Agency

What is a 'limited agency' in Hawaii real estate and how does it differ from full agency?

AA. An agency relationship created without compensation
BB. An agency where the agent has restricted duties, such as in dual agency where confidentiality obligations to each principal are limited to protect both parties✓ Correct
CC. Agency limited to property management functions only
DD. An agency created without a written agreement

Explanation

Limited agency (sometimes called limited representation) occurs in dual agency, where the agent cannot fully advocate for either party and must balance duties to both. In limited agency, duties like full confidentiality and full disclosure (of the other party's motivations or price limits) may be restricted to avoid putting one client at a disadvantage.

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