Educational Resources: Take Hawaii Real Estate Sample Tests, Application Steps and Tips

According to Hawaii state law, you may not act as a real estate salesperson or broker (someone who has passed an additional exam and has years of real estate experience under their belt) without being licensed by the Hawaii Realty Commission.

To obtain that license, you must pass an exam confirming you have attained a minimum level of knowledge of real estate principles, practices, regulations, and statutes.

Real Estate Test in a Nutshell

The Hawaii Real Estate Commission contracts with PSI Services to conduct the real estate examination testing.¹ These examinations are administered through a network of computer examination centers throughout the state.

The state real estate exam (which, if passed, allows you to work as a real estate agent in Hawaii) lasts 90 minutes, maximum, and costs $61.² If you fail and have to retake the test, you must pay another $61 retake fee.

Subjects the Test Covers

The real estate test covers a wide range of topics and is divided into two primary portions: The Uniform or General portion and the State portion.

1. Uniform/General Portion

The list below breaks down the key subjects on which you may be tested during the uniform/general portion of the exam:

• Property Ownership
  • Classes of Property
    • Real vs. Personal Property
    • Defining Fixtures
  • Land Characteristics and Legal Descriptions
    • Physical Land Characteristics
    • Economic Land Characteristics
    • Descriptions of Types of Legal Property
    • Description of Usage of Legal Property
  • Encumbrances
    • Liens (Types and Priority)
    • Easements and Licenses
    • Encroachments
  • Types of Ownership
    • Types of Estates
    • Forms of Ownership
    • Leaseholds
    • Common Interest Properties
    • Bundle of Rights
  • Physical Property Descriptions
    • Land and Building Area
    • Basic Construction Types/Materials
• Land Use Controls and Regulations
  • Government Rights in Land
    • Property Taxes and Special Assessments
    • Eminent Domain, Condemnation, Escheat
    • Police Power
  • Public Controls Based on Police Power
    • Zoning and Master Plans
    • Building Codes
    • Environmental Impact Reports
    • Regulation of particular land types (floodplain, coastal, etc.)
  • Regulation of Environmental Hazards
    • Abatement, mitigation, and cleanup requirements
    • Contamination levels and restrictions on the sale or development of contaminated property
    • Types of hazards and potential for agent or seller liability.
  • Private Controls
    • Deed Conditions or Restrictions
    • Covenants (CC&Rs)
    • HOA Regulations
• Valuation and Market Analysis
  • Value
    • Market Value and Market Price
    • Characteristics of Value
    • Principles of Value
    • Market Cycles and Other Factors Affecting Property Value
  • Methods of Estimating Value/Appraisal Process
    • Market or Sales Comparison Approach
    • Replacement Cost or Summation Approach
    • Income Approach
    • Basic Appraisal Terminology (Replacement versus
    • Reproduction Cost, Reconciliation, Depreciation, Kinds of Obsolescence)
  • Competitive/Comparative Market Analysis (CMA)
    • Selecting and Adjusting Comparables
    • Factors to Consider in a CMA
    • Contrast CMA, Broker Opinion of Value (BOV), Appraisal
    • Price/Square Foot
    • Gross Rent and Gross Income Multipliers
  • When Appraisal by Certified Appraiser is Required
• Financing
  • General Concepts
    • LTV Ratios, Points, Origination Fees, Discounts, Broker Commissions
    • Mortgage Insurance (PMI)³
    • Lender Requirements, Equity, Qualifying Buyers, Loan Application Procedures
  • Types of Loans
    • Term or Straight Loans
    • Amortized and Partially Amortized (Balloon) Loans
    • Adjustable Rate Loans (ARMS)
    • Conventional versus Insured
    • Reverse mortgages, equity loans, subprime, and other non-conforming loans
  • Sources of Loan Money
    • Seller/Owner Financing
    • Primary Market
    • Secondary Market
    • Down Payment Assistance Programs
  • Government Programs
    • FHA
    • VA
  • Mortgages/Deeds of Trust
    • Mortgage Clauses (Assumption, Due-On-Sale, Alienation, Acceleration, Prepayment, Release)
    • Lien Theory versus Title Theory
    • Mortgage/Deed of Trust and Note as Separate Documents
  • Financing/Credit Laws
    • Truth in Lending, RESPA, Equal Credit Opportunity
    • Mortgage Loan Disclosure and Seller Financing Disclosure
  • Mortgage Fraud, Predatory Lending Practices (Risks to Clients)
    • Usury and Predatory Lending Laws
    • Appropriate Cautions to Clients Seeking Financing
• Laws of Agency
  • Laws, Definitions, and Nature of Agency Relationships
    • Types of Agents/Agencies (Special, General, Designated, Subagent, etc.)
    • Possible Agency Relationships in a Single Transaction c. Fiduciary Responsibilities
  • Creation and Disclosure of Agency and Agency Agreements (General; Regulatory Details in State Portions)
    • Creation of Agency and Agency Agreements
    • Express and Implied
    • Disclosure of Representation
    • Disclosure of Acting as Principal or Other Conflict of Interest
  • Responsibilities of Agent to Seller, Buyer, Landlord, or Tenant as Principal
    • Traditional common law agency duties
    • Duties to the client (Buyer, Seller, Tenant, Landlord)
    • The effect of dual agency on an agent’s duties
  • Responsibilities of the Agent to Customers and Third Parties
  • Agency Termination
    • Expiration
