RELATING TO REAL ESTATE.

SB2806

THE SENATE

S.B. NO.

2806

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO REAL ESTATE
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
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Chapter 467, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

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"
�467-A
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Exclusive sale prohibited.
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(a)
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No real estate broker shall list
or offer the sale or lease of any residential real estate to a limited or
exclusive group of prospective buyers, real estate brokers, real estate salespersons,
or any combination thereof, unless the real estate is concurrently offered to
the general public and all other real estate brokers and real estate
salespersons, except as reasonably necessary to protect the health or safety of
the owner or occupant.

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(b)
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A violation of this section
shall be an unfair or deceptive act or practice in the conduct of trade or
commerce pursuant to section 480-2 and subject to the penalties under chapter
480.
"

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SECTION
2
.
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Section 467-14, Hawaii Revised Statutes, is
amended to read as follows:

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"
�467-14
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Revocation, suspension, and fine.
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In addition to any other actions authorized by
law, the commission may revoke any license issued under this chapter, suspend
the right of the licensee to use the license, fine any person holding a
license, registration, or certificate issued under this chapter, or terminate
any registration or certificate issued under this chapter, for any cause
authorized by law, including but not limited to the following:

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(1)
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Making
any misrepresentation concerning any real estate transaction;

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(2)
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Making
any false promises concerning any real estate transaction of a character likely
to mislead another;

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(3)
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Pursuing
a continued and flagrant course of misrepresentation, or making of false
promises through advertising or otherwise;

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(4)
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Without
first having obtained the written consent to do so of both parties involved in
any real estate transaction, acting for both the parties in connection with the
transaction, or collecting or attempting to collect commissions or other
compensation for the licensee's services from both of the parties;

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(5)
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When
the licensee, being a real estate salesperson, accepts any commission or other
compensation for the performance of any of the acts enumerated in the
definition set forth in section 467-1 of real estate salesperson from any
person other than the real estate salesperson's employer or the real estate
broker with whom the real estate salesperson associates or, being a real estate
broker or salesperson, compensates one not licensed under this chapter to
perform any such act;

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(6)
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When
the licensee, being a real estate salesperson, acts or attempts to act as a
real estate broker or represents, or attempts to represent, any real estate
broker other than the real estate salesperson's employer or the real estate
broker with whom the real estate salesperson is associated;

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(7)
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Failing,
within a reasonable time, to account for any moneys belonging to others that
may be in the possession or under the control of the licensee;

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(8)
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Any
other conduct constituting fraudulent or dishonest dealings;

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(9)
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When
the licensee, being a partnership, permits any member of the partnership who
does not hold a real estate broker's license to actively participate in the
real estate brokerage business thereof or permits any employee thereof who does
not hold a real estate salesperson's license to act as a real estate
salesperson therefor;

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(10)
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When
the licensee, being a corporation, permits any officer or employee of the
corporation who does not hold a real estate broker's license to have the direct
management of the real estate brokerage business thereof or permits any officer
or employee thereof who does not hold a real estate salesperson's license to
act as a real estate salesperson therefor;

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(11)
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When
the licensee, being a real estate salesperson, fails to file with the
commission a written statement setting forth the name of the real estate broker
by whom the licensee is employed or with whom the licensee is associated;

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(12)
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When
the licensee fails to obtain on the contract between the parties to the real
estate transaction confirmation of who the real estate broker represents;

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(13)
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Violating
this chapter; chapter 484, 514B, 514E, or 515; section 516-71; or the rules
adopted pursuant thereto;

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(14)
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Splitting
fees with or otherwise compensating others not licensed hereunder for referring
business; provided that notwithstanding paragraph (5), a real estate broker may
pay a commission to:

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(A)
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A
licensed real estate broker of another state, territory, or possession of the
United States if that real estate broker does not conduct in this State any of
the negotiations for which a commission is paid;

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(B)
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A
real estate broker lawfully engaged in real estate brokerage activity under the
laws of a foreign country if that real estate broker does not conduct in this
State any of the negotiations for which a commission is paid; or

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(C)
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A
travel agency that in the course of business as a travel agency or sales
representative, arranges for compensation the rental of a transient vacation
rental; provided that for purposes of this paragraph, "travel agency"
means any person that, for compensation or other consideration, acts or
attempts to act as an intermediary between a person seeking to purchase travel
services and any person seeking to sell travel services, including an air or
ocean carrier;

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(15)
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Commingling
the money or other property of the licensee's principal with the licensee's
own;

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(16)
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Converting
other people's moneys to the licensee's own use;

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(17)
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The
licensee is adjudicated insane or incompetent;

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(18)
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Failing
to ascertain and disclose all material facts concerning every property for
which the licensee accepts the agency, so that the licensee may fulfill the
licensee's obligation to avoid error, misrepresentation, or concealment of
material facts; provided that for the purposes of this paragraph, the fact that
an occupant has AIDS or AIDS Related Complex (ARC) or has been tested for HIV
(human immunodeficiency virus) infection shall not be considered a material
fact;

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(19)
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When
the licensee obtains or causes to be obtained, directly or indirectly, any
licensing examination or licensing examination question for the purpose of
disseminating the information to future takers of the examination for the
benefit or gain of the licensee;

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(20)
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Failure
to maintain a reputation for or record of competency, honesty, truthfulness,
financial integrity, and fair dealing;

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(21)
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Acquiring
an ownership interest, directly or indirectly, or by means of a subsidiary or
affiliate, in any distressed property that is listed with the licensee or
within three hundred sixty-five days after the licensee's listing agreement for
the distressed property has expired or is terminated; [
or
]

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(22)
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When
the licensee, being a real estate broker or a real estate salesperson, acting
on behalf of a seller or purchaser of real estate, acts in a manner that
prohibits a prospective purchaser or prospective seller of real estate from
being able to retain the services of a real estate broker or real estate
salesperson[
.
]
; or

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(23)
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Listing
or offering the sale or lease of any residential real estate to a limited or
exclusive group of prospective buyers, real estate brokers, or real estate
salespersons, in violation of section 467‑A.

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For the purposes of paragraphs (1) and
(18), the real estate commission shall consider whether the licensee relied in
good faith on information provided by other persons or third parties.

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As used in this section, "distressed
property" has the same meaning as set forth in section 480E-2.

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Disciplinary action may be taken by the
commission whether the licensee is acting as a real estate broker, or real
estate salesperson, or on the licensee's own behalf."

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SECTION 3.
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This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.

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SECTION 4.
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In codifying the new sections added by section 1 of this Act, the
revisor of statutes shall substitute appropriate section numbers for the
letters used in designating the new sections in this Act.

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SECTION 5.
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Statutory material to be repealed is bracketed and stricken.
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New statutory material is underscored.

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SECTION 6.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Real
Estate; Real Estate Brokers; Public Sale; Exclusive; Unfair Practices

Description:

Prohibits
real estate brokers from listing or offering the sale or lease of residential
real estate to a limited or exclusive group of prospective buyers, real estate brokers,
or real estate salespersons, with limited exceptions.
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Deems the practice an unfair or deceptive
trade or practice subject to penalties and grounds for discipline.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.