In Hawaii, Broker Alana's firm has a listing agreement with seller Makoa and a buyer's agency agreement with buyer Sasha. Both Makoa and Sasha are interested in the same property transaction. Alana wants to act as a dual agent. Under Hawaii law, which of the following steps is required BEFORE dual agency can proceed?
Correct Answer
A) Alana must obtain informed written consent from both Makoa and Sasha before acting as a dual agent.
Under Hawaii Administrative Rules Title 16, Chapter 99 and HRS Chapter 467, dual agency is permissible only with the prior informed written consent of both the seller and the buyer. 'Informed' means both parties must understand the implications of dual agency, including the limitation on the licensee's ability to fully advocate for either party. This consent must be obtained before the dual agency relationship begins, not after.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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