    • Completion/Performance
    • Termination by Operation of Law
    • Destruction of Property/Death of Principal
    • Termination by Acts of Parties
• Mandated Disclosures
  • Property Condition Disclosure Forms
    • Agent’s Role in Preparation
    • When Seller’s Disclosure Misrepresents Property Condition
  • Warranties
    • Types of available warranties
    • Coverages provided
  • Need for Inspection and Obtaining/Verifying Information
    • Agent Responsibility to Verify Statements included in Marketing Information
    • Agent Responsibility to Inquire about “Red Flag” Issues
    • Responding to Non-Client Inquiries
  • Material Facts Related to Property Condition or Location
    •  Land/Soil Conditions
    • Accuracy of Representation of Lot or Improvement Size, Encroachments or Easements Affecting Use
    • Pest Infestation, Toxic Mold, and other Interior Environmental Hazards
    • Structural issues, including the roof, rain gutters, downspouts, windows, doors, and foundation
    • Condition of Electrical and Plumbing Systems and of Equipment or Appliances that are Fixtures
    • Location within Natural Hazard or Specially Regulated Area, Potentially Uninsurable Property)
    • Known Alterations or Additions
  • Material Facts Related to Public Controls, Statutes, or Public Utilities
    • Local Zoning and Planning Information⁴
    • Boundaries of School/Utility/Taxation Districts, Flight Paths
    • Local Taxes and Special Assessments, other Liens
    • Environmental Hazards (such as lead, asbestos, radon, formaldehyde foam insulation, waste disposal sites, high-voltage power lines, underground storage tanks, hazardous waste, and soil or groundwater contamination)
    • Stigmatized/Psychologically impacted property and Megan’s Law⁵
• Contracts
  • General Contract Law Knowledge
    • Validity requirements
    • Invalid contract types
    • When a contract is considered performed or discharged
    • Assignment and novation
    • Breach of contract and remedies
    • Contract clauses
  • Listing Agreements
    • General Requirements for Valid Listing
    • Exclusive Listings
    • Non-Exclusive Listings
    • Management Agreements [Broker Only]
    • Buyer Broker Agreements/Tenant Representation Agreements
  • Offers/Purchase Agreements
    • General Requirements
    • When an offer becomes binding (Notification)
    • Contingencies
    • Time is of the Essence
  • Counteroffers/Multiple Counteroffers
    • Counteroffer Cancels Original Offer
    • Priority of Multiple Counteroffers
  • Lease and Lease-Purchase Agreements
  • Options and Right of First Refusal
  • Rescission and Cancellation Agreements
• Transfer of Title
  • Title Insurance
    • What is Insured Against
    • Title Searches/Title Abstracts/Chain of Title
    • Cloud on Title/Suit to Quiet Title
  • Conveyances After Death
    • Types of Wills
    • Testate vs. Intestate Succession
  • Deeds
    • Purpose of Deed, when Title Passes
    • Types of Deeds (General Warranty, Special Warranty, Quitclaim) and when Used
    • Essential Elements of Deeds
    • Importance of Recording
  • Escrow or Closing
    • Responsibilities of Escrow Agent
    • Prorated Items
    • Closing Statements/HUD-1
    • Estimating Closing Costs
  • Foreclosure, Short Sales
  • Tax Aspects of Transferring Title to Real Property
  • Special Processes [Broker Only]
• Practice of Real Estate
  • Trust Accounts (General; Regulatory Details in State Portions)
    • Purpose and Definition of Trust Accounts
    • Responsibility for Trust Monies
    • Commingling/Conversion
    • Monies held in Trust Accounts
  • Fair Housing Laws
    • Protected Classes
    • Covered Transactions
    • Specific Laws and Their Effects
    • Exceptions
    • Compliance
    • Types of Violations and Enforcement
    • Fair Housing Issues in Advertising
  • Advertising
    • “Puffing” vs. Incorrect “Factual” Statements
    • Deliberate Misrepresentation (Fraud) vs. Uninformed Misrepresentation
    • Truthfulness in Advertising
  • Agent Supervision
    • Liability for the acts of associated agents
    • Responsibility to train and supervise
    • Independent contractors
    • Employees
  • Commissions and Fees
    • Procuring Cause or Protection Clauses
    • Referrals and Finder’s Fees
  • General Ethics
    • Practicing within one’s area of competence
    • Avoiding unauthorized legal practices
  • Technology
  • Antitrust Laws
    • Antitrust Laws and Purpose
    • Antitrust Violations in Real Estate
• Real Estate Calculations
  • General Math Concepts
    • Addition, Subtraction, Multiplication, and Division
    • Percentages/Decimals/ Fractions
    • Areas, including Acreage
  • Property tax calculations
  • Lending Calculations
    • Loan-to-value ratios
    • Discount points
    • Equity
    • Qualifying buyers
  • Calculations for Transactions
    • Prorations
    • Commissions/commission splits
    • Seller’s proceeds
    • Total money needed from the buyer at closing
    • Transfer tax, conveyance tax, revenue stamps
  • Calculations for Valuation
    • Comparative Market Analyses (CMA)
    • Net Operating Income
    • Depreciation
    • Capitalization Rate
    • Gross Rent and Gross Income Multipliers (GIM, GRM)⁶
  • Mortgage Calculations
    • Down Payment/Amount to be Financed
    • Amortization
    • Interest Rates
    • Interest Amounts
    • Monthly Installment Payments
• Specialty Areas
  • Property Management and Landlord/Tenant
  • Common Interest Ownership Properties
  • Subdivisions
  • Commercial, Industrial, and Income Property

