How it works on Oʻahu
The Hawaiʻi purchase contract, contingencies, the seller's disclosure (SRPDS), inspections, escrow, and Hawaiʻi-only costs like HARPTA and conveyance tax, explained in plain language.
A typical Oʻahu sale with a loan closes in about 30 to 45 days after the offer is accepted. Cash deals can close faster. Every deadline below is set in your contract, so yours may differ.
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Both sides sign the purchase contract. The clock on every deadline starts now.
The buyer's earnest money deposit goes to the escrow company named in the contract.
The seller delivers the disclosure statement, the buyer inspects, and everyone reviews the preliminary title report and any condo documents. Most contingency deadlines fall here.
The lender orders the appraisal and works toward final loan approval.
A licensed inspector checks for termites, and any recommended treatment is completed before closing.
Buyer and seller sign a few days before closing. The sale closes when the deed records with the state, and the keys change hands.
Most Oʻahu sales use the standard purchase contract from the Hawaiʻi Association of REALTORS®. It covers the price, deposits, closing date, who pays which costs, and a set of deadlines that protect both sides.
A contingency is a condition in the contract that lets the buyer cancel, usually with the deposit returned, if something isn't right. Here are the ones that come up in almost every Oʻahu sale.
Gives the buyer a set number of days to inspect the home and either accept it, ask for repairs or credits, or cancel. On the standard Hawaiʻi contract the buyer can disapprove the inspection for any reason within that period.
Commonly about 7 to 14 days, but it's whatever you negotiate.
Protects a buyer who can't get the loan. If the buyer doesn't receive a loan commitment by the date in the contract, they can cancel before that date.
Cash buyers usually don't include one, which can make their offer more attractive.
If the lender's appraisal comes in below the price, the loan amount may drop. Buyer and seller can renegotiate, the buyer can cover the gap in cash, or the buyer may be able to cancel, depending on the contract terms.
VA loans include extra appraisal protections for veterans.
After receiving the seller's disclosure statement (SRPDS), the buyer has a set time to review it and cancel if they don't accept it. The same right applies to amended disclosures and to important information discovered later.
See the SRPDS section for the legal deadlines.
Escrow orders a preliminary title report showing ownership, liens, easements, and recorded restrictions. The buyer gets a short window after receiving it to object or cancel.
For condos and many planned communities, the buyer gets a review period for the association's documents: budget, reserves, minutes, insurance, and house rules.
See our condo guide for what to look for.
The Seller's Real Property Disclosure Statement is where the seller discloses material facts they know about the property. Hawaiʻi law (HRS chapter 508D) requires it in most residential sales.
Foreclosures and certain other transfers are exempt, so ask early if you're buying or selling one of those.
On top of a standard home inspection, these are the island issues we look at on every purchase.
Termites are a fact of island life. A licensed inspector checks the home, usually about two weeks before closing so the report is current for the lender. On Oʻahu the seller typically pays for the inspection and any recommended treatment, such as tenting a house or spot treatment in a condo.
Enclosed lanais, extra bedrooms, and added bathrooms built without permits are common on Oʻahu. They can affect insurance, financing, and resale. We compare the home to the city's permit records and the disclosure before you're committed.
Homes in a FEMA flood zone may need flood insurance for the loan, which can add a lot to the monthly cost. Check the flood zone and the tsunami evacuation zone for any address early.
Owned panels transfer with the home. Leased panels or power purchase agreements usually need the solar company's approval to transfer to the buyer, which takes time. Find out which one it is right away.
For houses, a survey can reveal fences, walls, or structures over the property line. The contract spells out what happens if an encroachment is found.
For homes built before 1978, federal law requires a lead-based paint disclosure and gives buyers the chance to have a lead inspection, which they can choose to waive.
In Hawaiʻi, a neutral escrow company holds the money and documents and handles the closing. Buyers and sellers usually sign at escrow a few days before the closing date, and the sale is complete when the deed records with the state.
Watch for wire fraud. Before sending any money, call your escrow officer at a phone number you already know to confirm the wiring instructions. Never trust instructions that arrive by email alone.
| Cost | Usually | Notes |
|---|---|---|
| Escrow fee | Split | Typically shared 50/50 |
| Conveyance tax | Seller | State tax on the sale |
| Owner's title insurance | Shared | Seller usually pays most of the standard policy |
| Lender's title policy & loan costs | Buyer | Only when financing |
| Termite inspection & treatment | Seller | Can differ in foreclosures and short sales |
Local custom, not law. Everything is negotiable, and your escrow company gives each side an exact estimate.
Most of the process above applies to you from the other side. These are the Hawaiʻi-specific pieces sellers should plan for early.
You'll disclose material facts you know about the property, like past leaks, repairs, permits, or neighborhood issues. When in doubt, disclose. A thorough, honest disclosure protects you after closing. See the SRPDS rules.
Hawaiʻi charges a conveyance tax when property sells, and by local custom the seller pays it at closing. The rate goes up with the sale price and is higher for properties that aren't owner-occupied. Hawaiʻi updated the rates in 2026, so your escrow company will calculate your exact amount.
If you're not a Hawaiʻi resident, the buyer must withhold 7.25% of the sale price for state income tax, and escrow sends it to the Department of Taxation. It's a prepayment, not an extra tax: you may get some or all of it back when you file a Hawaiʻi return. This often applies to military sellers whose legal residence is another state. Talk to a tax professional early about reducing it.
Sellers who are foreign persons may also face federal FIRPTA withholding, generally 15% of the sale price, with some exceptions. Get tax advice before you list.
If the home is your primary residence, file for the City and County of Honolulu's home exemption. It lowers the taxable value of your home and can save you money on property taxes every year.
Quick answers to the questions buyers and sellers ask us most.
This page is general information about Oʻahu real estate, not legal or tax advice. Your contract controls your deadlines, and an attorney or tax professional can advise on your situation.
Usually about 30 to 45 days from accepted offer to closing when you're using a loan. Cash purchases can close faster. Your contract sets the exact closing date.
The SRPDS is the Seller's Real Property Disclosure Statement. Under Hawaiʻi law (HRS chapter 508D), sellers in most residential sales must disclose material facts they know about the property. By law the seller delivers it within 10 calendar days of an accepted contract, and the buyer has 15 calendar days to review it and cancel, though the contract often shortens these deadlines.
A contingency is a condition in the purchase contract that lets the buyer cancel, usually with the deposit returned, if something isn't satisfied by a deadline. Common ones on Oʻahu include the inspection, financing, the seller's disclosure, the title report, and condo document review.
On Oʻahu, the seller typically pays for the termite inspection and any recommended treatment. Foreclosures and short sales can be different, and it's always negotiable.
HARPTA is Hawaiʻi's withholding on real estate sales by non-resident sellers. The buyer must withhold 7.25% of the sale price and escrow sends it to the state as a prepayment of income tax. The seller can recover any amount not owed by filing a Hawaiʻi tax return.
By local custom, the seller pays Hawaiʻi's conveyance tax at closing. The rate depends on the sale price and whether the property is owner-occupied, and escrow calculates the exact amount.
The sale closes when the deed records with the State of Hawaiʻi. Buyers and sellers usually sign their documents at escrow a few days earlier.
We walk every client through each deadline before it arrives, in plain language. Let's talk about your move.