HI Real Estate key terms

A state board within Hawaii's Department of Commerce and Consumer Affairs that licenses real estate brokers and salespersons, adopts administrative rules, and investigates complaints and disciplines licensees.

The administrative office of Hawaii's Professional and Vocational Licensing Division that processes real estate license applications, renewals, and complaints for the Real Estate Commission.

Hawaii's statutory chapter governing real estate brokers and salespersons, including licensing requirements, commission authority, prohibited conduct, and disciplinary procedures.

The rules adopted by the Hawaii Real Estate Commission to implement Chapter 467, covering licensing, education, office supervision, advertising, and professional conduct.

A licensed broker who supervises a real estate office and its salespersons, and who is legally responsible for the office's brokerage activities and compliance with Hawaii law.

A licensee who performs brokerage activities under the supervision of a principal broker and may not independently operate a real estate brokerage business in Hawaii.

Required coursework Hawaii licensees complete during each renewal cycle to maintain their licenses and stay current on law, rules, and practice.

A legal obligation of loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care that an agent owes to a principal in the agency relationship.

A relationship in which one person, the agent, is authorized to act for another, the principal, and owes the principal fiduciary duties under Hawaii law.

A situation where one brokerage represents both buyer and seller in the same transaction, requiring written consent and careful disclosure because the firm cannot fully advocate for either side.

A written employment contract between a seller and a broker that authorizes the broker to market the property and sets the terms of compensation and agency.

A listing arrangement in which the broker earns a commission no matter who procures the buyer during the listing period, including the seller.

A written contract in which a buyer engages a broker to represent the buyer's interests, defining the scope of service, term, and compensation.

The broker's efforts that began or caused a continuous chain of events leading to a completed transaction, often used to decide who earns a commission.

A buyer's deposit showing good faith and intent to complete a purchase, typically held in escrow and applied to the purchase price or forfeited under contract terms.

A contract condition that must be satisfied or waived before a sale becomes final, such as financing, inspection, or appraisal approval.

Important information that could influence a reasonable buyer's or seller's decision, which a licensee must disclose and may not conceal.

The most complete ownership interest in real property, giving the owner indefinite rights to use, sell, lease, and pass the property to heirs, subject to government powers.

An ownership interest in which a person holds a long-term lease to use and occupy land or a building, usually paying lease rent to the fee owner.

A Native Hawaiian land claim or parcel, often a small taro or house lot, recognized from historic land divisions and subject to unique title and access issues.

Trust lands held by the Department of Hawaiian Home Lands for eligible Native Hawaiians under the Hawaiian Homes Commission Act, generally with restricted transferability.

Hawaii's court-administered Torrens system that registers land titles, resolves ownership claims, and issues certificates of title, providing state-guaranteed ownership records.

Hawaii's recording system at the Bureau of Conveyances where deeds and other documents are recorded to give public notice of interests in land.

The state office that records real property documents and maintains land title records for both the Regular System and Land Court.

A right to use another person's land for a specific purpose, such as access, utilities, or drainage, without owning the underlying property.

Any right, lien, or interest that burdens real property and may affect its use or transferability, such as mortgages, easements, or restrictions.

A written security instrument in which real property is pledged as collateral for a loan, allowing the lender to foreclose if the borrower defaults.

A written promise by a borrower to repay a specified sum under stated terms, including interest, payment schedule, and maturity date.

A neutral process in which a third party holds funds and documents until all closing conditions are met and the transaction can be completed.

A policy protecting a buyer or lender against losses from title defects or claims that existed before the policy date and were not excluded.

A valuation method that estimates market value by comparing the subject property with recently sold similar properties and adjusting for differences.

The loan amount divided by the property's appraised value or purchase price, used by lenders to measure borrowing risk.

A Hawaii tax imposed on the transfer of real property, usually paid by the seller, based on the property's sales price and the applicable rate.

A Hawaii tax on business gross income, including real estate commissions and some rent, generally passed on to the customer.

A Hawaii form of ownership created by recording a declaration, in which individual units are owned separately and common elements are owned jointly by unit owners.

The Hawaii condominium owners' association, made up of all unit owners, that manages common elements and enforces the declaration and bylaws.

A condominium common element reserved for the use of one or more but fewer than all units, such as a lanai, parking stall, or storage locker.

Money a condominium association sets aside for future major repairs and replacements, usually funded through regular assessments and studied periodically.

An extra charge to condominium owners beyond regular maintenance fees to cover unexpected or large expenses, often approved by the board or owners.

A Hawaii-required written disclosure in which a residential seller reports known defects and material information about the property to a prospective buyer.