Hawaii RE State Exam Practice Flashcards

Hawaii RE State Exam Practice Flashcards Hikialani moved out of the Lahaina condo that he'd been renting. Three weeks after he moved, his landlord sent him notice that part of his security deposit would be retained; the notice included receipts for repair to a window and a couple of holes in the wall. Has the landlord acted properly?Topic: Property ManagementSubtopic: Residential Landlord-Tenant CodeNo, because he has only 14 days to send notification and receipts.No, because Hikialani should have been given an opportunity to correct the issues himself.Yes. He can withhold funds for damage to the unit.Yes, since he sent receipts with the notification.**If the landlord fails to send notification and either receipts or repair estimates within 14 days, he must refund the full security deposit.No, because he has only 14 days to send notification and receipts.Constance, the principal broker, authorized Gina, an associated licensee, to deliver three earnest money checks to the escrow company that will hold them. Which of these

is correct?Topic: Professional Practices and

ConductSubtopic: Trust accounts and handling of

fundsConstance has violated Hawaii laws, because only the PB or BIC may handle trust funds.Constance may provide written authorization for another party to either deposit or deliver escrow funds to the appropriate place.Gina is permitted to deliver earnest money to the appropriate place if the owner of the funds agrees.Hawaii law explicitly permits licensees to deliver earnest money received directly to an escrow company.**The principal broker or broker in charge may provide written authorization for someone else within the firm to either deposit or deliver earnest money funds wherever the broker would personally place them.Constance may provide written authorization for another party to either deposit or deliver escrow funds to the appropriate place.Which of these statements about who holds title is correct?Topic: FinancingSubtopic: Seller FinancingBuyers who use an agreement of sale to purchase property hold equitable title to the property until it's paid for.Buyers who use a purchase money mortgage to purchase property hold only equitable title to the property until the mortgage is paid in full.Financing using either a purchase money mortgage or an assignment of sale results in the borrower holding legal title until the loan is paid in full.The buyer holds equitable title to property purchased in an assignment of

sale similar to how it's held when financing with a purchase money mortgage.**Most purchase money mortgage agreements form a lien on the property, so the buyer holds legal title. In an agreement of sale, the buyer holds equitable title, and the seller holds legal title, until the loan is paid.Buyers who use an agreement of sale to purchase property hold equitable title to the property until it's paid for.Which of these statements about the Hawaii Real Estate

Commission is NOT correct?Topic: Professional Practices

and ConductSubtopic: Licensing laws and

rulesCommissioners are paid a stipend.Commission terms are four years.The commission is made up of nine members.The governor appoints commission members.**The governor appoints and the state senate confirms the nine commission members. Each member

serves a four-year, uncompensated term.Commissioners are paid a stipend.Lanikila bought a home in a PD-H community. How does ownership of the common amenities differ from ownership

of these amenities in a condominium project?Topic: Types

of OwnershipSubtopic: Planned Unit DevelopmentLanikila

co-owns the amenities with the other unit owners; condo owners have use permission only.Lanikila has use of, but not ownership interest in, the amenities.Shared amenities

in a PD-H are owned by the property owners.The businesses located in the PUD share ownership of the amenities.**PUD common areas are typically owned by the owners association.Lanikila has use of, but not ownership interest in, the amenities.Mallory's firm is permitted by Hawaii law to hold earnest money funds for real estate transactions. Which of these

statements must be true?Topic: Escrow Process and

Closing StatementsSubtopic: Closing

ResponsibilitiesMallory is a licensed attorney.Mallory is a