Hawaii Real Estate Licensing Law

title: "Hawaii Real Estate Licensing Law" description: "Complete text of Hawaii real estate licensing law statutes — Hawaii Code." slug: hawaii-real-estate-licensing-law

Hawaii Real Estate Licensing Law

Hawaii Code · 16 sections

The following is the full text of Hawaii’s real estate licensing law statutes as published in the Hawaii Code. For the official version, see the Hawaii Legislature.

Sections

HRS §467-1

§467-1  Definitions.  As used in this chapter:

"Commission" means the real estate commission of the State.

"Custodian or caretaker" means any individual, who for compensation or valuable consideration, is employed as an employee by a single owner and has the responsibility to manage or care for that real property left in the individual's trust; provided that the term "custodian" or "caretaker" shall not include any individual who leases or offers to lease, or rents or offers to rent, any real estate for more than a single owner; provided further that a single owner shall not include an association of owners of a condominium, cooperative, or planned unit development.

"Hotel" includes a structure or structures used primarily for the business of providing transient lodging for periods of less than thirty days and which furnishes customary hotel services including but not limited to front desk, restaurant, daily maid and linen service, bell service, or telephone switchboard; provided that for the purposes of this chapter, units in a project as defined by section 514B-3 that provide customary hotel services shall be excluded from the definition of hotel.  The definition of "hotel" as set forth in this section shall be in addition to and supplement the definition of "hotel" as set forth in the various county ordinances.

"Real estate" means and includes lands, the improvements thereon, leaseholds, and all other interests in real property.  It shall be immaterial that a transaction also involves property other than real estate, as for example a transaction for the sale of an ongoing business, an asset of which consists of a leasehold or other interest in real property.  In such a case, to the extent that real estate is involved, it shall be considered a real estate transaction for the purpose of this definition.

"Real estate broker" means any person who, for compensation or a valuable consideration, sells or offers to sell, buys or offers to buy, or negotiates the purchase or sale or exchange of real estate, or lists, or solicits for prospective purchasers, or who leases or offers to lease, or rents or offers to rent, or manages or offers to manage, any real estate, or the improvements thereon, for others, as a whole or partial vocation; or who secures, receives, takes, or accepts, and sells or offers to sell, any option on real estate without the exercise by the person of the option and for the purpose or as a means of evading the licensing requirement of this chapter.

"Real estate salesperson" means any individual who, for a compensation or valuable consideration, is employed either directly or indirectly by a real estate broker, or is an independent contractor in association with a real estate broker, to sell or offer to sell, buy or offer to buy, or list, or solicit for prospective purchasers, or who leases or offers to lease, or rents or offers to rent, or manages or offers to manage, any real estate, or the improvements thereon, for others as a whole or partial vocation; or who secures, receives, takes, or accepts, and sells or offers to sell, any option on real estate without the exercise by the individual of the option and for the purpose or as a means of evading the licensing requirements of this chapter.  Every real estate salesperson shall be under the direction of a real estate broker for all real estate transactions. [L 1933, c 140, §1; RL 1935, §7310; am L 1935, c 126, §§1, 2; am L 1941, c 205, pt of §1; RL 1945, §7731; am L 1949, c 277, §1; am L 1953, c 252, §1; RL 1955, §170-1; am L 1961, c 154, §1; HRS §467-1; am L 1974, c 141, §1; am L 1977, c 197, §1(2); am L 1985, c 141, §2; gen ch 1985; am L 1988, c 145, §1; am L 1989, c 217, §2; am L 1994, c 100, §1; am L 1995, c 241, §1; am L 1997, c 289, §2; am L 1999, c 47, §4 and c 240, §10; am L 2004, c 164, §13; am L 2008, c 28, §10; am L 2017, c 181, §17]

Cross References

Discrimination in real property transactions, see chapter 515.

Uniform land sales practices act, see chapter 484.

Case Notes

Whether party was engaged in real estate broker activities was a question of fact.  692 F. Supp. 1239 (1988).

Broker's rights to compensation.  47 H. 220, 386 P.2d 855 (1963).

Evidences legislative intent to regulate "middlemen".  68 H. 371, 715 P.2d 805 (1986).

HRS §467-1.6

§467-1.6  Principal brokers.  (a)  The principal broker shall have direct management and supervision of the brokerage firm and its real estate licensees.

