Hawaii Real Estate State Practice Exam

True or False: A benefit of placing real property in a land trust is that it allows for registration in Land Court.

1. True

2. False

3. Only if the property is over 10 acres

4. Only commercial properties can be registered

The correct answer is: False

Placing real property in a land trust does not in itself facilitate registration in Land Court. A land trust is typically used for privacy and management purposes, allowing property owners to maintain anonymity and simplify the transfer of property interests. However, Land Court registration in Hawaii pertains to the formal process of recognizing property titles and ensuring clear ownership records. In Hawaii, a property must meet certain criteria and undergo specific legal processes to be registered in Land Court, independent of whether it is held in a land trust. The focus of a land trust does not align with the requirements for Land Court registration. Therefore, stating that a benefit of using a land trust is the ability to register in Land Court is inaccurate, making the statement false.