Reviews Flashcards
TMK - order
Division, Zones, Sections, Plat, Parcel, (CPR)
CPR- condominium property regime
4 Divisions
Division 1 - Oahu
Division 2 - Maui, Molokai and Lanai
Division 3 - Island of Hawaii
Division 4 - Kauai
Estate may be divided into two categories;
1 - freehold estate
2 - leasehold estate (less than freehold)
a freehold estate is one whose duration is uncertain and indefinite; classification (a) fee simple, (b) fee defeasible, (c) fee tail, (d) life estate
Blockbusting
the discriminatory practice of encouraging members of one race or creed to move into a neighborhood, and then exploiting the situation by persuading residents to sell their houses at deflated prices because of the alleged social deterioration of the neighborhood.
Steering
Directing prospective buyers or tenants into or away from certain areas on discrimination grounds.
Land Contract is
installment contract (Agreement of Sale)
FHA
Federal Housing Administration (est. 1934 under National Housing act) was designed to encourage improvements in housing standards and conditions, to aid in providing an adequate home financing system and to exert a stabilizing influence on the mortgage market.
Planned development housing (PD-H)
formerly called a Planned Unit Development (PUD), involves a specific type of housing and zoning being used more frequently as a means of utilizing the State’s small amount of land as efficiently as possible.
The purpose of such planned development is to encourage a more efficient use of land and public services by allowing a more flexible means of land development than it permissible under lot by lot restrictions.
Hula Mae loans
The Hawaii Housing Finance and Development Corporation of Hawaii (HHFDC) issued tax-exempt revenue bounds to fund a mortgage loan program called Hula Mae.
requirement: citizen and resident of Hawaii, 18 yrs or older, first home buyer, (Doesn’t have to be native Hawaiian)
term; max 30 years.
if leasehold, required to have at least 35 years remaining on the lease
Not including executive meeting, who can attend board meetings?
member of the association
Usury Interest rate
12 %
who must disclose information on a disclosure statements
Seller
An agent’s seller has an agreement under single agency. what does the agent need to tell the buyer.
1: the seller doesn’t like his neighbor
2: the house has a lake view
3: the house leaks when it rains hard
3: the house leaks
Who does lava belongs to when it forms land
State of Hawaii
a house sells for $500,000. It depreciates in 39 years. what is the depreciation after 11 years
500,000 / 39 = 12,820
12,820 x 11 = $141,026
Tax is paid twice a year. if a house is assessed for $250,000 and the tax rate is $1.50 per 100 ($ 15 per mill), what is that tax payment for one installment?
$250,000/100 x 1.50 = $3,750
$3,750 / 2 = $ 1,875 per installment
What is true about airborne radon?
1: it is inexpensive to detect and remove
2: it has obvious odor
3: It is only found in wooden furniture
1 : inexpensive to detect and remove
A certified property associate is renting out units in a condominium. All of the following are true, Except;
1: 67 % of the association must approve
2: all of the board member must approve
3: he/she must live there
4: he must have a real estate license and only accept commission from his/her broker
3: he must live there.
what is distinct about owners who share ownership in common elements?
1: They share walls
2: they get to elect members of the association
3: they must pay assessments and government taxes.
2: they get to elect members of the association
Party Wall is
a wall erected on the line between adjoin properties that are under separate ownership, for the use of both owners. (Adjoining owners)
Owner of a 5-bedroom apartment resides within and rents other 4 rooms. Regarding Hawaii’s Discrimination Law, can the owner discriminate?
1: Yes, he may discriminate based on HIV
2: Yes, he may discriminate based on race or color
3: Yes, he may discriminate by any means.
4: No, he may not discriminate even though he resides there
3: Yes, he may discriminate by any means.
A sales person is showing his agent properties. His client sees a house with a ‘For Sale by Owner” sign. The client tells his agent he is interested in the property. What must the salesperson tell him in response?
1: I can’t call the owner because of the “Do Not Call Law”. The client must call.
2: I can’t contact him because he isn’t working with a licensed broker.
3: I can’t work with him because I won’t be paid a commission.
4: I can call him.
4: I can call him.
A salesperson resides on a different island than where her principal broker office is located. What must she include on her promotional fliers and advertisements?
1: The principal brokerage name or trade name only.
2: The principal brokerage name, address, and telephone number.
2: The principal brokerage name, address, and telephone number.
who is in charge of good faith estimates?
1: FDIC
2: Lending Institutions
3: FHA
4: HUD
2:Lending Institutions
A seller lists a house at $450,000. A lending institution assessed it to be valued $300,000. If the loan is based on a 80% loan-to-value ratio, how much down payment must the seller pay?
$450,000-$300,000 = $150,000
$300,000 x 80% = $240,000
$240,000 x 25% = $60,000
$60,000 + $150,000 = 210,000
What are building codes established to do the most?
1: Make sure all building look the same
2: Adhere to particular standards
3: Create a conforming tax zone for each county
2: Adhere to particular standards
A seller’s agent disclose the minor problems he discovered from doing an inspection of the property to a buyer. The seller claimed everything on the property worked perfectly. However, the buyer moved in and soon after discovered there were major problems with the piping system and later got him money returned. Who will pay for the dollar damages
1: The Seller
2: The Seller’s Agent is equally liable for independently discovering any material facts.
3: The Seller’s Agent
1:The Seller
Zoning ordinances are typically established by;
1: Federal Government
2: State Government
3: Town and city government
4: Courts
3: Town and city government
Which of the following actions can broker take without having a written listing agreement?
1: advertising and marketing the property
2: accepting earnest money deposit on behalf of the seller
3: showing the property with reasonable notice of the seller.
4: calling the courthouse for information on the property.
4:calling the courthouse for information on the property.
Once an offer to purchase is presented to a seller, the
1: buyer is bound to the terms contained therein until the delivery of its acceptance.
2: property is unavailable to any other prospects.
3: offer may be withdrawn at any time prior to delivery of its acceptance.
4: seller may not consider any other outstanding offers.
3: offer may be withdrawn at any time prior to delivery of its acceptance.
The statement “a contract for the transfer of interest in land must be writing” best defines which of following real estate concepts?
1: Acknowledgement
2: mutual Consent
3: Status of Frauds.
4: Status of limitations.
3:Status of Frauds.
