Hawaii Real Estate State Practice Exam

Prior to presenting an offer to an unlisted seller, must the broker disclose their representation status?

1. Yes, to the seller

2. No, only to the buyer

3. Only if asked

4. Not necessary for for-sale-by-owner properties

The correct answer is: Yes, to the seller

In real estate transactions, transparency and ethical practices are paramount to maintaining trust between parties involved. When a broker works with an unlisted seller, it is essential for them to disclose their representation status to the seller. This means the broker must clarify whether they are representing the buyer, the seller, or acting as a facilitator in the transaction. By disclosing their representation status, the broker ensures that the seller understands the dynamics of the relationship and the broker's role in the negotiation process. This disclosure helps establish clear expectations and can prevent potential conflicts of interest. In a market like Hawaii, where transactions can be competitive and complex, such communication fosters a better working relationship and promotes ethical standards. This requirement holds true regardless of whether the property is listed with another brokerage or is a for-sale-by-owner situation. It's important for all parties to be fully aware of who is representing whom, which reinforces the integrity of the transaction and helps to protect the interests of everyone involved.