In Hawai‘i, sellers are generally required to disclose known material facts that may affect a property’s value, desirability, or safety. Clear, complete disclosures help set expectations, reduce friction during escrow, and support a more predictable closing process.
What Disclosures Commonly Address
Property Condition and Systems
Items often include the roof, plumbing, electrical components, appliances, drainage, ventilation, and any known defects, recurring issues, repairs, or prior claims, based on the seller’s knowledge and available records.
Environmental and Site Considerations
Disclosures may include known pest history (including termites), moisture intrusion or mold concerns, flood or shoreline related conditions, easements, encroachments, and any known hazardous materials or site limitations.
Association and Community Information
For condominiums and planned communities, disclosures commonly extend to items that may affect ownership, such as known association issues, special assessments, planned projects, rule compliance, and other matters reflected in association communications, when available.
Renovations and Repairs
Improvements are typically summarized with relevant details such as approximate timing, contractors, warranties, and whether permits were obtained when required. If work was completed without permits or by an owner-builder, that context is generally disclosed as well.
Sellers typically complete the State of Hawai‘i Seller’s Disclosure Statement. The form is detailed by design and should be answered carefully, truthfully, and to the best of the seller’s knowledge. When uncertainty exists, it is usually more appropriate to indicate “Unknown” than to speculate. For legal interpretation or tax implications, consult appropriate professionals.
Why Timing and Accuracy Matter
Buyers are generally provided a defined period, set by the purchase contract, to review disclosures. During that window, a buyer may have rights to request clarification, renegotiate certain terms, or cancel, depending on the contract structure. Timely delivery and well organized supporting documentation can help keep the transaction on schedule.
Practical Guidance for Sellers
- Disclose known issues, including those that were repaired
- Provide invoices, permits, warranties, and receipts when available
- Avoid guessing, indicate “Unknown” when you do not have reliable information
- Understand that omissions can create complications later, including post closing disputes
- Work with your agent to organize disclosures and supporting materials efficiently
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