(b)  The principal broker shall be responsible for:

(1)  The client trust accounts, disbursements from those accounts, and the brokerage firm's accounting practices;

(2)  The brokerage firm's records, contracts, and documents;

(3)  All real estate contracts of the brokerage firm and its handling by the associated real estate salesperson;

(4)  The proper handling of any commission application, real estate license application, or renewal application that the principal broker or the brokerage firm expressly agrees to handle on behalf of the applicant, including without limitation, verifying for completeness and appropriate fees, and mailing or delivering the appropriate documents to the commission by the required deadline;

(5)  Developing policies and procedures for the brokerage firm concerning the handling of real estate transactions and the conduct of the associated real estate licensees and other staff, including education and enforcement of the policies and procedures;

(6)  Setting a policy on continuing education requirements for all associated real estate licensees in compliance with the statutory requirement;

(7)  Ensuring that the licenses of all associated real estate licensees and the brokerage firm license are current and active;

(8)  Establishing and maintaining a training program for all associated real estate licensees; and

(9)  Ensuring that all associated real estate licensees are provided information and training on the latest amendments to real estate licensing laws and rules as well as other related laws and rules.

(c)  The principal broker may delegate management and supervision duties to one or more brokers in charge subject to the principal broker's written policies and procedures.  The principal broker shall be responsible for the education, enforcement, and records required of such policies and procedures. [L 1999, c 47, pt of §2; am L 2002, c 129, §2]

HRS §467-11.5

§467-11.5  Prerequisites for license renewal.  (a)  Prior to the license renewal of a real estate broker or real estate salesperson, the licensee shall provide the commission with proof of having attended at least twenty hours of continuing education or its equivalent as determined by the commission during the two-year period preceding the application for renewal.  Failure to satisfy the continuing education requirement by the license expiration date shall result in the renewed license being automatically placed on an "inactive" status.

(b)  To reactivate a license which has been placed on an "inactive" status, the licensee shall submit to the commission proof of having satisfied the continuing education requirement of this section, a complete application setting forth the information as may be prescribed or required by the commission, and payment of the proper fee.

(c)  No license shall be renewed if the license trade name, partnership, or corporation is not currently registered with the department of commerce and consumer affairs.

(d)  Upon submission of a renewal application, an individual real estate licensee, who holds a current, unencumbered real estate license in another state, or who holds a current, unencumbered real estate license in a jurisdiction recognized by the Association of Real Estate License Law Officials, with an equivalent real estate licensing law as determined by the commission, may request a determination of equivalency for the elective course hours of the continuing education requirement.  The equivalency shall be based on the successful completion of the continuing education requirements in the other state or jurisdiction prior to submission of the renewal application.  Approval of the equivalency shall be subject to the real estate licensee completing the commission-designated core course, as determined by the commission. [L 1987, c 95, §§1, 3; am L 1989, c 217, §2; am L 1994, c 68, §1; am L 1995, c 241, §§5, 11; am L 1996, c 149, §1; am L 1997, c 289, §3; am L 1999, c 47, §3; am L 2002, c 129, §4; am L 2010, c 9, §2]

Note

$25 fee for equivalency determination application.  L 2002, c 129, §7.

HRS §467-12

§467-12  Place of business and posting of license.  (a)  A licensed real estate broker shall have and maintain a definite place of business in the State, in compliance with this chapter and the rules of the commission, and shall display therein the real estate broker's license and upon request make available any associating real estate salesperson's license.

(b)  No real estate broker's branch office shall operate without a registration previously obtained under and in compliance with this chapter and the rules of the commission. [L 1953, c 252, §3; RL 1955, §170-11; HRS §467-12; am L 1991, c 155, §3; am L 1999, c 240, §7]

