HI Real Estate cheat sheet

HRS Chapter 467 governs the licensing and conduct of Hawaii real estate brokers and salespersons; the implementing rules sit in HAR Title 16, Chapter 99.

The Hawaii Real Estate Commission operates inside DCCA and may investigate complaints, impose administrative fines, and suspend or revoke a license.

Hawaii licenses run on a two-year (biennial) renewal cycle; renewal requires 20 hours of Commission-approved continuing education per cycle.

A salesperson's license is active only while sponsored by a principal broker; a salesperson cannot operate an independent brokerage.

Every brokerage must have a principal broker who supervises affiliated licensees and is accountable for office records and trust funds.

Paying compensation for licensed brokerage activity to an unlicensed person is prohibited; the commission is paid to the brokerage, which then compensates the salesperson.

Commission-approved prelicense education plus a passing score on the state licensing exam must be completed before a license is issued.

Real estate appraisers are regulated separately under HRS Chapter 466K; appraiser credentials are distinct from broker and salesperson licenses.

HRS 656-1 (statute of frauds): contracts for the sale of land, and leases longer than one year, must be written and signed by the party to be charged.

A broker generally earns a commission by producing a buyer ready, willing, and able to purchase on the seller's stated price and terms.

Exclusive right to sell: broker is paid regardless of who procures the buyer. Exclusive agency: an owner's own sale avoids the commission. Open listing: only the procuring broker is paid.

Dual agency exists when one licensee represents both buyer and seller; it requires the informed written consent of both parties.

A written agency disclosure identifying the represented party must be provided before the client signs a brokerage agreement.

Standard purchase contracts condition the buyer's obligation on inspection, financing/appraisal, and title contingencies, each with a deadline for waiver or cancellation.

Client funds such as earnest money must be held in a separate trust account; commingling with personal or operating funds is prohibited.

RESPA Section 8 bars paying or receiving anything of value for referrals of settlement services, while seller-paid buyer closing costs remain permissible.

A salesperson's compensation is fixed by agreement with the principal broker, not negotiated directly with the client.

Hawaii property is held in fee simple (perpetual ownership) or leasehold (a long-term lease of the land, often paired with a condominium unit lease).

Land Court (Torrens) registration under HRS Chapter 501 produces a certificate of title that is conclusive evidence of ownership.

The State Land Use Commission classifies all land into one of four districts: Urban, Rural, Agricultural, or Conservation (HRS Chapter 205).

Counties administer zoning and building permits; the shoreline setback area starts at the certified shoreline, is at least 20 feet deep, and may be extended to 40 feet by county ordinance.

The public has access along Hawaii's beaches up to the upper reaches of the wash of waves; the shoreline is held in public trust.

Hawaiian Home Lands are trust lands under the Hawaiian Homes Commission Act, leased for terms up to 99 years to beneficiaries with at least 50 percent Hawaiian ancestry.

Co-ownership forms: tenancy in common carries no survivorship; joint tenancy and tenancy by the entirety carry a right of survivorship.

Recorded CC&Rs and easements run with the land and can restrict use even where zoning would otherwise permit it.

Water rights are administered under the public trust doctrine by the Commission on Water Resource Management.

LTV = loan amount divided by the lesser of appraised value or purchase price; a 20 percent down payment produces 80 percent LTV.

Private mortgage insurance is typical above 80 percent LTV and must terminate at the borrower's request at 80 percent LTV and automatically at 78 percent LTV.

Conventional qualifying guideline: housing ratio 28 percent, total debt ratio 36 percent; FHA and automated underwriting approvals permit higher ratios.

Hawaii closings are usually handled by a licensed escrow depository under HRS Chapter 449 acting as a neutral stakeholder rather than by an attorney.

The Closing Disclosure must reach the borrower at least three business days before consummation.

HARPTA (HRS 235-68) requires 7.25 percent of the gross sales price to be withheld when a nonresident sells Hawaii real property; FIRPTA imposes separate federal withholding on foreign persons.

Hawaii conveyance tax is computed per $100 of consideration at graduated rates and is customarily paid by the seller.

Sales comparison is the primary approach for residential valuation, cost applies to new or special-use property, and income applies to income-producing property.

Hawaii has no statewide property tax; each county assesses and bills real property taxes on its own schedule.

HRS Chapter 514B governs condominium property regimes, including developer registration and the required public report before units are sold.

Managing another person's rental property for compensation requires a Hawaii real estate license.

HRS Chapter 521 governs residential landlord-tenant relations, covering habitability, access, rent, and deposit handling.

Security deposits must be returned, with an itemized statement of any deductions, within 14 days after the tenant vacates.

HRS Chapter 515 adds Hawaii protected classes to fair housing, including sexual orientation, gender identity, marital status, and HIV infection.

AOAOs collect monthly maintenance fees, may levy special assessments, and fund reserves for planned capital replacements.

Time share plans are regulated by HRS Chapter 514E, which mandates disclosure and gives purchasers a statutory cancellation right.

HRS Chapter 480 prohibits unfair or deceptive trade practices; DCCA's Regulated Industries Complaints Office investigates licensee misconduct.

Trust funds such as rents and tenant deposits must be kept in a separate trust account and reconciled; commingling is a licensing violation.