An Extended Hawaii Vacation - Real Estate in the Aloha State

When tourists discover the raw beauty and natural wonders of the Hawaiian Islands, it's inevitable that a fair amount of visitors to the island leave their vacation rentals, condos, and hotels after an unforgettable vacation and set their minds to returning on a more permanent basis.

Undoubtedly, a visitor to Hawaii will ask themselves what it might be like to live on the islands in their very own Hawaiian home. Perhaps a vacation rental where their name appears on the other side of the contract. Or maybe a different type of business - a Hawaiian business of their very own.

While types of incorporation and general processes around businesses and real estate are often the same in Hawaii as they are on the mainland, there still exist all the same reasons to do your homework before getting into Hawaii real estate.

The good news about buying property and real estate in Hawaii after your vacation is that you'll be protected by Hawaiian State Law requiring that property sellers make accurate and complete disclosures, in writing, to the property buyer. This article is informative only, and for specific information or for answers to law questions you may want to consult a licensed attorney.

In virtually all real estate contracts, a buyer must review and approve the Seller's Disclosure Statement as a contingency to the contract. Though this article doesn't profess to be an expert in real estate law, here's a general description of the rights of a buyer and responsibilities of a seller with respect to disclosure:

Generally speaking, a homeowner that wishes to sell their property must disclose, in writing, any fact, condition, or defect, past or present, that would be expected to measurably affect the value of the property to a reasonable person. There is a standard disclosure form available from the Hawaii Association of Realtors, and at minimum a written statement must be provided and cover all material facts that can be observed from visible and accessible areas or are within the knowledge or control of the seller. You may also use online legal advice or other legal forms sources to find an acceptable format. It's also noteworthy that no-one other than the property owner may provide this statement it cannot be completed by a real estate agent, lawyer, or anyone else unless the property is theirs.

The buyer, when receiving this disclosure becomes "on notice" of the problems, and the buyer then has the right to investigate the issues and decide if they would like to request any repairs be done by the seller. At this point the buyer and seller must reach an agreement as to what problems need to be fixed and which will not endanger the sale. Often, the willingness of a seller to address these issues has to do with the local real estate market conditions - if the market is particularly hot, a seller is less likely to make fixes and a buyer is less likely to demand them!

Hawaii is indeed a beautiful land and to many, a paradise that you may never want to leave!