HRES - Hawaii Real Estate Salesperson

Question 21: Once a valid purchase contract for a Kihei home is signed, each party takes on duties owed to the other, and the buyer gains a claim enforceable against the seller. The buyer's legal ability to demand the seller's promised performance is best described as which of the following?

A contractual obligation

A gratuitous privilege

A contractual right

A statutory exemption

Question 22: A buyer and seller in Waipahu complete their entire purchase agreement online, each clicking to apply an electronic signature and exchanging the document by email with no paper involved. Under federal and uniform law governing digital transactions, these electronic signatures are generally treated in which of the following ways?

Valid only after later notarization

Never enforceable for real estate

Valid only if printed later

As valid as ink signatures

Question 23: While a buyer is paying off a parcel under a contract for deed and living on the land, a question arises about who holds what interest before the final payment. During this payment period, which statement about title is generally correct?

The vendee holds legal title

The vendee holds equitable title

The vendor holds equitable title

Neither party holds any title

Question 24: A seller in Lihue signs a buyer's offer to indicate acceptance but leaves the signed document in a desk drawer and tells no one for several days. Under general contract rules, a contract typically forms only when the acceptance is handled in which of the following ways?

Merely signed in private

Silently intended by the seller

Communicated to the offeror

Recorded at the county office

Question 25: A tenant in a Kaneohe rental holds a contract right stating that if the owner ever decides to sell the building, the tenant must be given the chance to match any bona fide offer before it is sold to someone else. What is this right?

A right of first refusal

An option to purchase

An installment land contract

A lease-purchase agreement

Question 26: A prospective buyer emails a written offer on a Kona oceanfront property and states it will stay open until Friday, but on Wednesday, before any response, the buyer calls and clearly withdraws it. Which action has occurred that ends the offer before the seller can accept?

Acceptance of the offer

A counteroffer by the seller

Lapse of time

Revocation of the offer

Question 27: A seller who signed a valid purchase contract for a unique oceanfront parcel changes course and refuses to deliver the deed at closing, even though the buyer is ready and able to perform. Which remedy lets the buyer compel the seller to convey?

Specific performance

Liquidated damages

Forfeiture of the deposit

A novation

Question 28: A buyer under a signed purchase contract for a Kihei condo backs out without any valid contingency, and the agreement states the seller may keep the earnest money as the seller's agreed measure of damages. What does this clause provide the seller?

Specific performance

Liquidated damages

Punitive damages

A right of rescission

Question 29: A lender's appraisal on a Kaneohe condominium comes in well below the agreed purchase price, and a clause in the contract lets the buyer renegotiate the price or cancel without penalty when this happens. Which contingency does this clause represent?

A financing contingency

An inspection contingency

A sale-of-home contingency

An appraisal contingency

Question 30: After a home inspection reveals only minor issues on a Hilo property, the buyer notifies the seller in writing that the buyer accepts the condition and will proceed, choosing not to demand repairs. In contingency terms, what has the buyer done to this condition?

Breached the purchase contract

Made a repair counteroffer

Satisfied and removed the contingency

Voided the entire agreement

Question 31: A family rents a Kaneohe condo under an agreement in which they occupy it as tenants now but are also firmly committed to buy the unit at a set price by the end of the lease term. What is this combined arrangement called?

A lease-purchase agreement

An option contract

A right of first refusal

An installment land contract

Question 32: A seller in Kaneohe refuses to close on a unique oceanfront parcel even though the buyer has fully performed, and money damages will not truly replace this one-of-a-kind property. A court order forcing the seller to convey the exact property is which of the following remedies?

Liquidated damages

Specific performance

Rescission

Compensatory damages

Question 33: A brokerage prepares a rental advertisement for a Honolulu condo and wants to describe the unit lawfully. An instructor warns that the ad must not state any preference or limitation based on a protected class. Which phrasing would violate federal fair-housing advertising rules?

Spacious two-bedroom near transit

Newly renovated with parking

Quiet building, no smoking allowed

Ideal for a Christian family

Question 34: A brokerage buys an insurance policy that protects it against claims arising from negligent acts, honest mistakes, or failures to perform in professional services, helping cover the cost of defending and settling such lawsuits. Which type of coverage is this?

Title insurance

Private mortgage insurance

Errors and omissions insurance

Homeowner's hazard insurance

Question 35: A mortgage lender refuses to approve loans for homes located within certain Waipahu neighborhoods, basing each denial on the racial composition of those areas rather than on any individual applicant's actual creditworthiness. Which prohibited lending practice does this describe?

Blockbusting

Steering

Predatory lending

Redlining

Question 36: A buyer asks a salesperson to interpret how a title defect and a boundary dispute will affect his legal ownership rights. Recognizing the limits of her license, the salesperson gives the proper response instead of opining. What should she do?

