Licensee Pono is working with seller Akana to list a Honolulu home. During the listing appointment, Akana reveals that he is going through a divorce and must sell quickly at any price to settle the estate. Later, buyer's agent Lori asks Pono whether the seller is motivated to accept a lower offer. How should Pono respond under Hawaii law?
Correct Answer
A) Pono must keep Akana's personal circumstances confidential and decline to reveal the motivation to Lori
Under HRS Chapter 467 and HAR Title 16, Chapter 99, a listing agent owes the seller a duty of confidentiality regarding the seller's personal circumstances, financial situation, and motivation to sell. Akana's divorce and urgency to sell are confidential client information, not material facts about the physical property. Pono must decline to reveal this information to Lori or any other party without Akana's consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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