Hawaii State Pt2 Real Estate

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If Jody Kauhale lost his property in a tax foreclosure: (A) He could get it back by paying the back taxes any time during the next six months. (B) He could get it back by paying the Hawaii State Tax Collector all the back taxes within one year. (C) He could redeem it by paying the Hawaii State Tax Collector all the back taxes, plus costs and interest, within one year. (D) He could redeem it by reimbursing the new owner for the taxes, all costs, expenses and interest within one year of the sale.

D. He could redeem it by reimbursing the new owner for the taxes, all costs, expenses and interest within one year of the sale.

With regard to mortgages, Hawaii is considered to be: A. A lien theory state. (B) A title theory state. (C) A note and mortgage state. (D) A Pythagorean Theorem state.

A. A lien theory state.

Two months after a mortgage foreclosure sale is confirmed, the foreclosed mortgagor: A. has no right of redemption. (B) can evict the new owner if he pays up, plus interest. (C) has 10 more months to buy the property back. (D) can sue the lender for liquidated damages.

A. has no right of redemption.

A Hawaii property owner can redeem his property within one year after A. Real property tax foreclosure sale (B) Mortgage foreclosure sale (C) Both of the above (D) Neither of the above

A. Real property tax foreclosure sale

Which of the following is NOT true of Hula Mae loans? (A) You may purchase leasehold single family property. (B) You may purchase a condominium. (C) You may sell the property at any time without potential tax repercussions. D. They are assumable by eligible buyers under certain conditions.

C. You may sell the property at any time without potential tax repercussions.

Employee Retirement System loans: (A) Must be for single family homes. (B) Are only for retirees of state and county agencies. C. Are conventional, FHA and VA loans. (D) Are for personal residences only.

D. Are for personal residences only.

If Max had obtained a reverse mortgage three years ago, what would happen upon Max's death? A. Max's heirs would inherit the property free and clear. (B) The mortgage would be due and payable in full. (C) Max's heirs would continue making payments on the mortgage until it was paid off. (D) None of the above.

B. The mortgage would be due and payable in full.

Where would you go to get an Employee Retirement System loan? A. A participating local lender. (B) The Employee Credit Union. (C) The Federal Deposit Insurance Corporation. (D) Hawaii Finance and Development Corp.

A. A participating local lender.

Hula Mae loans are administered by: A. The state of Hawaii. (B) County of Maui. C. DCCA. (D) HUD.

A. The state of Hawaii.

Hawaii usury law applies to interest charged on: A. Wraparound mortgage loans. (B) Loans between private parties. (C) VA mortgage loans. (D) FHA mortgage loans.

B. Loans between private parties.

Mei Ching's husband, a United States Navy veteran who subsequently taught at a public high school on Kauai, died and left her penniless, except for free and clear ownership of the family home. She is 83 years old. What kind of loan would make the most sense to see her through her old age? (A) Employee Retirement System. B. Hula Mae (C) VA (D) Reverse annuity

D. Reverse annuity

Jenny-Jane Parhaddy of Winding River, Tennessee wants to sell the Olinda property her father left her. She gets an offer of $500,000. How much must be withheld by the buyer at closing to comply with Hawaii state tax requirements? (A) $25,000 (B) $50,000 (C) $75,000 (D) Nothing. It is illegal to discriminate against out-of-state sellers in real estate transactions.

A. $25,000

The purpose of Hawaii's Good Funds Act is: (A) To make sure all buyers are qualified to make their monthly payments. B. To ensure that all the seller's liens are paid at closing. (C) To guarantee the buyer has enough cash to close the sale. (D) To permit escrow to delay closing until all the buyer's checks have funds are on deposit with escrow.

D. To permit escrow to delay closing until all the buyer's checks have funds are on deposit with escrow.

Real property taxes in Hawaii are: (A) Due semi-annually on January 1 and July 1. B. Due annually in advance as of January 1. (C) Due annually in arrears as of December 31. D. Once levied, a lien on the property until paid.

