Salesperson Hoku is showing a property listed by her own brokerage to a buyer, Tomás, who has not signed a buyer's agency agreement. Hoku has not provided Tomás with a Hawaii agency disclosure form. Under Hawaii Administrative Rules Title 16, Chapter 99, which of the following best describes Hoku's compliance status and default agency relationship?
Correct Answer
A) Hoku is in violation because Hawaii requires written agency disclosure before or at the first substantive contact with a prospective buyer.
Under Hawaii Administrative Rules Title 16, Chapter 99, licensees are required to provide the Hawaii Disclosure of Real Estate Agency Relationships form to prospective buyers and sellers at or before the first substantive contact. Showing a property constitutes substantive contact, so Hoku's failure to provide the written disclosure form before or at the showing is a violation of Hawaii's agency disclosure requirements.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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