Hawaii License Law
10.8%of exam
Hawaii Facts, Taxes, Title
9.2%of exam
Hawaii Property + Contracts
18.5%of exam
Leasehold BasicsCondominium LawPlanned CommunitiesState Land UseHawaii ContractsLandlord-Tenant Code
Uniform Agency + Practice
22.3%of exam
Uniform Property + Contracts
22.3%of exam
Uniform Value + Finance
16.9%of exam
Quick Facts
- Exam
- PSI Hawaii salesperson
- Scored items
- 80 uniform + 50 state
- Time
- 150 min + 90 min
- Pass mark
- 70 on each portion
- Broker mark
- 75, not 70
- Pretest
- 5-10 unscored, untimed
- Prelicense
- 60 class hours
- Renewal
- Dec 31, even-numbered years
- CE
- 20 hours per biennium
- Score life
- Two years, both portions
- Exam fee
- $61 per attempt (PSI)
Commission Make-Up
Nine seats: 4 Honolulu, 3 neighbor, 2 public
Four brokers minimumTwo public membersFour-year termsChair designated
Commingling vs Conversion
Commingling
- Mixing client funds
- Violation without loss
- Accounting failure
Conversion
- Using client funds
- Personal benefit taken
- Theft-level offense
Mixing vs taking
Hawaii Deadline Picker
- Received earnest money→Next business day(Deposit or deliver)
- Seller disclosure delivery→Ten calendar days(After acceptance)
- Buyer wants out→Fifteen calendar days(Written rescission)
- HARPTA remittance→Twenty days(After transfer date)
- Security deposit return→Fourteen days(After tenancy ends)
- Passed the exam→Two years(Apply for license)
- Failed one portion→Two years(From first exam date)
- Trust fund records→Three years(Kept in Hawaii)
- Broker leaving office→Thirty days(Designate temporary broker)
Real Estate Commission
- Members
- Nine, governor-appointedHRS 467-3
- Brokers
- At least four licensed
- Public members
- Two required
- Honolulu seats
- Four of nine
- Neighbor islands
- Hawaii, Maui, Kauai: one each
- Term
- Four years, expiring June 30
- Broker experience
- Three years before appointment
- Chair
- Designated by appointing power
Salesperson 70 vs Broker 75
Salesperson
- Passing score 70
- 80 uniform items
- 50 state items
Broker
- Passing score 75
- 80 uniform items
- 50 state items
Same length, higher bar
License Lifecycle
- Age
- Age of majorityHRS 467-9.5
- Education
- 60 class hoursHAR 16-99-36
- Class hour
- Sixty minutes instruction
- Diploma
- High school or equivalent
- Work status
- Citizen, national, or authorized
- Apply after passing
- Within two years
- Activation
- Associate with principal broker
- Expiration
- Dec 31, even-numbered years
- Forfeiture
- Jan 1, odd-numbered years
- Termination
- Five years after forfeiture
Continuing Education
- Total hours
- Twenty per bienniumHRS 467-11.5
- Core course
- Parts A and B
- Core hours
- Three hours each part
- Electives
- Fourteen hours
- Missed CE
- Renews inactive, not forfeited
- Excess hours
- Do not carry forward
- Inactive renewal
- No CE required
- Reactivation
- Satisfy CE, apply, pay
Trust Funds
- Deadline
- Next business dayHAR 16-99-4
- Trustee
- Principal broker designated
- Account
- Federally insured, in Hawaii
- Alternative
- Neutral escrow depository
- Salesperson receipt
- Deliver to principal broker
- Records
- Keep three years
- Interest
- Written agreement decides payout
- Allowed hold
- Uncashed check, if directed
Advertising + Supervision
- Signs
- Need owner's written authorizationHAR 16-99-3
- Price quoted
- Only the agreed price
- One firm
- No dual brokerage association
- Office
- Principal broker or broker-in-charge
- Absence over 30 days
- Designate temporary broker
- Temporary limit
- Six months, extendable once
- Exclusive listing
- Definite termination date
- Cross-firm pay
- Pay the other firm
- Offers
- Transmit immediately, every offer
Hawaii Agency Disclosure
- Contract clause
- Separate AGENCY DISCLOSURE paragraphHAR 16-99-3.1
- Print size
- Ten-point bold title