D. Once levied, a lien on the property until paid.

Which is NOT true regarding real property taxes? (A) An exemption is available to owner/occupants. (B) Senior citizens qualify for an extra exemption. (C) There is no appeal process for homeowners who think their assessment is too high. (D) To qualify for an owner occupant exemption, ownership must be recorded at the Bureau of Conveyances.

C. There is no appeal process for homeowners who think their assessment is too high.

Clothilde brought her money to escrow at closing and was desperate for the sale to record immediately so she and her dog could move in, but closing was delayed until the escrow agent could verify that the loan funds had actually been deposited and all other checks had been cleared. This is an example of: (A) Blue Sky Law. (B) Uniform Land Sales Practices Act. C. Good Funds Act. (D) Transfer Certificate of Title.

C. Good Funds Act.

An exception to requirements of the Good Funds Act is allowed if: (A) The buyer demonstrates, by way of a clean credit report, that s/he has never bounced a check. B. The buyer and seller instruct escrow in writing to close the sale before all funds are available for distribution. (C) The seller waives the requirement verbally in a phone conversation with the escrow officer. D. The buyer's funds are in Certificates of Deposit that won't mature until five days after the scheduled closing date, and he doesn't want to loose any interest on them. cleared and the lender's

B. The buyer and seller instruct escrow in writing to close the sale before all funds are available for distribution.

Prior to closing the seller has received the bill but not paid the real property taxes for the previous semi-annual period. The closing date is in the current semi-annual period. Which is true regarding that tax bill? (A) Escrow will debit the seller the full amount and pay it to the county real property tax office at closing. (B) The seller must pay the entire tax bill prior to closing. (C) Escrow will prorate the bill between the buyer and the seller based on the closing date and pay it to the county real property tax office at closing. (D) None of the above.

A. Escrow will debit the seller the full amount and pay it to the county real property tax office at closing.

If the Hawaii standard title insurance policy costs $900, which is correct? A. Buyer pays $225, seller pays $675. (B) Buyer pays $450, seller pays $450. (C) Buyer pays $540, seller pays $360. (D) Buyer pays $360, seller pays $540.

D. Buyer pays $360, seller pays $540.

To ensure the payment of income taxes on the gain, a resident of France selling a piece of vacant land in Hawaii would be subject to: (A) withholding of 5 percent of the sale price. (B) withholding of 10 percent of the sale price. (C) withholding of 15 percent of the sale price. (D) no withholding. Foreign owners of real property in the USA are not subject to taxation on the sale of such property.

C. withholding of 15 percent of the sale price.

Who is ultimately responsible for the withholding of taxes on the sale of real property owned by a non-resident? (A) The seller. (B) The buyer. (C) The escrow company. D. The listing broker.

B. The buyer.

Which of the following is true? (A) Buyer and seller may agree in writing that the buyer will pay the survey, termite inspection and the broker's commission. (B) The buyer may unilaterally instruct escrow that the seller will pay the entire escrow fee. (C) The tenant's rent paid on the first of the month is retained entirely by the seller regardless of the date of closing. (D) The tenant's security deposit is prorated between buyer and seller.

A. Buyer and seller may agree in writing that the buyer will pay the survey, termite inspection and the broker's commission.

A sale closes on January 31. The seller has received the tax bill for the first half of the year but has not paid it. What will happen? (A) The seller will be penalized for not paying the tax bill on time. (B) The seller will be debited for 30 days of the tax bill, and the buyer will be debited for the remaining 5 months and escrow will then pay the entire bill on their behalf. (C) The tax bill will not be due until February 20, at which point the buyer will pay it. (D) The tax bill will not be due until February 20, at which point each party will pay his share.

B. The seller will be debited for 30 days of the tax bill, and the buyer will be debited for the remaining 5 months and escrow will then pay the entire bill on their behalf.

If Edwin Tamae wanted to build an ohana cottage behind his house, he would have to do all BUT which of the following: (A) Check his property's zoning and restrictive covenants. (B) Make sure there is direct access to the cottage from the street. (C) Get a building permit. (D) Install a separate mailbox for the cottage.