Owner has 12 unit apartment building to sell. What of approaches to value should be given the most weight in setting a listing price.
1: cost
2: gross rent
3: income capitalization
4: sale comparison
3:income capitalization
in a mortgage trust deed form of loan, the terms of payment and interest rate would be found on the;
1: Mortgage
2: Deed
3: Loan Application
4: Promissory note
1: Mortgage
an owner signed a contract to sell an apartment building. Just before closing, the owner informed the buyers that the buyer changed his mind and would not sell the property. A lawsuit filed by the buyers would be for;
1: Specific performance
2: Lis pendens
3: Quit tittle action
4: a deficiency judgement
1: Specific performance
Which of items would be prorated at closing with credit going to seller?
1: accrued interest on an assumed mortgage
2: prepaid property tax
3: earnest money
4: un earned rent collect in advance
2:prepaid property tax
One difference between a competitive market analyst and an appraisal is that the appraisal includes information on;
1: near by property failed to sell
2: comparable property presently on the market
3: the highest and best use of the property
4: a range of probable value
4:a range of probable value
During a broker meeting, a broker states that a competitor is not charging enough commission. the other broker should;
1: vote on a new fee
2: reduce their fees
3: remove themselves from the meeting
4: not show the competitor’s listing
3:remove themselves from the meeting
it is a violation of Sherman anti-trust laws.
Which is a direct benefit of investing of income. Producing real estate?
1: the income is always classified as long term capital gains.
2: the tenant is responsible for any tenant improvements.
3: 1031 exchanges may be utilized for income properties.
4: The depreciation period is shorter than for residential properties.
3:1031 exchanges may be utilized for income properties.
An Exclusive agency listing ;
1: may be given to any number of brokers.
2: states that property can only be sold by an agent.
3: allow the owners to sell their own and owe no commission
4: is negotiated directly with a multiple listing system.
3:allow the owners to sell their own and owe no commission
Exclusive Agency vs. Exclusive right to sell listing
The federal equal credit opportunity act prohibits discrimination in that granting of credit because of an applicant’s
1: sexual orientation
2: being a minor
3: having reached retirement age
4: erratic employment history
3:having reached retirement age
A competitive market analysis (CMA) will give the seller
1: appraisal value
2: net proceed of sold properties.
3: probable sales price
4: advertising strategies.
3:probable sales price
Which is TRUE about competitive market analysis?
1: useful to buyer as well as seller
2: used to establish depreciable value
3: employed for insurance purpose
4: usually based on local tax assessmenet
1:useful to buyer as well as seller
the term “point of beginning (P.O.B)” is used in connection with a legal description by;
1: lot and block
2: government survey
3: metes and bounds
4: stree address
3:metes and bounds (tochi kyokaisen)
A precise way of describing by the boundary lines with terminal points and angles. Metes are measures of length and bounds are boundaries.
A method by which a seller can defer all or substantial part of the gain on a sale of investment property is known as
1: an estoppel sale
2: deferred 501c exchange
3: an installment sale
4: 1031 tax deferred exchange
4: 1031 tax deferred exchange
A homeowners association (HOA) has
1: shareholders
2: for-profit status
3: members
4: no tax liability
3: Members
An executed contract for the sale of a property resulted from a significant, deliberate misrepresentation made by the salesperson. Which is true?
1: under the doctrine of caveat emptor, the buyer is bound to the agreement
2: depending upon the nature of the misrepresentation, the agent could claim ignorance as a defense.
3: the agent could be held liable for any financial loss either of the principals.
4: the agreement would be binding on all parties.
3:the agent could be held liable for any financial loss either of the principals
the lead paint addendum that must be presented with the purchase and sale contract for certain older homes will
1: require the removal of all lead paint prior to the closing.
2: provide the buyer with the opportunity to waive the right to lead paint inspection.
3: mandate that sellers remove any lead paint only on interior walls.
4: make the sellers liable for any of the buyer’s lead-related medical problems.
2:provide the buyer with the opportunity to waive the right to lead paint inspection.
A listing agent and his unlicensed assistant are driving to present an offer to a seller when they are in an accident. The assistant is unharmed, but the agent is in hospital intensive care. What must the assistant do with the offer to purchase?
1: continue to meeting with sellers and present the offer
2: inform the buyers that the offer will not be presented.
3: Deliver the offer to the listing agent’s broker
4: wait for instruction from listing agent.
3:Deliver the offer to the listing agent’s broker
When homeowners sign a listing form, they are entering into a contract with the
1: Salesperson who filed out the form
2: local board of REALTORS.
3: brokerage firm
4: potential buyers.
3:brokerage firm
When a foreclosure sale of property does not produce sufficient funds to cover the loan balance, the mortgagee may be entitled to a personal judgement against mortgagor. this personal judgement is called;
1: a statutory redemption
2: an equitable right o redemption
3: a default judgement
4: a deficiency judgement
4:a deficiency judgement
Which of the following is Not legal test for a fixture?
1: intention of party doing attaching.
2: method of attachment.
3: adaptation of item to use of property
4: Cost of replacement of item.
4:Cost of replacement of item.
Illegal price fixing occurs when
1: the broker lists a property at the price set by the seller
2: a broker and salesperson make a side agreement relative to commission.
3: two brokers agree to an identical fee structure.
4: a salesperson takes a listing at less than the company’s schedule fee.
3:two brokers agree to an identical fee structure.
A broker maintains a property management trust(escrow) account which has clients’ funds in it. The broker’s account client smith negative $1000 balance in it whereas client Jones has $2000 balance in his account.
1: This is okay because there is more than enough to cover the $1000 shortfall so there is not overdraft.
2: This is a violation o the real estate license law.
3: This is a violation of deferral banking regulation.
4: This is Okay because Smith will have $1000 back in his account before jones gets his disbursement.
2: This is a violation o the real estate license law.
A Landlord may require that a disabled tenant
1: pay double the usual $500 security deposit.
2: pay an additional fee for using the swimming pool to cover the added insurance cost.
3: remove the wheelchair ramp from him apartment upon vacating the unit.
4: not install grab bar in the tiled shower if drilling holes in the tile is required.
3:remove the wheelchair ramp from him apartment upon vacating the unit.
