Hana is a licensed real estate salesperson in Hawaii. Her principal broker, without Hana's knowledge, instructs her to tell prospective buyers that a Honolulu condominium has no pending special assessments, when in fact a $15,000 special assessment has been approved by the condominium association. Hana repeats this false statement to a buyer who purchases the unit. Under HRS Chapter 467, which of the following best describes Hana's potential liability?
Correct Answer
A) Hana may face disciplinary action by the Hawaii Real Estate Commission for misrepresentation, even though she was following her broker's instructions.
Under HRS § 467-14, the Hawaii Real Estate Commission may discipline any licensee — including a salesperson — for misrepresentation, regardless of whether the salesperson was following broker instructions. A licensee's personal duty of honesty to the public cannot be delegated away by a broker's directive. Hana made the false statement to the buyer and may be subject to disciplinary action.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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