Hawaii Real Estate State Practice Exam

In a real estate partnership in Hawaii, what is required of the designated principal broker?

1. They must manage all finances

2. They must supervise licensing of all members

3. They are responsible for the brokerage business

4. They have no obligations

The correct answer is: They are responsible for the brokerage business

The designated principal broker in a real estate partnership in Hawaii is responsible for the brokerage business. This includes overseeing the operations, ensuring compliance with state laws and regulations, and ultimately being accountable for the actions of the real estate partnership. The principal broker acts as the main contact between the real estate commission and the business, ensuring that all transactions adhere to legal standards and ethical practices. This role is critical because it establishes a point of authority and responsibility within the brokerage. By being responsible for the brokerage business, the principal broker ensures that all agents and employees operate within the framework of the law, maintain proper licensing, and adhere to professional standards. This is an essential feature of maintaining public trust and operational integrity in real estate practices. The other options do not accurately reflect the comprehensive responsibilities of a designated principal broker. While managing finances and supervising licensing may be part of the broader operational context in which a principal broker works, these are not their sole responsibilities. Stating that the designated principal broker has no obligations would undermine the very purpose of the position.