Real Estate

Question 1

To creat a condo what be provided?

Answer 1

Declaration, master deed and lease, by laws, condo property map

Question 2

When did the CPR laws change?

What is the code name?

Answer 2

2006 HRS 514b

Question 3

How many owners in a condo association are needed to approve changes?

Answer 3

67%

Question 4

How many owners in a condo association are needed to be removed from the CPR?

Answer 4

80% of the common interest

Question 5

What is a public report?

Answer 5

Disclosure statement of material and pertinent facts.

Question 6

When can a developer commence selling condo units?

Answer 6

When the project is registered with the commission and an effective date for developers public report is issued.

Question 7

What must a developer submit annually?

Answer 7

A report that updates the public report.

Question 8

When does escrow become involved in the process?

Answer 8

Once the contract is signed and negotiated and the buyers earnest money is received.

Question 9

Will escrow accept changes to contract?

Answer 9

Yes only in writing and signed by both parties.

Question 10

What are the responsibilities of escrow?

Answer 10

• ordering preliminary title reports
• obtaining sellers loan payoff statements
• verifying all contract contingencies are satisfied prior to closing
• prorating taxes, fees, association dues
• obtaining leases and arranging for their assignment
• arranging drafting if deeds, notes, mortgages, and assignments of leases
• drafting settlement statements
• arranging for title insurance
• paying conveyance tax for seller
• complying with all state and federal reporting requirements
• verifying all terms are met.
• handling actual closing
• disbursing funds
• arranging recordation

Question 11

Are closing a held face to face with buyers and sellers?

Answer 11

No. Each party makes their own appointment. Agents may attend and it’s good to attend. Documents should be made available prior to closing.

Question 12

What is HARPTA?

Answer 12

Buyers required to deduct 5% of the non hawaii resident sellers amount realized. This is done by escrow. Can be avoided by form n289 hawaii resident certification.

Question 13

What is the good funds act?

Answer 13

Escrow cannot close until all funds required for transfer are on deposit and all checks are cleared.

Question 14

When are real property taxes assessed?

Answer 14

Semi annually; feb 20 for jan 1-June 30 and August 20 for July 1-dec 31 based on 100% of actual value assessed (ad valor em)

Question 15

How long does it take for a tax Lien to be enforced by foreclosure?

Answer 15

3 years and they are always in first position.

Question 16

What is a seller agency?

Answer 16

Relationship/agreement with only the seller. Negotiate on behalf of the seller; collects earnest $.

Question 17

Buyer agency

Answer 17

Relationship/agreement with only buyer.

Question 18

Dual agency

Answer 18

Agent represents both buyer and seller. Has responsibility to both parties. This is allowed when both parties sign written agreement of consent. It is an addendum to the contract

Question 19

Designated agency

Answer 19

When buyer and seller are represented represented by agents from the same brokerage. This must have written consent.

Question 20

When must the agent disclose who he represents 1 to the seller 2 to the buyer

Answer 20

1 during listing process on listing agreement in writing
2 prior to preparing an offer In writing
* agent should disclose orally as soon as is practical.

Question 21

How much tax must be paid on commissions?

Answer 21

4%

Question 22

What is an exclusive right to sell listing agreement?

Answer 22

Seller agrees to pay the agent a commission if they sell the property.

Question 23

In an exclusive right to sell listing agreement the seller agrees to let agent:

Answer 23

Advertise property
Place signs on property
Accept deposits from any person
List in MLS
Share commission with coop brokers
Access to keys and any info necessary to sell
Allow inspectors onto property

Question 24

What is a DROA?

Answer 24

Deposit receipt offer and acceptance. The offer to buy which includes an acceptance and is a receipt for earnest money deposit.

Also has…
Agency disclosure, terms and conditions, signature of seller, time and date of acceptance, closing date, description of property, closing costs, manner of handling inspections.

Question 25

What is an agreement of sale?

Answer 25

A land contract or contract for deed. The buyer obtains equitable title, but is not actually transferred by seller until buyer has satisfied all terms.then there is a second closing.

