Free Hawaii Real Estate Salesperson Exam Practice Test

Sample Hawaii Real Estate practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

1. Question 1Agency Agreements

   A principal broker in Hawaii is considering implementing a new policy requiring all buyer agency agreements to be in writing and to include a clause specifying the broker's commission rate and payment terms. What is the primary legal and ethical justification for this policy under Hawaii's real estate laws and regulations?

   • A.To protect the client by clearly defining the scope of representation and the financial obligations of both parties, thereby preventing future disputes.(Correct)
   • B.To ensure compliance with the Statute of Frauds, which mandates written agreements for real estate commissions.
   • C.To streamline the closing process by having all commission details pre-determined and documented.
   • D.To satisfy the requirements of the National Association of REALTORS® Code of Ethics regarding exclusive representation agreements.

   Explanation

   While written agreements are generally advisable and can prevent disputes, the primary legal and ethical justification under Hawaii law (and general agency principles) is to clearly define the scope of representation and the financial obligations of both parties. This transparency protects the client and establishes a clear contractual understanding, minimizing potential misunderstandings or conflicts.

2. Question 2Condominium Law

   A developer is selling condominium units in a new project on Oahu. Before the final public report is issued by the Real Estate Commission, a prospective buyer wishes to enter into a purchase agreement. Under Hawaii Revised Statutes Chapter 514B, what is the developer legally required to provide to the buyer at least three days prior to the execution of the purchase agreement?

   • A.An environmental impact statement for the project.
   • B.A certificate of occupancy for the project.
   • C.A copy of the final public report.
   • D.A preliminary public report or a notice that a public report will be available.(Correct)

   Explanation

   Hawaii Revised Statutes Chapter 514B requires developers to provide prospective buyers with a preliminary public report or a notice that a public report will be available prior to the execution of a purchase agreement, if the final report has not yet been issued. The buyer must have this information to make an informed decision before committing to the purchase.

3. Question 3Fiduciary Duties

   A real estate salesperson in Hawaii receives an offer to purchase a property listed by another brokerage. The seller instructs the salesperson to present the offer but also asks the salesperson to advise them on whether to accept it, stating they believe the offer is too low. What is the salesperson's primary fiduciary duty in this situation?

   • A.To negotiate directly with the buyer to secure a higher offer that better reflects the seller's expectations.
   • B.To present the offer promptly and objectively without offering personal opinions or advice on its merits.(Correct)
   • C.To advise the seller on the market value of the property and suggest a counter-offer strategy.
   • D.To disclose any known information about the buyer's financial capacity that might influence the seller's decision.

   Explanation

   The salesperson's primary fiduciary duty is to present all offers promptly and objectively. While they owe a duty of care, offering personal opinions or advice on the offer's merits, especially without being the seller's designated agent, can create an unauthorized agency relationship or lead to liability. Advising on market value is typically the role of the seller's exclusive agent.

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