Hawaii Real Estate State Practice Exam

What is the primary purpose of agency disclosure in Hawaii?

1. To avoid lawsuits

2. To keep everything above board

3. To protect the agent's commission

4. To clarify the property value

The correct answer is: To keep everything above board

The primary purpose of agency disclosure in Hawaii is to keep everything above board. This means that agency disclosure ensures transparency in the relationship between real estate agents, clients, and third parties. It is designed to inform consumers about the nature of the agency relationship, including their rights and obligations. By providing clear disclosure, it allows all parties involved to understand who is representing whom, what duties the agent has, and how those roles affect the transaction. This fosters trust and helps prevent misunderstandings, fostering a more predictable and ethical real estate environment. Other options, while they may be secondary benefits, do not capture the foundational intent of agency disclosure as effectively as ensuring transparency and clarity in the agency relationship.