HRS §467-19

§467-19  Management of fund.  (a)  The sums received by the real estate commission for deposit in the real estate recovery fund shall be held by the commission in trust for carrying out the purpose of the real estate recovery fund.  The real estate commission, as the trustee of the recovery fund, shall be authorized to expend the funds to retain private legal counsel to represent the commission in any action involving the real estate recovery fund.  These funds may be invested and reinvested in the same manner as funds of the state employees' retirement system, and the interest from these investments shall be deposited to the credit of the real estate education fund, and which shall be available to the commission for educational purposes, which is hereby created.  The real estate commission, as trustee of the real estate education fund, may invest and reinvest the real estate education fund in the same manner as funds of the state employees' retirement system.  Any law to the contrary notwithstanding, the commission may make a finding that a fee adjustment is appropriate and may adjust the fees generated to regulate the fund balances of the real estate recovery fund and the real estate education fund to appropriate levels to maintain a reasonable relation between the fees generated and the cost of services rendered by the real estate recovery fund and real estate education fund.  The commission for investment purposes, may combine the real estate education and recovery funds and invest and reinvest the combined funds in the same manner as funds of the state employees' retirement system.  The commission shall keep separate accounting records for the two funds.  For the purposes of finding that a fee adjustment is appropriate in order to maintain a reasonable relation between the fees generated and the cost of services rendered by the funds, the commission's review shall include the following:

(1)  Frequency and timing of anticipated revenue to the fund;

(2)  Identification of a reserve amount based on unanticipated revenue reductions and historical expenditures;

(3)  Anticipated expenses paid, including recovery payouts during a biennial budget cycle;

(4)  Unanticipated natural disasters or catastrophic weather events that may increase fund payments; and

(5)  Any statutory adjustments to fund payout amounts.

The balance in each fund shall not exceed sums determined by the commission.  The sums shall be determined by the commission biennially.

(b)  Educational purposes as used in subsection (a) shall include those purposes to promote the advancement of education and research in the field of real estate for the benefit of the public and those licensed under the provisions of this chapter and the improvement and more efficient administration of the real estate industry.  The commission, in its discretion, may use any and all moneys in the real estate education fund consistent with the above.  The commission and the director of commerce and consumer affairs may also use moneys in the education fund to employ necessary personnel, not subject to chapter 76, to fully effectuate subsection (b) and carry out its purpose. [L 1967, c 187, pt of §1; HRS §467-19; am L 1974, c 60, §1; am L 1982, c 270, §4; am L 1987, c 178, §1; am L 2000, c 253, §150; am L 2020, c 12, §5]

HRS §467-2

§467-2  Exceptions.  The provisions requiring licensing as a real estate broker or salesperson shall not apply:

(1)  To any individual who, as owner of any real estate or acting under power of attorney from the owner, performs any of the acts enumerated in the definitions of real estate broker and real estate salesperson with reference to the real estate; provided that the term "owner" as used in this paragraph shall not include any individual engaged in the business of real estate development or brokerage or include an individual who acquires any interest in any real estate for the purpose or as a means of evading the licensing requirements of this chapter; and provided further that the term individual "acting under power of attorney" as used in this paragraph shall not include any individual engaged in the business of real estate development or brokerage or any individual who acts under a power of attorney for the purpose or as a means of evading the licensing requirements of this chapter;

(2)  To any person acting as a receiver, trustee in bankruptcy, personal representative, or trustee acting under any trust agreement, deed of trust, or will, or otherwise acting under any order of authorization of any court;

(3)  To any individual who leases, offers to lease, rents, or offers to rent, any real estate or the improvements thereon of which the individual is the custodian or caretaker;

(4)  To any person who manages, rents, or operates a hotel; or

(5)  To any provider agency owning, leasing, operating, or managing a homeless facility or any other program for the homeless authorized under part XVII of chapter 346. [L 1933, c 140, §12; RL 1935, §7311; am L 1941, c 205, pt of §1; RL 1945, §7732; RL 1955, §170-2; am L 1961, c 154, §2; HRS §467-2; am L 1971, c 26, §1; am L 1976, c 200, pt of §1; am L 1985, c 141, §3; gen ch 1985; am L 1989, c 217, §2; am L 1991, c 212, §6; am L 1994, c 100, §2; am L 1997, c 350, §17; am L 1998, c 212, §3; am L 2007, c 249, §22; am L 2010, c 89, §6]

Attorney General Opinions

Exception does not apply to an employee of a corporation.  Att. Gen. Op. 66-6.

HRS §467-21

§467-21  The real estate commission has standing in court.  When the real estate commission receives notice, as provided in section 467-18(a), the commission may enter an appearance, file an answer, appear at the court hearing, defend the action, or take whatever other action it deems appropriate on behalf and in the name of the defendant, and take recourse through any appropriate method of review on behalf of, and in the name of, the defendant.  The commission or its legal representative shall be served with all pleadings in an action which may result in a recovery from the real estate recovery fund.

