Hawaii Pre-Licensing National Practice Exam 2026 – Your Complete Prep Guide

The misconception regarding the disclosure of agency lies in the understanding of how dual agency operates. The idea that an agent can represent both the buyer and the seller simply through oral disclosure is incorrect because it undermines the principles of transparency and informed consent that govern fiduciary relationships in real estate.

In reality, for an agent to represent both parties, they must obtain written consent from both the buyer and the seller. This written agreement ensures that all parties are fully aware of the dual relationship and the potential conflicts of interest that may arise. Oral disclosures alone do not provide the necessary level of clarity or legal protection for either party involved in the transaction.

Furthermore, the requirement for agents to disclose their status in writing before presenting properties is a standard practice aimed at ensuring that all parties understand who represents whom, thus avoiding potential misunderstandings or disputes. The notion that an agent retains rights even in dual agency situations speaks to the nature of fiduciary duties but does not address the critical need for written consent in representing both parties effectively.

Thus, the misconception identified in the choice refers to the insufficient nature of oral disclosure as it relates to dual agency representation.