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:

DutyDescription
LoyaltyPut seller's interests first
ConfidentialityProtect seller's private information
DisclosureReveal all material facts to seller
ObedienceFollow seller's lawful instructions
AccountingAccount for all funds
Care and diligenceCompetent representation

Buyer's Agent

A licensee who represents the buyer exclusively:

DutyDescription
LoyaltyPut buyer's interests first
ConfidentialityProtect buyer's private information
DisclosureReveal all material facts to buyer
ObedienceFollow buyer's lawful instructions
AccountingAccount for all funds
Care and diligenceCompetent representation

Dual Agent

A licensee representing both buyer and seller in the same transaction:

RequirementDescription
Written consentBoth parties must agree in writing
DisclosureMust disclose limited representation
NeutralityCannot favor either party
ConfidentialityCannot disclose party's confidential info to other

Disclosure Requirements

Timing of Disclosure

Disclosure must be made at first substantive contact:

SituationWhen to Disclose
Listing propertyBefore signing listing agreement
Working with buyerBefore showing properties
Open houseWhen buyer shows interest beyond casual

Written Disclosure Form

Hawaii requires written agency disclosure that includes:

ElementDescription
Type of agencySeller's agent, buyer's agent, or dual
Duties owedExplanation of what each party can expect
ConsentSignature acknowledging disclosure

Client vs. Customer

Understanding the distinction:

ClientCustomer
Has agency relationshipNo agency relationship
Owed fiduciary dutiesOwed honesty only
Represented by licenseeNo representation
Confidentiality protectedNo confidentiality obligation

Fiduciary Duties

OLD CAR Mnemonic

Remember fiduciary duties as OLD CAR:

LetterDutyDescription
OObedienceFollow lawful instructions
LLoyaltyPut client's interests first
DDisclosureReveal material facts
CConfidentialityProtect private information
AAccountingAccount for all funds
RReasonable careExercise skill and diligence

Duties to Non-Clients (Customers)

Even without agency, licensees owe:

DutyDescription
Honest dealingNo misrepresentation
Material fact disclosureDisclose known defects
Fair treatmentNo 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

RequirementDescription
Written disclosureExplain limited representation
Written consentBoth parties must sign
NeutralityCannot advocate for either party
No price adviceCannot 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:

DutyDescription
Supervise agentsEnsure proper agency disclosure
Train licenseesOn agency law and disclosure
Review transactionsVerify proper documentation
Maintain recordsKeep disclosure forms

When Agency Changes

If agency relationship changes during transaction:

StepAction
1Provide new written disclosure
2Obtain written consent
3Explain new duties and limitations
4Document in transaction file
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Hawaii Agency Relationships
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