A Hawaii real estate brokerage uses a designated agency model. Salesperson Alana is designated to represent seller Wong, and salesperson Koa is designated to represent buyer Park in the same transaction at the same brokerage. Under Hawaii law, which of the following disclosures is required before this arrangement may proceed?
Correct Answer
A) Both Wong and Park must receive written disclosure of the designated agency arrangement and provide their informed consent
Under HAR Title 16, Chapter 99, a designated agency arrangement — where different licensees within the same brokerage represent the buyer and seller in the same transaction — requires written disclosure to and informed consent from both parties. Both Wong and Park must understand that while their respective designated agents represent them individually, the supervising broker remains a dual agent. This written consent requirement protects both parties and ensures transparency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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