2. State Portion

• Ascertaining and Disclosing
  • Bureau of Conveyances/Land Court
    • Documents and indexes
    • Conveyance tax
  • Tax Office
    • Tax maps
    • Real property taxes and assessments
    • Other state taxes (e.g., HARPTA, GET)^7,8
  • Inspections
  • Statutory disclosures
    • Seller Disclosure Law⁹
    • Leasehold disclosures
    • Planned Community Associations
    • Distressed Property and Short Sales
  • Environmental conditions
  • Hawaii land history and property rights
• Types of Ownership
  • Condominiums
  • Cooperatives
  • Time-sharing plans
  • Land trust
  • Planned Unit Development
• Property Management
  • Residential Landlord-Tenant Code
  • Commercial real estate management (Broker only)
• Land Utilization
  • Planning, land use, and zoning (county ordinance)
    • County building and planning
  • Restrictive covenants
  • State land use classification
  • Special Management Areas
• Title and Conveyances
  • Estates and interests
  • Tenancy
  • Liens
  • Leaseholds
  • Recording systems
  • Boundary issues
  • Foreclosure
• Contracts and Addenda
  • Hawaii sales contracts
  • Hawaii listing contracts
  • Other Hawaii standard forms
• Financing
  • Seller Financing (e.g., Agreement of Sale, PMM)
  • Hawaii-Specific Institutional Financing
  • Usury laws
• Escrow Process and Closing Statements
  • Escrow responsibilities
  • Closing Responsibilities
  • Closing Statements
• Professional Practices and Conduct
  • Office management/supervision
    • Independent contractor vs. employee
    • Policies and procedures
  • Trust accounts and handling of funds
  • Advertising
  • Licensing laws and rules
    • Real estate brokers and salespersons
    • Professional and Vocational Licensing Act
    • Grounds for disciplinary action
      • Illegal conduct
      • discrimination in real property transactions
    • Unethical conduct
      • Standards of Practice¹⁰
      • Standard of Care
  •  Agency Relationships and Disclosure of Agency