- Wording
- No particular language required
- At listing
- Subagent and commission-sharing authority
- Buyer's agent
- Disclose before negotiations begin
- Licensee as buyer
- Disclose intent before negotiating
- Dual agency
- Written consent, both parties
- Not sufficient
- General represents-both statement
- Changed facts
- Revise and re-acknowledge disclosure
Discipline + Recovery Fund
- Fund cap
- $25,000 per transactionHRS 467-16
- Covered acts
- Fraud, misrepresentation, deceit
- Included costs
- Court costs, attorney fees
- Route
- Commission settlement or court
- Compensation rule
- Only from employing broker
- Conversion
- Never use others' money
- Material facts
- Ascertain and disclose all
- Not material
- Occupant AIDS or HIV status
HARPTA Numbers
7.25 withheld, 20 days, 300K exempt
7.25%: of amount realized20 days: to remit$300,000: principal residence capN-289: resident affidavit
Land Court vs Regular System
Land Court
- Torrens certificate
- Assistant Registrar
- Decree binds everyone
Regular System
- Grantor-grantee index
- Chain of title
- Title search needed
Certificate vs chain
Hawaii Tax + Form Picker
- Nonresident seller→HARPTA 7.25%(Buyer withholds)
- Seller is Hawaii resident→Form N-289(No withholding)
- Under $300,000 home sale→Principal residence exemption(HRS 235-68(f))
- No gain expected→Withholding certificate(Apply to DOTAX)
- Recording a deed→Conveyance tax(Form P-64A)
- Claiming an exemption→Form P-64B(Exempt transfers)
- Commission income→GET 4%(Plus county surcharge)
- Foreign seller→FIRPTA too(Federal, stacks with HARPTA)
Seller Disclosure (508D)
- Deliver by
- Ten calendar days after acceptanceHRS 508D-5
- Buyer window
- Fifteen calendar days to rescind
- Silence
- Deemed acceptance of statement
- Rescission effect
- Deposits returned immediately
- Signing window
- Six months before acceptance
- Or after
- Ten days after acceptance
- Extension
- Allowed by written agreement
- Exempt sales
- Co-owner, spouse, parent, child
- Also exempt
- Foreclosure, devise, court order
Disclosure Clock
Ten to deliver, fifteen to rescind
Ten days: seller deliversFifteen days: buyer rescindsSilence: deemed acceptanceRescind: deposits returned
HARPTA vs FIRPTA
HARPTA
- State law
- 7.25% withheld
- Nonresident of Hawaii
FIRPTA
- Federal law
- 15% standard rate
- Foreign person
Both can apply together
HARPTA Withholding
- Rate
- 7.25% of amount realizedHRS 235-68
- Who withholds
- The transferee, personally liable
- Deadline
- Twenty days after transfer
- Forms
- N-288 with N-288A
- Resident escape
- Form N-289 affidavit
- Small-sale escape
- $300,000 principal residence
- Residence test
- Year preceding the transfer
- No-gain escape
- Nonrecognition or treaty provision
- Certificate
- Apply for reduced withholding
Conveyance Tax (247)
- Bottom tier
- $0.10 per $100 under $600,000HRS 247-2
- Top tier
- $1.00 per $100 at $10,000,000
- No-exemption schedule
- $0.15 to $1.25 per $100
- Who triggers it
- Condo or home buyer ineligible
- Leases
- Only five-year unexpired terms
- Lease basis
- Rentals capitalized at 6%
- Floor
- Never less than $1
- Forms
- P-64A and P-64B
Recording Systems
- Bureau of Conveyances
- Statewide recording office
- Regular System
- Grantor-grantee index, chain traced
- Land Court
- Hawaii's Torrens system
- Land Court filing
- Noted on certificate of title
- Officer
- Assistant Registrar, Land Court
- Decree effect
- Conclusive against all persons
- Dual documents
- Some land is both
- Tax map key
- TMK identifies each parcel
Other Hawaii Taxes
- Sales tax
- Hawaii has none
- GET rate
- 4% on service income
- County surcharge
- 0.5% in all counties
- Max pass-on
- 4.7120% visible rate
- Who owes GET
- The business, not client
- Pass-on
- Optional, never required
- Property tax year
