Hawaii Real Estate State Practice Exam

In Hawaii, what type of agents may have different disclosure requirements?

1. Property managers

2. Buyer's agents and seller's agents

3. Commercial agents

4. All real estate agents

The correct answer is: Buyer's agents and seller's agents

In Hawaii, buyer's agents and seller's agents may have different disclosure requirements due to the distinct roles they play in a real estate transaction. Buyer's agents represent the interests of the buyer and are typically obligated to disclose any material facts that could affect the buyer's decision. This includes both positive and negative aspects of the property and related transactions. On the other hand, seller's agents, also known as listing agents, represent the seller's interests and must disclose information that is material to the seller's situation, as well as ensure that any representations made about the property are accurate. The differing obligations stem from the fiduciary duties that each type of agent has towards their respective clients. This encompasses the need for transparency and honesty in representing either the buyer or the seller. The Hawaii Association of Realtors has established specific guidelines for disclosures that reflect these different responsibilities, emphasizing the importance of protecting the interests of clients in each role. Other agent types, such as property managers or commercial agents, may have some specific disclosure requirements as well, but they do not typically differentiate between seller and buyer responsibilities in the same manner as buyer’s and seller’s agents do, which makes this distinction particularly significant.