Lesson 5 - Section 4: Hawaii Licensing Laws

The Department of Commerce and Consumer Affairs (DCCA)

______________ oversees regulatory activities of real estate agents and brokerages in Hawaii.

The Regulated Industries Complaints Office (RICO)

______________ is a statewide agency that enforces the DCCA's standards by taking complaints involving real estate professional misconduct.

The Hawaii Real Estate Commission

______________ is a group authorized to grant licenses to brokers and salespersons and adopt rules regulating professional conduct.

The Hawaii Real Estate Commission Composition

______________ consists of 9 members appointed for 4-year terms by the Governor, including public members, licensed brokers, and representatives from each county.

Office of Consumer Protection (OCP)

______________ investigates consumer complaints regarding landlord-tenant disputes and unfair or deceptive trade practices.

Principal Broker (PB)

______________ is a person who oversees the real estate activities of a real estate brokerage in Hawaii.

Principal Broker (Absentee)

______________ may not be absent for over 30 days from their principal place of business, though a temporary PB may be registered for up to 6 months.

Broker in Charge (BIC)

______________ is a broker assigned by the Principal Broker to exercise management and supervisory duties.

Principal Place of Business

______________ is the registered office where a broker conducts business, maintains records, displays licenses, and makes associated salesperson licenses available.

Salesperson

______________ is an individual who performs real estate transactions in association with a broker and may only receive commission from their broker.

Brokerage

______________ is a firm that engages in real estate activities and requires a Hawaii broker's real estate license.

Funds Rule

______________ requires a brokerage to deposit funds by the next business day following receipt.

Record Keeping Rule

______________ requires a brokerage firm to keep records for 3 years.

Exemptions to Hawaii's Licensing law

______________ include owners, attorneys in fact, trustees, custodians renting for one owner, hotel operations, and managers of homeless facilities.

Inactive Status

______________ allows brokers or licensees to make their license inactive and later reactivate it.

Forfeited License

______________ is the license status when a license has not been properly renewed.

License Suspension

______________ is disciplinary action where the Commission suspends a license for up to 5 years.

Revoked License

______________ is a severe disciplinary action requiring revocation for a minimum of 5 years before reapplying as a new applicant.

Terminated License

______________ occurs when a forfeited license remains inactive too long or due to Recovery Fund payments, requiring a completely new application.

Advertising Guidelines for Real Estate Agents in Hawaii

______________ require licensees to identify licensing status, use the company name, identify leasehold property as "leasehold," and properly identify office addresses.

Advertising when conducting off-island business

______________ requires disclosure of the brokerage firm name, address, phone number, and a no-cost communication method with the principal broker.

Disclosure Requirement

______________ requires licensees who own or have an interest in property they sell or rent to disclose their licensing status in writing before accepting any offer.

Violation Penalty

______________ may include fines up to $5,000 per violation and/or license suspension for up to 5 years.

Licensee found liable for wrongdoing

______________ requires written notification to the Commission within 30 days of judgments, sanctions, or determinations involving professional conduct.

Notify Commission of a Change

______________ requires notification within 10 days for name/address changes, office closures, or broker sign-offs for agent transfers.

Notify Commission of a Conviction

______________ requires notification within 30 days for legal convictions or when a Principal Broker is absent for more than one month.