An out-of-state broker licensed in California wants to refer a client relocating to Hawaii to a Hawaii-licensed broker and receive a referral fee for the referral. The California broker has no Hawaii real estate license. Under HRS Chapter 467, which of the following is correct?
Correct Answer
B) The California broker may receive a referral fee from the Hawaii broker, provided the California broker does not perform any licensed real estate activities within Hawaii
Under HRS Chapter 467, an out-of-state broker may receive a referral fee from a Hawaii-licensed broker for referring a client, provided that the out-of-state broker does not perform any activities within Hawaii that require a Hawaii real estate license. A pure referral — where the out-of-state broker simply introduces the client to the Hawaii broker and then steps back — does not constitute the performance of licensed activities in Hawaii. The compensation flows from the Hawaii broker to the out-of-state broker for the referral only, not for Hawaii-based licensed services. This is a critical and commonly tested distinction.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Practice Of Real Estate Question
Background Knowledge for Practice Of Real Estate
Real World Application in Practice Of Real Estate
Common Mistakes to Avoid on Practice Of Real Estate Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
More Practice Of Real Estate Questions
A transaction coordinator in Cary is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
Nevada law requires purchase agreement copies be kept for at least:
A closing-file reviewer in Raleigh is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
A firm owner in Chapel Hill is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
Marcus is a Michigan licensed real estate salesperson whose license expired 45 days ago. He has completed all required continuing education. Under Michigan law, what is his most appropriate course of action to resume practicing real estate?
- → A compliance reviewer in High Point is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
- → A provisional broker in Raleigh is answering a client question about advertising, supervision, and representation disclosures. Which statement best applies under current North Carolina law?
- → A buyer representative in Huntersville is updating the policy manual on prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
- → A Charlotte broker is answering a client question about advertising, supervision, and representation disclosures. Which statement best applies under current North Carolina law?
- → Choose the North Carolina concept that fits this description about prelicensing, Postlicensing, and the 18-month deadline. Description: The North Carolina course sequence totaling ninety hours after initial licensure
- → Who issues real estate licenses in North Carolina?
- → Can brokers commingle funds in North Carolina?
- → A buyer representative in Greenville is revising a training memo on BIC eligibility, designation, and supervision. Which statement is NOT accurate under current North Carolina law?
- → A Louisiana licensee encounters a licensee receives money belonging to others. What should the licensee remember?
- → A listing broker in Asheville is updating the policy manual on trust money receipt, deposit timing, and exceptions. Which statement best applies under current North Carolina law?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Property Flyer Generator — 2026 Guide for U.S. Agents: Step-by-Step + Best Practices
Learn how Property Flyer Generator works and how U.S. real estate agents use it in 2026. Includes setup steps, practical examples, and best-practice tips.
Why Real Estate Exam Notes Stop Helping Once You Avoid Mixed Practice
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for real estate exam notes...
Real Estate Exam Practice Questions by Topic (2026): Free Sets for Contracts, Agency, Financing
Get topic-based real estate exam practice sets and a simple sequence to move from learning to timed mocks.