AGENCY

Understanding this is important to you?

 

 

For the protection of all parties in a real estate transaction, the State of Hawaii passed into effect July, 1987 a law requiring all real estate licensees to disclose fully who they represent in a given transaction before a transaction begins. The State of Hawaii recognized two types of agency relationships. Single Agency and Dual Agency. You are advised not to disclose any information you want to be held in confidence until you make a decision on representation.

 

 

Single Agency: This may be either Seller’s Agent or Buyer’s Agent depending upon the intent of the client.

            In a Single Agency Relationship the agent owes the client FUDUCIARY DUTIES; Honesty, Loyalty, Obedience, Diligence, Disclosure, Confidentiality, Accounting and Reasonable Care.

 

Dual Agency: When an agent takes a listing, in order to enter meaningful discussion with any prospective buyer, that agent must request permission to modify the Single Agency relationship to one of Dual Agency. Since all listings belong to the Listing Broker, before an agent begins meaningful discussion with any buyer about any property listed by the firm he or she works for, that agent must disclose the agency obligations he or she has with the seller-client and request the buyer’s permission to modify the prospective buyer’s relationship to one of Dual Agency.

 

            In a Dual Agency Relationship the agent owes both clients these FIDUCIARY DUTIES; Honesty, Loyalty, Obedience, Diligence, Disclosure, Accounting and Reasonable Care, the duty of Confidentiality is modified as follows:

            The agent cannot disclose confidential information we may know about the buyer or seller without the permission of the buyer or seller. The agent cannot disclose the price the Seller will take other than the listing price; or the price the Buyer will pay without written permission from the seller or buyer. They cannot recommend or suggest a price the buyer should offer or the seller should accept.

            Before you begin meaningful discussions about any property, be sure you have read a full disclosure form so that you know who the agent you are talking to is representing. Signing the disclosure form protects both you and the agent but does not constitute an agreement to work exclusively with that agent.

 

No Representation: A buyer or seller may elect not to be represented by an agent in any given transaction. If you select “No Representation” this will not prevent an agent from listing your property, completing and presenting an offer you wish to make, or from collecting a commission. The agent is still charged by the law with acting honestly. A Realtor or Realtor Associate is still charged with upholding the Realtor Code of Ethics. You will, however, have waved the fiduciary protection the law afforded you.