The Seller tell there agent they must sell this week or face foreclosure. The agent should;
1: advertise that fact to attract attention
2: Keep the information confidential
3: mention in to the buyer’s agents to encourage offers.
4: Buy the property immediately at a discount.
2:Keep the information confidential
A buyers agent shows his client a property which has some significant foundation cracks. the buyer loves the property and wants to make an offer. the buyer’s agent should;
1: tell the buyer his opinion of the significance of the cracks, and then go ahead with writing and presenting the offer.
2: ingore this issue, as real estate licensees are not engineers and are not qualified to evaluate the significance of foundation cracks.
3: point out his concerns to the buyer and recommend making any offer contingent upon a satisfactory inspection report by a qualified professional.
4: Write and present the offer as the buyer directs, who no discussion of property condition.
3:point out his concerns to the buyer and recommend making any offer contingent upon a satisfactory inspection report by a qualified professional.
Puffing is best described as
1: an illegal practice for a licensee
2: encouraging an appraise to come up with a higher value
3: inflating prices above what the seller is asking.
4: exaggerating the benefits of property.
4:exaggerating the benefits of property.
One of the major disadvantages of real estate as an investment is that;
1: managing it requires expertise.
2: its is highly speculative
3: its liquidity is limited.
4: the tax advantages are minimal.
3:its liquidity is limited.
In a jurisdiction where the common law of agency governs real estate activities, a broker has has single agency relationship with the seller only. the seller needs to be out of the home quickly due to job relocation. the broker can not tell the buyer that seller is in a hurry to move due to the fiduciary duty of
1: confidentiality
2: accounting
3: disclosure
4: obedience
1: confidentiality
The most reliable approach for determining the value of a single family residence is the
1: income approach
2: sales comparison approach
3: replacement cost approach
4: gross rent multiplier
2:sales comparison approach
Fair Market value
All of the following factors affect market price Except;
1: what a wiling buyer pays a willing seller
2: the location of property
3: the speed with which he seller has to sell.
4: the amount for which property is listed on the tax record.
4:the amount for which property is listed on the tax record.
Market value is
1: an option of value based on an analysis of data
2: the same as market price.
3: what property actually sells for
4: the appraised value.
2: the same as market price.
Agent A of ABC realty lists a property that he owns with his brother. Buyer agent B from XYZ realty wants to show the property to his client. Before the property is shown, the agent A should;
1: provide showing times and directions to the property.
2: disclose his ownership interest in the property.
3: ask for a copy of agent B’s buyer agency contract.
4: provide a copy of agent A’s listing agreement to agent B.
2:disclose his ownership interest in the property.
When showing a property, a licensee told a prospective buyer, per the owner’s instructions, that the water seepage problem in the basement has been corrected. However, it was obvious to the licensee that this was not the case. The licensee is guilty of
1: puffing
2: a mistake of fact
3: misrepresentation
4: nothing- the licensee simply fulfilled agency duties.
3: misrepresentation
The first step in taking over the management of property is to;
1: measure the building following BOMA specifications.
2: determine the demographic characteristics of tenant population
3: calculate the CAP rate on the net operating income.
4: enter into a management agreement with owner.
4: enter into a management agreement with owner.
You are meeting with an owner about listing a property and are asked recommend a listing price. Which of the following action is most appropriate.
1: listing the property for the amount the owner believes it to be worth.
2: Listing the property for the mention or typical value of property sold in the same neighborhood.
3: Basing the listing price on a competitive market analysis.
4: Basinng the listing price on the current mortgage value, inflation index, and interest rate.
3:Basing the listing price on a competitive market analysis.
In a jurisdiction where the common law of agency governs real estate activities, a buyer has a single agency relationship with a broker. The buyer wants to purchase one of the brokerage company’s listing from seller with whom the broker also currently has single agency relationship. This will create dual agency but in order for this relationship to be legal, it will be necessary to have written consent of the;
1: seller
2: buyer
3: buyer and seller
4: seller, buyer and broker.
4:seller, buyer and broker.
Elderly homeowners paid off 5 years ago. Due to a limited fixed income, they would like to borrow on the equity of the home. which type of loan would be most desirable?
1: Open-end loan
2: Reverse mortgage
3: Blanket loan
4: growing-equity loan
2:Reverse mortgage
Which of the following approaches would allow you to estimate value if you know the construction price per square foot?
1: cost
2: income
3: market comparison
4: sales
1: cost
Earnest money accompanying a purchase offer is
1: a percentage set by individual sate laws
2: turned over promptly to the seller
3: the amount of down payment on the loan.
4: not required to make a contract valid.
4:not required to make a contract valid.
If the broker is the seller’s agent, the commission is shown on the closing statement as
1: a credit to buyer; a debit to seller
2: no entry to buyer; a credit to seller
3: no entry to buyer, a debit to seller
4: a debit to buyer, a credit to seller
3:no entry to buyer, a debit to seller
In contrast to comparative market analysis (CMA), only an appraisal can be relied on to;
1: determine the value of real property in estate distribution.
2: determine the listing price of a property
3: gain competitive advantage with a prospective seller
4: illustrate general property value in a community
1: determine the value of real property in estate distribution.
An estimate of property’s market value is intended to represent the property’s
1: highest sales price
2: most probable sales price
3: appreciated price
4: lowest reasonable sales price
2:most probable sales price
A contract is terminated if
1: one of the party decided not to go ahead.
2: a third party intervenes
3: it is impossible for one of the parties to perform
4: one party assigns his right to another
3: it is impossible for one of the parties to perform
In the course of listing a home for sale, a licensee observes water stains on a celling. The licensee should
1: advice the seller to repaint the celling so that it will be more attractive to potential buyers.
2: advise the seller that appraiser will lower the value of the home if the stains are observed.
3: ask the seller what was the cause of stain
4: ignore the stain.
3: ask the seller what was the cause of stain
an offer was presented to a seller and the seller countered the offer. Before the counteroffer was accepted, a second, more favorable offer was presented to the seller. Before the seller can accept the better offer, she must
1: inform the broker of her intent to accept the second offer
2: withdraw the counteroffer before its accepted.
3: notify this second offer that she can accept that offer only as a back-up.
4: none of the above.
2: withdraw the counteroffer before its accepted.
In jurisdiction where the common law of agency applies, a broker has listed a home and then presented to seller an offer from another client of the broker. The offer has been accepted. The broker has what type of agency relationship with parties.
