Ferrari Pacific Realty Corporation

Agency in Hawaiian Real Estate

Agency is really nothing more than who represents whom in the transaction.  There are some legal ramifications as well which work in your, the consumers, best interest.

According to Section A: Agency Disclosure on the Deposit Receipt Offer & Acceptance (DROA) purchase agreement, “The Buyer and/or Seller in a real estate transaction in Hawaii may retain a real estate Brokerage Firm as their agent.  In such case, the Buyer and/or Seller is represented by the Brokerage Firm and all of its licensees.  Hawaii law requires real estate licensees to disclose orally or in writing to Seller and /or Buyer whom the licensee represents.  The form or representation may be one of the following:

Seller’s Agent. Brokerage Firm represents Seller only unless a disclosed dual agency exists.  Seller’s Agent owes the highest duties to Seller, including confidentiality, loyalty, and utmost care.

Buyer’s Agent.  Brokerage Firm represents Buyer only unless a disclosed dual agency exists.  Buyer’s Agent owes the highest duties to Buyer, including confidentiality, loyalty, and utmost care.

Dual Agent.  Brokerage Firm represents both Buyer and Seller.  This commonly occurs when licensees in the Brokerage Firm representing Seller have Buyer clients looking for types of property similar to Seller’s property.  In such event, the Brokerage Firm and all of its licensees represent both Buyer and Seller and are dual agents.  Dual agents must remain neutral in negotiations and must not advance the interest of one party over the other.  A separate Dual Agency Agreement is required under Hawaii Law.

In some cases a Buyer or Seller may be treated as a Customer.  When you are a customer you are representing yourself.  Customers are recommended to seek legal counsel prior to signing a DROA.

Whether we represent the Seller or the Buyer there are certain criteria that must be met per the National Association of REALTORS Code of Ethics.  If we’re in a dual agency relationship as agreed to by both Buyer and Seller, we will provide the following:

We will treat both parties fairly and honestly.

WE will provide helpful information about the property and neighborhood to both parties.

We will respond accurately to questions about the property.

We must disclose all material facts pertaining to the property know to us by state law.

We will disclose financial qualifications of Buyers to Sellers.

We will explain real estate terms and procedures to both parties

We will help Buyers arrange for property inspections

We will explain closing costs and procedures

We can help Buyers compare various financing alternatives

We will provide Enhanced Market Analysis to both parties so they will be equally informed as to market value

We will assist with the standard offer form, which includes the necessary protections and disclosures for the Sellers and Buyers

We will work diligently to facilitate the sale and will advise when experts should be retained i.e., attorney, CPA, architect, etc.

There are some things we can not do when we are in the Dual Agency relationship so that both parties are protected:

We cannot disclose confidential information that we may know about the Sellers and/or Buyers motivation to buy/sell, acceptable price or terms for either party, or any negotiating strategies unless so directed in writing by the effected party.

We cannot disclose the price the Buyer is willing to pay without written permission from the Buyer.

We cannot disclose the price the Seller will take other than the Listing price without written permission of the Seller.

We cannot recommend or suggest a price the Buyer should offer or pay for the property.

We cannot recommend or suggest a price the Seller should accept or counter.

Whatever agency agreement we have with you we will respect it and fully comply with our fiduciary responsibility to you.