Final answer:
In Hawaii, agency disclosure is required for commercial leases that are one year or longer. This legal requirement aims to ensure transparency and protect both parties in the transaction. For leases less than a year or if other financial criteria apply, agency disclosure is not required. Option b
Step-by-step explanation:
In Hawaii, the requirement for agency disclosure in a commercial lease transaction is specific. According to Hawaii real estate laws, an agency disclosure is required for a lease that is one year or longer. This means that for any commercial lease that has a term of at least 12 months, the parties involved in the transaction must be provided with an agency disclosure that outlines the roles and duties of the real estate agents representing each party.
Essential components such as fiduciary duties, which party the agent represents, and any dual agency arrangements must be disclosed. The goal of this requirement is to ensure transparency and protect the interests of both the landlord and the tenant in the lease agreement.
Transactions with shorter leases or leases with different financial terms do not require such disclosure. As with any legal document or requirement, the language and terms used can be unclear and confusing, resulting in tenants feeling overwhelmed, especially if they are not familiar with the typical legal jargon involved.
It is often advisable for a tenant to seek clarification from a real estate professional or legal counsel in order to understand their rights and obligations fully. option b