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Hawaii Real Estate Agents Face New Penalties for Off-Market Listings

·5 min read·👀 Watch

Executive Summary

Proposed legislation could penalize real estate agents for engaging in private or off-market property sales, a common practice in Hawaii. This change may impact listing strategies, transaction timelines, and agent commissions.

  • Real Estate Owners: May experience wider market exposure for their properties, potentially affecting sale price and speed.
  • Real Estate Agents: Face potential fines and disciplinary action, necessitating a shift in operational practices.
  • Action: Watch for bill passage and monitor industry group responses.

Watch & Prepare

High PriorityBill passage timeline TBD

The bill is proposed and could become law, requiring agents to alter their business practices if enacted, impacting ongoing sales and future strategies.

Monitor the legislative status of Hawaii House Bill 1919. Watch for committee hearing dates and voting records. If the bill moves forward past initial readings, consult with your legal counsel or real estate board regarding interim compliance strategies. Be prepared to adjust listing agreements and client consultations by the time the legislature adjourns or the governor signs the bill into law.

Who's Affected
Real Estate Owners
Ripple Effects
  • →Restriction of private listings → increased MLS inventory in a constrained market → potentially longer days on market → potential price pressure on sellers.
  • →Fewer private sale options for sellers → increased reliance on MLS → greater competition for buyer attention.
A realtor finalizes a home sale with a handshake agreement, welcoming new homeowners to their property.
Photo by Thirdman

The Change

Hawaii House Bill 1919, introduced in early 2026, proposes to classify the practice of exclusively marketing properties privately or off-market as an unfair trade practice. If enacted, this would subject licensed real estate agents to penalties, which could include fines and disciplinary actions from the Hawaii Real Estate Commission. The bill aims to increase market transparency by requiring properties to be listed on the Multiple Listing Service (MLS) to ensure broader public access and competitive bidding. The exact timeline for potential enactment is undetermined, but legislative processes typically involve committee hearings, votes, and a governor's signature if passed.

Who's Affected

Real Estate Owners For property owners, particularly those seeking a discreet sale or a potentially faster transaction through a private listing, this bill could mean a significant shift. If HB 1919 becomes law, sellers may no longer have the option to exclusively market their property to a select group of buyers or through off-market channels without their agent facing repercussions. This could lead to increased exposure on the MLS, potentially driving up competition and sale prices, but also potentially extending the time properties are on the market if they don't attract immediate interest from the broader pool of buyers.

Real Estate Agents Licensed real estate agents in Hawaii who have historically relied on private listing agreements, often for clients seeking privacy or as a way to test the market, will need to fundamentally alter their business models. The potential for fines and disciplinary action means agents must ensure all sales activities comply with the new regulations once enacted. This could reduce the perceived value of their services for clients who specifically desire a non-MLS sale, and may also impact commission structures if the process becomes more standardized and less bespoke.

Second-Order Effects

The restriction of private listings could increase inventory on the public MLS. In Hawaii's constrained housing market, a sudden influx of properties onto the MLS, without a corresponding increase in buyer demand or new construction, could lead to longer average days on market. If properties sit longer, it might pressure sellers to lower prices to attract buyers. This, in turn, could indirectly affect property owner equity and developer sales projections. If agents face fewer avenues for private sales, more transactions will flow through the MLS, potentially increasing foot traffic to open houses and demand for agent services in a competitive bidding environment.

What to Do

Real Estate Owners If you are considering selling your property, monitor developments surrounding HB 1919. If the bill progresses towards passage, consult with your agent about how listing strategies might need to adapt to ensure compliance. Be prepared for a potential shift towards MLS-exclusive listings.

Real Estate Agents Engage with industry associations like the Hawaii Association of REALTORS to stay informed on the bill's progress and potential implications. Review your current contracts and standard operating procedures for private listings. Understand the penalties outlined in the bill and consider how you will pivot your services if the legislation is enacted. Focus on educating clients about the potential new regulatory landscape and the benefits of broad MLS exposure.

Action Details Monitor the legislative status of Hawaii House Bill 1919. Watch for committee hearing dates and voting records. If the bill moves forward past initial readings, consult with your legal counsel or real estate board regarding interim compliance strategies. Be prepared to adjust listing agreements and client consultations by the time the legislature adjourns or the governor signs the bill into law.

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