§467-14  Revocation, suspension, and fine.  In
addition to any other actions authorized by law, the commission may revoke any
license issued under this chapter, suspend the right of the licensee to use the
license, fine any person holding a license, registration, or certificate issued
under this chapter, or terminate any registration or certificate issued under
this chapter, for any cause authorized by law, including but not limited to the
following:



(1)  Making any misrepresentation concerning any real
estate transaction;



(2)  Making any false promises concerning any real
estate transaction of a character likely to mislead another;



(3)  Pursuing a continued and flagrant course of
misrepresentation, or making of false promises through advertising or otherwise;



(4)  Without first having obtained the written consent
to do so of both parties involved in any real estate transaction, acting for
both the parties in connection with the transaction, or collecting or
attempting to collect commissions or other compensation for the licensee's
services from both of the parties;



(5)  When the licensee, being a real estate
salesperson, accepts any commission or other compensation for the performance
of any of the acts enumerated in the definition set forth in section 467-1 of
real estate salesperson from any person other than the real estate
salesperson's employer or the real estate broker with whom the real estate
salesperson associates or, being a real estate broker or salesperson,
compensates one not licensed under this chapter to perform any such act;



(6)  When the licensee, being a real estate
salesperson, acts or attempts to act as a real estate broker or represents, or
attempts to represent, any real estate broker other than the real estate
salesperson's employer or the real estate broker with whom the real estate
salesperson is associated;



(7)  Failing, within a reasonable time, to account for
any moneys belonging to others that may be in the possession or under the
control of the licensee;



(8)  Any other conduct constituting fraudulent or
dishonest dealings;



(9)  When the licensee, being a partnership, permits
any member of the partnership who does not hold a real estate broker's license
to actively participate in the real estate brokerage business thereof or
permits any employee thereof who does not hold a real estate salesperson's
license to act as a real estate salesperson therefor;



(10)  When the licensee, being a corporation, permits
any officer or employee of the corporation who does not hold a real estate
broker's license to have the direct management of the real estate brokerage
business thereof or permits any officer or employee thereof who does not hold a
real estate salesperson's license to act as a real estate salesperson therefor;



(11)  When the licensee, being a real estate
salesperson, fails to file with the commission a written statement setting
forth the name of the real estate broker by whom the licensee is employed or
with whom the licensee is associated;



(12)  When the licensee fails to obtain on the contract
between the parties to the real estate transaction confirmation of who the real
estate broker represents;



(13)  Violating this chapter; chapter 484, 514A, 514B,
514E, or 515; section 516-71; or the rules adopted pursuant thereto;



(14)  Splitting fees with or otherwise compensating
others not licensed hereunder for referring business; provided that
notwithstanding paragraph (5), a real estate broker may pay a commission to:



(A)  A licensed real estate broker of another
state, territory, or possession of the United States if that real estate broker
does not conduct in this State any of the negotiations for which a commission
is paid;



(B)  A real estate broker lawfully engaged in
real estate brokerage activity under the laws of a foreign country if that real
estate broker does not conduct in this State any of the negotiations for which
a commission is paid; or



(C)  A travel agency that in the course of
business as a travel agency or sales representative, arranges for compensation
the rental of a transient vacation rental; provided that for purposes of this
paragraph "travel agency" means any person that, for compensation or
other consideration, acts or attempts to act as an intermediary between a
person seeking to purchase travel services and any person seeking to sell
travel services, including an air or ocean carrier;



(15)  Commingling the money or other property of the
licensee's principal with the licensee's own;



(16)  Converting other people's moneys to the
licensee's own use;



(17)  The licensee is adjudicated insane or
incompetent;



(18)  Failing to ascertain and disclose all material
facts concerning every property for which the licensee accepts the agency, so
that the licensee may fulfill the licensee's obligation to avoid error,
misrepresentation, or concealment of material facts; provided that for the
purposes of this paragraph, the fact that an occupant has AIDS or AIDS Related
Complex (ARC) or has been tested for HIV (human immunodeficiency virus)
infection shall not be considered a material fact;



(19)  When the licensee obtains or causes to be
obtained, directly or indirectly, any licensing examination or licensing
examination question for the purpose of disseminating the information to future
takers of the examination for the benefit or gain of the licensee;



(20)  Failure to maintain a reputation for or record of
competency, honesty, truthfulness, financial integrity, and fair dealing; or



(21)  Acquiring an ownership interest, directly or
indirectly, or by means of a subsidiary or affiliate, in any distressed
property that is listed with the licensee or within three hundred sixty-five
days after the licensee's listing agreement for the distressed property has
expired or is terminated.



As used in this section, "distressed
property" has the same meaning as set forth in section 480E-2.



Disciplinary action may be taken by the
commission whether the licensee is acting as a real estate broker, or real
estate salesperson, or on the licensee's own behalf. [L 1933, c 140, §11; RL
1935, §7320; am L 1935, c 126, §§1, 5; RL 1945, §7741; am L 1951, c 77, §5; RL
1955, §170-12; am L 1963, c 9, §1; HRS §467-14; am L 1974, c 205, §2(29); am L
1977, c 197, §1(5); am L 1984, c 176, §1 and c 263, §2; am L 1985, c 123, §2, c
140, §1, and c 141, §4; am L 1988, c 341, §1; am L 1989, c 168, §1 and c 203,
§2; am L 1990, c 34, §32 and c 277, pt of §1; am L 1991, c 155, §4 and c 276,
§1; am L 1992, c 202, §169; am L 1995, c 241, §6; am L 2004, c 164, §14; am L
2007, c 244, §3; am L 2009, c 66, §1]



 



Case Notes



 



  Indicates no exception for transactions in which broker acts
as middleman.  68 H. 371, 715 P.2d 805.



  Provision authorizing commission to revoke or suspend license
for fee-splitting does not authorize a private right of action for recovery of
sales commission paid or to bar a claim for services rendered.  1 H. App. 448,
620 P.2d 750.



  Cited:  6 H. App. 188, 716 P.2d 163.