Agency Relationships in Hawaii
Hawaii requires licensees to disclose agency relationships and to honor fiduciary duties to their clients. This chapter explains disclosure, duties, and dual agency.
Agency Disclosure
Hawaii licensees must disclose their agency relationship to consumers so consumers understand whether the licensee represents the seller, the buyer, both, or neither before they share confidential information. The disclosure should be made early in the relationship. Clear disclosure helps consumers make informed decisions about representation.
Fiduciary Duties to Clients
A Hawaii licensee who represents a client owes fiduciary duties including loyalty, obedience to lawful instructions, confidentiality, reasonable care and diligence, accounting for funds, and full disclosure of material facts. To a customer who is not a client, the licensee still owes honesty, fair dealing, and disclosure of known material facts about the property. Distinguishing client from customer defines the level of duty owed.
Dual Agency and Consent
A licensee or brokerage may represent both the buyer and the seller in the same transaction only with the informed written consent of both parties. A dual agent must remain neutral on price and terms and may not disclose one party's confidential negotiating information to the other. Because dual agency limits advocacy, disclosure and written consent are required.