D. Install a separate mailbox for the cottage.

The LEAST likely land use to be found in a conservation district would be: (A) Forest preserve B. Submerged lands C. Water reserves D. School playground

D. School playground

Small farms of between one half acre and two acres would most likely be found on land zoned: A. Urban B. Rural C. Agricultural D. Conservation

B. Rural

Family child care homes (A) may be operated in a townhouse unit, provided it complies with the Americans with Disabilities Act. (B) are permitted in specially designated areas, but never in single family residential developments. C. are permitted in subdivisions only where the CC&Rs permit such usage. (D) are not permitted in multi-family developments.

A. may be operated in a townhouse unit, provided it complies with the Americans with Disabilities Act.

If a broker or salesperson were denied membership at the Kauai Board of Realtors based on her religion, this would be a violation of: (A) Federal Fair Housing law. (B) Hawaii Anti-Discrimination law. (C) Both. D. Neither.

C. Both.

Where the Federal and Hawaii fair housing laws differ, which one prevails? A. Federal. (B) Hawaii. (C) Whichever enforcing agency is made aware of the violation first. D. Whichever law is stricter.

D. Whichever law is stricter.

A major difference between the Federal Fair Housing Law and the Hawaii equivalent is: (A) The Federal law applies only to discrimination in housing; the Hawaii law broadly covers all real estate transactions. (B) The Federal law outlaws discrimination on the basis of age; the Hawaii law does not. C. The exemption for private clubs exists on the state level only. (D) They are exactly the same.

A. The Federal law applies only to discrimination in housing; the Hawaii law broadly covers all real estate transactions.

What is the time limit for filing a discrimination complaint in Hawaii? A. 60 days. B. 90 days. C. 180 days D. one year.

C. 180 days

Fairley Chun-Choi has been blind since he had a fire cracker accident at the age of five. He gets around very well, however, with the help of his trained service dog, Absinthe. Fairley plans marry soon and move into his fiancée's apartment building, which has a "no pets" house rule. Which is true? (A) The house rule against pets is discriminatory and must be deleted. (B) As long as they live on the first floor and Absinthe does not have to use the elevator, the landlord must allow Fairley and his dog to move in. (C) The "no pets" rule does not apply to trained service dogs like Absinthe. The landlord must allow them to move in. (D) Not only must the landlord allow Fairley and Absinthe to move in, but he must make accommodations for Absinthe to enter and exit their apartment by way of a doggie door.

C. The "no pets" rule does not apply to trained service dogs like Absinthe. The landlord must allow them to move in.

Two women apply to rent an apartment in a three story building without an elevator, along with their two young children and a large dog. The landlord belongs to a fundamentalist Christian church, and suspects that the women are engaged in an "unnatural" personal relationship. According to Hawaii law: (A) the landlord is within his rights to deny them residence because he doesn't think the women can get up and down the stairs with groceries, the two young children and the dog. (B) the landlord may deny them residence because he disapproves of their suspected relationship. C. the landlord may deny them residence if pets are specifically not permitted in the building and they insist that they must have their dog living with them. (D) the landlord may not deny them residence because familial status, sexual orientation and pets are all protected categories under Hawaii law.

C. the landlord may deny them residence if pets are specifically not permitted in the building and they insist that they must have their dog living with them.

If a landlord refuses to make a repair affecting the health and safety of the tenants, who should the tenant complain to? (A) Department of Housing and Urban Development (HUD) B. Department of Urban Affairs (C) Real Estate Commission (D) Department of Health

D. Department of Health

What is true regarding absentee landlords who live off-island? (A) They must designate an agent who lives on-island to act on their behalf. (B) They must hire a property manager who is a licensed agent. (C) They must personally fly over to inspect the property twice a year. (D) They must keep a bank account open in Hawaii to receive their tenants' rental payments.

