Hawaii Real Estate State Practice Exam

According to the Hawaii Statute of Frauds, how must a buyer agency agreement be executed to be enforceable?

1. Orally and in writing

2. In writing and signed by both parties

3. Only signed by the agent

4. Only verbally agreed upon

The correct answer is: In writing and signed by both parties

The requirement for a buyer agency agreement to be enforceable, as stated in the Hawaii Statute of Frauds, is that it must be in writing and signed by both parties involved. This ensures that there is a clear and mutual understanding of the terms of the agreement, which protects the rights and obligations of both the buyer and the agent. Written agreements provide a tangible record of the commitments made by both sides and help to avoid misunderstandings or disputes that can arise from oral agreements. The necessity for both parties to sign the document is crucial, as it signifies their consent and agreement to the terms outlined within the contract. This not only meets legal criteria but also fosters accountability, ensuring that both the buyer and the agent are aware of their roles and responsibilities in the transaction. In contrast, oral agreements lack this formal structure and may lead to enforceability issues, as they can be harder to prove in cases of disagreement. Other forms of execution, like only requiring a signature from the agent or merely an oral agreement, do not meet the legal standards set by the statute. Hence, it is imperative for buyer agency agreements to be executed in writing and signed by both parties to ensure their enforceability.