- July 1 to June 30
- Installments
- Due Aug 20, Feb 20
State Land Use Districts
Urban, Rural, Agricultural, Conservation
Urban: county rules applyRural: half-acre densityAgricultural: farming and ranchingConservation: watershed and shoreline
Fee Simple vs Leasehold
Fee simple
- Owns land
- Owns improvements
- No lease rent
Leasehold
- Rents the land
- Owns improvements
- Pays lease rent
Land ownership is the split
Hawaii Ownership Picker
- Units plus common elements→HRS 514B(Condominium)
- Subdivision with mandatory dues→HRS 421J(Planned community)
- Shares and proprietary lease→Cooperative(Not real property)
- Buyer rents the land→Leasehold(Ground lease)
- Owns land and building→Fee simple(Full ownership)
- Certificate of title issued→Land Court(Torrens system)
- Grantor-grantee index only→Regular System(Trace the chain)
Leasehold Basics
- Fee simple
- Owns land and improvements
- Leasehold
- Owns improvements, rents land
- Lease rent
- Paid to fee owner
- Renegotiation
- Rent resets on schedule
- Surrender clause
- Property returns at expiration
- Key facts
- Term, rent, expiration date
- Licensing
- Leaseholds are real estate
- Lender view
- Short terms limit financing
Agreement of Sale vs PMM
Agreement of Sale
- Seller keeps legal title
- Buyer gets equitable title
- Title passes when paid
Purchase money mortgage
- Buyer takes legal title
- Seller holds a lien
- Recorded security instrument
Who holds legal title
Condominium (514B)
- Test
- Units plus shared common elementsHRS 514B-3
- Common elements
- Vested in unit owners
- Limited common element
- Exclusive use, fewer than all
- Typical LCEs
- Parking, storage, lanai
- Association
- AOAO under HRS 514B-102
- Reserves
- Fund at least 50%
- Cash flow plan
- Requires 100% funding
- Reserve study
- Independent review every three years
- New projects
- Developer's public report required
Chapter 514B vs 421J
HRS 514B
- Condominium regime
- Units and common elements
- AOAO governs
HRS 421J
- Planned community
- Lots with common areas
- Association governs
Identify regime before quoting
Planned Communities + Co-ops
- Chapter 421J
- Planned community associations
- Typical form
- Subdivision or PUD
- Membership
- Mandatory for lot owners
- Not 514B
- Different governance and disclosure
- Cooperative
- Shares plus proprietary lease
- Time share
- Interval right to occupy
- Land trust
- Trustee holds legal title
Landlord 45 vs Tenant 28
Landlord notice
- Forty-five days
- Month-to-month tenancy
- Written notice required
Tenant notice
- Twenty-eight days
- Month-to-month tenancy
- Rent through day 28
Landlord gives longer notice
State Land Use + SMA
- Districts
- Urban, rural, agricultural, conservationHRS 205-2
- Who classifies
- State Land Use Commission
- Rural density
- One house per half-acre
- County role
- Zoning within the district
- Guide
- County general or master plan
- SMA
- Coastal Special Management Area
- SMA permit
- Issued by the county
Hawaii Contracts + Escrow
- DROA
- Standard Hawaii purchase contract
- Agreement of Sale
- Seller keeps legal title
- Buyer's interest
- Possession and equitable title
- Purchase money mortgage
- Buyer takes title, gives mortgage
- Escrow
- Neutral depository holds funds
- Usury cap
- 12% consumer credit contractsHRS 478-4
- Regulated lender cap
- 24% under chapter 412
- No cap
- Non-consumer, non-home-business loans
Landlord-Tenant Code (521)
- Security deposit
- One month's rent maximumHRS 521-44
- Pet deposit
- One extra month allowed
- Assistance animal
- No pet deposit charged
- Return deadline
- Fourteen days after termination
- Wilful retention
- Treble damages plus costs
- Landlord notice
- Forty-five days, month-to-month
- Tenant notice
- Twenty-eight days, month-to-month
- Demolition or conversion
- One hundred twenty days