A. They must designate an agent who lives on-island to act on their behalf.

Which one is NOT true under Hawaii's Landlord Tenant Code? (A) The lease may require that the tenant notify the landlord if he is to be absent for an extended period. (B) Hawaii's rent control laws are among the best in the nation. (C) A landlord can lock a tenant out overnight if he believes the tenant is abusing the premises. D. The code does not apply to a buyer who is purchasing a house and moves in, with the seller's permission, prior to closing.

B. Hawaii's rent control laws are among the best in the nation.

Jordan Figueroa finally found a rental home that is perfect for his family. He is prepared to give the landlady a security deposit equal to one month's rent, plus the first month's rent when he signs the lease agreement. When he starts to write out his check, she stops him and tells him he also needs to give her the last month's rent, because her previous tenant moved out without paying the last month's rent and left the place a wreck. She had to spend his security deposit fixing it up, and had to write off the last month's rent. She wants to make sure that doesn't happen again. What is true? (A) If Jordan wants the house he'd better go along with it. He'll be glad when he moves out and doesn't have to pay that last month's rent. (B) The landlady is not permitted to ask for more than a security deposit equal to one month's rent plus the first month's rent. (C) The landlord may collect any amount she wants provided the tenant agrees in writing. (D) The landlord Tenant code is silent on this issue.

B. The landlady is not permitted to ask for more than a security deposit equal to one month's rent plus the first month's rent.

If a landlord raises the rent as revenge against a tenant who has complained to the Department of Health and others about the condition of the premises, this is called: (A) Constructive eviction. (B) Retaliatory eviction. (C) Constructive notice. D. Notice of satisfaction.

B. Retaliatory eviction.

Under a month-to-month lease, which one is NOT true under the Landlord Tenant Code? (A) The landlord must give the tenant 28 days notice to vacate. (B) The landlord must give the tenant 45 days notice to vacate. (C) If the tenant gives the landlord 28 days notice that he is moving out, he is obligated to pay the full 28 days rent. (D) If the landlord gives the tenant 45 days notice to vacate, the tenant may move out at any time during the 45 days, at which point he is no longer responsible for any further rent. 103

A. The landlord must give the tenant 28 days notice to vacate.

What recourse does a landlord have if a tenant gets behind in paying the rent? (A) He can seize the tenant's personal property and hold it until he pays up, a remedy called "distress for rent." (B) He can lock the tenant out until he pays up. (C) He may notify the tenant in writing that unless payment is received within 5 days, the rental agreement will be terminated. (D) He can report the tenant to the Department of Rental Affairs and ask them to begin collection proceedings.

C. He may notify the tenant in writing that unless payment is received within 5 days, the rental agreement will be terminated.

Which of the following terms would NOT be associated with a leasehold estate? A. Reversionary clause. (B) Fee conversion. (C) Renegotiation date. (D) Deed in lieu of foreclosure.

D. Deed in lieu of foreclosure.

A potential tenant gives the landlord $500 for the first month's rent and a $500 security deposit. Three days prior to the move-in date, the tenant changes his mind. The landlord spends $240 for advertising to re-rent the property. Assuming the landlord manages to find a new tenant immediately, how much of a refund is the original tenant entitled to? (A) The entire $1000. (B) The first month's rent of $500 only. (C) The security deposit of $500 minus the $240 for advertising, a total of $260. D. All but the $240 for advertising, a total of $760.

D. All but the $240 for advertising, a total of $760.

A licensee may have his license revoked or suspended for all but which one of the following: (A) Making any misrepresentations concerning a real estate transaction (B) Acting as agent for both buyer and seller without first having obtained written consent from both parties involved in the sale (C) Accepting a commission for the sale of real estate from any person other than her broker D. Accepting an earnest money deposit from an unqualified buyer

D. Accepting an earnest money deposit from an unqualified buyer

All BUT which one of the following must be included in property advertisements by a licensee: A. The name of her brokerage, as registered by the Real Estate Commission (B) License status of the licensee (C) Price of the property (D) Identification of the property, if it is a leasehold estate, as "leasehold."

