HI State Real Estate Practice Exam Flashcards

HI State Real Estate Practice Exam Flashcards Jonah recently sold his Kauai beachfront property for $650,000. Morgan sold his Oahu Property for $650,000.Jonah's conveyance tax was higher than Morgan's. How can this happen?Jonah isn't eligible for a homeowner's property tax exemption, so his tax rate is higher. Sellers who are eligible for a homeowner's property tax exemption pay a lower conveyance tax rate than those who aren't eligible.In Hawaii, any encroachment beyond the ______ will require an encroachment agreement.De Minis For how long must a trespasser use another's property before a claim of adverse possession will apply in Hawaii?Use must be open, hostile, notorious, exclusive, and uninterrupted for 20 years for an adverse possession claim to prevail in Hawaii.Reggie is a legal guardian for his mother, who suffers from a mental illness. His mother would like to buy a luxury condo, but Reggie tells her she can only afford a cheap condo. In reality, his mother could easily afford a luxury condo, and Reggie hopes to transfer her excess money into his personal account. Reggie's mother trusts his word, and enters into a contract to buy a cheap condo. This is an example of ______.Undue influence. Undue influence exists when an act of persuasion overcomes another person's free will and judgment. Reggie's familial relationship to his mother gives him the opportunity to exercise undue influence over her decisions.Hawaii is a _______ theory stateHawaii is a lien theory state, which means the mortgage is used to create a lien against the property.Tina is negotiating a lease in Hawaii. For which transaction is agency disclosure required?Leases, both commercial and residential, of longer than one year require agency disclosure.What does it mean when an individual has an interest in real property?The individual has some claim against or right to a property. An ownership interest refers to the individual's legal rights to a specific property. These rights may be either as an owner or as a tenant.Ryan has made an offer on a Maui property and elects to have it tested for radon and lead. Which of these statements is true?As the buyer, Ryan will likely bear the cost of any inspections performed. The inspection contingency clause provided in the HAR purchase contract notes that payment for all inspections the buyer requests are the buyer's responsibility.Luke just purchased a property for $325,000, which was over list price. The Hawaii County assessed property value is $318,000. He's eligible for a $40,000 homeowner exemption and other exemptions of $5,000. His GET for the year was $80. On what amount will his property tax be calculated?Luke's assessed value will be reduced by the amount of his exemptions. The GET doesn't impact his property taxes.Thus, his property tax will be calculated on $273,000

($318,000 - $45,000 = $273,000).

Which of these actions is prohibited by Hawaii's Escrow Act of 1967?Rebates and referral fees. Rebates and referral fees are prohibited. Annual audits, depositing of funds into client trust funds, and incorporation are required.What disclosure appears in Section R, Brokerage Firms Services and Disclaimers, of the HAR Purchase Contract?Licensees aren't permitted to acquire any type of interest in a property listed with their brokerage firm without disclosing

that relationship in this contract section

When an offer is being made, what information does the Hawaii listing agent need to disclose to the seller?Listing brokers must disclose to the seller the buyer's representation situation (whether the buyer is represented by another broker).Jesse has permission to live on his father's Kauai property as long as Jesse's grandmother is alive. This is an example of which type of life estate?Pur autre vie What's the primary impact of the PASH decision? The ambiguous nature of the decision places into question what access property owners can and can't prohibit. The primary impact of PASH results from the ambiguous nature of enforcement and what activities are and aren't protected.

