During a listing presentation in Hawaii, a seller tells the agent that his property is fee simple and therefore completely free of any encumbrances related to native Hawaiian rights. The property borders a coastal area that has been historically used by native Hawaiian families for fishing and gathering. The agent knows that native Hawaiian traditional and customary rights have been asserted in the area. Which of the following represents the agent's most appropriate course of action?
Correct Answer
A) Advise the seller that native Hawaiian traditional and customary rights may encumber the property regardless of fee simple ownership, and recommend the seller consult legal counsel before making representations about encumbrances
The agent's most appropriate course of action is to advise the seller that native Hawaiian traditional and customary rights recognized under the Hawaii Constitution (Article XII, Section 7) and HRS Section 1-1 may encumber the property regardless of its fee simple status. These rights are not extinguished by fee simple ownership or by deed recording. Given the property's coastal location and history of native Hawaiian use, the seller should consult legal counsel before making representations that the property is free of such encumbrances. The agent has a duty to provide accurate information and not to make misleading representations about the property's encumbrance status.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
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