1: seller agency, no agency relationship with buyer
2: no agency relationship; in this situation, the broker becomes a facilitator only
3: seller agency, buyer sub-agency
4: dual agency
4: dual agency
A licensee is changing brokers. What happens to the person’s active listings
1: They transfer with her
2: they remain within her previous broker
3: they automatically expire
4:the property owner chooses between the two brokers.
2: they remain within her previous broker
The purpose of reverse mortgage is to
1: permit the mortgagor to borrow additional funds as the mortgage is paid down.
2: grant the mortgage priority over certain liens.
3: provide financing for construction
4: supplement the mortgagor’s income.
4:supplement the mortgagor’s income.
Covenants, Conditions, and restrictions (CC&RS) may be imposed by
1: a commercial property manager
2: an attorney specializing in real estate law
3: the municipality inn which the property is located.
4: the owners of subdivision.
4:the owners of subdivision.
BPO
Broker Price Option
Recent law permits broker to charge a fee without appraisers license.
When selling a house containing lead based paint;
1: seller has to remove before selling the house
2: safer to seal if damaged rather than trying to remove.
3: duck tape the surface
2: safer to seal if damaged rather than trying to remove.
You signed a 3 yrs lease and your landlord passes away after 1 year.
1: you can abandon the house an leave
2: you can stay since your lease is still active
2: you can stay since your lease is still active
In many states, usury laws
1: determine the possible legal use of land
2: provide a right to use property belonging to another
3: impose a tax on a purchaser of personal property for resale or use
4: establish a maximum rate of interest allowed loans.
4: establish a maximum rate of interest allowed loans.
An express agency relationship is created by
1: any listing agreement
2: a formal agreement that establishes terms and conditions
3: any sales contract
4: any written leasing agreement
2: a formal agreement that establishes terms and conditions
In surveying monuments are used to establish
1: a common address
2: real estate boundaries
3: flood elevation
4: historical sites
3: flood elevation
A condominium complex is exempt from the fair housing requirements regarding for families with children if it
1: is at least 2 years old
2: is intended for at least one person 55 years of age or older per unit.
3: is intended as an investment
4: houses recovering alcoholics
2: is intended for at least one person 55 years of age or older per unit.
When title is given in the creation of an ordinary life estate, the recipient is permitted possession until
1: the recipient dies
2: this grantor dies
3: the property is sold to another party.
1: the recipient dies
Standard title insurance protects against
1: title defers know to the buyer
2: exiting but undiscovered tittle defects.
3: tittle defects known to the seller
4: tittle defects and liens listed in the policy
4: tittle defects and liens listed in the policy
During an Open House, a licensee has been approached by a buyer who has expressed an interest in the home. The licensee has talked about importance. Pre-qualified to purchase and has asked the buyer if he has been working with a licensee while looking for property. Which of the following information should be discussed in this conversation?
1: the Buyer’s price range
2: that the licensee represents the seller
3: Whether the buyer is qualified for Hula Mae financing
4: The Buyer’s time frame for purchasing a home
2: that the licensee represents the seller
Under Hawaii’s anti-discrimination law, HRS Chapter 515, is resident owner of a five-bedroom house allowed to restrict the rental of the other on membership in any class that is otherwise protected?
1: Yes, but only based on gender and race
2: Yes, but only based on HIV status
3: Yes, and he may discriminate on any class basis that concern him
4: No he may not.
3: Yes, and he may discriminate on any class basis that concern him
Hawaii’s Food Funds Act requires all closing funds to be deposited into escrow no later than
1: two days prior to recordation
2: By noon of the day prior to recordation
3: Before the close of business on the day before reocordation
4: The day of recordation
1: two days prior to recordation ( by wire or cashier’s check)
An agreement of sale transaction requires two closings, one for equitable title and one for legal title, which charge is included in ONLY one of the closing?
1: escrow fee
2: Title Search
3: Document preparation
4: Conveyance Tax
4: Conveyance Tax
A licensee may advertise
1: a property he owns as being “for sale by owner”
2: a fee simple property without mentioning its tenure status
3: without mention of the brokerage firm’ s legal name
4: without disclosing status as a real estate licensee
2: a fee simple property without mentioning its tenure status
According to Act 212 relating to broker Price Opinion effective July 11, 2011, a real estate licensee may receive compensation, a fee or other
1: providing an opinion as to the estimated price of real estate, which of the following is TRUE if the licensee receives such compensation.
The licensee shall not receive any additional fee or compensation for the sale of the property if an
1: option is provided.
2: Under no circumstance may be licensee’s compensation be paid by the lender
3: The licensee can receive compensation both for the option and for selling the property
4: the licensee can present the opinion as an appraisal for purchases of obtaining a mortgage.
1: option is provided.
A fully executed listing agreement must be signed by
1: the seller and the salesperson licensee
2: at least one spouse who is the seller and the broker
3: Both spouse as the seller and the salesperson licensee
4: all owners on title and authorized broker of brokerage firm.
4: all owners on title and authorized broker of brokerage firm.
After a real property tax sale, the property may be redeemed by the owner who lost it al the tax sale within
1: 1 year
2: 2 year
3: 3 year
4: 6 year
1: 1 year
How is a condominium established?
1: recording of condominium map, declaration, and bylaws.
2: approval by local planning building and zoning board.
3: construction of a multi-family building
4: recording of at least one unit deed by the fist purchaser.
1: recording of condominium map, declaration, and bylaws (and master lease or deed).
The Hawaii purchase contract does not include general disclosure language regarding
1: Governmental regulation
2: Hazardous wastes
3: noisy environmental pests
4: waste water disposal
3: noisy environmental pests
The disclosure of dual agency shall be made to a prospective buyer by the listing licensee preparing an offer on behalf of the buyer.
1: at the time the completed offer is presented to the buyer
2: at the time the offer is signed by the buyer
3: prior to the preparation of the offer
4: anytime before the offer is presented to the seller
3: prior to the preparation of the offer
Other than executive sessions, who has the right to attend any meeting of the condominium board?
1: all unit residents and owners.
2: all member of the association.
3: attorney representing unit residents.
4: other designated representatives of unit owners and residents.
2: all member of the association.
