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Practice Of Real EstateLicense LawHARD

A real estate developer in Hawaii wants to hire a salaried employee to show model homes and answer questions about available units in a new subdivision. The employee would not negotiate prices, write contracts, or receive commissions. Under HRS Chapter 467, which of the following is correct?

Correct Answer

D) The employee is exempt from licensing requirements because they are a salaried employee of the owner showing the owner's own property

Under HRS Chapter 467, certain activities are exempt from real estate licensing requirements. A salaried employee of a property owner who shows and discusses that owner's own property — without negotiating, writing contracts, or receiving commission-based compensation — generally falls within the owner-employee exemption. The developer's salaried employee is acting on behalf of the owner and is not acting as a real estate licensee for the public. This is a specific exemption in Hawaii licensing law.

Answer Options
A
The employee may show properties without a license but must refer all pricing questions to a licensed broker
B
The employee must hold a real estate license only if the subdivision contains more than four units
C
The employee must hold a valid Hawaii real estate salesperson or broker license to show and discuss the developer's own properties
D
The employee is exempt from licensing requirements because they are a salaried employee of the owner showing the owner's own property

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Related Topics & Key Terms

Key Terms:

licensing_exemptionsowner_employeenew_constructionhrs_467developer

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