selling of business for others of which an asset is a leasehold interest.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

C) Both I and II
I. The purchase and sale of options
II. Selling of business for others of which an asset is a leasehold interest.

467-1 (4)(2)

32
Q

In order to comply with the licensing law, a broker must:
I Display his license and that of his salespersons in every place of business
II. Notify the Real Estate commission of the names and license numbers of every one of his salespersons.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - Notify the Real Estate commission of the names and license numbers of every one of his salespersons.

16-99-6; 16-99-5

33
Q

A licensee must never submit property for sale:
I. Without written authorization from the owner
II. On terms other than those authorized by the vendor

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

C) Both I and II
I. Without written authorization from the owner
II. On terms other than those authorized by the vendor

16-99-3

34
Q

Which of the following is true of each broker licensed to operate in Hawaii:
I. He may engage in the business of real estate as a partial vocation
II. He may describe himself as a RELATOR

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - He may engage in the business of real estate as a partial vocation

467-1(2) A Relator is a broker who belongs to the Board of Relators (a salesperson is a Relator Associate)

35
Q

A broker’s license can be revoked if:
I. Uses a corporation in which he is a major stockholder to buy property listed with him without notifying the listing owner in writing of his interest
II. Has his salespersons make the first bid on the property without notifying the listing owner in wiring that the purchaser is his salesperson.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

C) Both I and III.
I. Uses a corporation in which he is a major stockholder to buy property listed with him without notifying the listing owner in writing of his interest
II. Has his salespersons make the first bid on the property without notifying the listing owner in wiring that the purchaser is his salesperson.

16-99-3

36
Q

Which of the following is required to have a real estate license as a salesperson or broker:
A) An Appraiser
B) The Manager of a co-op apartment building renting apartments for owners
C) A negotiator of real estate mortgage loans
D) The executor of an estate, selling the property of the deceased

A

B) The Manager of a co-op apartment building renting apartments for owners

467-1 (5)

37
Q

When advertising a property for sale:
I. The broker must unmistakably indicate that the party advertising is a real estate broker.
II. The broker must not advertise the location and price.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - The broker must be unmistakably indicate that the party advertising is a real estate broker.

16-99-11

38
Q

Which of the following statements are true?
I. So long as the broker retains in his files a written copy of the listing or other agreement, it is not necessary for him to deliver a copy of the agreement to his principal.
II. No broker shall be issued an active license unless he maintains a definite place of business in an appropriately zoned area.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - No broker shall be issued an active license unless he maintains a definite place of business in an appropriately zoned area.

467-12, 467-13

39
Q

A person must apply for his real estate license:
I. Anytime after passing his examination
II. Within 2 years of the date of successfully passing the State examination.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - Within 2 years of the date of successfully passing the State examination.

40
Q

A licensee could have his license revoked for:
I. Failure to devote full time to the real estate business
II. Listing a property at more than a 6% commission.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

D) Neither I nor II

467-1 Listing rates are negotiable.

41
Q

An unlicensed secretary in a broker’s office may:
I. Give information to a caller about listings available
II. Take a listing by phone

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

D) Neither I nor II

467-1 Any solicitation requires a license.

42
Q

Under the Real Estate Recovery Fund procedures:
I. Where the balance remaining in the Real Estate Fund is less than $350,000 a real estate licensee must pay a fee within 60 days of the assessment
II. The maximum recover shall not exceed $20,000 against any one license.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - Where the balance remaining in the Real Estate Fund is less than $350,000 a real estate licensee must pay a fee within 60 days of the assessment

467-24 Maximum amount is $50,000

43
Q

A broker’s records of his client’s account will contain:
I. The date and from whom the money was received
II. The date and where deposited by the broker

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

C) Both I and II
I. The date and from whom the money was received
II. The date and where deposited by the broker

16-99-4

44
Q

The provisions requiring a person to be licensed as a real estate broker or salesperson shall not apply to:
I. Any person who leases, offers to lease, rents or offers to rent, any real estate or the improvements thereon of which he is the custodian or caretaker, and who is employed by a single owner
II. Any person who solicits for prospective purchasers

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - Any person who leases, offers to lease, rents or offers to rent, any real estate or the improvements thereon of which he is the custodian or caretaker, and who is employed by a single owner

467-1(5)(2)

45
Q

The responsibilities of the Real Estate Commission include:
I. Establishing commission rates charged by real estate brokerage companies
II. Reviewing pending legislation pertaining to real estate

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - Reviewing pending legislation pertaining to real estate

Fees are established by agreement between the parties.

46
Q

Violation of the licensing laws by selling without a license may result in:
I. $5,000 fine;
II. Three years in jail

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - $5,000 fine;

467-26 Violation is a misdemeanor with jail up to one year

47
Q

Which of the following actions on the part of a real estate broker or salesperson could result in revocation of his license?
I. Failing to submit to an owner, before his acceptance of an offer, all formal, written offers received for property listed for sale
II. Quoting to prospective buyers of a property a sale price other than the one stipulated by the owner.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

C) Both I and II
I. Failing to submit to an owner, before his acceptance of an offer, all formal, written offers received for property listed for sale
II. Quoting to prospective buyers of a property a sale price other than the one stipulated by the owner.

16-99-3

48
Q

A real estate salesperson:
I. Cannot be in charge of a branch office
II. Can be in charge of the principal place of business if the broker is absent for more than 30 days

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

A) I Only - Cannot be in charge of a branch office

16-99-3-0

49
Q

Which of the following acts on the part of the salesperson represents cause of license suspension or revocation:
I. Accepting compensation from his former employing broker for services performed while employed with that broker.
II. Giving payment to the personnel officer of a local firm for leads on personal moving into the area who subsequently purchased property.

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - Giving payment to the personnel officer of a local firm for leads on personal moving into the area who subsequently purchased property.

467-14

50
Q

Which of the following may be issued a real estate license?
I. A partnership in which all active participants in the real estate brokerage business hold a real estate salesperson’s license
II. A corporation in which one out of four corporate officers holds a real estate brokers license

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

A

B) II Only - A corporation in which one out of four corporate officers holds a real estate brokers license

467-8(4)(5)

Hawaii Real Estate (28 decks)

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