A mortgage broker asks a real estate licensee to render an opinion on the recommended purchase price of a property NOT listed with the licensee. According to the laws, the real estate licensee may
1: charge a fee for providing the opinion, but must indicate inn writing that the opinion is not an appraisal.
2: charge a fee only to cover travel, inspection, and other actual expenses associated with developing the opinion.
3: not charge anything for providing the opinion
4: not render an opinion under these circumstances
1: charge a fee for providing the opinion, but must indicate inn writing that the opinion is not an appraisal.
A conveyance document for a co-op is called,
1: deed
2: assignment of lease
3: assignment of stock and proprietary lease
4: limited warranty deed
3: assignment of stock and proprietary lease
under which of the following conditions can a residential landlord enter a tenant’s dwelling unit.
1: with at lease 48 hour’s notice
2: only in an emergency that threatens life of property
3: at any reasonable time
4: with at lease 24 hours notice
1: with at lease 48 hour’s notice
A planned Unit Development (PUD) is defined as a
1: Master Planned development in the rural areas of an island
2: planned development specially zoned areas addressing environmental concerns.
3: Development and zoning concept which is designed to produce a high density of dwelling Unit with maximum utilization of property….
4: Development designated primarily to facilitate commercial activity.
3: Development and zoning concept which is designed to produce a high density of dwelling Unit with maximum utilization of property….
Land may be acquired through adverse possession if all of the following requirement are met EXCEPT
1: possession must occur without the owner’s permission
2: Exclusive and continuous use of 20 years by the party making the claim
3: The parcel in question must be at least 20 acres in size
4: The owner must be aware or likely to know of the occupancy
3: The parcel in question must be at least 20 acres in size
According to HRS chapter 514B, a condominium association can REQUIRE each unit owner to have insurance on the owner’s unit based on the following Expect the
1: Condominium declaration
2: Condominium bylaws
3: Majority vote of the board members
4: vote of the board supported by a majority of the owners.
3: Majority vote of the board members
Generally, the right to choose the title policy and title insurance company belongs to the
1: seller
2: Buyer
3: Lender
4: escrow
2: Buyer
If the seller has noted that a termite and warranty will be provided on the property prior to closing, all of the following states are true EXCEPT,
1: buyer may still negotiate that a termite inspection be paid for by the seller to note damages, if any
2: buyer ay pay to complete a termite inspection report
3: Seller requires that the termite inspection report be waived
4: Lender, if any, will accept the termite treatment warranty for loan purchases.
3: Seller requires that the termite inspection report be waived
Common elements in a condominium property regime are
1: owned by those whose units adjoin the respective common elements.
2: subject to partition when a unit is sold
3: the surface rights underneath the structures.
4: Owned by all unit owners.
4: Owned by all unit owners.
Other than trust funds records, for how many years in the principal broker or broker in Charge responsible for maintaining records of personal record of clients
1: 1 year
2: 3 years
3: 5 years
4: 7 years
2: 3 years
A Hawaii real estate broker receives client referrals from a person who does not hold a Hawaii real estate license. Hawaii real estate broker may NOT compensate this person if the person is a
1: licensed broker of another states
2: licensed broker of another country
3: Travel agency which has arranged a transient vacation rental.
4: Mortgage broker licensed in Hawaii
4: Mortgage broker licensed in Hawaii
4 categories of land use are;
Urban, Conservation, Rural, Agriculture
County controls Urban, Rural and Agricultural lands
State controls conservation.
Tenants by the entirety is between
1: reciprocal beneficiaries
2: husband and wife ONLY
1: reciprocal beneficiaries.
A licensee is at an open house and a buyer approaches him and discusses that he is interested in the house but mentions that he does not have an agent. Before any further talk, the licensee should;
disclose that he represents the seller!
All of the following are not necessary for adverse possession EXCEPT;
1: the owner know of the tenancy
2: The acquired property is at least 20 acres
3: the owner does not know of the tenancy
1: the owner know of the tenancy
The De Minimis requirement of agricultural land is
1: 0.5 ft
2: 0.75 ft
3: 0.25 ft
4: 1.5 ft
- 0.75 ft (9 inches)
1: commercial, industrial and multi-unit resident - 3 inches (.25 ft)
2: Residential properties - 6 inches (0.5 ft)
3: Agricultural and rural properties - 9 inches (0.75 ft)
4: Conservation properties - 19 inches (1.5ft)
All of the following will be ready at closing for signatures except
1: termite inspection report
2: preliminary title report
3: closing documents
1: termite inspection report
The seller prepays tax up till June 30. Closing date is set for July 1st.
1: debit seller for prorate tax
2: credit seller for prorate tax
3: neither credit nor debit to seller
4: neither credit nor debit to buyer
3: neither credit nor debit to seller
A new licensee should avoid what type of transaction
1: commercial property
2: sell raw land to developer
3: residential sales
4: rental property
1: commercial property
Hawaii discrimination law allows for discrimination against
1: age
2: gender
3: race
4: military
4: military
A California residents sells his house in Hawaii to the buyer. of the $$$ purchase price the buyer is responsible to withhold
1: 10%
2: 7%
3: $1 per $1000 of purchase price
4: 5 %
4: 5 %
How old can the seller’s disclosure statement
dated within 6month before or, less stated otherwise.
Seller must provide within 10 days after the acceptance
Buyer has 15 days to rescind the sales contract.
Buyer must acknowledge receipt of this statement in writing.
If discovers new facts, seller must provide buyer with amended disclosure statement within XX days of discovery
10 days
Use straight line or accelerated depreciation for a property purchased in 1979
Accelerated Depreciation.
Straight Line Depreciation is the only allowable method since 1987.
Allowable depreciation period:
residential = 27.5 yrs
non-residential = 39 yrs
Lead poisoning would be a problem in
1: pluming
2 Paint
3: insulation
4:particles in soil
2 Paint
Mortgage Fraud Prevention Act (Act 137) states that an agent cannot buy his own listing for X year from the date of listing EXPIRES.
1 year from the date the listing expires.
If the salesperson did not pay and did or did not take 20 hrs of continued education courses, the license is;
A; Forfeited
B; Inactivated
A; Forfeited
Which of the following qualifies for Hula Me Loan?
