Term
|
Definition
| The legal guidelines designed to protect the consumer regarding real estate transactions. |
|
|
Term
Hawaii Licensing Laws:
HRS 467* |
|
Definition
| State law regarding real estate brokers and salespersons. |
|
|
Term
Hawaii Licensing Laws:
HRS 436B* |
|
Definition
| Dictate the code of ethics regarding all licensed professions by the State of Hawaii under the Department of Commerce and Consumer Affairs. |
|
|
Term
Hawaii Licensing Laws:
HAR Title 16, Chapter 99* |
|
Definition
| Hawaii Administrative Rules which clarify and implement HRS 467B. |
|
|
Term
| Real Estate Commission (Commission) |
|
Definition
| The Commission is assisted by the Real Estate Branch of the Professional and Vocational Licensing Division in the areas of education, licensure and discipline of real estate licensees; registration of condominium projects, condominium associations, condominium managing agents, and condominium hotel operators; and intervening in court cases involving the real estate recovery fund. |
|
|
Term
| Real Estate Commission: Members |
|
Definition
- 9 unpaid members
- 4 year term
- Must be a US citizen and lived 3 yrs in Hawaii
- 4 licensed brokers, in HI for 3 consec yrs preceding appointment.
- 2 commissioners must be Public members
- 4 commissioners from the C&C of Honolulu
- 1 commissionor each from the counties of Kauai, Maui and the Big Island
|
|
|
Term
| Definitions: Branch Office |
|
Definition
| An additional office, other than the principal place of business. Managed by a broker in charge, since there can only be 1 principal broker. |
|
|
Term
| Definitions: Brokerage Firm |
|
Definition
| A sole proprietor broker, or a partnership, corporation or LLC licensed as a broker. |
|
|
Term
| Definitions: Broker in Charge (BIC) |
|
Definition
| A broker who is designated by a principal broker (PB) as the broker directly in charge of (manages office or group) and responsible to the PB. All branch offices must have a BIC. |
|
|
Term
| Definitions: Broker-Salesperson |
|
Definition
| A broker who is not a PB or BIC. Therefore, the broker is acting in the capacity of a salesperson. |
|
|
Term
|
Definition
| Mingling a clients funds with the broker's personal funds. A brokerage firm must have 2 separate accounts; a trust acct .and a business acct. Unearned client funds must be deposited into the trust acct. |
|
|
Term
| Definitions: Involuntary Inactive License |
|
Definition
| When an individual's license is forced to become inactive. |
|
|
Term
|
Definition
| An individual licensee with a broker's or salesperson's license whether active, inactive, forfeited or suspended. An individual is NOT licensed if their license has been revoked, surrendered or terminated. |
|
|
Term
| Definitions: Principal Broker* |
|
Definition
| A broker who is directly responsible for a brokerage firm and all its licensees. All brokerage firm dealings must go through a PB including approval for compensation. In a sales transaction, the commission is paid directly to the brokerage firm (PB) not the salesperson. The salesperson cannot accept compensation from anyone except his current PB or BIC. |
|
|
Term
| Licensing Requirements: General |
|
Definition
-Must be at least 18
-Must be a citizen, national or alien authorized to work
-Must have a reputation of competency, honesty, financial integrity, fair dealing and truthfulness |
|
|
Term
| Licensing Requirements: Salespersons |
|
Definition
In addition the the general requirements:
-60 hours of real estate classes
-70 on RE school exam
-70 on RE state exam
[Examinee has 2yrs from the 1st exam date to pass all parts of the state exam and apply for license.] |
|
|
Term
| Licensing Requirements: Brokers |
|
Definition
In addition the the general requirements:
-80 hours of real estate classes
-75 on RE school exam
-75 on RE state exam
+ Certification from an employing broker that the candidate worked full-time as a salesperson for 3 out of the last 5yrs
[Examinee has 2yrs from the 1st exam date to pass all parts of the state exam and apply for license.] |
|
|
Term
| When a RE License is required |
|
Definition
For any person (broker or salesperson) or company, that for compensation (valuable consideration):
-sells or offers to sell
-buys or offers to buy
-lists a prop
-any real estate, or improvements, for others as a full or part-time job |
|
|
Term
| When a RE License is NOT required |
|
Definition
-To manage community associations
-Property management employed by a single owner
-A person acting as the attorney-in-fact under power of attorney from the owner
-to manage or operate a hotel
-to manage, own or lease a homeless facility
-when a person acts in a legal capacity for bankruptcy, probate, trusts, etc.. |
|
|
Term
Real Estate Recovery Fund*
(HRS 467-17) |
|
Definition
| A fund administered by the Commission used as a last resort after awards from a licensee are unsuccessful by a buyer, seller lessor, or lessee to recover up to $25,000 per transaction for damages caused by fraud, misrepresentation or deceit of a licensed broker or salesperson. |
|
|
Term
| Real Estate Recovery Fund*: Consequences |
|
Definition
-The licensee's license is terminated for at least 5 years.
-To reinstate, the licensee must repay Recovery Fund amount plus interest
-Start licensing process over again as salesperson |
|
|
Term
|
Definition
| This licensee or brokerage firm can receive compensation for his services. A salesperson must be under a PB. |
|
|
Term
| License Status*: Inactive ("on ice") |
|
Definition
| This licensee status is unlicensed and is not allowed to participate in any RE transactions as a profession. It is not licensed under a PB; it is held by the commission. Licensing laws still apply. |
|
|
Term
| License Status*: Forfeited |
|
Definition
| License status when a license is not renewed by Dec. 31st of an even-numbered year. An individual salesperson's or broker's license can be forfeited for no more than 5 years without being subject to automatic termination. |
|
|
Term
| License Status*: Suspended |
|
Definition
| A license put on hold due to violation of the licensing laws and rules (max up to 5yrs.), can result in a fine of up to $5,000 per transaction. |
|
|
Term
| License Status*: Surrendered |
|
Definition
| When a licensee gives up her license |
|
|
Term
|
Definition
| A license that has been taken away by the Commission for violating licensing laws and rules. The licensee's license must be revoked for a min. of 5 years. |
|
|
Term
| License Status*: Terminated |
|
Definition
Termination of a license is a result of:
-monies being paid by the Recovery Fund
-an individual forfeiting license for 5 years/a brokerage firm for 1 year. |
|
|
Term
| Licensee Disclosure: When Buying property for themselves, family or any entity they have an interest in |
|
Definition
| The licensee must disclose in writing to the owner the licensee's true position. |
|
|
Term
| Licensee Disclosure: When Selling property in which the licensee owns or has an interest in |
|
Definition
| The licensee must (1) disclose to the PB his intent AND (2) make known his intent to the buyer, lessee, or tenant in writing prior to accepting any offer. |
|
|