- Holdover
- Up to twice the rent
Fiduciary Duties
Care, Obedience, Accounting, Loyalty, Disclosure
Care: skill and diligenceObedience: lawful instructions onlyAccounting: money and documentsLoyalty: client interest firstDisclosure: all material facts
Agency Duties
- COALD
- Care, obedience, accounting, loyalty, disclosure
- Special agent
- One transaction, limited authority
- General agent
- Ongoing series, property manager
- Universal agent
- Broad power of attorney
- Subagent
- Agent delegates agency powers
- Dual agency
- Loyalty and disclosure limited
- Customer
- Honesty and fair dealing
- Termination
- Acts of parties or law
- Survives termination
- Duty of confidentiality
Practice + Risk
- Protected classes
- Race, color, religion, national origin
- Added 1974
- Sex
- Added 1988
- Familial status, disability
- 1866 Act
- Race only, no exemptions
- Puffing
- Opinion, not factual claim
- Per se antitrust
- Price fixing, market allocation
- Also per se
- Group boycott, tying arrangements
- Supervision
- Broker liable for associates
- UPL
- No legal advice, refer
Mandated Disclosures
- Lead paint
- Target housing before 1978
- Lead inspection
- Ten days, waivable in writing
- Required handout
- EPA lead hazard pamphlet
- Stigmatized property
- Psychological, not physical, defect
- Megan's Law
- Refer to state registry
- Red flags
- Agent must inquire further
- Property condition
- Verify marketing statements
Government Powers
Police, Eminent domain, Taxation, Escheat
Police: zoning, no payEminent: pay just compensationTaxation: ad valorem liensEscheat: no heirs, state
Estates + Ownership
- Fee simple absolute
- Greatest ownership interest
- Life estate
- Measured by someone's life
- Remainder
- Goes to named third party
- Reversion
- Returns to the grantor
- Joint tenancy
- Survivorship, four unities
- Tenancy in common
- No survivorship, heirs inherit
- Tenancy by entirety
- Married couples, creditor protection
- Bundle of rights
- Possess, use, enjoy, exclude, dispose
Encumbrances + Liens
- Easement appurtenant
- Runs with the land
- Easement in gross
- Personal, often utility company
- License
- Revocable personal permission
- Encroachment
- Improvement crosses boundary line
- Lien
- Money claim against property
- Priority
- Property tax liens first
- Deed restriction
- Private limit on use
- CC&Rs
- Covenants enforced by association
Deeds + Title Transfer
- General warranty
- Covers entire title history
- Special warranty
- Grantor's ownership period only
- Quitclaim
- No warranty, clears clouds
- Title passes
- On delivery and acceptance
- Recording
- Constructive notice to world
- Title insurance
- Covers past title defects
- Quiet title
- Court action clearing claims
- Intestate
- Dies without valid will
Contract Essentials
- Elements
- Competent parties, assent, consideration
- Also required
- Lawful object, legal description
- Statute of frauds
- Land contracts must be written
- Void
- No legal effect ever
- Voidable
- One party may cancel
- Counteroffer
- Rejects and terminates original
- Binding
- On notification of acceptance
- Contingency
- Condition before performance is due
Government Powers
- PETE
- Police, eminent domain, taxation, escheat
- Police power
- Zoning, codes, no compensation
- Eminent domain
- Public use, just compensation
- Condemnation
- The taking process itself
- Escheat
- No heirs, no will
- Nonconforming use
- Legal before zoning changed
- Variance
- Relief from a requirement
CMA vs Appraisal
CMA
- Licensee prepares it
- Helps set price
- Not an appraisal
Appraisal
- Certified appraiser only
- Independent value opinion
- Lender relies on it
Pricing tool vs valuation
Valuation + Finance Picker
- Single-family home value→Sales comparison(Adjust comparables)
- New or special-purpose→Cost approach(Few comparables)