A going from agreement of sales to mortgage
B: Mortgage on a home with 50 Years lease for 10 fix years rent
C: Mortgage on a home with 34 years lease for 5 fix years
B: Mortgage on a home with 50 Years lease for 10 fix years rent
Who qualifies for ERS?
ERS - Employees’ Retirement System
Pensioners & State and County employees
Agreement of Sale
The buyer in an agreement of sale does not get title until the loan is paid in full
Who is responsible for collecting HARPTA & FIRPTA
Buyer is responsible for making sure the payment is collected from the seller and usually done through escrow.
Who cant get real property tax deduction?
A: absentee owner
B: person with disabilities
C: low income family
D: religious affiliation
A: absentee owner
During the final walk through, the seller must comply with all of the following EXCEPT;
A: Seller has to leave premises and clear out all their belongs.
B: Seller must keep utilities at at seller’s expense
C: the condition of the property must be in the same condition as the initial inspection
D: the buyer is allowed to inspect any repair or replacement as agreed between
A: Seller has to leave premises and clear out all their belongs.
HUD-
Department of Housing and Urban Development.
A neighborhood community board wanted to install sidewalks. How should it be financed?
A: Special assessment
B: Rising property values to increase property taxes
C: through the department of permitting and planning
D:
A: Special assessment
The documents provided at closing by escrow are all of the following except?
A: Termite inspection report
B: Title insurance paper
C: HUD-1 closing statement
A: Termite inspection report
A buyer of a property built prior to 1979 should inspect for;
A: asbestos siding
B: lead piping
C: poly-chlorinated biphenyls
A: Asbestos
Before 1797
lead - 1978
The lead paint disclosure act requires
seller and lessors to make disclosures, and give a pamphlet, covering the hazard of lead based paint, for all properties built before 1978.
Lead based paint disclosure must signed by buyer and seller and ALL agents.
which is an example of easement by necessity
A: railroad company can not access tracks
B: electric company can not access electrical lines and poles.
C: a buyer can not access his home without going over the surrounding land of seller.
C: a buyer can not access his home without going over the surrounding land of seller.
A broker advertises that he “can guarantee a profit on any property he sells for you” is
A: Legal
B: Illegal
B: Illegal
The MLS agency will not allow a broker a membership because he charges a lower commission for minorities. This is an example of
A: Redlining
B:Blockbusiting
C:Puffing
D:Panic peddling
A: Redlining
Redlining is a practice by lending institution restricting the number of loans that will be underwritten in a given community. The practice is illegal if based on the racial composition of a community.
Fixture
Mail determining factor is “INTENT of the PARTIES”.
Example - Freestanding shelving custom built to fit an alcove although not permanently attached, could interpret that because it wont fit in a different property, action of customizing shows intent that it be a fixture.
Net listing
Net listing I one where the owner specifies a net price he wants for his property, and any amount over and above that price is the commission paid to the selling broker for his service.
It is LEAGAL in Hawaii, but some states prohibits and it is discouraged
PASH
Public access to shorelines in Hawaii (PASH)
Conveyance tax based on
the actual and full sales price, including mortgages. The deed cannot be recorded until the Conveyance Tax Certificate is filed.
Termination of lease
XX days by landlord
XX days by tenants
45 days by landlord
28 days by tenants
A contractor wanting to build a new development would need to be concerned with an SMA permit in areas near;
A: volcano
B: Preservation Forrest
C: Mountain
D: Ocean
D: Ocean
Assuming the Realtor is totally aware, which must he disclose to buyer
A: the previous owner left due to allergies from reoccurring mold issues.
B: A registered sex offender is listed 2 blocks away
C: The previous owner has AIDS and moved into a hospice care center
D: There has been 3 robberies within the last 2 years.
A: the previous owner left due to allergies from reoccurring mold issues.
Can’t disclose “C”.
Employee of a condo association who rents out units does not need to live on the premises but does need a license.
A: True
B: False
A: True
protected class - discrimination
Federal has 7 classes, HI has 12
Federal: race, color, religion, sex, handicap, familial status, national origin. (Not age, sexual orientation or marriage)
Hawaii: race, sex, color, age, religion, marital status, sexual orientation, ancestry, disability (mental and physical), familial status, HIV infection, using seeing-eye dog.
Federal only covers residential. Hawaii both commercial and residential.
Complain must filed with HUD within 1 year (fed)
Complain must filed with Civil Right Commission within 180 days.
Lead poisoning would be a problem in all except;
A: plumbing
B: Paint
C: Insulation
D: Particles in soil
C: Insulation
A broker agrees to work with a buyer. The Broker can;
A: Consult the seller
B:Reveal accidentally disclosed information about the seller to the buyer
C: “Puff” information about buyers financial condition
D: Negotiate commissions with other broker if they are too low
B:Reveal accidentally disclosed information about the seller to the buyer
Federal Fair Housing Laws are administered by;
A: FDIC
B: VA
C: HUD
C: HUD
Depreciation will least likely be affected by;
A: Decreased value
B: Functional obsolescence
C: Deterioration of property
D: Next to unappealing property
A: Decreased value
A lender will not approve mortgage for brokers who charge commission of 4% for minorities. This violates;
A: Redlining regulations
B: Blockbusing
C: panic peddling
A: Redlining regulations
A tree and bush planted by the current owner are examples of;
A: chattels
B: trade fixtures
C: real property
D: personal property
C: real property
For sales contract to be valid, it must have;
A: date of acceptance
B: legal description
C: sellers signature
C: sellers signature
Seller includes in the contract a termite treatment and a warranty. All but which of the following is true:
A: buyer can still have the seller to do termite inspection
B: Buyer can pay to do inspection himself
C: seller can waive the termite inspection
D: lender will consider this acceptable to authorize loan
C: Seller can waive the termite inspection
A broker signs a contract with a principal and remains a single agent. If he helps a buyer to create a sales contract, the buyer became;
A: Client
B: Customer
B: Customer
For unpaid maintenance fees, the board can do all of the following except;
A: turn off the utilities to the unit occupied by the owner.
B: Turn off utilities to the unit if occupied by a renter of the owner.
C: Foreclose
D: pass judgement on the owner
B: Turn off utilities to the unit if occupied by a renter of the owner.
When should an agent disclose dual agency?
A: prior to preparing offer for the buyer
B: any time before the offer is presented
A: prior to preparing offer for the buyer
Who is responsible for the closing statement?