Question 26

Seller disclosure statement

Answer 26

Disclosure of any and all things that the buyer should know in relation to the property. Must be delivered to the buyer soon 10 days of acceptance. Buyer must then acknowledge receipt in writing. Within 15 days of receiving the disclosure the buyer may rescind. Failure to do so in 15 days means that he has accepted it.

Question 27

Does the use of an "as is" clause relive the seller from his obligation to make disclosure?

Answer 27

No the seller must always provide disclosure.

Question 28

If the seller sees new things that should be on the disclosure form then how many days from the date he noticed it does he have to inform the buyer?

Answer 28

10 days

Question 29

Any deposits of funds must be deposited how soon after receipt?

Answer 29

By the next business day.

Question 30

Can the broker authorize others to deposit for him?

Answer 30

Yes but he cannot authorize others to withdraw.

Question 31

Can a licensee advertise his own property as for sale by owner?

Answer 31

No

Question 32

Brokers responsibilities

Answer 32

1 trust accounts, disbursements, and accounting of brokerage 2 firms records, contracts, and docs 3 all contracts and the handling of them 4 proper handling of commission application, license application, or renewal application 5 developing policies and procedures including education enforcement 6 setting continuing Ed policies 7 ensuring all agents current 8 est and maintaining a program of training 9 ensuring latest info is disbursed 10 delegation of responsibilities to a broker in charge

Question 33

Can brokers appraise a property?

Answer 33

No brokers may not appraise a property. They may give opinions of value and cannot charge a fee for that opinion.

Question 34

What is the maximum allowable rate of simple interest that can be charged on a personal loan or junior mortgage carried by an individual?

Answer 34

1% per month or 12% per year.

Question 35

Is there a limit of interest that can be charged on a conventional, va, or FHA loan?

Answer 35

No there is no limit for rates on these types of loans.

Question 36

What is a hula Mae loan?

Answer 36

Administered by the housing and community development corp of Hawaii. May be used to acquire an owner occupied single family residence, two home or condo. Must be 18+ years old, a Hawaii resident, citizen of the US, with a household income within certain parameters, not have owned any interest in a residence for 3 years prior to applying for loan, and had not been granted a hula mae loan in the past. These loans cannot exceed 30 years. Any amount of money can be used as a down payment. If the property is a leasehold estate the rent must be fixed for at least 10 years.

Question 37

What is an employee retirement system loan (ERS)?

Answer 37

Conventional loans through approved lenders that are made available to county and state employees. May be used to finance the purchase, construction, or improvement of or to refinance a single family home, town home, or condo. Borrows monthly income must be at least 3.5 times the monthly mortgage payment. The buyer must sign an owner occupant affidavit. Can only have one ERS loan at a time. 6% prepayment penalty if paid in full during the 1st year.

Question 38

Is there a right of redemption on a mortgage foreclosure?

Answer 38

No, in Hawaii a mortgagor has no statutory right to redemption once the property has been sold at the mortgage foreclosure sale. Sales are final.

Question 39

Is there a right to redemption on a tax foreclosure?

Answer 39

Yes, the former owner has one year from the date of the foreclosure sale to deem the property. He must reimburse the buyer for all the costs and expenses he has incurred including the taxes that he owed plus interest at 12% per year.

Question 40

What is the bureau of conveyances?

Answer 40

A place where documents relating to all properties in Hawaii are kept. Boundary surveys, official land maps, and all documents relating to land ownership.

Question 41

Mauka

Answer 41

Towards the mountains

Question 42

Makai

Answer 42

Towards the sea.

Question 43

Tax map key system

Answer 43

Division 1 Oahu Division 2 Maui Division 3 Hawaii Division 4 Kauai Division, zone, section, plat, parcel Condos have a CPR #.

Question 44

What is a conveyance tax?

Answer 44

Paid on all real property transfers. Must be paid within 90 days of transfer. And the transfer cannot be recorded until the conveyance tax certificate that is signed by both buyer and seller has been filed and the tax paid. Goes up based on the value of your property.