In which situation must the Seller's Real Property Disclosure be made?

The requirement for the Seller's Real Property Disclosure in Hawaii is generally applicable in transactions involving residential property. In the context presented, the correct scenario is when a licensed real estate agent is facilitating the sale of a two-unit residential property. This requirement ensures that potential buyers are informed about the property’s condition, any known defects, or issues that may affect its value or desirability.

In Hawaii, the Seller's Real Property Disclosure form is mandated to be provided by the seller or their agent to prospective buyers unless the transaction falls under certain exceptions. When a real estate licensee is involved in the sale of a residential property—such as a two-unit residence—the seller is obligated to provide this disclosure. This practice promotes transparency and protects the interests of buyers.

Other scenarios, such as a sale to a co-owner, a foreclosure sale, or conveyance between former spouses, may have different rules regarding disclosure obligations. For example, in a foreclosure sale, the lender may not have complete knowledge of the property's condition, thus often exempting it from disclosure requirements. In the case of property transfers between ex-spouses, it is typically not viewed as a traditional sale by an independent party; therefore, it may not require the disclosure form to be used.