A Hawaii real estate salesperson, Moana, is working with a buyer who is interested in purchasing a property that includes a parcel with traditional Native Hawaiian gathering and access rights running across it. Moana's buyer is not aware of these rights. What is Moana's obligation as the buyer's agent?
Correct Answer
B) Moana must disclose these rights to the buyer because they are a material encumbrance that affects the buyer's use and enjoyment of the property.
Native Hawaiian traditional and customary access and gathering rights are recognized under HRS Section 1-1 and the Hawaii State Constitution and may encumber private property. These rights are a unique Hawaii encumbrance that a buyer's agent must proactively disclose because they are a material fact affecting the buyer's use and enjoyment of the property. As the buyer's agent, Moana has a fiduciary duty to disclose all known material facts, including these unique Hawaii-specific encumbrances.
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