Hawaii RE State Exam Practice exam |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
with correct answers |||\\\ |||\\\
Which of these is a type of seller financing used in Hawaii?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Topic: Financing |||\\\
Subtopic: Seller Financing |||\\\ |||\\\
Agreement of sale |||\\\ |||\\\
Conforming loan |||\\\
FHA-insured loan |||\\\
Seller co-sign mortgage |||\\\ |||\\\
**Hawaii uses an agreement of sale for seller-financed loans, typically when the buyer isn't
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
able to obtain a conventional loan. - correct answersAgreement of sale
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The Hawaii Condominium Property Act requires that developers designate which percentage of
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
condo developments to initially be sold to buyers who plan to occupy their units?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Topic: Types of Ownership |||\\\ |||\\\ |||\\\
Subtopic: Condominiums |||\\\
20%
40%
50%
60%
**Developers are required to designate at least 50% of the units to be sold to owner- |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
occupants. - correct answers50% |||\\\ |||\\\ |||\\\ |||\\\
,Katrina's lender, ABC Mortgages, pre-approved her mortgage loan. Paul accepted her offer.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Who or what entity most likely manages the earnest money until closing?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Topic: Escrow Process and Closing Statements
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Subtopic: Closing Responsibilities |||\\\ |||\\\
ABC Mortgages |||\\\
Escrow
Katrina's agent |||\\\
Paul's agent |||\\\
**In Hawaii, escrow generally is responsible for managing earnest money deposits according to
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Hawaii regulations. - correct answersEscrow
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Serenity's buyer, Rodney, agreed that Serenity could hold his uncashed earnest money check|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
until the seller accepts his offer. What else does Serenity need to do?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Topic: Professional Practices and Conduct |||\\\ |||\\\ |||\\\ |||\\\
Subtopic: Trust accounts and handling of funds |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Ask Rodney to post-date the check to the noted contract acceptance deadline.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Get permission from the seller to hold the check.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Note in the trust fund records that the check is being held.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Notify the seller that the check has been received and is being held.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**Because earnest money is typically to be delivered with the offer, the seller must be notified |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
that the check has been received and is being held pending offer acceptance. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answersNotify the seller that the check has been received and is being held. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Akela and Greg are buying a Maui property that's located within a planned community. What is
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the seller required to provide them?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
,Topic: Ascertaining and Disclosing Material Facts
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Subtopic: Statutory disclosures |||\\\ |||\\\
A description in the property disclosure about what the association fees cover
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
A list of the association's rules in the seller's property disclosure form
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
A narrative description in the seller's property disclosure regarding the association's financial
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
position, meeting minutes, declarations, and house rules |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The seller isn't required to provide any information. The buyers are responsible for gathering
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the information they need.
|||\\\ |||\\\ |||\\\
**Sellers must gather and provide buyers with documentation regarding the association, but
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
this isn't part of the property disclosure. The property disclosure form does include information
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
about what is included in the association fees and payments. - correct answersA description in
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the property disclosure about what the association fees cover
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The Hawaii Uniform Probate Code of 1977 replaced dower and curtesy with which of these
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
protections?
Topic: Title and Conveyances |||\\\ |||\\\ |||\\\
Subtopic: Estates and interests |||\\\ |||\\\ |||\\\
Elective share |||\\\
Homestead laws |||\\\
Inheritance laws |||\\\
Probate
**A surviving spouse may take an elective share of the decedent's augmented estate, the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
amount of which ranges from 3% to 50% of the estate, depending on the length of the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
marriage. - correct answersElective share |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
, Which of these best describes a condominium property regime (CPR)?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Topic: Types of Ownership |||\\\ |||\\\ |||\\\
Subtopic: Condominiums |||\\\
The condo developer's management phase
|||\\\ |||\\\ |||\\\ |||\\\
The management structure of a condominium project
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The ownership structure and governance process for a condominium project
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The REC's control over Hawaii condos
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**A condominium property regime refers to the way ownership is held and how a new
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
condominium property is governed. - correct answersThe ownership structure and governance |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
process for a condominium project
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Anna Belle deposited Adam's earnest money check into the firm's trust account. Interest
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
earned on the account will be credited to the Adam's down payment at closing. Which of these
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
statements is true?
|||\\\ |||\\\ |||\\\
Topic: Professional Practices and Conduct
|||\\\ |||\\\ |||\\\ |||\\\
Subtopic: Trust accounts and handling of funds |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Adam and seller agreed that Adam's funds would earn interest, which is payable to him at
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
closing.
Adam and the firm's principal broker agreed to deposit the funds in an interest-bearing account
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
and pay the interest to Adam at closing.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The state of Hawaii requires that earnest money funds earn interest that's payable to the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
buyer.
