HI exams 6

Property managers may legally ask resident managers to perform which of these tasks?

1 Disclose the value of the property to a potential buyer.

2 Negotiate terms in a lease.

3 Negotiate the amount of the security deposit.

4 Show rental units.

4 Show rental units.

Resident managers may show rental units and share information about them, and they can also deliver or receive leases. They cannot collect rent or negotiate lease terms, and they cannot be asked to disclose confidential information, such as the value of the property

Katerina places a campaign sign in the yard of her leased house supporting her choice of candidate. Her landlord sends her a notice requiring her to remove the sign. Is this legal?

1 No, because Hawaii laws expressly permit her to place such a sign.

2 No, unless she receives express permission from the association and her neighbors.

3 Yes, if her neighbors complain about the sign.

4 Yes, if the bylaws state no political signs are permitted.

1 No, because Hawaii laws expressly permit her to place such a sign.

Tenants are expressly permitted by law to place legal signs or outdoor ads urging voters to vote for any person or issue.

The Kauai Development Group, which owns Kauai Hilltop Apartments, has decided to convert the property to condominiums. They've provided the existing month-to-month tenants with a 45-day written notice. Based on landlord-tenant laws, the tenants have filed a grievance with the Department of Commerce and Consumer Affairs. What's the most likely reason?

1 By law, the tenants have the first right of refusal to purchase the unit they're currently

renting.

2 It's illegal for the landlord to convert the property until all existing leases have

terminated.

3 The landlord didn't provide the required 120-day notice.

4 They're protesting the property conversion

3 The landlord didn't provide the required 120-day notice.

Landlords must provide 120 days' notice to tenants who are under a month-to-month lease agreement if they plan to convert the property to condominium units.

Joe possesses a valid certificate for the use of medical marijuana, so he smokes it in his apartment occasionally to manage his severe back pain. Can his landlord prohibit this marijuana use?

1 No, because Joe is legally permitted to use medical marijuana.

2 No, because marijuana use is illegal on the federal level.

3 Yes, if the lease contains a no-smoking policy.

4 Yes, if the lease prohibits the use of drugs on the property.

3 Yes, if the lease contains a no-smoking policy.

Landlords can't prohibit tenants who possess a valid certificate for medical marijuana use from using the drug, but they can prohibit them from smoking it if there's a general no-smoking policy.

Which of these statements most accurately reflects Hawaii laws related to rent payment and increases?

1 Hawaii doesn't regulate rent increases but does mandate tenant notification.

2 Hawaii statutes address rent increase notifications for fixed-term rentals but not for

month-to-month rentals.

3 Hawaii statutes don't address rent increases.

4 Hawaii statutes include a rent control provision that limits the percentage by which

rents can increase from year to year.

1 Hawaii doesn't regulate rent increases but does mandate tenant notification.

Hawaii statutes don't include rent control, but they do mandate tenant notification of rent increases for all periodic tenancies.

Saul is in the Army. He had just rented a Pearl City apartment when he received notice that he was to be deployed out of the country for six months beginning March 15. What are his responsibilities to his landlord?

1 Saul can immediately terminate his occupancy and is not liable for rent payments

from the date of his deployment.

2 Saul must provide proper notice to his landlord and can terminate his lease

agreement effective May 1.

3 Saul must provide the landlord with verbal notice of his deployment.

4 Saul must provide written notice to the landlord and can terminate his lease

agreement effective April 1.

2 Saul must provide proper notice to his landlord and can terminate his lease

agreement effective May 1.

Members of the military can terminate a lease agreement if they are to be deployed off their island of residence for at least 90 days. They must provide written notice and a copy of their orders to the landlord.

There are risks to being a property manager. Which one of these is a property management requirement designed to keep you out of trouble?

1 Hold an accounting certificate.

2 Hold a real estate license.

3 Join a property management association.

4 Join the Hawaii Real Estate Commission.

2 Hold a real estate license.

In Hawaii, a property manager is required to have an active Hawaii real estate license.

A Hawaii landlord has set the monthly rent for a residential unit at $1,850. What's the maximum amount the landlord can require for a security deposit?

