Real estate fraud?

[Rob Tucker]

In this county there is little firm ground on which to base an opinion. A well connected property owner may well have gotten a variance to allow three rental units. Happens when one has "friends" downtown.

I say the realtor is not an issue here.

[kalakoa]

what's wrong with being upfront, complete disclosure?

As is currently required for any "residential" (by zoning) transaction...

[Carey]

IF the postcard only says "great investment house with three rentals units", AND has not said these are rental units for DWELLING (people may want rental units for storage or other legal reasons, that have nothing to do with dwellings), then there is no issue with the "legal multiple dwellings or transferable Ohanas in A1"

[PaulW]

"Tell me again why we need realtors?"

We don't.

[kalakoa]

people may want rental units for storage

Sounds like a "warehouse" which incurs all code sections relevant thereto.

All arguments are ultimately specious until the appropriate County authorities are involved ... remember, they can barely keep up with "complaint-driven", there's just no way they have time to look through real estate listings for evidence of building code violations.

[Obie]

"Tell me again why we need realtors?"

Actually this would be a good reason to have a reputable buyers agent.My wife was an agent for over 20 years and only had about 2 or 3 listings.These were as favors for friends.

She worked as a buyers agent and she advised buyers on problems just like this.

[Obie]

This is from the listing.

"Information herein deemed reliable but not guaranteed. Buyer and Buyers agent to do their own due diligence on all pertinent facts."

https://www.hawaiirealestatesearch.com/l...aii-96749/

The extra bedrooms are unpermitted.

[reni]

Aloha kalianna,
you posted the question to me
" Reni, what you're saying makes sense in terms of personal responsibility, but that is different than doing something illegal. What planning rules are being broken by selling existing dwellings?"

No planning rules are being broken by "selling."

My understanding of the beginning of Seeb's thread was whether or not a Real Estate agent was involved in real estate fraud. Seeb's first thread is just below...

"I get one of those real estate postcards today advertising a place in HPP it says great investment house with three rentals units. As Far as I know there are no legal multiple dwellings or transferable Ohanas in A1. So are they just outright lying. Or do all those pesky planing rules not apply to real estate agents?"

Based on the information, No, I do not think the Realtor has done anything illegal. This was my first response below.

"True, it is not the job of a Realtor to disclose . It is the owner's legal responsibility.
All fair and good if the prospective buyer knows the questions to ask and does not rely solely on the listing agent's hype. Unfortunately this is not always the case.
More legal accountability needs to be placed on the agent."

Rob points out that the rentals might be legal. Another has suggested that the rentals might be legal ag buildings, maybe (chicken coops my example.)

The possible illegality would be 4 "dwellings" on one lot in A-1 zoning..

That these structures might be illegal is not what I am concerned about. My concern is when one markets them for sale to others.

Without complete disclosure, a buyer may not fully understand that what he is buying is NOT what he thinks he is buying. People come from different countries, from the mainland. Some are first time buyers and haven't a clue as to our zoning restrictions or required occupancy certificates..

Realtors do. I was one. They know they are not legally bound by their hype of a property. Many sell "dreams" and unfortunately people will fall and hear what they want to hear. In my opinion, one of the worst mistakes for a buyer to make is to go directly to the listing agent and believe that the selling agent will represent only his best interests.
The selling agent is representing the "sale" first.

I agree with Obie. A Buyer's Agent does give a potential buyer an added layer of representation.
But I think a disclosure form from the agent received by a potential buyer would be so much more helpful than a typical sales pitch followed by a disclaimer form.

[HereOnThePrimalEdge]

A Buyer's Agent does give a potential buyer an added layer of representation.

I looked at some acreage listed for sale a few years ago. The sellers agent told me the sellers wouldn’t pay for a survey. I knew approximately where two of the corners were located and thought I could eyeball the other two. When I contacted another real estate agent who would represent me throughout the the transaction, the first thing she said was “I can’t recommend you proceed without a survey. You won’t know exactly what you’re buying.” It was good advice.

[kalakoa]

They know they are not legally bound by their hype of a property.

"All these roads will be paved soon..."