Section S: General Provisions of the HAR Purchase

Contract stipulates that the purchase contract constitutes the entire agreement between the contracting parties and that any prior negotiations or agreements between the parties are cancelled What is the protocol with military members breaking their lease for deployment?A military tenant in a fixed-term lease may terminate on the last day of the month following the month in which the landlord was properly notified if proper notice is presented to the landlord and deployment will be for more than 90 days.Section R of Hawaii's purchase contractincludes a description of the brokerage's scope of services, including limitations on providing advice and a recommendation that contracting parties confer with other experts as necessary to protect themselves.Lanai Developers submitted its initial public report and has sold 55% of the units developed. Lanai's attorneys discover that an amendment to the public report is necessary.Based on Hawaii law, to which of these parties is the developer NOT required to submit the amended report?Project investors. Not Hawaii law Estelita lives in her island property nine months out of the year and uses it as a rental for the remaining three months.Is she liable for TAT?Yes, because TAT applies to renters who stay fewer than 180 consecutive days.Suzanne's lender sold her foreclosed home at auction, receiving less for it than Suzanne owed against it. Her lender is seeking a deficiency judgment. Which of these must be true?Suzanne's lender used a judicial foreclosure process.Lenders may file for a deficiency judgment only if they used a judicial foreclosure process.The Professional and Vocational Licensing Act prohibits leading others to believe one is licensed when no active license exists.What's the purpose of Hawaii's rent trust fund? Landlords or tenants may request that rent be deposited into the trust fund if the court has been brought into a rent dispute.Which of these statements about fair housing laws in Hawaii is true?Hawaii names additional protected classes beyond those protected by federal fair housing laws. The Hawaii Civil Rights Commission has jurisdiction over discrimination cases, which may be brought against anyone who discriminates in any real property transaction.

Which of these is Hawaii's permanent legislation designed to protect the state's coastal zones?The Hawaii Coastal Zone Management Program, HICZMP, is Hawaii's permanent coastal zone management legislation.Which of these acknowledgments do buyers and sellers make by signing the HAR Purchase Contract form?The seller makes no guarantee regarding the property's future resale value What are a borrowers' redemption rights under Hawaii foreclosure law?Borrowers have an equitable right of redemption, which permits them to bring all payments and fees current before a foreclosure sale takes place. Hawaii recognizes a borrower's rights to equitable redemption before a foreclosure sale, but no statutory right of redemption is provided except for a one-year redemption period in the case of foreclosure for non-payment of property taxes.Which of these scenarios most likely describes who controls the condo association during the early phases of development?The developer or his agent can appoint and remove association board members. The declaration may provide an initial period of developer association control, during which the developer may appoint or remove board of directors' members. The declaration and state law dictate the length of the developer's control period.Toni purchased a fee simple property in Hawaii. Her deed is recorded in Hawaii's regular system. What can she do to ensure she has sole ownership of the property?Toni can submit the property to Hawaii Land Court. The judicial review process will reveal if Toni is the sole owner.If she is, she'll receive a certificate of title verifying ownership.Hawaii's Land Reform Act of 1974permitted the government to require conversion of some leasehold properties to fee simple properties through eminent domain proceedings.In Hawaii, the ______ separates public from private land at the shoreline.In Hawaii, the high water mark is used, which is usually at the debris or natural vegetation line.In relation to a Hawaii Agreement of Sale (land contract), the buyer is referred to as the _____.The vendee is the buyer/borrower, and the vendor is the seller/lender in an agreement of sale.Margot purchased shares in a Hawaii Co-op a little over a year ago. She just realized that she never received a property tax bill. Which of these statements might explain this?A cooperative is a business entity (corporation, partnership, or trust) that owns the building and pays the property taxes.Each lessee is assessed a portion of the tax attributable to the individual unit.What are the main ways that Hawaii license laws ensure consumer protection?They establish requirements, define activities, and set standards.License laws ensure consumer protection by establishing basic requirements for entry to the profession, defining licensable activities, and setting conduct standards.Roberto's landlord won't cut Roberto any slack in paying his rent on time, so Roberto files a false complaint about a safety violation to get even with his landlord. Based on retaliatory eviction regulations, what can the landlord do?Evict Roberto. Hawaii laws specifically permit a landlord to evict a tenant if the tenant files a false claim about a health or safety violation.Which of these best describes a condominium property regime (CPR)?The ownership structure and governance process for a condominium project. A condominium property regime refers to the way ownership is held and how a new