A: buyer
B: escrow agent
C: closing attorney
D: seller
B: escrow agent (Settlement officer)
A conveyance document for a co/op is called;
A: Deed
B: Assignment of Lease
C: Assignment of Stock and proprietary lease
D: Limited warranty deed
C: Assignment of Stock and proprietary lease
When is it critical to use the “time is of essence” on a purchase contract?
A: Seller is moving and wants to close before leaving state
B: Buyer is relocating and wants to take possession by a given date
C: Both parties at final phase of 1031 exchange
D: Seller want to sell property to another party for higher price
C: Bother parties at final phase of 1031 tax exchange
a 65- yea-old man bough his primary residential residence. he realized a year later he didn’t take his exemptions for his real property taxes. what can he do? Is the tax retroactive, or is it effective at a future date?
He can file for the tax exemption for the future but he cannot get that tax break retroactively.
A grantor wants to make the standard covenants of good title but wants to limit liability to claims arising during the term of his ownership, what type of deed should he use.
Limited warranty deed or Special warranty deed
If the offer was accepted and while in escrow, the escrow officer notifies parties that a cloud on title was discovered, buyer can choose all but one of the following.
A: sue to quiet title
B: Refuse to deal and demand refund deposit
C: Demand the seller to remove the cloud
C: Demand the seller to remove the cloud
Which is subject to Hawaii Usury Law
A: PMM
B: Agreement of Sale
C: PMM by seller’s relative
D: Second construction loan from lender
C: PMM by seller’s relative
Beyond the seller/buyer control of not closing as scheduled;
A: Seller cannot get the house clean on time
B: Seller cannot move the furniture on time
C: buyer found out he has another month on his lease
D: wants t move to the mainland by a specific time
E: bureau of conveyance is on strike and not recording
E: bureau of conveyance is on strike and not recording
Know when a landlord can raise the rent;
A: 30 days notice to month to month tenant
B: 45 days notice to month to month tenant
C: 60 day notice to tenant in a year lease
B: 45 days notice to month to month tenant
1 acre in sq ft?
43,560 sq ft.
If husband and wife didn’t choose tenancy then, automatically becomes;
Tenancy in Common
Which rule-of-thumb version is being offered to an investor who is told that a house renting for $900 a month should sell for about $90,000.
Gross Rent Multiplier (GRM)
The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is the adjustment made at closing?
Credit buyer $110,000, Debit seller $110,000
What is easy task for dual agent?
A:obedience
B:loyalty
C: disclose
C:disclose
A couple is trying to finance a loan. Which one provides knowledge of closing?
A: equal opportunity act
B:fair opportunity act
C: real estate procedure act (RESPA)
D: uniform settlement act
C: real estate procedure act (RESPA)
Which contract allows buyers to purchase at a fixed period?
A: contract of sale
B: sales contract
C: agreement of sale
D: option
D:option
A person opening a candy store is concern and unsure about the zoning variance. What should he do?
A: apply for the variance and see if it’s get accepted.
B: state his concern and talk to the department in changing of zone.
A: apply for the variance and see if it’s get accepted.
For federal income tax purposes, which of the following are costs of homeownership that may be deducted from gross income?
mortgage loan interest, local property taxes, mortgage loan origination fee.
Swing Loan’s definition
it is also called “Bridge Loan”. this is a loan to temporarily fund a second property the borrower is buying while he is trying to sell or close on the first. The loan is based on the equity value in the first property.
CFPB
Consumer Financial Protection Bureau
COALD
Confidentiality, Obedience, Accounting, Loyalty and full Disclosure
A couple is tying to finance a loan. which one provides knowledge of closing?
A: Equal Opportunity Act
B: Fair opportunity Act
C: RESPA (real estate procedure act)
D: Uniform settlement act
C: RESPA
RESPA require that within 3 days after an applicant submit info for a loan, a lender o mortgage must furnish the borrowers with a LOAN Estimate of the likely settlement cost. (Loan estimate, HUD #1 form, homebuyer’s guide to settlement)
Which contract allows buyer to purchase at a fixed price?
A: contract off sale
B: sales contract
C: agreement of sale
D: option
D: Option
who is subject to usury rates?
A: Junior mortgage on a second mortgage
B: 1st mortgage lender
C: Seller financing
D: FHA or VA
A: Junior mortgage on a second mortgage
What is the main purpose of FHA loan?
A: to provide loans with low down payments.
B: to provide mortgage with high loan-value ratios
C: to improve housing standards and conditions
C: to improve housing standards and conditions
What approaches to value should be used when looking at a special location likes a Church
A: Cost
B: Market Analysis
C: Income
A: Cost
Seller wants to sell their property using seller financing but wants to keep the title. what should they use?
A: Land Contract
B: Wraparound mortgage
C: Option contcact
A: Land contract (Agreement of Sale, Contract Sale)
You have a fiduciary duty to the sellers and they tell you they need to sell their house but there are many foreclosures in the area which are affecting the Market Price. What do you do?
A: Tell them you can’t perform a CMA (Comparative Market Analysis) because of the foreclosures and to list the price at what they want.
B: Search nearby neighborhoods with foreclosures and similar houses and use the prices to make a comparison.
C: look for a nearby neighborhood without foreclosures and similar houses and use the prices to make a comparison.
B: Search nearby neighborhoods with foreclosures and similar houses and use the prices to make a comparison.
When a broker receives an earnest money deposit he should
A: deposit into a client trust account on the next business day.
B: deposit into a client trust account on the next calendar day.
C: You can wait until the contract is accepted before the deposit is deposited to escrow or client trust account.
C: You can wait until the contract is accepted before the deposit is deposited to escrow or client trust account.
An agent has a fiduciary duty to the seller, he is showing the property to a prospective buyer and notices that there is some obvious damage to the roof shingles, he should;
A: tell the buyer since it is a material fact
B: Not tell the buyer because it would not be of benefit to the Seller
C: Not tell the buyer because the seller has never said that the roof was a problem.
A: tell the buyer since it is a material fact
The seller tells the agent that the property taxes on their $150,000 dollar house is $1,575, the agent must;
A: tell the sellers broker and the decide what to list.
