During a listing presentation in Hawaii, a seller tells the agent that his property is fee simple and therefore completely free of any encumbrances related to native Hawaiian rights. The property borders a coastal area that has been historically used by native Hawaiian families for fishing and gathering. The agent knows that native Hawaiian traditional and customary rights have been asserted in the area. Which of the following represents the agent's most appropriate course of action?
Correct Answer
A) Advise the seller that native Hawaiian traditional and customary rights may encumber the property regardless of fee simple ownership, and recommend the seller consult legal counsel before making representations about encumbrances
The agent's most appropriate course of action is to advise the seller that native Hawaiian traditional and customary rights recognized under the Hawaii Constitution (Article XII, Section 7) and HRS Section 1-1 may encumber the property regardless of its fee simple status. These rights are not extinguished by fee simple ownership or by deed recording. Given the property's coastal location and history of native Hawaiian use, the seller should consult legal counsel before making representations that the property is free of such encumbrances. The agent has a duty to provide accurate information and not to make misleading representations about the property's encumbrance status.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Property Ownership Question
Background Knowledge for Property Ownership
Real World Application in Property Ownership
Common Mistakes to Avoid on Property Ownership Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
More Property Ownership Questions
Idaho water rights:
West Virginia requires sellers to provide:
An easement appurtenant in Alabama:
An easement by necessity is typically created when a property is in which situation?
A Texas property owner grants an oil company the right to drill on their land. This is called:
- → Alabama's lead-based paint disclosure applies to homes built before:
- → The test to locate septic system placement is called:
- → Under Idaho Code §55-1003, what is the current homestead exemption amount that protects a homeowner's primary residence from creditors?
- → Wisconsin is a:
- → What is the homestead exemption amount that Oregon law provides to protect a qualifying homeowner's equity from most unsecured creditors?
- → In Illinois, which deed provides the greatest protection to the buyer?
- → In Vermont, joint tenancy with right of survivorship requires:
- → Pennsylvania's adverse possession statute requires occupation for:
- → Delaware follows which recording system?
- → A Virginia real estate broker advises her client that a deed conveying property with the statutory phrase 'with general warranty' is legally equivalent to including all five traditional English covenants of title by operation of Virginia law. The broker is correct. Which Virginia statute authorizes this shorthand approach, allowing the phrase 'with general warranty' to import all warranty covenants without spelling them out individually?
People Also Study
Buyer Representation Agreement
8% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Financing
12% 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.
Real Estate Exam Property Ownership & Title (2026): Deeds, Liens, Encumbrances + Practice Questions
Understand deeds, liens, encumbrances, and ownership types with exam-style practice questions and traps.
Why Real Estate Property Description Questions Get Easier Once You Sort Boundaries, Measurements, and Legal Meaning
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 property...