HRES - Hawaii Real Estate Salesperson

Question 21: While computing net operating income for a Kihei rental, a student wants to include the owner's monthly mortgage principal and interest among the operating expenses. The appraiser corrects this, noting that certain owner-specific costs are excluded. Which item must be left out of operating expenses?

Mortgage debt service

Property taxes

Hazard insurance

Management fees

Question 22: An instructor explains that when two income properties produce the same net operating income, the one an investor values using a higher capitalization rate will show a lower indicated value. Holding income constant, what does a rising capitalization rate do to value?

It raises indicated value

It leaves value unchanged

It raises the net income

It lowers indicated value

Question 23: A Waipahu homeowner spent a large sum finishing a basement and assumes the improvement raised the property's worth by that same amount. The appraiser cautions that expenditure and market worth are not identical. Which statement best captures the relationship between cost and value?

Cost always equals value

Cost often differs from value

Cost sets a value ceiling

Value always exceeds cost

Question 24: To value a Wailuku commercial building, an appraiser takes a single year's net operating income and divides it by an overall market-derived rate to reach an indicated value in one step, without projecting future years. Which valuation technique is being applied here?

Direct capitalization

Yield capitalization

Gross rent multiplier

Sales comparison

Question 25: An oceanfront home in Kona is listed, an offer arrives, and the parties close at a negotiated figure. The instructor stresses that this recorded transaction figure differs from the appraiser's reasoned opinion of worth. Which term describes the asking, offer, or sales figure itself?

Market value

Appraised value

Insurable value

Market price

Question 26: When a federally related mortgage requires a valuation, the law specifies exactly who may prepare that appraisal, and it is never the listing agent, the seller, or the loan officer. Which professional must perform an appraisal in a federally related transaction?

The listing real estate agent

The lender's loan officer

A state-licensed or certified appraiser

The county tax assessor

Question 27: An appraiser must follow a nationally recognized set of ethical and performance rules that govern how appraisals are developed and reported, promoting consistency, competence, and public trust in valuation work. Which body of standards is every appraiser required to observe when completing an assignment?

RESPA

TRID

FIRREA

USPAP

Question 28: An advisor explains that even a rental producing modest yearly cash flow can still deliver a strong overall result once the rising market value of the property is counted alongside the income. Which concept captures this value-growth portion of an investor's total return?

Appreciation

Cash-on-cash return

Amortization

Depreciation

Question 29: A buyer first toured a Waipahu home with one agent months ago, kept in touch, and ultimately bought it through that same agent's continued efforts, not another who merely unlocked the door once. Which principle determines that the first agent earned the commission?

Commission split

Procuring cause

Ready, willing, and able

Exclusive agency

Question 30: An investor wants a single figure showing the annual return her rental generates measured against the total amount she has invested in the property, so she can compare it with other opportunities such as stocks or bonds. Which measure expresses this relationship?

Loan-to-value ratio

Gross rent multiplier

Return on investment

Debt-to-income ratio

Question 31: A seller listed her Hilo home with several firms under open listings. Two brokers now each claim the commission after the property sold. To decide which broker's efforts actually set in motion the chain of events leading to the purchase, which principle governs?

The commission split

Procuring cause

First substantial contact

The exclusive-right-to-sell rule

Question 32: A buyer of a Wailuku home placed a substantial earnest money deposit into escrow when the contract was signed, and that money is now held pending closing. When the settlement statement is prepared, how is the buyer's earnest money deposit treated?

A credit to the buyer

A debit to the buyer

A credit to the seller

A debit to the seller

Question 33: An investor buys a Kona oceanfront condominium expecting that, over the years, market demand and limited supply will push its value upward, increasing her wealth even before she sells. Which term names this rise in a property's value over time?

Depreciation

Amortization

Proration

Appreciation

Question 34: After a Kihei condominium sale, the total commission is divided between the listing brokerage and the cooperating brokerage, and each brokerage then shares its portion with the salesperson who did the work. Which term describes this division of the commission?

Procuring cause

Net listing

Commission split

Referral override

Question 35: A county assessor's office quotes its annual property-tax rate in mills rather than as a plain percentage. A student asks what a single mill actually represents when it is applied to a property's assessed value. Which description correctly states what one mill means?

One dollar per hundred assessed

One cent per dollar assessed

One percent of market value

One dollar per thousand assessed

Question 36: A seller asks her agent who ultimately pays the brokerage commission and how the two firms involved end up sharing it. The agent explains the customary arrangement for a cooperatively sold condominium. Which statement best captures how the commission is customarily funded and divided?