Settlement of any claim against the real estate recovery fund may be made only with the agreement of a majority of the commission that settlement is in the best interest of the real estate recovery fund. [L 1967, c 187, pt of §1; HRS §467-21; am L 1972, c 51, §1c; am L 1982, c 204, §8; am L 1983, c 124, §17; am L 1984, c 121, §2]

HRS §467-22

§467-22  Subrogation of rights.  When, upon the order of the court, or upon the commission's settlement of a claim, the real estate commission has paid from the real estate recovery fund any sum to the judgment creditor, the commission shall be subrogated to all of the rights of the judgment creditor and the judgment creditor shall assign all the creditor's right, title, and interest in the judgment or settlement to the commission and any amount and interest so recovered by the commission on the judgment or settlement shall be deposited to the fund. [L 1967, c 187, pt of §1; HRS §467-22; gen ch 1985; am L 1987, c 208, §1]

HRS §467-25

§467-25  Disciplinary action against licensee.  Nothing contained herein shall limit the authority of the real estate commission to take disciplinary action against any licensee for a violation of this chapter, or the rules and regulations of the commission; nor shall the repayment in full of all obligations to the real estate recovery fund by any licensee nullify or modify the effect of any other disciplinary proceeding brought pursuant to this chapter. [L 1967, c 187, pt of §1; HRS §467-25]

HRS §467-25.5

§467-25.5  Registration of schools, instructors; fees.  (a)  Schools.  Any person may apply to the real estate commission for a certificate of registration as a real estate school upon the payment to the department of commerce and consumer affairs of an initial registration fee and thereafter a biennial registration fee.  No school shall be granted a certificate of registration unless it maintains a sufficient number of registered instructors, requires a course of training of not less than that required by section 467-8, and meets other requirements as provided in rules adopted by the commission.

(b)  Instructors.  The commission shall issue a certificate of registration as instructor to any person who meets its requirements and pays the proper fee.

(c)  The fees, including a nonrefundable processing fee, for a certificate of registration and renewal thereof for schools and instructors shall be as provided in rules adopted by the director of commerce and consumer affairs pursuant to chapter 91.

(d)  Examination fee for instructors requesting to be certified if and when required shall be as provided in rules adopted by the director of commerce and consumer affairs pursuant to chapter 91.

(e)  In the event a certificate of registration is forfeited, the certificate of registration may be reinstated upon payment of the renewal fee that is immediately due and owing, past due renewal fees, and penalty fees as provided in rules adopted by the director of commerce and consumer affairs pursuant to chapter 91.

(f)  The commission shall adopt rules it deems proper to fully effectuate this section.  The adoption of rules shall include, but not be limited to:

(1)  Requirements for registration as a real estate school and as an instructor;

(2)  Requirements for a certificate of registration renewal for a real estate school and an instructor; and

(3)  Reinstatement requirements for a forfeited certificate of registration for a real estate school and an instructor.

(g)  The biennial renewal fee shall be paid to the department of commerce and consumer affairs on or before December 31 of every even-numbered year.  Failure, neglect, or refusal of a holder of any duly issued certificate of registration to pay the biennial renewal fee shall constitute a forfeiture of the certificate of registration.  The certificate of registration may be reinstated upon written application therefor, payment to the department of the sum specified in subsection (e), and satisfaction of other requirements for reinstatement of a certificate of registration as provided in rules adopted by the commission. [L 1973, c 150, §1; am L 1988, c 145, §5; am L 1990, c 237, §2]

HRS §467-3

§467-3  Commission, appointments, qualifications, tenure.  There shall be appointed a commission to be known as the real estate commission, to consist of nine members, at least four of whom shall be licensed real estate brokers who have been engaged in business as licensed real estate brokers or salespersons for three years immediately preceding their appointments, each of whom shall be a citizen of the United States and shall have resided in the State for at least three years preceding appointment, and one of whom shall be designated by the appointing power as chairperson.  Four members shall be residents of the city and county of Honolulu, one shall be a resident of the county of Hawaii, one shall be a resident of the county of Maui, and one shall be a resident of the county of Kauai and two members shall be public members.

