The Role of Hawaii Attorneys in Purchasing Hawaii Residential Real Estate

For those interested in avoiding broker commissions, here’s general overview of how the Hawaii Purchase Contract works in a Hawaii residential real estate transaction and why you may want to hire a Hawaii attorney for assistance:

• The buyer would normally fill out the Hawaii Purchase Contract containing, among other provisions, buyer’s purchase price, the timeline for when both buyer and seller obligations are to occur prior to closing and any special terms. The buyer would then send the Purchase Contract to seller for seller’s response.
• If the terms and conditions of buyer’s Hawaii Purchase Contract are acceptable to seller, then the seller will usually initial each page and sign the Hawaii Purchase Contract. Otherwise, the seller may counter the buyer’s proposal by submitting a counteroffer. This process may go back and forth until one party accepts the other’s offer or no deal can be reached.
• It both parties enter into a Purchase Contract, the next step would be to open an escrow account with a Hawaii escrow company. The buyer will normally want to obtain title insurance policy from the Hawaii title company as well.
• There are several parts in the Hawaii Purchase Contract that may allow the buyer to back out of the Hawaii Purchase Contract without any penalty or being held in default. If done properly, the buyer may terminate the Hawaii Purchase

Contract under the following circumstances:

• The buyer is unable to obtain a conditional loan commitment letter or is unable to satisfy all conditions of the loan commitment letter under a certain time period.
• The buyer is not satisfied with the preliminary title report for the property.
• The buyer is not satisfied with seller’s disclosure statement.
• The buyer is not satisfied after conducting an inspection of the property.
• The termite inspection report reveals that there is a termite infestation on the property.

There is a deadline as to when any of the options above can be exercised. Therefore, it may be helpful to calendar when each option will expire. If all deadline dates are met without any problem, then all that would be left is the closing.