SB2806 would prohibit Hawaii real estate brokers from marketing residential real estate for sale or lease to a limited or exclusive group of prospective buyers, brokers, or salespersons unless the property is also concurrently offered to the general public and all other brokers and salespersons. The bill creates a narrow exception where limiting exposure is reasonably necessary to protect the health or safety of the owner or occupant. It also makes a violation an unfair or deceptive act or practice under Hawaii’s consumer protection law, subjecting violators to chapter 480 penalties.
The measure also amends the real estate licensing discipline statute, section 467-14, to add this prohibited exclusive-listing practice as an explicit ground for revocation, suspension, fines, or other disciplinary action by the Real Estate Commission. In effect, the bill ties the new marketing restriction to both consumer protection enforcement and professional licensing enforcement, expanding the consequences for brokers who engage in exclusive or off-market residential listings outside the stated exception.
Impact
The bill would amend chapter 467, Hawaii Revised Statutes, by adding a new prohibition on exclusive or limited-group marketing of residential real estate and by updating the list of disciplinary offenses for licensed real estate professionals. It also cross-references chapter 480 by classifying a violation as an unfair or deceptive act or practice, which brings the conduct within Hawaii’s general consumer protection enforcement framework. The practical effect is to require broader market exposure for residential listings and to give the Real Estate Commission and consumer protection authorities additional tools against brokers who restrict access to listings.
Sentiment
The available voting history suggests the bill was received favorably in committee. It passed the Senate Commerce and Consumer Protection Committee 5-0 with amendments and then passed the Senate Judiciary Committee 5-0 without amendment. No committee transcripts were provided, so there is no recorded debate to indicate broader public or stakeholder sentiment, but the unanimous votes point to general support at the committee level.
Contention
The main policy issue is the balance between open access to residential listings and the ability of brokers or owners to use limited distribution for privacy, safety, or other controlled-sale purposes. The bill’s exception for health or safety concerns appears designed to address that concern, but the text otherwise takes a firm position against exclusive or limited-group marketing. Another point of potential contention is the bill’s enforcement approach: by labeling the conduct an unfair or deceptive trade practice and a licensing violation, it exposes brokers to both consumer penalties and professional discipline, which may be viewed as a strong deterrent. No specific opposing arguments are documented in the provided materials.
Revises continuing education requirements for real estate licensees and regulation of certain real estate continuing education providers, instructors, and courses.
Revises continuing education requirements for real estate licensees and regulation of certain real estate continuing education providers, instructors, and courses.