Sample Questions

Here are a few examples of questions you might be asked during the Hawaii real estate salesperson exam:

• Brittany, a middle-aged woman, owns Hawaii property (as her principal home). Her property taxes will be reduced through which of the following?

A. A home exemption
B. A principal reduction
C. Woman Ownership Act
D. The Hawaii Principle Code

• Hawaii licensing laws specifically require what to be in writing:

A. All unilateral contracts
B. All bilateral contracts
C. The listing agreement for sale
D. All of the above

• Blake owns a rental property in Hawaii. He has owned it for 15 years. Which of the following additional taxes on any rental income he receives must he pay?

A. Ad tax
B. Privilege tax
C. Ad valorem tax
D. General Excise tax

• If the commission paid from the real estate recovery fund in any amount in a claim against a licensed real estate broker or real estate salesperson, the license of the real estate broker or real is automatically

A. Dismissed
B. Suspended
C. Terminated
D. Discontinued

• In Hawaii, which of the following is exempt from continuing education?

A. None
B. Agents
C. Brokers
D. Brokers who have tenure (15+ years as broker)

• In Hawaii, each parcel of land is assigned which of the following?

A. A Property Number
B. An Island ID Number
C. A Tax Map Key Number
D. A Tax Identification Code

Five Steps To Successfully Submitting Your Hawaii Department of Commerce and Consumer Affairs License Application

What happens if you’ve taken and passed the licensing exam? You can submit your application to become a licensed real estate agent in Hawaii.¹¹

Here are the five steps required to submit your application correctly:

1. Pick a brokerage or an individual broker who can oversee you as a newly licensed agent. Attend local networking events or connect on a site like LinkedIn to find the right brokerage for you.
2. Set up an eHawaii account (To do this, click the “Create a Free Account” button, then input your email address and create a password; you can also watch the how-to video on the site or read its transcript if you need extra guidance)¹²
3. Submit transcripts, test scores, and application fee through your online account
4. Wait 3-5 business days to find out if your application was approved
5. Keep your license active (you can do this by completing 20 hours of approved continuing education coursework every two years)

Fees and Costs for Hawaii Department of Commerce and Consumer Affairs

The state’s real estate branch requires a non-refundable fee of $382 for odd-numbered years and $282 for even-numbered years to become licensed.

How Much Time Does the Real Estate Application Process Require?

Your application only takes 3-5 business days on average to be approved or denied.

However, the entire process of becoming a Hawaii real estate agent typically lasts between three and six months. The specific amount of time depends on how quickly you go through the coursework and how soon you pass the exam.

Membership Application for the National Association of Realtors® (NAR) (Non-Compulsory)

Only members of the National Association of Realtors® can call themselves realtors®. If you’re not in the group, you must say you are a real estate agent or salesperson.

You don’t have to become a member of the NAR, but it can add credibility to your role and provide access to additional resources.

Select a local association from the table below to apply for membership. Then, contact the organization directly to find out about and begin its unique application process:

Name	Website	Phone Number
Hawaii Association of Realtors®	www.hawaiirealtors.com	(808) 733-7060 (808) 737-4977
Hawaii Island Realtors®	http://www.hawaiiislandrealtors.org	(808) 935-0827
Realtors® Association of Maui, Inc.	http://www.ramaui.com	(808) 873-8585 (808) 873-8585
Kauai Board of Realtors®	www.kauaiboard.com	(808) 245-4049
West Hawaii Association of Realtors®	www.westhawaiirealtors.com	(808) 329-4874
Honolulu Board of Realtors® Inc.	www.hicentral.com	(808) 732-3000 (808) 732-8732