Hawaii guide

Hawaii Buyer Representation Agreements Post-NAR Settlement

In Hawaii, an agent must have you sign a written buyer representation agreement before they show you a home, because of NAR settlement rules that took effect August 17, 2024.

Reading as buyer.

TL;DR

In Hawaii, an agent must have you sign a written buyer representation agreement before they show you a home, because of settlement rules that took effect August 17, 2024. You also need to sign a separate Hawaii agency disclosure form when you set up an agency relationship with that agent. The agreement has to spell out exactly how your agent gets paid and for how long, so there are no surprises later.

Before you start — 10 things to know

  • Since August 17, 2024, any agent who is a member of or uses an NAR-affiliated (which includes HiCentral MLS here in Hawaii) must get a signed written buyer representation agreement from you before touring a home together.

  • Hawaii adds an extra step on top of the federal settlement rules: the Hawaii Real Estate Commission requires a signed agency disclosure form anytime you start a real buyer-agent relationship, so you will be signing two documents, not one.

  • The buyer agreement has to state exactly how much your agent will be paid, either as a flat fee or a percentage of the purchase price, and it cannot say the seller or the will decide the amount.

  • Most Hawaii agents use the Hawaii Association of Realtors form and write the fee as 2-3% of the purchase price, but every number in that contract is negotiable before you sign it.

  • The agreement must include a clear start and end date, so make sure you understand how long you are committed to that agent before you sign anything.

  • Many Hawaii agreements include a credit clause: if the seller or listing brokerage offers to cover the buyer-side fee, that money is applied first and you only pay the difference, if any.

  • If the seller's contribution covers your agent's full fee, you owe nothing out of pocket for representation, but if it falls short you make up the gap at closing.

  • If an agent shows you homes or writes an offer without a signed agreement and only hands you paperwork at closing, that is a violation of both settlement rules and Hawaii agency law.

  • Courts have refused to pay agents who collected a commission without a signed buyer agreement in place first, which is one reason your agent will be strict about getting your signature up front.

  • You can sign a one-tour or one-property version of the agreement first if you are not ready to commit to a long-term relationship, then switch to a broader contract once you trust the agent.

The timeline — step by step

  1. Before your first showing in Hawaii, the agent sends you both the Hawaii Real Estate Commission agency disclosure form and a written buyer representation agreement to review.

  2. You read the agreement and ask questions about the fee amount, the length of the term, and what happens if a seller offers to cover part of the buyer-side fee.

  3. You negotiate the percentage or flat fee with your agent in writing, since the settlement requires the amount to be set between the two of you and not by the or seller.

  4. You sign both the Hawaii agency disclosure and the buyer representation agreement before stepping into any home for a tour.

  5. When you find a home, your agent checks whether the seller is offering buyer-side compensation and confirms in writing how that will offset your agreed fee.

  6. At closing, any seller concession toward your agent's fee is applied first, and you pay only the remainder, if there is one, from your funds.

  7. After closing, the agreement ends on the date listed in the contract, freeing you to work with a different agent on your next purchase if you choose.

Common questions

Do I really have to sign a buyer representation agreement before touring a home in Hawaii?
Yes, if your agent is a member of or uses an NAR-affiliated like HiCentral MLS, the settlement that took effect August 17, 2024 requires a signed written agreement before any tour.
Why is my Hawaii agent also asking me to sign an agency disclosure form?
Hawaii law has required a signed agency disclosure to start a buyer-agent relationship for years, and that rule still applies on top of the new federal buyer agreement requirement.
How much does my buyer's agent get paid under this agreement?
The amount is set in the agreement you sign and is commonly 2-3% of the purchase price in Hawaii, though every fee is negotiable before you sign.
What happens if the seller offers to cover my agent's fee?
That seller contribution is applied first toward the amount in your agreement, and you only pay the difference at closing if the seller's offer is smaller than your agreed fee.
Can the agreement just say the [[MLS]] or seller will set my agent's pay?
No, the settlement specifically bans that language and requires your compensation to be defined between you and your agent in writing.
What if an agent shows me homes without ever giving me an agreement to sign?
That violates settlement rules and Hawaii agency law, and courts have refused to enforce commission claims by agents who skipped this step.
How long does the buyer representation agreement last?
The agreement must state its start and end dates, so check the term before signing and ask to shorten it if you want to keep your options open.
Can I sign a short agreement just for one showing or one home?
Yes, you can ask for a single-property or single-tour version first and only commit to a broader agreement after you decide you want to keep working with that agent.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.

Sources

  1. [1]
  2. [2]

Last updated