HRES - Hawaii Real Estate Salesperson

Question 1: A licensee wants to buy a listed condominium for her own account rather than for a client. Before proceeding, she must reveal to the seller that she is acting as a principal buyer, not merely as an agent. Which requirement BEST explains this needed disclosure?

Duty of obedience

Subagency disclosure

Duty of reasonable care

Disclosure of acting as principal

Question 2: A buyer's agent receives an earnest money deposit and must keep it separate from personal funds, place it as instructed, and be able to report on it at any time. Which fiduciary duty BEST captures this obligation to safeguard and account for the client's money?

Accounting

Loyalty

Reasonable care

Obedience

Question 3: A disclosed dual agent in Kona represents both sides of a sale. The seller privately tells the agent the lowest price she will take, and the buyer names his top figure. Which action BEST reflects the agent's duties under dual agency?

Tell each party the other's limit

Reveal only the seller's limit

Help the buyer negotiate lower

Keep both price limits confidential

Question 4: An agent represents the seller. A prospective buyer, whom the agent treats as a customer, asks the agent whether the seller would accept less than list price. The seller confided she is desperate to sell fast. Which response BEST honors the agent's duties?

Tell the buyer she is desperate

Refuse to speak with the buyer

Stay truthful without revealing the confidence

Promise the seller will accept less

Question 5: During an active listing, a fire completely destroys the Kailua house that a broker was hired to sell, leaving only the bare land. Neither party did anything to end the arrangement. By what means has the agency terminated?

Renunciation by the broker

Expiration of the term

Revocation by the owner

Destruction of the property

Question 6: A seller privately tells her agent that she would accept far less than the asking price because of an urgent move. A buyer's customer later asks the agent how low the seller will go. Which fiduciary duty forbids the agent from revealing that private information?

Confidentiality

Disclosure

Obedience

Accounting

Question 7: A broker in Kihei secretly collects a fee from both the buyer and the seller without telling either that she represents both. When the parties later discover the arrangement, they object. How is this undisclosed dual agency generally regarded?

Permissible if fees are equal

Acceptable once the sale closes

Illegal and a breach of duty

Lawful because both paid willingly

Question 8: An owner repeatedly allows a licensee to hold himself out publicly as her representative and never corrects buyers who reasonably rely on that impression. When a buyer acts on it, the owner is barred from denying the agency. Which doctrine creates the relationship here?

Agency by ratification

Express agency

Implied agency

Agency by estoppel

Question 9: Once a buyer and seller both consent to a broker acting as a dual agent, the broker can no longer advance one party's interests at the other's expense or reveal one side's confidential bargaining position. Which fiduciary duty is most curtailed by dual agency?

Undivided loyalty

Accounting

Honesty toward customers

Reasonable care

Question 10: Acting without prior authority, a licensee negotiates terms for an owner who was unreachable, then presents the completed deal. The owner, pleased with the result, accepts its benefits and treats the licensee as her agent. Which method of creating agency does the owner's after-the-fact approval illustrate?

Express agency

Agency by estoppel

Agency by ratification

Implied agency

Question 11: A broker in Waipahu proposes to represent both the seller and the buyer in the same transaction, acting as a dual agent. Before this arrangement may lawfully proceed, what does the broker generally need to obtain from each party regarding the shared representation?

A higher commission agreement

Only the seller's approval

Nothing beyond honest treatment

Informed written consent

Question 12: A listing broker offers cooperation through the multiple listing service, and a cooperating broker brings a buyer while electing to work for the seller rather than the buyer. The cooperating broker thereby owes fiduciary duties to the seller. Which agency relationship has been created?

Dual agency

Subagency

Designated agency

Single agency

Question 13: A seller instructs her listing agent not to show the Kaneohe home to buyers of a particular national origin. The agent recognizes this order would violate fair housing law. To act properly, how must the agent treat this instruction?

Obey it to keep loyalty

Follow it but document it

Refuse to obey the unlawful order

Comply because the client decides

Question 14: A Kaneohe broker represents a seller under a listing and also represents the buyer who wants that same home, so the broker now owes fiduciary duties to both parties in one transaction. With informed consent, which agency relationship does this describe?

Dual agency

Single agency

Subagency

Designated agency

Question 15: A property manager in Wailuku collects a tenant's security deposit and monthly rent on behalf of an owner client but deposits the money into her own operating account and cannot show which funds belong to whom. Which fiduciary duty has she violated?

Obedience

Accounting

Disclosure

Reasonable care

Question 16: Before moving abroad, an owner signs a broad power of attorney authorizing a trusted relative to conduct virtually any lawful business in the owner's name, including buying, selling, and managing all of his affairs. Which classification of agent does this relative become?

Special agent

General agent

Subagent

Universal agent

Question 17: A developer signs a fifty-year lease for a vacant Hilo lot, intending to construct and own a building on it, and the rent is set to increase at fixed intervals stated in the lease. Which term BEST captures the essential nature of this lease?

