Key Takeaways
- Hawaii requires written disclosure of agency relationships at first substantive contact
- Dual agency is permitted in Hawaii with proper written disclosure and consent from all parties
- Licensees owe fiduciary duties to clients including loyalty, confidentiality, obedience, and accounting
- Hawaii distinguishes between clients (agency relationship) and customers (no agency relationship)
- The seller disclosure form must include the agency relationship being offered
Last updated: January 2026
Hawaii Agency Relationships
Hawaii law requires real estate licensees to clearly disclose their agency relationships to all parties in a transaction.
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Types of Agency Relationships
Seller's Agent
A licensee who represents the seller exclusively:
| Duty | Description |
|---|---|
| Loyalty | Put seller's interests first |
| Confidentiality | Protect seller's private information |
| Disclosure | Reveal all material facts to seller |
| Obedience | Follow seller's lawful instructions |
| Accounting | Account for all funds |
| Care and diligence | Competent representation |
Buyer's Agent
A licensee who represents the buyer exclusively:
| Duty | Description |
|---|---|
| Loyalty | Put buyer's interests first |
| Confidentiality | Protect buyer's private information |
| Disclosure | Reveal all material facts to buyer |
| Obedience | Follow buyer's lawful instructions |
| Accounting | Account for all funds |
| Care and diligence | Competent representation |
Dual Agent
A licensee representing both buyer and seller in the same transaction:
| Requirement | Description |
|---|---|
| Written consent | Both parties must agree in writing |
| Disclosure | Must disclose limited representation |
| Neutrality | Cannot favor either party |
| Confidentiality | Cannot disclose party's confidential info to other |
Disclosure Requirements
Timing of Disclosure
Disclosure must be made at first substantive contact:
| Situation | When to Disclose |
|---|---|
| Listing property | Before signing listing agreement |
| Working with buyer | Before showing properties |
| Open house | When buyer shows interest beyond casual |
Written Disclosure Form
Hawaii requires written agency disclosure that includes:
| Element | Description |
|---|---|
| Type of agency | Seller's agent, buyer's agent, or dual |
| Duties owed | Explanation of what each party can expect |
| Consent | Signature acknowledging disclosure |
Client vs. Customer
Understanding the distinction:
| Client | Customer |
|---|---|
| Has agency relationship | No agency relationship |
| Owed fiduciary duties | Owed honesty only |
| Represented by licensee | No representation |
| Confidentiality protected | No confidentiality obligation |
Fiduciary Duties
OLD CAR Mnemonic
Remember fiduciary duties as OLD CAR:
| Letter | Duty | Description |
|---|---|---|
| O | Obedience | Follow lawful instructions |
| L | Loyalty | Put client's interests first |
| D | Disclosure | Reveal material facts |
| C | Confidentiality | Protect private information |
| A | Accounting | Account for all funds |
| R | Reasonable care | Exercise skill and diligence |
Duties to Non-Clients (Customers)
Even without agency, licensees owe:
| Duty | Description |
|---|---|
| Honest dealing | No misrepresentation |
| Material fact disclosure | Disclose known defects |
| Fair treatment | No discrimination |
Dual Agency in Hawaii
When Dual Agency Arises
Dual agency occurs when:
- Same licensee represents both buyer and seller
- Same brokerage has agents on both sides
- Seller's agent also procures the buyer
Requirements for Dual Agency
| Requirement | Description |
|---|---|
| Written disclosure | Explain limited representation |
| Written consent | Both parties must sign |
| Neutrality | Cannot advocate for either party |
| No price advice | Cannot advise on price negotiations |
Prohibited Actions in Dual Agency
Dual agents cannot:
- Disclose seller's lowest acceptable price
- Disclose buyer's highest offer willingness
- Advise either party on negotiation strategy
- Advocate for one party over the other
Broker Supervision
Principal Broker Responsibility
The Principal Broker must:
| Duty | Description |
|---|---|
| Supervise agents | Ensure proper agency disclosure |
| Train licensees | On agency law and disclosure |
| Review transactions | Verify proper documentation |
| Maintain records | Keep disclosure forms |
When Agency Changes
If agency relationship changes during transaction:
| Step | Action |
|---|---|
| 1 | Provide new written disclosure |
| 2 | Obtain written consent |
| 3 | Explain new duties and limitations |
| 4 | Document in transaction file |
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Test Your Knowledge
When must agency disclosure be made in Hawaii?
A
B
C
D
Test Your Knowledge
Is dual agency permitted in Hawaii?
A
B
C
D