Broker Dana represents seller Tom in listing his Honolulu condominium. Buyer Priya contacts Dana directly and wants to make an offer on Tom's unit. Dana agrees to represent both Tom and Priya in the same transaction. Under Hawaii law, what must Dana do before proceeding?
Correct Answer
A) Obtain written informed consent from both Tom and Priya to the dual agency relationship
Under HRS Chapter 467 and HAR Title 16, Chapter 99, a Hawaii licensee who wishes to act as a dual agent — representing both buyer and seller in the same transaction — must obtain the written informed consent of both parties before proceeding. This consent must acknowledge the limitations of dual agency, including the licensee's reduced ability to advocate exclusively for either party.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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