Interpret the title herself

Refer him to an attorney

Guarantee the title is clear

Advise him to skip counsel

Question 37: A Honolulu agent consistently shows families with children only condominium units in certain neighborhoods and steers other buyers elsewhere, guiding each group toward areas by presumed background rather than by their own stated preferences. Which prohibited fair-housing practice does this conduct represent?

Steering

Blockbusting

Redlining

Puffing

Question 38: A bona fide religious organization owns apartments in Waipahu and, for noncommercial reasons, gives preference in those units to people who share its faith without regard to race. Under the federal Fair Housing Act, which allowance permits this limited preference?

The Mrs. Murphy exemption

The single-family owner exemption

The religious organization exemption

No exemption ever applies

Question 39: A broker deposits a buyer's earnest money into the brokerage's regular operating account alongside the firm's own business funds, rather than keeping it separate in a dedicated trust account. Which prohibited handling of a client's money does this practice describe?

Conversion

Commingling

Novation

Subrogation

Question 40: An instructor lists the seven classes protected under the federal Fair Housing Act and warns students not to confuse them with broader categories some states add. A student must pick the trait that federal law does not itself list as protected. Which trait is that?

Familial status

National origin

Marital status

Handicap

HRES Hawaii Real Estate Salesperson - Set 4 - Part 2

Question 21: Once a valid purchase contract for a Kihei home is signed, each party takes on duties owed to the other, and the buyer gains a claim enforceable against the seller. The buyer's legal ability to demand the seller's promised performance is best described as which of the following?

Question 23: While a buyer is paying off a parcel under a contract for deed and living on the land, a question arises about who holds what interest before the final payment. During this payment period, which statement about title is generally correct?

Question 24: A seller in Lihue signs a buyer's offer to indicate acceptance but leaves the signed document in a desk drawer and tells no one for several days. Under general contract rules, a contract typically forms only when the acceptance is handled in which of the following ways?

Question 25: A tenant in a Kaneohe rental holds a contract right stating that if the owner ever decides to sell the building, the tenant must be given the chance to match any bona fide offer before it is sold to someone else. What is this right?

Question 26: A prospective buyer emails a written offer on a Kona oceanfront property and states it will stay open until Friday, but on Wednesday, before any response, the buyer calls and clearly withdraws it. Which action has occurred that ends the offer before the seller can accept?

Question 27: A seller who signed a valid purchase contract for a unique oceanfront parcel changes course and refuses to deliver the deed at closing, even though the buyer is ready and able to perform. Which remedy lets the buyer compel the seller to convey?

Question 28: A buyer under a signed purchase contract for a Kihei condo backs out without any valid contingency, and the agreement states the seller may keep the earnest money as the seller's agreed measure of damages. What does this clause provide the seller?

Question 29: A lender's appraisal on a Kaneohe condominium comes in well below the agreed purchase price, and a clause in the contract lets the buyer renegotiate the price or cancel without penalty when this happens. Which contingency does this clause represent?

Question 30: After a home inspection reveals only minor issues on a Hilo property, the buyer notifies the seller in writing that the buyer accepts the condition and will proceed, choosing not to demand repairs. In contingency terms, what has the buyer done to this condition?

Question 31: A family rents a Kaneohe condo under an agreement in which they occupy it as tenants now but are also firmly committed to buy the unit at a set price by the end of the lease term. What is this combined arrangement called?

Question 32: A seller in Kaneohe refuses to close on a unique oceanfront parcel even though the buyer has fully performed, and money damages will not truly replace this one-of-a-kind property. A court order forcing the seller to convey the exact property is which of the following remedies?

Question 33: A brokerage prepares a rental advertisement for a Honolulu condo and wants to describe the unit lawfully. An instructor warns that the ad must not state any preference or limitation based on a protected class. Which phrasing would violate federal fair-housing advertising rules?

Question 34: A brokerage buys an insurance policy that protects it against claims arising from negligent acts, honest mistakes, or failures to perform in professional services, helping cover the cost of defending and settling such lawsuits. Which type of coverage is this?

Question 35: A mortgage lender refuses to approve loans for homes located within certain Waipahu neighborhoods, basing each denial on the racial composition of those areas rather than on any individual applicant's actual creditworthiness. Which prohibited lending practice does this describe?

Question 36: A buyer asks a salesperson to interpret how a title defect and a boundary dispute will affect his legal ownership rights. Recognizing the limits of her license, the salesperson gives the proper response instead of opining. What should she do?

Question 38: A bona fide religious organization owns apartments in Waipahu and, for noncommercial reasons, gives preference in those units to people who share its faith without regard to race. Under the federal Fair Housing Act, which allowance permits this limited preference?

Question 39: A broker deposits a buyer's earnest money into the brokerage's regular operating account alongside the firm's own business funds, rather than keeping it separate in a dedicated trust account. Which prohibited handling of a client's money does this practice describe?

Question 40: An instructor lists the seven classes protected under the federal Fair Housing Act and warns students not to confuse them with broader categories some states add. A student must pick the trait that federal law does not itself list as protected. Which trait is that?

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