- Apartment building value→Income approach(Capitalize NOI)
- Listing price advice→CMA(Not an appraisal)
- Lender needs value→Certified appraisal(Independent opinion)
- Seller finances, keeps title→Agreement of Sale(Equitable title to buyer)
- Seller finances, buyer titled→Purchase money mortgage(Security instrument)
Valuation Approaches
- Sales comparison
- Homes and condominiums
- Cost approach
- Land plus depreciated improvements
- Income approach
- Capitalize net operating income
- Reconciliation
- Weigh approaches, never average
- CMA
- Licensee price opinion, not appraisal
- Appraisal
- Licensed or certified appraiser
- GRM
- Price divided by rent
- Depreciation kinds
- Physical, functional, external
Financing Instruments
- Note
- Promise to repay debt
- Mortgage
- Security pledging the property
- Lien theory
- Borrower keeps legal title
- Title theory
- Lender or trustee holds
- Due-on-sale
- Blocks assumption without consent
- Acceleration
- Whole balance becomes due
- Subject to
- No personal liability assumed
- PMI
- Conventional loans above 80%
Federal Finance Laws
- TILA
- Discloses APR and cost
- RESPA
- Bans kickbacks, referral fees
- ECOA
- Bans credit discrimination
- TRID
- Loan Estimate, Closing Disclosure
- Closing Disclosure
- Three business days before
- Point
- One percent of loan
- LTV
- Loan divided by value
Math Formulas
- Commission
- Price times rate, then splits
- Split order
- Total, firm, then agent
- Cap rate
- NOI divided by value
- Value
- NOI divided by cap rate
- Conveyance tax
- Price divided by 100, times rate
- Proration
- Annual divided by days, times days
- Prepaid items
- Credit seller, debit buyer
- Accrued items
- Debit seller, credit buyer
- Equity
- Value minus loan balance
Common Traps
Commission size
Nine members, not seven ≠ Two are public members
Pass mark
Salesperson needs 70 ≠ Broker needs 75
Both portions count
Each portion scored separately ≠ No averaging across portions
Landlord-tenant notice
Landlord gives 45 days ≠ Tenant gives 28 days
Disclosure clocks
Seller delivers in 10 ≠ Buyer rescinds within 15
Conveyance tax schedules
Standard starts at $0.10 ≠ No-exemption starts at $0.15
Commingling vs conversion
Commingling mixes funds ≠ Conversion spends them
Recording systems
Land Court issues certificates ≠ Regular System indexes names
Missing CE
License goes inactive ≠ It does not forfeit
Agreement of Sale title
Seller keeps legal title ≠ Buyer holds equitable title
Last Minute
- 1.80 uniform + 50 state
- 2.150 minutes, then 90 minutes
- 3.Pass 70 on each portion
- 4.Broker cut is 75
- 5.Commission: nine members, two public
- 6.Prelicense = 60 class hours
- 7.Renew Dec 31, even years
- 8.CE = 20 hours, core included
- 9.Trust funds: next business day
- 10.HARPTA = 7.25%, remit 20 days
- 11.Disclosure: 10 deliver, 15 rescind
- 12.Conveyance tax: $0.10 to $1.00
- 13.Land Court = certificate of title
- 14.Leasehold buyer rents the land
- 15.Deposit 1 month, return 14 days
- 16.Districts: urban, rural, agricultural, conservation
- 17.GET 4%, max pass-on 4.7120%
Pre-licensing on Colibri
Flashcards on MometrixSame family resources
Explore More Real Estate Salesperson
Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.
More From This Family
Videos and articles for deeper review.
Video100+ FREE Real Estate Practice Exam Questions (2026) + AnswersVideo9 Science-Backed Study Methods for Certification Exams (2026)VideoAbstract of Title ExplainedVideoAccretion ExplainedArticleStudy for an Exam While Working Full-Time (2026)16 min readArticle9 Science-Backed Study Methods for Certification Exams (2026)14 min readArticleCalifornia Real Estate Exam 2026: Pass With 51% Rate12 min readArticle100+ FREE Real Estate Practice Exam Questions (2026) + Answers10 min read