Buyer Noa is purchasing a property in Hawaii that is registered in the Land Court system. Noa's agent, salesperson Keoni, is aware that the property has native Hawaiian traditional and customary access rights running across the back of the lot. Keoni has not mentioned this to Noa. Which of the following best describes Keoni's obligation?
Correct Answer
A) Keoni must disclose the native Hawaiian access rights to Noa because they are a material encumbrance on the property
Native Hawaiian traditional and customary access and gathering rights are recognized under the Hawaii Constitution and HRS §1-1. Critically, these rights are NOT extinguished by a fee simple deed or a Land Court certificate of title — they survive title transfer and can encumber private property. Because Keoni is aware of this material encumbrance, he has an affirmative duty under HRS Chapter 467 and HAR Title 16, Chapter 99 to disclose it to his client Noa as a known material fact affecting the property.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
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