Hawaii Real Estate State Practice Exam

Is it possible for a real estate agent to represent both the buyer and seller in a transaction?

1. Yes, but only with consent from both parties

2. No, that would be unethical

3. Yes, under any conditions

4. Only if the agent is licensed

The correct answer is: Yes, but only with consent from both parties

A real estate agent can indeed represent both the buyer and seller in a transaction, a practice known as dual agency, but this is contingent upon obtaining informed consent from both parties involved. This requirement for consent is designed to ensure transparency and to protect the interests of both the buyer and the seller, as the agent must remain impartial and cannot favor one party over the other. In states like Hawaii, the law mandates that both parties must be fully aware of the agent's dual role and must agree to it for the arrangement to be legal. This protects the ethical standards of the real estate profession and ensures that clients are afforded fair treatment during the transaction. The other options present scenarios that do not adhere to the nuances of dual agency laws. For instance, indicating it would be unethical without specifying the necessity of consent misrepresents the conditions under which dual agency is permissible. Stating that an agent can represent both parties under any condition overlooks the critical ethical and legal requirements for transparency and consent. Lastly, suggesting that dual agency is contingent solely on the agent being licensed misses the essential element of client consent.