Hawaii Agency
Practice Questions & Answers (2026)

Agency law is one of the most tested subjects on the Hawaii real estate exam, and it's also one of the most misunderstood. The Hawaii Real Estate Branch expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Hawaii law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for HI-specific rules are among the most common failures on the state portion.

Practice Questions

Hawaii Agency — Practice Questions & Answers

137 questions on Agency from the Hawaii real estate question bank. First 10 are free — sign up to unlock all 137.

Q1. In Hawaii, what is the term for a licensee who works with a buyer without entering into a formal buyer representation agreement?

A.Buyer's agent
B.Subagent
C.Transactional licensee
D.Non-agent facilitator

Explanation

A transactional licensee in Hawaii assists a party in a transaction without representing them in a fiduciary capacity. This differs from a buyer's agent, who owes full fiduciary duties.

Q2. Which fiduciary duty requires an agent to place the client's interests above all others, including the agent's own interests?

A.Disclosure
B.Loyalty
C.Confidentiality
D.Accounting

Explanation

The duty of loyalty requires an agent to place the client's interests above all others, including the agent's own financial interests. This is a cornerstone fiduciary obligation.

Q3. A seller's agent discovers a material defect in the property that the seller has not disclosed. The agent's duty requires them to:

A.Conceal the defect to protect the seller's interest
B.Disclose the defect to prospective buyers
C.Refuse to show the property
D.Terminate the listing agreement

Explanation

Even a seller's agent must disclose known material defects to buyers. The duty of loyalty to the seller does not override the legal obligation to disclose material facts that affect the property's value or desirability.

Q4. Dual agency in Hawaii is BEST described as:

A.An agent representing two buyers competing for the same property
B.A brokerage representing both the buyer and seller in the same transaction
C.Two different brokerages cooperating on a transaction
D.An agent licensed in two states

Explanation

Dual agency occurs when a single brokerage represents both the buyer and the seller in the same transaction. In Hawaii, dual agency is permitted but requires informed written consent from both parties.

Q5. When does an agency relationship between a broker and seller typically terminate?

A.When the property is shown to a buyer
B.When an offer is received
C.Upon closing or mutual agreement to terminate the listing
D.When the broker receives a commission

Explanation

An agency relationship typically terminates upon completion of the purpose (closing), expiration of the listing term, or by mutual agreement. Receiving an offer or showing the property does not terminate the agency.

Q6. An agent who acts outside the scope of their authority, binding the principal to an unauthorized contract, has committed:

A.Actual agency
B.Ostensible agency
C.Unauthorized practice of law
D.Breach of fiduciary duty

Explanation

Acting beyond the scope of authority and binding the principal to an unauthorized agreement constitutes a breach of fiduciary duty, specifically the duty of obedience. The agent can be held personally liable for resulting damages.

Q7. In Hawaii, a real estate licensee who represents only the buyer in a transaction is known as a:

A.Seller's agent
B.Dual agent
C.Buyer's agent
D.Transaction broker

Explanation

A buyer's agent in Hawaii owes fiduciary duties exclusively to the buyer, including loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting.

Q8. Hawaii's real estate disclosure law requires agency disclosure to be made:

A.Only at closing
B.At the time of first substantial contact with a consumer
C.After an offer is accepted
D.When a listing agreement is signed

Explanation

Hawaii law requires licensees to disclose their agency relationship at the time of first substantial contact with a prospective buyer or seller.

Q9. Under Hawaii agency law, which duty requires a licensee to place the client's interests above all others, including the licensee's own?

A.Disclosure
B.Loyalty
C.Obedience
D.Accounting

Explanation

The fiduciary duty of loyalty requires an agent to place the principal's interests above all others, including their own personal interests.

Q10. In Hawaii, dual agency occurs when a licensee represents:

A.Two buyers competing for the same property
B.Both the buyer and seller in the same transaction
C.A seller and a landlord simultaneously
D.A buyer purchasing two properties

Explanation

Dual agency in Hawaii occurs when a single licensee or brokerage represents both the buyer and the seller in the same real estate transaction. It requires informed written consent from both parties.

Q11. A Hawaii listing agreement that states 'Broker will receive a commission regardless of who sells the property' describes which type of listing?

A.Open listing
B.Exclusive agency listing
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