Appointments shall be made for a term of four years, commencing from the date of expiration of the last preceding term and shall be made to expire on June 30.  Appointments shall be made so that at least one appointment shall be required each year.

Any vacancy shall be filled by appointment for the unexpired term. [L 1933, c 140, §§2, 3; RL 1935, §7312; am L 1935, c 126, §1; RL 1945, §7733; am L 1951, c 77, §1; RL 1955, §170-3; am L 1959, c 165, §1; am L Sp 1959 2d, c 1, §§5, 15; am L 1961, c 154, §3; HRS §467-3; am L 1978, c 208, §14; am L 1980, c 60, §1; gen ch 1985; am L 1986, c 130, §4; am L 1989, c 217, §2; am L 1992, c 202, §167; ree L 1993, c 322, §16]

Cross References

Departmental administration, see §§26-9 and 26-35.

Quorum, see §92-15.

Case Notes

Cited:  38 H. 9 (1948).

HRS §467-4

§467-4  Powers and duties of commission.  In addition to any other powers and duties authorized by law, the real estate commission shall:

(1)  Grant licenses, registrations, and certificates pursuant to this chapter;

(2)  Adopt, amend, or repeal rules as it may deem proper to effectuate this chapter and carry out its purpose, which is the protection of the general public in its real estate transactions.  All rules shall be approved by the governor and director of commerce and consumer affairs, and when adopted pursuant to chapter 91 shall have the force and effect of law.  The rules may forbid acts or practices deemed by the commission to be detrimental to the accomplishment of the purpose of this chapter, and the rules may require real estate brokers and salespersons to complete educational courses or to make reports to the commission containing items of information as will better enable the commission to enforce this chapter and the rules, or as will better enable the commission from time to time to amend the rules to more fully effect the purpose of this chapter, and, further, the rules may require real estate brokers and salespersons to furnish reports to their clients containing matters of information as the commission deems necessary to promote the purpose of this chapter.  This enumeration of specific matters that may properly be made the subject of rules shall not be construed to limit the commission's broad general power to make all rules necessary to fully effectuate the purpose of this chapter;

(3)  Enforce this chapter and rules adopted pursuant thereto;

(4)  Suspend, fine, terminate, or revoke any license, registration, or certificate for any cause prescribed by this chapter, or for any violation of the rules, and may require additional education or reexamination, and refuse to grant any license, registration, or certificate for any cause that would be a ground for suspension, fine, termination, or revocation of a license, registration, or certificate;

(5)  Report to the governor and legislature relevant information that shall include but not be limited to a summary of the programs and financial information about the trust funds, including balances and budgets, through the director of commerce and consumer affairs annually, before the convening of each regular session, and at other times and in other manners as the governor or the legislature may require concerning its activities;

(6)  Publish and distribute pamphlets and circulars, produce seminars and workshops, hold meetings in all counties, and require other education regarding any information as is proper to further the accomplishment of the purpose of this chapter;

(7)  Enter into contract or contracts with qualified persons to assist the commission in effectuating the purpose of this chapter;

(8)  Develop a curriculum for leadership training for condominium boards of directors, including pertinent provisions of chapter 514B, association governing documents, and the fiduciary duties of board members; and

(9)  Establish standing committees to assist in effectuating this chapter and carry out its purpose, which shall meet no less than ten times annually, and shall from time to time meet in each of the counties. [L 1933, c 140, pt of §4; RL 1935, pt of §7313; am L 1935, c 126, §1; RL 1945, pt of §7734; am L 1951, c 77, pt of §2; RL 1955, pt of §170-4; am L Sp 1959 2d, c 1, §§6, 15; am L 1961, c 154, §4; am L 1963, c 114, §3; am L 1965, c 96, §111; am imp L 1967, c 223, §24; HRS §467-4; am L 1973, c 150, §2; am L 1982, c 204, §8; am L 1983, c 124, §17; gen ch 1985; am L 1989, c 217, §2; am L 1992, c 202, §168; am L 1994, c 100, §3; am L 1995, c 241, §2; am L 2023, c 149, §1]

Case Notes

When statute did not authorize examination as to proficiency, commission could not by regulation require passage as condition for license.  38 H. 9 (1948).

