Hawaii guide

Cooperating Compensation in Hawaii: HiCentral MLS Rules Post-NAR Settlement

Since August 17, 2024, the HiCentral MLS in Hawaii can no longer post offers of buyer-agent pay, so as a buyer you'll usually sign a written agreement that spells out what your agent earns.

Reading as buyer.

TL;DR

Since August 17, 2024, the HiCentral in Hawaii can no longer post offers of buyer-agent pay, so as a buyer you'll usually sign a written agreement that spells out what your agent earns. The fee can still get paid in several ways — through a seller concession in the offer, by you directly, or by a deal between the two brokerages — but you'll want to confirm the source before you write an offer. Hawaii agency law also requires your agent to tell you, in writing, about every source of compensation they receive on your deal.

Before you start — 7 things to know

  • The settlement that took effect on August 17, 2024 stops every Hawaii — including HiCentral on Oahu — from showing how much a seller will pay a buyer's agent.

  • Hawaii buyers sign a written buyer representation agreement before touring most homes, and that contract sets the fee the buyer's agent earns no matter who ultimately pays it.

  • Buyer-agent compensation in Hawaii can come from four sources: the seller agreeing to a concession in the contract, the buyer paying out of pocket, the two brokerages negotiating directly, or the fee being rolled into the sales price as a seller concession.

  • If a buyer-agent fee is added to the purchase price as a seller concession, the buyer's lender must approve it — FHA, VA, and conventional loans each cap how much the seller can credit at closing.

  • A Hawaii buyer's agent is not allowed to call other buyers' agents to compare fees or coordinate rates, because that conduct is an antitrust violation under federal law.

  • Hawaii agency law requires a buyer's agent to disclose, in writing, every source of compensation they receive on the transaction, including any seller concession that exceeds the amount in the buyer agreement.

  • Undisclosed pay from more than one source can cost a Hawaii agent their license and force them to return the hidden money, so a buyer should insist on full written disclosure of all compensation.

The timeline — step by step

  1. Sign a written buyer representation agreement with the Hawaii agent that lists the fee, how it can be paid, and what happens if a seller offers less than the agreed amount.

  2. Before writing an offer in Hawaii, have the buyer's agent contact the listing brokerage directly to ask whether the seller will agree to a concession toward buyer-agent compensation.

  3. Write the Hawaii offer with a clear seller-concession line for buyer-agent compensation, or plan to pay the buyer's agent personally at closing if the seller will not contribute.

  4. Send the proposed seller-concession amount to the buyer's lender so they can confirm it fits within FHA, VA, or conventional loan limits before the offer is signed.

  5. Get a written disclosure from the buyer's agent listing every source of compensation they will receive on the deal before signing the Hawaii purchase contract.

  6. At the Hawaii closing, confirm the settlement statement shows the buyer-agent fee paid from the source — seller concession, buyer funds, or brokerage agreement — that the purchase contract named.

Common questions

Why can't I see buyer-agent pay listed on Hawaii MLS listings anymore?
The settlement effective August 17, 2024 bars the HiCentral and every other Hawaii from displaying offers of buyer-agent compensation in any listing field.
Do I have to pay my Hawaii buyer's agent directly now?
Not necessarily — a Hawaii buyer can still have the seller pay through a concession, have the two brokerages work it out, or roll the fee into the price, but the buyer agreement says what is owed if nobody else covers the full fee.
Can I roll my buyer-agent fee into the purchase price in Hawaii?
Yes, but only if the lender allows it; FHA, VA, and conventional loans each cap seller concessions, so confirm with the loan officer before writing the offer.
How do I know my Hawaii agent isn't getting paid extra without telling me?
Hawaii agency law requires the buyer's agent to disclose every source of compensation in writing, so ask for that disclosure before signing the purchase contract.
Is it normal for my Hawaii agent to refuse to discuss fees with other buyer's agents?
Yes — federal antitrust law prevents agents from coordinating fees with competitors, so any compensation conversation has to happen with the seller or the listing agent on a specific deal.

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