Hawaii Real Estate State Practice Exam

Which of the following duties remain in effect after the termination of an agency relationship?

1. Confidentiality and accounting

2. Full authority and representation

3. Communication and negotiation

4. Marketing and property management

The correct answer is: Confidentiality and accounting

After the termination of an agency relationship, certain duties continue to apply to protect the interests of the parties involved, particularly the duty of confidentiality and the duty of accounting. The duty of confidentiality requires the agent to keep any sensitive information disclosed by the principal during the agency relationship private, even after the relationship has ended. This ensures that the principal’s interests and proprietary information remain secure, which is crucial in maintaining trust and integrity in real estate transactions. The duty of accounting obligates the agent to provide a transparent and accurate account of any funds or property they have managed on behalf of the principal. After termination, the agent is still responsible for honoring any obligations related to financial matters that were handled during the course of the agency, ensuring that the principal's assets have been managed and reported correctly. In contrast, duties such as full authority and representation, communication, negotiation, and marketing are inherently tied to the agency relationship itself and cease to exist once that relationship is terminated. This distinction emphasizes the ongoing importance of confidentiality and accounting duties, which serve to safeguard the principal's information and financial interests even after the formal agency agreement has concluded.