1 85% of the monthly rental amount

2 An amount equal to the monthly rental amount

3 As much as he wants

4 Twice the monthly rental amount

4 Twice the monthly rental amount

If the tenant is permitted to bring a pet, the landlord may charge twice the monthly rental rate as a deposit.

Melisa rented her condo to Tessa for $1,800 a month. Melisa was found guilty of constructive eviction. Based on Hawaii statutes, what is the minimum penalty?

$1,000

$3,200

$5,000

$5,400

$5,400

Hawaii's minimum penalty for constructive eviction is the greater of three times the monthly rent or $1,000.

Select the scenario that best depicts constructive eviction in Hawaii.

1 Kali begins legal eviction proceedings against her tenant who hasn't paid rent in two

months.

2 Martin enters his tenant's home and starts removing his tenant's possessions.

3 Morgan has the gas and electrical service to his rental unit shut off to try to make his

tenants move out.

4 Ted evicts his tenants so he can construct a new addition kitchen/family room

property addition.

3 Morgan has the gas and electrical service to his rental unit shut off to try to make his

tenants move out.

Constructive eviction includes anything a landlord does to force tenants to move or anything a landlord doesn't do that is required.

What type of account must be set up for handling trust funds?

1 Either interest-bearing or non-interest-bearing trust account

2 General business account

3 Interest-bearing trust account or non-interest-bearing general business account

4 Non-interest-bearing trust account

1 Either interest-bearing or non-interest-bearing trust account

The accounts for the handling of trust funds may be either interest-bearing or non-interest-bearing. (They cannot be both.)

Which of these statements about security deposit-related deadlines is true?

1 A landlord who's mailing notice of security deposit funds to be withheld must mail it in

time for the tenant to receive it within the 14-day time frame.

2 A tenant who intends to file suit to demand security deposit return must do so within

180 days.

3 Landlords may elect to accept a security deposit as rent if the tenant provides at least

60 days' notice to vacate.

4 When an owner sells a property that's subject to a lease agreement, the new owner

has 20 days to notify tenants of the security deposit transfer.

4 When an owner sells a property that's subject to a lease agreement, the new owner

has 20 days to notify tenants of the security deposit transfer.

When property subject to a lease is sold, the buyer must abide by any existing lease agreement and notify tenants within 20 days of the amount of security deposit that the previous owner transferred to the new owner.

Danson requests that his landlord change the rent due date from the first day of the month to the fifth day of the month. Under which of these circumstances must his landlord agree to this change?

1 Danson doesn't get his paycheck until the fifth of the month.

2 Danson moved in on the fifth of the month.

3 Danson's public assistance check is issued on the second of the month.

4 It takes three days for Danson's electronic payment to reach the landlord, and Danson

can't schedule the payment until he gets paid on the second of the month.

3 Danson's public assistance check is issued on the second of the month.

Hawaii law requires landlords to change the due date to within three days after a public assistance check is mailed.

While he was in Colorado for six months helping care for his parents, Christian leased his Maui home to Lenore. He collected a security deposit but didn't prepare a written lease or complete an inventory of property condition. He returned home to find that Lenore severely neglected the house, nearly destroying it. Is Christian legally able to retain Lenore's security deposit?

1 No, because Christian didn't complete the inventory of property condition.

2 No, because there was no written lease.

3 Yes, because her lease prohibited her from damaging the property.

4 Yes, if the rental agreement was for a period of less than a year.

1 No, because Christian didn't complete the inventory of property condition.

If the landlord doesn't provide a written inventory of property condition, the condition when the tenant vacates is considered to be the condition the property was in when the tenant moved in unless the landlord can prove otherwise

FTC privacy rules state that a landlord or property manager doesn't have to obtain a tenant's written consent before sharing the tenant's information with ______.

1 A neighbor

2 Another tenant

3 A police officer

4 A retired property owner

3 A police officer

A tenant's information can be shared without the tenant's written consent with a police officer, another rental housing owner or manager, a consumer reporting agency, or the tenant's prospective employer.

