Hawaii Pre-Licensing National Practice Exam

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Boost your confidence for the Hawaii Pre-Licensing Exam. Study with flashcards and multiple-choice questions, each providing hints and explanations. Prepare effectively!

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In a property sale, how should a salesperson inform prospective buyers of a 40-foot easement and a required 50-foot building setback?

Only inform them of the setback
Only inform them of the easement
Inform them of the existence of both the easement and the setback line
Keep this information confidential

The correct answer is: Inform them of the existence of both the easement and the setback line

A salesperson has a responsibility to provide prospective buyers with full and accurate information about a property, which includes any easements and building setbacks. Informing buyers about the existence of both the 40-foot easement and the 50-foot building setback is crucial because these factors can significantly affect how the property can be used. The easement allows certain rights to use part of the property, which can limit the buyer's ability to alter or develop that portion of the land. On the other hand, the building setback indicates how far structures must be from property lines, which plays an essential role in compliance with local zoning laws and can impact the potential design and layout of future construction. Providing complete information empowers buyers to make informed decisions about their purchase. Transparency in real estate transactions fosters trust and aids in preventing future disputes regarding property use. Therefore, the best approach for a salesperson is to share both pieces of information with prospective buyers.