C. Price of the property

An unlicensed employee of Blue Sky Realty who answers incoming phone calls may: (A) Give only a basic description of property for sale to a prospect (B) Make an appointment for the caller to meet with a licensed agent to discuss a certain property C. Tell a caller which properties Blue Sky Realty has listed within a particular price range (D) Tell a caller what terms she thinks a particular seller would accept

B. Make an appointment for the caller to meet with a licensed agent to discuss a certain property

If Sally Matsushita (RA) forgets to renew her license until Saturday, December 31: (A) She's cooked. There's no way she can get her renewal application and fee to the Real Estate Commission in Honolulu by the end of the year. (B) She will have to go inactive until the next renewal period. (C) Her renewal will be accepted by the REC if it is postmarked no later than Monday, January 2. D. Her license is automatically renewed when her broker renews the license for the entire firm.

C. Her renewal will be accepted by the REC if it is postmarked no later than Monday, January 2.

Gordon Chang lives and works on Oahu, but is licensed with a Maui broker. His license hangs in the Maui office. Which is true? (A) It doesn't matter where he lives or where he hangs his license within the state. His license is valid statewide. (B) His Maui broker must open an Oahu branch office. (C) This is okay only if Gordon attends regular staff meetings at the Maui brokerage. D. Gordon must transfer his license to an Oahu brokerage, or he must move to Maui.

A. It doesn't matter where he lives or where he hangs his license within the state. His license is valid statewide.

Which one of the following is required to have a real estate license? (A) A person selling his own home, who is not otherwise associated with the real estate business. B. A person who manages, rents or operates a hotel. (C) A person who leases real estate of which he is custodian or caretaker, provided he does this for no more than a single owner. (D) The rental manager for a condominium rental pool.

D. The rental manager for a condominium rental pool.

A developer is so pleased with the sales by Sand & Sea Realty at his Kula development that he mails each agent a nice thank you letter and a check for $100 in appreciation. Which is true: (A) The agents may keep the checks as just compensation for a job well done. (B) The agents must write a nice thank you note to the developer. (C) The agents may keep the checks as long as they inform their broker. (D) The agents may not accept the gifts unless the checks are made payable to the broker, and the broker then pays them.

D. The agents may not accept the gifts unless the checks are made payable to the broker, and the broker then pays them.

As defined by Hawaii real estate licensing law, the term "seller" also includes: (A) Vendor B. Lessor C. Grantor of an option D. All of the above

D. All of the above

Which of the following is NOT cause for revocation or suspension of one's real estate license? (A) Taking the Hawaii real estate licensing exam when you already have a valid license without specific permission from the REC. (B) Adding to or modifying the terms of an executed contract without written permission of all parties. (C) Advertising a property which is not listed with your brokerage (D) Working with a seller who is selling his own property after disclosing to all parties who the licensee represents and who will pay a commission, if any.

D. Working with a seller who is selling his own property after disclosing to all parties who the licensee represents and who will pay a commission, if any.

In a court hearing regarding payment from the Real Estate recovery fund the aggrieved person shall be required to show the following EXCEPT: (A) The person is not the spouse of the debtor. (B) The person has made reasonable searches to ascertain if the debtor owns valuable real or personal property. (C) The person has made at least 5 good faith attempts to phone the licensee and arrange an appointment to meet and discuss the problem. (D) The person has obtained a judgment against the licensee.

C. The person has made at least 5 good faith attempts to phone the licensee and arrange an appointment to meet and discuss the problem.

Which of the following is eligible to take the broker's exam, if all other requirements are met? A. L, a licensed salesperson who has worked for Lehua Realty full time for the past 3 years. B. Q, who is a licensed broker in Hawaii with ten years experience. (C) R, who has 2 years full time experience as a salesperson within the past 5 years. (D) W, whose salesperson's license was forfeited due to non-payment of license fees.

A. L, a licensed salesperson who has worked for Lehua Realty full time for the past 3 years.

How long must a brokerage keep records of a closed transaction? (A) Two years. B. Three years. C. Four years 4. Five years

B. Three years.

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