What does the USA PATRIOT Act require property managers and apartment owners to do with regard to tenants?

1 Install hidden cameras in apartments that are rented to people of foreign descent.

2 Keep a file on each tenant and report any suspicious activity.

3 Search each tenants' apartment.

4 Verify the citizenship of tenants.

4 Verify the citizenship of tenants.

Apartment owners and property managers are required to screen against a specific list of specially designated nationals and blocked persons, and to verify that individuals who do not have Social Security numbers are in the country legally.

To check the creditworthiness of a prospective tenant, the lease application typically requests ______.

1 A credit score

2 A resume

3 Educational background

4 Permission to run a credit report

4 Permission to run a credit report

Lease applications typically request permission to run a credit report. The law recognizes that landlords and property managers have a business need for the information provided in a credit report.

By law, any adverse action taken against an applicant that is based on the credit report must be ______.

1 Disclosed to the consumer in writing

2 Reported to a credit reporting agency

3 Reported to a state website

4 Reported to the IRS

1 Disclosed to the consumer in writing

Applicants have a right to know if any adverse actions are taken based on the information in a credit report.

According to the FTC privacy rule, a landlord or property manager would have to obtain a tenant's written consent before sharing the tenant's personal information with which of the following?

1 A consumer reporting agency

2 Another rental housing owner or manager

3 An unaffiliated third party

4 A police officer

3 An unaffiliated third party

A tenant's written consent must be obtained before sharing the tenant's personal information with an unaffiliated third party

Which of the following requires a landlord or property manager to obtain a tenant's written consent before sharing any information about the tenant with an unaffiliated third party?

1 Fair and Accurate Credit Transaction Act of 2003 (FACTA)

2 Fair Credit Reporting Act (FCRA)

3 Federal Trade Commission (FTC) privacy rule

4 USA PATRIOT Act

3 Federal Trade Commission (FTC) privacy rule

This is a requirement of the FTC privacy rule

When someone dies intestate with no heirs, the real property owned by that person may be taken by the state through _______.

1 Bulldozer

2 Descent

3 Eminent domain

4 Escheat

4 Escheat

Escheat is when the government takes property to which there is no rightful heir after the property owner's death, and no creditors to make a claim on the estate.

Which form of real property ownership requires five unities to create and gives owners the right of survivorship, but doesn't allow owners the right to sell the fractional interest owned?

1 Estate in severalty

2 Joint tenancy

3 Tenancy by the entirety

4 Tenancy in common

3 Tenancy by the entirety

Tenancy by the entirety requires five unities to create. Each married co-owner receives an equal share of the estate, but isn't allowed to transfer that fractional interest.

Ken, Dale, and James were brothers who owned more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result was that the court gave each brother a designated set of acres to own. What did the court grant?

1 Bifurcation

2 Parcel

3 Partition

4 Severalty

3 Partition

Partition is the term used to describe a specific, divided portion of property that's created as part of a co-ownership termination.

XYZ Trust would like to sell its property. Which of the following is the legal title holder?

1 The beneficiary

2 The personal representative of the estate

3 The trustee

4 The trustor

3 The trustee

The trustee in any trust is the legal title holder.

Which of these statements about voluntary alienation is true?

1 There is no such thing. By definition, all cases of alienation are involuntary.

2 Voluntary alienation is unlawful.

3 Voluntary alienation may only occur through documents signed by a notary.

4 Voluntary alienation occurs when the property owner decides who will acquire the

property.

4 Voluntary alienation occurs when the property owner decides who will acquire the

property.

Voluntary alienation may occur through the sale or gift of property, or by naming a devisee in a will.

A property is co-owned by W, X, Y, and Z. When W dies, W's interest passes to co-owners X, Y, and Z. What type of co-ownership is described in this scenario?

1 Joint tenancy

2 Joint tenancy and tenants in common

3 Tenancy by the entirety

4 Tenants in common

1 Joint tenancy

The scenario describes the rights of survivorship between four joint tenants. Tenancy by the entirety is between spouses only, and tenants in common do not have rights of survivorship.