HRS §467-5

§467-5  Board's employees.  Subject to chapter 76, the department of commerce and consumer affairs may employ and remove such administrative and clerical assistants as the real estate commission requires and prescribe their powers and duties. [L 1933, c 140, pt of §4; RL 1935, pt of §7313; RL 1945, pt of §7734; am L 1951, c 77, pt of §2; RL 1955, pt of §170-4; am imp L 1963, c 21, §1 and c 114, §3; HRS §467-5; am L 1982, c 204, §8; am L 2000, c 253, §150]

HRS §467-6

§467-6  Place of meeting.  The director of commerce and consumer affairs shall provide suitable quarters for meetings of the real estate commission and for the transaction of its other business. [L 1933, c 140, §5; RL 1935, §7314; am L 1935, c 126, §1; RL 1945, §7735; RL 1955, §170-5; am L Sp 1959 2d, c 1, §6; am L 1963, c 114, §3; HRS §467-6; am L 1982, c 204, §8; am L 1983, c 124, §17]

HRS §467-7

§467-7  Licenses required to act as real estate broker and salesperson.  No person within the purview of this chapter shall act as real estate broker or real estate salesperson, or shall advertise, or assume to act as real estate broker or real estate salesperson without a license previously obtained under and in compliance with this chapter and the rules and regulations of the real estate commission. [L 1933, c 140, §6; RL 1935, §7315; am L 1935, c 126, §1; RL 1945, §7736; RL 1955, §170-6; HRS §467-7; am L 1989, c 217, §2]

Attorney General Opinions

Only persons not regularly engaged in real estate transaction with a power of attorney from the owner are within the exception.  Att. Gen. Op. 65-24.

Includes employees involved in real estate transactions of employer's land.  Att. Gen. Op. 66-6.

Selling lists of available real estate rentals is not an act within the definition of a real estate broker.  Att. Gen. Op. 67-15.

Case Notes

Cited:  38 H. 9, 11 (1948).

HRS §467-9

§467-9  License, registration, certificate, and applications.  (a)  Every applicant for issuance of a real estate license, registration, or certificate under this chapter shall file an application with the commission in a form and setting forth the information as may be prescribed or required by the commission, and shall furnish any additional information bearing upon the issuance of the license, registration, and certificate as it requires.  In the case of a partnership or corporation, any general partner or officer thereof may sign the application on behalf of the applicant.  The commission may prescribe deadlines for the submission of applications.

(b)  Unless approved by the commission, no real estate broker's license shall be issued under or changed to any trade name, corporate name, or partnership name which contains the name, part of the name, initials, or nickname of:

(1)  An unlicensed person;

(2)  A real estate salesperson; or

(3)  A real estate broker whose real estate license is not associated with or employed by the subject real estate broker applicant.

A real estate broker's license name includes any trade name approved by the commission.

(c)  A real estate broker's license shall be placed on an inactive status unless the real estate broker immediately changes its name, trade name, corporate name, or partnership name that contains the name, part of the name, initials, or nickname of:

(1)  A real estate licensee who is no longer associated with or employed by the subject real estate broker, except in the case of incapacitating disability or death of the real estate licensee where written authorization is obtained from the real estate licensee or legal representative of the licensee permitting use of the name; or

(2)  A real estate licensee who is no longer a current active real estate licensee due to revocation, termination, forfeiture, surrender, or inactive status.

The changes shall comply with this chapter and the rules of the commission.

(d)  Notwithstanding subsection (b), a real estate broker's license name may include the name of a franchise registered with the business registration division of the department of commerce and consumer affairs. [L 1933, c 140, §8; RL 1935, §7317; am L 1935, c 126, §1; RL 1945, §7738; RL 1955, §170-8; HRS §467-9; am L 1971, c 17, §1; am L 1973, c 131, §2; am L 1983, c 116, §2; am L 1984, c 263, §1; am L 1987, c 283, §35; am L 1989, c 217, §2; am L 1993, c 125, §1; am L 1994, c 100, §5; am L 1997, c 40, §20 and c 45, §1]

Cross References

Fees; license and renewals, see §467-11.

Case Notes

Cited:  38 H. 9, 10 (1948).

References

The law belongs to the people. Georgia v. Public.Resource.Org, 590 U.S. (2020)

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