Agency

What is 'agent disclosure of personal interest in nearby properties' in Hawaii ethics?

AA. Agents have no obligation to disclose personal real estate interests unless directly asked
BB. Agents should disclose to clients any personal ownership interest or financial interest in properties adjacent to or affecting the subject property, as this could create a conflict of interest✓ Correct
CC. Disclosure of personal interests is only required for commercial real estate agents in Hawaii
DD. Personal interests in nearby properties are considered fully separate from the agent's representation duties

Explanation

If an agent has a personal financial interest (owned property, options, pending transactions) in properties adjacent to or otherwise affecting a subject property, this should be disclosed to clients. For example, an agent who owns the adjacent lot may have an interest in the subject property's development decisions. Full disclosure prevents conflicts of interest from affecting the client's decision-making.

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