We Buy Houses for Cash in Hawaii

Hawaii taxes conveyances on a sliding scale that rises with the price, gives a buyer 15 calendar days to rescind after receiving the seller's disclosure statement, covers leasehold homes as well as fee simple ones, and lets a lender foreclose either by lawsuit or by power of sale, with extra protections for owner-occupants. Some Hawaii homes sit on leased land, and the rules below treat that as part of the ordinary picture. Swifty Home Buyers can make a cash offer on a Hawaii home as it stands, with no agent commissions and no repair list, and close on the date you choose. Here is how the Hawaii rules fit together so you can compare a cash sale with listing using real numbers.

We buy houses in all 50 states. This guide covers the rules that matter in Hawaii.

Hawaii's conveyance tax is in HRS chapter 247. Section 247-1 imposes it on transfers of realty by deeds, leases and similar documents, section 247-2 bases it on the actual and full consideration, and section 247-4 says it is paid by the grantor, seller or other person conveying, which in a typical sale is you. The rate climbs by bracket. For most sales, it is 10 cents per $100 under $600,000; 20 cents from $600,000 to $999,999; 30 cents from $1,000,000 to $1,999,999; 50 cents from $2,000,000 to $3,999,999; 70 cents from $4,000,000 to $5,999,999; 90 cents from $6,000,000 to $9,999,999; and $1.00 at $10,000,000 and above. A second, higher schedule applies to the sale of a condominium or single family residence when the purchaser is ineligible for a county homeowner's exemption on property tax: 15 cents per $100 under $600,000, rising by bracket to $1.25 at $10,000,000 and above. On a $500,000 sale that is $500 under the first schedule and $750 under the second. Ask your escrow officer which schedule applies to your sale. The minimum tax is $1 per transaction. The Department of Taxation's instructions say the certificate of conveyance, Form P-64A, is due within 90 days of the transaction, and that only leases with terms of five years or more are taxed. Exempt documents under 247-3 include those between husband and wife, reciprocal beneficiaries or parent and child for only nominal consideration, and transfers to or from a grantor's revocable living trust. A traditional listing adds agent commissions, loan and lien payoffs and escrow and title fees. When you sell to Swifty there is no commission, and we show you the closing costs in writing before you sign anything.

Hawaii has two foreclosure routes. Foreclosure by action is the court process in Part IA of chapter 667, and the power of sale process in Part II is, as 667-21 puts it, an alternative to it. In a power of sale foreclosure, the notice of default and intention to foreclose must give a cure date at least sixty days after the date of the notice, and it must include contact information for housing counselors. The public sale notice is published once each week for three consecutive weeks and posted on the property, and the sale takes place no sooner than fourteen days after the third publication. Owner-occupants have additional options. Under 667-71 and 667-78, an owner-occupant facing a power of sale foreclosure can elect the Mortgage Foreclosure Dispute Resolution program by returning the completed form, proof of owner-occupant status and a $300 program fee no later than thirty days after the department mails its notification, or the right is waived. Under 667-53 an owner-occupant can petition within thirty days after the foreclosure notice is served to convert the case to a judicial foreclosure, with a $250 fee, and filing the petition automatically stays the nonjudicial foreclosure. Under 667-38, after a completed nonjudicial foreclosure of residential property, the lender cannot pursue a deficiency judgment against an owner-occupant unless the debt is secured by other collateral. Many of these protections turn on owner-occupant status, so ask a Hawaii attorney. If you sell before the public sale, the payoff comes out of the proceeds and the equity is yours instead of being decided by the auction.

• Sell as-is
• Inherited house
• Foreclosure
• Tenants or rental property

Hawaii Island and the lava-flow hazard zones

On the Island of Hawaii, the U.S. Geological Survey publishes lava-flow hazard zones. The USGS says its 1992 map divides the island into 9 zones, with lava flows most likely to occur in Zone 1 and least likely in Zone 9. It adds that the hazard boundaries are approximate and that it is likely only part of a zone will be buried in a single eruption. The area notices in 508D-15 cover flood, aviation noise, military airport, tsunami and sea level rise zones, and lava zones are not on that list, so do not assume the form will prompt you. If your Hawaii Island parcel is in a higher-hazard zone, tell us and any buyer what you know.