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Practice Of Real EstateLicense LawMEDIUM

Under HRS Chapter 467 and Hawaii Administrative Rules Title 16 Chapter 99, which of the following is NOT a ground for disciplinary action against a Hawaii real estate licensee?

Correct Answer

C) Representing a buyer in a transaction where the buyer's purchase price is lower than the listing price

Representing a buyer who negotiates a purchase price below the listing price is normal, lawful real estate practice and is not a ground for disciplinary action. A buyer's agent is expected to negotiate in the buyer's best interest, and achieving a price below the listing price is a legitimate outcome of that representation. There is nothing in HRS Chapter 467 or HAR Title 16 Chapter 99 that prohibits or penalizes this activity.

Answer Options
A
Making a false promise to induce a party to enter into a real estate contract
B
Failing to provide the required written agency disclosure at the first substantive contact
C
Representing a buyer in a transaction where the buyer's purchase price is lower than the listing price
D
Commingling client funds with the broker's personal operating funds

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Related Topics & Key Terms

Key Terms:

disciplinary_actionprohibited_actshrs_467reverse_questionhar_16_99

Related Concepts

Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.

Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

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