Hawaii Real Estate Salesperson Exam - PSI Topic Outline

Uniform (National) Portion

Total Questions: 80 questions

Time Allowed: 150 Minutes

Passing Score: 70%

 

Experimental Questions: In addition to the scored items, a small number (5 to 10) of "experimental" questions may be administered. These questions will not be scored, but they do count against your examination time.

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• Contracts (19% of exam)

  • General Contract Law (principles, elements necessary for a contract to be valid, Statute of Frauds, offer and contract, execution, remedies for breach, electronic signatures).

  • Purchase and Lease Contracts (addenda, amendments, purchase agreements, contingencies, lease types).

  • Proper handling of multiple offers and counteroffers.

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• Agency (13% of exam)

  • Agency and non-agency relationships (listing contracts, buyer brokerage, powers of attorney, termination conditions).

  • Agent Duties (fiduciary duties, duties to customers/non-clients, honesty and good faith).

  • Agency Disclosures (representation, conflict of interest/self-interest).

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• Practice of Real Estate (12% of exam)

  • Antidiscrimination (Federal Fair Housing Act general principles, protected classes, protections for gender identity/sexual orientation, prohibited conduct like redlining/steering, ADA accessibility rules).

  • Legislation and Regulations (licensee status as employee/independent contractor, antitrust laws, Do-Not-Call compliance, social media/internet advertising).

  • Duties and Responsibilities (protection of confidential personal info, handling funds of others, due diligence).​

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• Property Ownership (10% of exam)

  • Real and personal property; conveyances.

  • Land characteristics and legal descriptions (metes and bounds, lot and block, government survey, measuring structures).

  • Encumbrances and effects on property ownership (liens, easements, encroachments, adverse possession, subsurface/air/water rights).

  • Types of ownership (severalty, tenants in common, joint tenancy, timeshares, condos, co-ops, trusts, estates, life estates).

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• Financing (10% of exam)

  • Basic Concepts and Terminology (LTV, PMI, interest, PITI, underwriting process, promissory notes).

  • Types of Loans (Conventional, amortized, ARM, FHA, VA, USDA, owner financing, reverse mortgages, home equity, construction).

  • Financing and Lending Laws (RESPA, Truth-in-Lending/Reg Z, TRID timeframes, Equal Credit Opportunity Act, lending process, risky features).

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• Valuation (8% of exam)

  • Appraisals (valuation of real property, licensing limits, general steps in appraisal process).

  • Estimating Value (economic principles, sales comparison approach, cost approach, income analysis approach).

  • Comparative Market Analysis (CMA), BPO, and Automated Valuation Methods (AVM).

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• Property Disclosures (7% of exam)

  • Property Condition (seller disclosure requirements, inspections/surveys, red flags).

  • Environmental and Government Disclosures (environmental issues, federal/state/local mandates).

  • Disclosure of material facts and material defects.

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• Real Estate Calculations (7% of exam)

  • Calculations for Transactions (seller's net proceeds, buyer funds needed at closing, property tax/other prorations, transfer fees, PITI estimates).

  • General Concepts (equity, rate of return/cap rate, LTV ratio, discount points, origination fees).

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• Transfer of Title (6% of exam)

  • Types of deeds.

  • Title Insurance and Searches (policies, searches, potential problems/resolutions, marketable vs. insurable title).

  • Closing Process (effective transfer timelines, recordation importance, settlement procedures, warranties).

  • Special Processes (foreclosures, short sales, probate transactions).

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• Land Use Controls (5% of exam)

  • Government rights in land (property taxes, special assessments, eminent domain, condemnation, escheat).

  • Government controls on land use and private controls (deed restrictions, CC&Rs, condo/owners' association bylaws).

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• Property Management (3% of exam)

  • Duties and Responsibilities (tenant procurement/qualification, fair housing/ADA compliance, market analysis for rental rates).

  • Landlord and tenant rights and obligations.