This arrangement is a violation of Hawaii law, because earnest money funds may not be
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
deposited into an interest-bearing account. |||\\\ |||\\\ |||\\\ |||\\\
with correct answers |||\\\ |||\\\
Which of these is a type of seller financing used in Hawaii?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Topic: Financing |||\\\
Subtopic: Seller Financing |||\\\ |||\\\
Agreement of sale |||\\\ |||\\\
Conforming loan |||\\\
FHA-insured loan |||\\\
Seller co-sign mortgage |||\\\ |||\\\
**Hawaii uses an agreement of sale for seller-financed loans, typically when the buyer isn't
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
able to obtain a conventional loan. - correct answersAgreement of sale
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The Hawaii Condominium Property Act requires that developers designate which percentage of
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
condo developments to initially be sold to buyers who plan to occupy their units?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Topic: Types of Ownership |||\\\ |||\\\ |||\\\
Subtopic: Condominiums |||\\\
20%
40%
50%
60%
**Developers are required to designate at least 50% of the units to be sold to owner- |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
occupants. - correct answers50% |||\\\ |||\\\ |||\\\ |||\\\
,Katrina's lender, ABC Mortgages, pre-approved her mortgage loan. Paul accepted her offer.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Who or what entity most likely manages the earnest money until closing?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Topic: Escrow Process and Closing Statements
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Subtopic: Closing Responsibilities |||\\\ |||\\\
ABC Mortgages |||\\\
Escrow
Katrina's agent |||\\\
Paul's agent |||\\\
**In Hawaii, escrow generally is responsible for managing earnest money deposits according to
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Hawaii regulations. - correct answersEscrow
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Serenity's buyer, Rodney, agreed that Serenity could hold his uncashed earnest money check|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
until the seller accepts his offer. What else does Serenity need to do?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Topic: Professional Practices and Conduct |||\\\ |||\\\ |||\\\ |||\\\
Subtopic: Trust accounts and handling of funds |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Ask Rodney to post-date the check to the noted contract acceptance deadline.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Get permission from the seller to hold the check.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Note in the trust fund records that the check is being held.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Notify the seller that the check has been received and is being held.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**Because earnest money is typically to be delivered with the offer, the seller must be notified |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
that the check has been received and is being held pending offer acceptance. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answersNotify the seller that the check has been received and is being held. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Akela and Greg are buying a Maui property that's located within a planned community. What is
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the seller required to provide them?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
,Topic: Ascertaining and Disclosing Material Facts
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Subtopic: Statutory disclosures |||\\\ |||\\\
A description in the property disclosure about what the association fees cover
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
A list of the association's rules in the seller's property disclosure form
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
A narrative description in the seller's property disclosure regarding the association's financial
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
position, meeting minutes, declarations, and house rules |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The seller isn't required to provide any information. The buyers are responsible for gathering
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the information they need.
|||\\\ |||\\\ |||\\\
**Sellers must gather and provide buyers with documentation regarding the association, but
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
this isn't part of the property disclosure. The property disclosure form does include information
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
about what is included in the association fees and payments. - correct answersA description in
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the property disclosure about what the association fees cover
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The Hawaii Uniform Probate Code of 1977 replaced dower and curtesy with which of these
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
protections?
Topic: Title and Conveyances |||\\\ |||\\\ |||\\\
Subtopic: Estates and interests |||\\\ |||\\\ |||\\\
Elective share |||\\\
Homestead laws |||\\\
Inheritance laws |||\\\
Probate
**A surviving spouse may take an elective share of the decedent's augmented estate, the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
amount of which ranges from 3% to 50% of the estate, depending on the length of the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
marriage. - correct answersElective share |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
, Which of these best describes a condominium property regime (CPR)?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Topic: Types of Ownership |||\\\ |||\\\ |||\\\
Subtopic: Condominiums |||\\\
The condo developer's management phase
|||\\\ |||\\\ |||\\\ |||\\\
The management structure of a condominium project
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The ownership structure and governance process for a condominium project
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The REC's control over Hawaii condos
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**A condominium property regime refers to the way ownership is held and how a new
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
condominium property is governed. - correct answersThe ownership structure and governance |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
process for a condominium project
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Anna Belle deposited Adam's earnest money check into the firm's trust account. Interest
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
earned on the account will be credited to the Adam's down payment at closing. Which of these
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
statements is true?
|||\\\ |||\\\ |||\\\
Topic: Professional Practices and Conduct
|||\\\ |||\\\ |||\\\ |||\\\
Subtopic: Trust accounts and handling of funds |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Adam and seller agreed that Adam's funds would earn interest, which is payable to him at
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
closing.
Adam and the firm's principal broker agreed to deposit the funds in an interest-bearing account
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
and pay the interest to Adam at closing.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
The state of Hawaii requires that earnest money funds earn interest that's payable to the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
buyer.
This arrangement is a violation of Hawaii law, because earnest money funds may not be
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
deposited into an interest-bearing account. |||\\\ |||\\\ |||\\\ |||\\\
