Hawaii License Law
In Hawaii, a licensee must not engage in 'churning' a client's portfolio. In real estate, churning refers to:
AA. Making excessive transactions primarily to generate commissions rather than serve the client's needs✓ Correct
BB. Rapidly showing a client many properties to earn a higher fee
CC. Increasing the listing price repeatedly to delay a sale
DD. Reducing commission rates to attract more listings
Explanation
Churning means inducing excessive or unnecessary transactions primarily to generate commissions, which violates the agent's fiduciary duty of loyalty to the client.
People Also Study
Related Hawaii Questions
- Which Hawaii disclosure form must be provided to consumers at the first substantive contact with a real estate licensee?Agency
- A Hawaii purchase contract with a contingency for the sale of the buyer's current home is called a:Contracts
- Under Hawaii real estate law, which of the following is NOT a fiduciary duty owed by an agent to their client?Agency
- Which fiduciary duty requires an agent to place the client's interests above all others, including the agent's own interests?Agency
- What is the purpose of a property management statement of operations?Property Management
- A Hawaii real estate license that is inactive means the licensee:Hawaii License Law
- A Hawaii licensee is found to have commingled client trust funds with personal funds. This is grounds for:Hawaii License Law
- A Hawaii licensee who uses their position to commit fraud against a client faces:Hawaii License Law
Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Math Concepts
State-Specific Concepts
License Law
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →