How to Pass the Hawaii Real Estate Exam on Your First Try

Hawaii has some of the most unique real estate laws in the country — from its leasehold land system to the Hawaii Land Commission. The exam is 140 questions (80 national + 60 state) with a 70% passing threshold. Administered by PSI.

Hawaii Exam Fast Facts - Questions: 140 (80 national + 60 state) - Passing score: 70% on each section (56 national, 42 state) - Time limit: 4 hours - Provider: PSI - Pre-license education: 60 hours (salesperson) - Governing body: Hawaii Real Estate Commission (under the Department of Commerce and Consumer Affairs)

The Hawaii Real Estate Commission

The Hawaii Real Estate Commission (HREC) has 7 members (4 licensees, 3 public members) appointed by the Governor. Members serve 4-year terms.

Key HREC facts: - Salesperson licenses renew every 2 years; 20 hours of CE required (including 4 hours of Core) - The Commission administers the Real Estate Recovery Fund: max $25,000 per transaction, $75,000 per licensee lifetime cap - Hawaii licenses both salespersons and brokers separately - Unlicensed activity is a misdemeanor in Hawaii

Hawaii Land Law: Leasehold vs. Fee Simple

This is where Hawaii's exam diverges dramatically from other states. Hawaii has a significant inventory of leasehold properties — particularly condominiums. Candidates who don't understand leasehold ownership will fail multiple questions.

Fee simple: Buyer owns the land and improvements outright.

Leasehold: Buyer owns the improvements but leases the land from a landowner (often a Bishop Estate or Kamehameha Schools). The buyer pays a ground lease rent in addition to their mortgage.

Key leasehold concepts tested: - Lease renegotiation: Ground leases have renegotiation dates when rent can be dramatically increased - Fee conversion: Some leaseholders can purchase the fee interest to convert to fee simple - Land Court vs. Regular System: Hawaii has two land title systems; Land Court properties have government-guaranteed titles

Hawaii Condo Law

Hawaii has a large condominium market, and the exam tests the Hawaii Condominium Property Act extensively:

• Condominiums are created by recording a Declaration of Horizontal Property Regime
• Buyers receive a Public Report (approved by HREC) before they can sign a purchase contract
• Buyers have a rescission period of 3 business days after receiving the Public Report
• The Association of Apartment Owners (AOAO) governs the condo building (similar to HOA)
• AOAO assessments can become a lien on the unit

Agency Disclosure

Hawaii requires the Hawaii Real Estate Agency Disclosure form to be given at first contact. Hawaii allows: - Single agent (seller or buyer) - Dual agent (with written consent from both parties) - No agency (subagent)

Topics That Catch Candidates Off Guard

Leasehold calculations: Candidates may be asked to calculate ground lease rent impact on affordability or leasehold value. Practice this math.

60 state questions: Hawaii's state section is large. Leasehold law, condo law, and the Public Report rescission period are all heavily tested.

Land Court system: Hawaii's Land Court provides a government guarantee of title — very different from the mainland's insurance-based system.

AOAO vs. HOA: In Hawaii, condominium associations are called AOAO. Know the term and what powers they have.

Your 4-Week Hawaii Study Plan

Week 1: National — agency, contracts, ownership, financing, fair housing Week 2: National — valuation, land use, math, environmental Week 3: Hawaii-specific — HREC, leasehold law, Land Court, condo law, Public Report Week 4: Full practice exams. Target 75%+. Drill leasehold vs. fee simple scenarios and the 3-day rescission right.

Practice for the Hawaii Exam

[CARealestate.com/states/hawaii](https://carealestate.com/states/hawaii) has Hawaii-specific practice questions covering HREC rules, leasehold law, the Hawaii Condominium Property Act, and agency disclosure. 5 free questions, no signup needed.

Hawaii's unique land ownership system makes it one of the most distinct state exams in the country. Candidates coming from other states or using generic prep materials are often blindsided by leasehold questions. Budget significant time for leasehold and condo law.