Paid by seller, split among brokers

Paid by buyer, kept by lister

Split equally as required by law

Funded by the lender at closing

Question 37: Reviewing the same settlement statement, the licensee learns that a different column records amounts working in a party's favor, either lowering what that party must pay or adding to what it will receive at closing. Which term names such a favorable entry?

A debit

A credit

A lien

A payoff

Question 38: At a Honolulu closing, the escrow officer divides the year's property taxes so the seller pays for the days she owned the home and the buyer pays for the rest. Which closing process accomplishes this fair division of shared expenses?

Reconciliation

Subordination

Proration

Capitalization

Question 39: As a new licensee studies a settlement statement, her broker explains that one column records amounts charged against a party, sums that party owes or must pay in the transaction. Which term describes an entry that charges a party in this way?

A debit

A credit

A proration

A reconciliation

Question 40: Before settlement on a Honolulu condominium, the buyer wants to know the total amount he must actually bring to the table after his loan, his earnest money, and any seller credits are applied against the price and his closing costs. Which term names that amount?

The seller's net proceeds

The gross monthly payment

The total loan principal

The buyer's cash to close

HRES Hawaii Real Estate Salesperson - Set 3 - Part 2

Question 22: An instructor explains that when two income properties produce the same net operating income, the one an investor values using a higher capitalization rate will show a lower indicated value. Holding income constant, what does a rising capitalization rate do to value?

Question 23: A Waipahu homeowner spent a large sum finishing a basement and assumes the improvement raised the property's worth by that same amount. The appraiser cautions that expenditure and market worth are not identical. Which statement best captures the relationship between cost and value?

Question 24: To value a Wailuku commercial building, an appraiser takes a single year's net operating income and divides it by an overall market-derived rate to reach an indicated value in one step, without projecting future years. Which valuation technique is being applied here?

Question 25: An oceanfront home in Kona is listed, an offer arrives, and the parties close at a negotiated figure. The instructor stresses that this recorded transaction figure differs from the appraiser's reasoned opinion of worth. Which term describes the asking, offer, or sales figure itself?

Question 26: When a federally related mortgage requires a valuation, the law specifies exactly who may prepare that appraisal, and it is never the listing agent, the seller, or the loan officer. Which professional must perform an appraisal in a federally related transaction?

Question 28: An advisor explains that even a rental producing modest yearly cash flow can still deliver a strong overall result once the rising market value of the property is counted alongside the income. Which concept captures this value-growth portion of an investor's total return?

Question 29: A buyer first toured a Waipahu home with one agent months ago, kept in touch, and ultimately bought it through that same agent's continued efforts, not another who merely unlocked the door once. Which principle determines that the first agent earned the commission?

Question 30: An investor wants a single figure showing the annual return her rental generates measured against the total amount she has invested in the property, so she can compare it with other opportunities such as stocks or bonds. Which measure expresses this relationship?

Question 31: A seller listed her Hilo home with several firms under open listings. Two brokers now each claim the commission after the property sold. To decide which broker's efforts actually set in motion the chain of events leading to the purchase, which principle governs?

Question 32: A buyer of a Wailuku home placed a substantial earnest money deposit into escrow when the contract was signed, and that money is now held pending closing. When the settlement statement is prepared, how is the buyer's earnest money deposit treated?

Question 33: An investor buys a Kona oceanfront condominium expecting that, over the years, market demand and limited supply will push its value upward, increasing her wealth even before she sells. Which term names this rise in a property's value over time?

Question 34: After a Kihei condominium sale, the total commission is divided between the listing brokerage and the cooperating brokerage, and each brokerage then shares its portion with the salesperson who did the work. Which term describes this division of the commission?

Question 35: A county assessor's office quotes its annual property-tax rate in mills rather than as a plain percentage. A student asks what a single mill actually represents when it is applied to a property's assessed value. Which description correctly states what one mill means?

Question 36: A seller asks her agent who ultimately pays the brokerage commission and how the two firms involved end up sharing it. The agent explains the customary arrangement for a cooperatively sold condominium. Which statement best captures how the commission is customarily funded and divided?

Question 37: Reviewing the same settlement statement, the licensee learns that a different column records amounts working in a party's favor, either lowering what that party must pay or adding to what it will receive at closing. Which term names such a favorable entry?

Question 38: At a Honolulu closing, the escrow officer divides the year's property taxes so the seller pays for the days she owned the home and the buyer pays for the rest. Which closing process accomplishes this fair division of shared expenses?

Question 39: As a new licensee studies a settlement statement, her broker explains that one column records amounts charged against a party, sums that party owes or must pay in the transaction. Which term describes an entry that charges a party in this way?

Question 40: Before settlement on a Honolulu condominium, the buyer wants to know the total amount he must actually bring to the table after his loan, his earnest money, and any seller credits are applied against the price and his closing costs. Which term names that amount?

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