Hawaii Real Estate State Practice Exam

The correct answer indicates that the seller must disclose all known defects of the property. In Hawaii, as in many other states, sellers have a legal obligation to be transparent about any material defects that could affect the value or desirability of the property. This includes issues like structural problems, plumbing leaks, or any other significant concerns that a potential buyer should be aware of before making a purchase decision.

This obligation is essential because it protects the buyer and promotes transparency in real estate transactions. Failing to disclose known defects can lead to legal repercussions for the seller, including potential claims for fraud or misrepresentation. Consequently, this duty to disclose is a critical component of a seller's responsibilities under a listing agreement, ensuring that both parties are making informed decisions during the transaction process.