What is the correct procedure when a buyer who is a client of a broker wants to purchase a property that the broker has listed?

When a buyer who is a client of a broker wishes to purchase a property that the broker has listed, the correct procedure is to ensure that both the seller and buyer are informed and agree to the broker representing both parties. This situation creates a dual agency scenario, where the broker simultaneously represents the interests of both the seller and the buyer.

In Hawaii, as elsewhere, it’s crucial to maintain transparency and ethical practices in real estate transactions. Informed consent is fundamental in dual agency situations. Both parties must be aware of the broker's role and potential conflicts of interest. By having both the seller and the buyer agree to this arrangement, the broker can ensure compliance with local real estate laws and maintain trust in the transaction. This agreement helps protect the interests of all parties involved and upholds the fiduciary responsibilities owed by the broker.

The recommended practice of obtaining informed consent from both the seller and buyer not only aligns with industry ethical standards but also fosters a cooperative environment, which can ultimately facilitate a smoother transaction.