A ground lease

A graduated lease

A gross lease

A percentage lease

Question 18: After discovering the other party's material misrepresentation, both sides to a Wailuku land contract agree to unwind the deal entirely, return the deposit, and restore each other to the positions held before they ever signed. This undoing of the contract from the beginning is best called which of the following?

Cancellation

Assignment

Rescission

Novation

Question 19: A signed contract for a Honolulu high-rise unit states that if the buyer defaults, the seller may keep the buyer's deposit as the agreed and exclusive measure of loss. This clause fixing a set sum payable on breach ahead of time is best known as which of the following?

Liquidated damages

Punitive damages

Specific performance

Consequential damages

Question 20: A boutique in a Kihei shopping center pays the landlord a modest base rent plus an agreed portion of its monthly gross sales once those sales pass a set threshold. Which type of lease has the store and landlord entered into?

A gross lease

A percentage lease

A ground lease

A graduated lease

HRES Hawaii Real Estate Salesperson - Set 4 - Part 1

Question 1: A licensee wants to buy a listed condominium for her own account rather than for a client. Before proceeding, she must reveal to the seller that she is acting as a principal buyer, not merely as an agent. Which requirement BEST explains this needed disclosure?

Question 2: A buyer's agent receives an earnest money deposit and must keep it separate from personal funds, place it as instructed, and be able to report on it at any time. Which fiduciary duty BEST captures this obligation to safeguard and account for the client's money?

Question 3: A disclosed dual agent in Kona represents both sides of a sale. The seller privately tells the agent the lowest price she will take, and the buyer names his top figure. Which action BEST reflects the agent's duties under dual agency?

Question 4: An agent represents the seller. A prospective buyer, whom the agent treats as a customer, asks the agent whether the seller would accept less than list price. The seller confided she is desperate to sell fast. Which response BEST honors the agent's duties?

Question 5: During an active listing, a fire completely destroys the Kailua house that a broker was hired to sell, leaving only the bare land. Neither party did anything to end the arrangement. By what means has the agency terminated?

Question 6: A seller privately tells her agent that she would accept far less than the asking price because of an urgent move. A buyer's customer later asks the agent how low the seller will go. Which fiduciary duty forbids the agent from revealing that private information?

Question 7: A broker in Kihei secretly collects a fee from both the buyer and the seller without telling either that she represents both. When the parties later discover the arrangement, they object. How is this undisclosed dual agency generally regarded?

Question 8: An owner repeatedly allows a licensee to hold himself out publicly as her representative and never corrects buyers who reasonably rely on that impression. When a buyer acts on it, the owner is barred from denying the agency. Which doctrine creates the relationship here?

Question 9: Once a buyer and seller both consent to a broker acting as a dual agent, the broker can no longer advance one party's interests at the other's expense or reveal one side's confidential bargaining position. Which fiduciary duty is most curtailed by dual agency?

Question 11: A broker in Waipahu proposes to represent both the seller and the buyer in the same transaction, acting as a dual agent. Before this arrangement may lawfully proceed, what does the broker generally need to obtain from each party regarding the shared representation?

Question 12: A listing broker offers cooperation through the multiple listing service, and a cooperating broker brings a buyer while electing to work for the seller rather than the buyer. The cooperating broker thereby owes fiduciary duties to the seller. Which agency relationship has been created?

Question 13: A seller instructs her listing agent not to show the Kaneohe home to buyers of a particular national origin. The agent recognizes this order would violate fair housing law. To act properly, how must the agent treat this instruction?

Question 14: A Kaneohe broker represents a seller under a listing and also represents the buyer who wants that same home, so the broker now owes fiduciary duties to both parties in one transaction. With informed consent, which agency relationship does this describe?

Question 15: A property manager in Wailuku collects a tenant's security deposit and monthly rent on behalf of an owner client but deposits the money into her own operating account and cannot show which funds belong to whom. Which fiduciary duty has she violated?

Question 16: Before moving abroad, an owner signs a broad power of attorney authorizing a trusted relative to conduct virtually any lawful business in the owner's name, including buying, selling, and managing all of his affairs. Which classification of agent does this relative become?

Question 17: A developer signs a fifty-year lease for a vacant Hilo lot, intending to construct and own a building on it, and the rent is set to increase at fixed intervals stated in the lease. Which term BEST captures the essential nature of this lease?

Question 19: A signed contract for a Honolulu high-rise unit states that if the buyer defaults, the seller may keep the buyer's deposit as the agreed and exclusive measure of loss. This clause fixing a set sum payable on breach ahead of time is best known as which of the following?

Question 20: A boutique in a Kihei shopping center pays the landlord a modest base rent plus an agreed portion of its monthly gross sales once those sales pass a set threshold. Which type of lease has the store and landlord entered into?

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