B: keep the information confidential
C: include this in the listing
D: Tell prospective buyers
C: include this in the listing
Listing contract has signatures of the required parties but not legal description of the property.
A: contract is void
B: contract is unenforceable
C: Contract is voidable
D: Contract is valid
D: Contract is valid
legal description is not necessary for a listing nor purchase contracts
Escrow agent does all the following EXECEPT;
A: compute proration
B: Dispenses funds
C: Draw up closing statements
D: delivers Deeds
D: Delivers deed
What is the setback for development in Hawaii
A: Min 10 ft to max 20 ft
B: Min 10 ft to max 40 ft
C: Min 40 feet
C: Min 40 feet
What is the best example of a making accommodations for protected classes according to the law in Hawaii.
A: having an elevator in a complex with 4 stories or more
B: Renting to a person who is blind
C: Renting to a person who is mentally impaired.
D: Making improvements to a unit for a tenant in a wheel chair such as widening a hallway or adding a ramp
D: Making improvements to a unit for a tenant in a wheel chair such as widening a hallway or adding a ramp
What is an example of easement by necessity
A: neighbor accessing their property with not other alternative route.
B: Utility company accessing a meter
A: neighbor accessing their property with not other alternative route.
what is the opposite of erosion (浸食)
A: accretion
B: Avulsion (裂離)
A: accretion (増加)
When does the right of rescission end if the seller does not disclose cracks in foundation and attempts to cover them up?
A: by midnight of the 3rd business day after closing
B: 3 years after the sate of consummation
C: The day before closing
D: Never
B: 3 years after the sate of consummation
WHen is a lease terminated?
A: when it expires
B: when the landlord or tenant dies
C: when the tenant moves out
A: when it expires
Tax reduction is available for all of following EXCEPT;
A: absentee owners
B: Handicap
C: Low Income
D: Wrong answer
A: absentee owners
Eminent Domain is executed by use of what?
Condemnation
Notice of Termination of rental (how many days)
Month to Month
28 days notice by tenant
45 days notice by landlord
Notice of voluntary demolition (how many days)
Notice of conversion to condominium (how many days)
120 days
Notice of rent increase (how many days)
45 days notice
What is the federal law that prohibits monopolies
A: Anti-Monopolies Law
B: Anti-Trust Law
C: Sherman William Act
B: Anti-Trust Law
owner was able to get approved for short sale by the lender, the forgiven debt was considered to be the income by IRS. What is relevant to this?
A: Dodd Frank
B:Mortgage Debt Relief Act
C: Truth-in-lending
B:Mortgage Debt Relief Act
Sally is preparing listings for a few homes of similar nature and that were built by a developer. what does she NOT need for her preparation? A: last sale date B:sale price C: square footage D survey results
D survey results
A client has vacant retail space. There are many fast-food businesses that would like that space, and the fast-food business is growing at a fast-paced rate. What kid of lease should you advice your client to engage inn, with the fast-food businesses?
A: gross lease
B: net lease
C: percentage lease
D: sandwich lease
C: percentage lease
Gross- lessee pays a flat rental amount (Ex.apartment)
Net -triple net lease( pay everything - ex.CAM)
Rosa and Sam share a driveway that is solely on Sam’s property. what should Sam give Rosa, if Rosa decided to sell her house and Sam may not like the new owners?
A: easement
B: encroachment
C:covenant
D:Restriction
A: Easement
A description uses “Tall oak tree” in its wording. what is the method most likely being used to survey this property?
A: Metes and bounds
B: township
C: Government
D: plat and parcel
A: Metes and bounds
Each month, the lender collects 1/12 of annual property tax. every few months, the lender also collects about 1/3 homeowner’s insurance. This is on top of your monthly payment (Includes principal and interest) for a property you had purchased for $200,000. Where does the property tax and insurance money go?
A: into an escrow account
B: into the broker’s client trust account
C: into a special lender’s account that is easily accessible by the vendee.
D: into the broker’s operations account
A: into an escrow account
What does SMA stand for when speaking of an SMA permit?
A: shoreline management assessment
B: shoreline management agreement
C: special management area
D: special management assessment
C: special management area
You are a listing agent. what is NOT a good reason to suggest to the seller to have homeowner’s warranty?
A: Home sell 15% faster, if the home have a home warranty.
B: 68% of homes have a problem & issues that needs repair in the 1st year after being sold.
C: having a homeowner’s warranty increases cash flow for the brokerage.
D: A homeowner’s warranty may not cover the buyer after closing and the deed has been recorded.
C: having a homeowner’s warranty increases cash flow for the brokerage.
You represent the seller in an exclusive agency purchase contract. What is the only legal way the seller does not have to pay you commission?
A: Seller dies after purchase contract signed by seller and buyer, but the deal has not yet closed.
B: Destruction of property after contract become binding, but before closing
C: buyer dies
D: buyer signed purchasing contract, but no longer wants to buy the property.
D: buyer signed purchasing contract, but no longer wants to buy the property.
A mortgage which covers both personal and real property is;
A: blanket mortgage
B: Package mortgage
C: purchase money mortgage
D:construction mortgage
B: Package mortgage
What is the next step to the cost approach of appraising a property with a church on it once the estimated value of the land has been found as if vacant?
A: Deduct accrued depreciation
B: Estimate the current cost of reproduction of the building
C: Estimate the accrued depreciation
D: Estimate the value of the land as if vacant
B: Estimate the current cost of reproduction of the building ?
PD-H (formerly,PUD) is
Planned Unit Development / Planned Development Housing
to encourage efficient use of land and public services, flexible development permissible.
Under PD-H, the developer submits;
Plan, Location, Dimension, exact location, proposed building, open area, topographic info, surrounding land uses and any other matters pertinent to the development.
The following statements are true about qualifying for Hula Mae Loan. which one is not true?
A: 18 year of age
B: Income of not more than $94,920
C: Citizen of the USA and HI
D: Need to be Hawaiian
D: Need to be Hawaiian
SPA is concerned with
A: conservation land
B: preservation land
C: Ocean shoreline
C: Ocean Shoreline
SPA- shoreline protection act
Real Estate Commission
-How many members?
9 members
least 4 must be licensed broker.
3 must be salesperson or broker
2 do not hold license.
4 from Oahu
1 from Maul
1 from Big Isle
1 from Kauai
term is 4 yr