In which method of involuntary alienation does a court decide how the proceeds from the sale of land owned by tenants in common will be distributed?

1 Court-ordered partition of property

2 Eminent domain

3 Foreclosure

4 Regulatory taking

1 Court-ordered partition of property

If the tenants in common cannot agree about how the property should be divided, the courts may step in and order the sale of the property.

If a private individual tries to lay claim to someone else's property because he has been living on and using the property as his own for an extended period of time, the individual may acquire the property through _______.

1 Adverse possession

2 Conveyance

3 Descent

4 Escheat

1 Adverse possession

The method by which trespassers may take legal title to a property is called adverse possession. It requires open, notorious, and hostile use for a statutory period of time.

There are many advantages to holding property within a trust. One of the most important advantages is that some trusts ______.

1 Avoid probate

2 Need not be reviewed by an attorney

3 Require probate

4 Typically take years to sort out

1 Avoid probate

The process of probate can take up to a year or more before the property is disbursed to the heirs. Property held within a trust can avoid probate.

Which type of REITs specialize in owning certain building types, such as apartments or office buildings?

1 Commercial cap REITs

2 Equity REITs

3 Mortgage REITs

4 Tax-deferred REITs

2 Equity REITs

Equity REITs specialize in owning certain building types, such as apartments, regional malls, selfstorage, office buildings, or hotels.

What is a public grant?

1 A home loan that is public record

2 An auction

3 The transfer of land by a government body to a private party

4 The transfer of land by a private party to a government body

3 The transfer of land by a government body to a private party

A public grant is the transfer of land by a government body to a private party.

Once Greg and Caitlin were married, they decided to purchase a home together. Since it was a shotgun wedding after a weekend in Vegas, they made sure that their ownership included the right of survivorship as well as protection from the other spouse attempting to sell the house from under them. Though not recognized in all states, the most likely form of co-ownership under which they would make this purchase is ______.

1 Estate in severalty

2 Joint tenancy

3 Tenancy by the entirety

4 Tenancy in common

3 Tenancy by the entirety

Tenancy by the entirety is concurrent ownership between two married people as an integrated legal unit. This includes the right of survivorship as well as a requirement that conveyance can only happen when both parties consent to it.

Which REITs make money by incurring short-term debt to acquire longer-term mortgage securities, earning the spread between the two rates?

1 Equity REITs

2 Mortgage REITs

3 Short-term/long-term REITS

4 Tax-deferred REITs

2 Mortgage REITs

Many mortgage REITs make money by incurring short-term debt to acquire longer-term mortgage securities, earning the spread between the two rates. They focus on buying mortgage securities backed by Freddie Mac and Fannie Mae.

Which method of involuntary alienation involves accession, accretion, reliction, or avulsion?

1 Adverse possession

2 Descent

3 Natural processes

4 Regulatory taking

3 Natural processes

These are all ways in which Mother Nature gives or takes property without the owner's consent.

Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights?

1 Joint tenancy

2 Tenancy by the entirety

3 Tenancy in common

4 Tenancy in severalty

1 Joint tenancy

Joint tenancy provides equal ownership shares with undivided possession rights and requires four ownership unities: time, title, interest, and possession. Joint tenancy includes the right of survivorship.

All trusts have three parties: the trustor, the beneficiary, and the ______.

1 Attorney in fact

2 Broker

3 Founder

4 Trustee

4 Trustee

The parties to a trust include the trust creator (commonly called the trustor), the trustee (the person who will carry out the terms of the trust), and the beneficiary (the person who receives the benefits of the trust).

Eva, Stella, and Lynn owned a vacation home two blocks from the beach. Sadly, Stella passed away over the winter, so when summer arrived, Eva and Lynn shared the home with Stella's nephew Drew, to whom Stella willed her share of the property. What type of ownership is this?

1 Estate in severalty

2 Joint tenancy

3 Tenancy by the entirety

4 Tenancy in common

4 Tenancy in common

This is a form of shared ownership, but only tenancy in common provides for inheritability-the other forms share the rights of survivorship (the existing tenants assume the deceased's share of the property)