Hawaii Real Estate Contract: Different Types and Key Terms to Include

Quick Facts — Real Estate Contract Lawyers

What is a Hawaii Real Estate Contract?

A Hawaii real estate contract is a legal agreement made between a party selling real property and a party that is buying the property. Often called a purchase and sale agreement, these contracts are used to outline the terms and conditions of transaction.

A real estate contract will cover important information like the agreed upon purchase price, financing, closing date and costs, contingencies, disclosures, inspections, insurance and any other conditions that must be agreed upon to finalize the sale.

Common Hawaii Real Estate Contracts

There are several types of real estate contracts may be used in Hawaii and each document serves a different purpose. Common contracts include:

  • Residential real estate contract. Used when buying or selling land or a building that will be used for housing.
  • Commercial real estate contract . Used when buying or selling property zoned for operating a business like an office building.
  • Lease agreement. Used when a property owner (landlord) wants to rent their property to a tenant.

4 Essential Elements of a Hawaii Real Estate Contract

Hawaii real estate contracts are governed by Hawaii Administrative Rules. Under these rules, a real estate contract requires 4 essential elements to be valid and legally binding.

  1. The contract must be legal and cannot violate any laws
  2. All parties must be deemed legally competent
  3. The contract must have an offer, acceptance, and consideration
  4. There must be mutual assent by the parties to enter the contract

Does Hawaii Require a Real Estate Attorney?

In Hawaii, real estate attorneys are not legally required to purchase or sell or a house, but they are highly recommended. Most buyers and sellers are represented by a real estate agent who will walk them through the buying and selling process. If a party chooses to not use a real estate agent, it is highly encouraged they retain a real estate lawyer to assist with contract drafting and understanding all terms of the agreement.

Frequently Asked Questions

How do I hire a lawyer to draft a real estate contract in Hawaii?

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Samantha earned her J.D. at the University of Hawaii, William S. Richardson School of Law and has been a member of the Hawaii State Bar Association since 2020. Samantha has worked as a Family Law attorney in Hawaii since 2020, and has represented clients on a variety of family law matters including: premarital agreements, pre- and post-judgement custody, parenting time and child support issues, pre- and post-divorce issues, interstate custody, and paternity issues. Samantha is a certified E-RYT 200 yoga instructor, taught yoga classes at the Modern Hotel in Waikiki throughout law school, and continues to teach yoga classes at various yoga studios in Honolulu to this day.

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Asked on Dec 26, 2021

Can you purchase or refinance under a land contract?

I’ve been living here for 2 years. Currently have been working with my credit union and they are having a terrible time trying to understand the legalities of my land contract first off, and secondly they just don’t seem to know what they are doing. It’s been over 8 months, 4 different loan officers and I’m once again waiting for someone else to help finish this thing out. It’s only $60,000 with a $120,000 appraisal. So, as of now I am stuck paying 2.5x monthly under this land contract than I was promised would be an easy mortgage process. So any guidance in the right direction would be very helpful. It’s a New York home. 20 yr fixed, no balloon, with a (brace yourself) 12% apr. HELP ME PLEASE! One month I’m being told to authorize a credit check for a first time homebuyer grant method of mortgaging this property. The next it’s authorizing it for a refinance. I do have earnest money deposits for over $3,000 and another $3000 paid towards principal under this land contract also.

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I suggest you speak with a New York real estate attorney. That attorney needs to review the documents related to the transaction.

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what is better to buy land or rent for construction in US?

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I suppose it doesn't matter if you have the lease giving you permission and the lease is long enough to justify the building expense when you won't own it. But I'd buy the land so you could eventually sell the property with the building on it.

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