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The Hawaii Agreement of Sale form serves as a crucial document in the real estate transaction process, outlining the terms under which a seller agrees to sell and a buyer agrees to purchase a property. This form encompasses several key components that ensure both parties understand their obligations and rights. Initially, it specifies the property being sold, including its legal description and tax map key, which are essential for accurately identifying the real estate involved. The agreement also details the sales price, breaking down various financial aspects such as earnest money, new loans, and cash at closing, ensuring transparency in the financial commitments of both the buyer and seller. Financing provisions are clearly laid out, indicating whether the sale is contingent on obtaining a loan, and what type of financing may be utilized. Additionally, the form addresses the condition of the property, including the seller's disclosure obligations, particularly regarding lead-based paint in homes built before 1978. The closing process is meticulously outlined, detailing the responsibilities of both parties in terms of title transfer, closing costs, and proration of taxes and other expenses. Furthermore, the document addresses potential issues such as casualty loss and default scenarios, providing a framework for resolving disputes should they arise. Overall, the Hawaii Agreement of Sale form is designed to facilitate a smooth transaction while protecting the interests of both the buyer and seller.

Sample - Hawaii Agreement Of Sale Form

CONTRACT FOR THE SALE AND PURCHASE OF REAL ESTATE

(NO BROKER)

For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,

 

 

 

,“Seller” whether

one or more, and

 

 

 

 

 

,“Buyer”

whether one or more, do hereby covenant, contract and agree as follows:

1.

AGREEMENT TO SALE AND PURCHASE:

Seller agrees to sell, and Buyer agrees to

buy from Seller the property described as follows: (complete adequately to identify property) , Hawaii. Tax map key:

Address:

Legal Description (or see attached exhibit):

Together with the following items, if any: (Strike items to be retained by Seller) curtains and rods, draperies and rods, valances, blinds, window shades, screens, shutters, awnings, wall-to-wall carpeting, mirrors fixed in place, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system with controls and equipment, permanently installed heating and air- conditioning units, window air-conditioning units, built-in security and fire detection equipment, plumbing and lighting fixtures including chandeliers, water softener, stove, built-in kitchen equipment, garage door openers with controls, built-in cleaning equipment, all swimming pool equipment and maintenance accessories, shrubbery, landscaping, permanently installed outdoor cooking equipment, built-in fireplace screens, artificial fireplace logs and all other property owned by Seller and attached to the above described real property except the following property which is not included (list items not included):

All property sold by this contract is called the "Property."

2.SALES PRICE: The parties agree to the following sales price:

 

Amount

Amount

 

Purchase Price

$

 

 

Earnest Money

 

$

 

New Loan

 

$

 

Assumption of Loan

 

$

 

Seller Financing

 

$

 

Cash at Closing

 

$

 

Total ( both columns should be equal)

$

$

0

Both columns should be an equal amount.

 

 

 

If the unpaid principal balance(s) of any assumed loan(s), if any, as of the Closing Date varies from the loan balance(s) stated above, the cash payable at closing will be adjusted by the amount of any variance.

Buyer Initials ______ _______

- 1 -

Seller Initials _______ _______

3.FINANCING: The following provisions apply with respect to financing:

CASH SALE: This contract is not contingent on financing.

 

 

 

 

 

 

OWNER FINANCING: Seller agrees to finance

 

 

 

 

 

 

dollars of the

purchase

price pursuant to a promissory note from Buyer to Seller of $

 

, bearing

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

interest per annum, payable over a term of

 

 

years

with

 

even monthly payments,

secured by a deed of trust or mortgage lien with the first payment to begin on the

day of

 

, 20

.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEW LOAN OR ASSUMPTION: This contract is contingent on Buyer obtaining

financing. Within days after the effective date of this contract Buyer shall apply for all financing or noteholder's approval of any assumption and make every reasonable effort to obtain financing or assumption approval. Financing or assumption approval will be deemed to have been obtained when the lender determines that Buyer has satisfied all of lender's financial requirements (those items relating to Buyer's net worth, income and creditworthiness). If financing or assumption approval is not obtained within

days after the effective date hereof, this contract will terminate and the earnest money will be refunded to Buyer. If Buyer intends to obtain a new loan, the loan will be of the following type:

Conventional

VA

FHA

Other:

The following provisions apply if a new loan is to be obtained:

FHA. It is expressly agreed that notwithstanding any other provisions of this contract, the Purchaser (Buyer) shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless the Purchaser (Buyer) has been given in accordance with HUD/FHA or VA requirements a written statement by the Federal Housing Commissioner, Veterans Administration, or a Direct Endorsement lender setting forth the appraised value of the

Property of not less than $. The Purchaser (Buyer) shall have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the Property. The Purchaser (Buyer) should satisfy himself/herself that the price and condition of the Property are acceptable.

VA. If Buyer is to pay the purchase price by obtaining a new VA-guaranteed loan: It is agreed that, notwithstanding any other provisions of this contract, Buyer shall not incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase of the Property described herein, if the contract purchase price or cost exceeds the reasonable value of the Property established by the Veterans Administration. Buyer shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Veterans Administration.

Existing Loan Review. If an existing loan is not to be released at closing, Seller shall provide copies of the loan documents (including note, deed of trust or mortgage,

modifications) to Buyer within calendar days from acceptance of this contract. This contract is conditional upon Buyer's review and approval of the provisions of such loan documents. Buyer consents to the provisions of such loan documents if no written

objection is received by Seller from Buyer withincalendar days

from Buyer's receipt of such documents. If the lender's approval of a transfer of the Property is required, this contract is conditional upon Buyer's obtaining such approval

Buyer Initials ______ _______

- 2 -

Seller Initials _______ _______

without change in the terms of such loan, except as may be agreed by Buyer. If

lender's approval is not obtained on or before ,

this contract shall be terminated on such date. The Seller shall shall not, be released from liability under such existing loan. If Seller is to be released and release approval is not obtained, Seller may nevertheless elect to proceed to closing, or terminate this agreement in the sole discretion of Seller.

 

Credit Information. If Buyer is to pay all or part of the purchase price by executing a

 

promissory note in favor of Seller or if an existing loan is not to be released at closing,

 

this contract is conditional upon Seller's approval of Buyer's financial ability and

 

creditworthiness, which approval shall be at Seller's sole and absolute discretion. In such

 

case: (l) Buyer shall supply to Seller on or before

 

,

 

,

at,

 

 

 

 

 

 

 

 

 

 

 

Buyer's expense, information and documents concerning Buyer's financial, employment

 

and credit condition; (2) Buyer consents that Seller may verify Buyer's financial ability

 

and creditworthiness; (3) any such information and documents received by Seller shall be

 

held by Seller in confidence, and not released to others except to protect Seller's interest

 

in this transaction; (4) if Seller does not provide written notice of Seller's disapproval to

 

Buyer on or before

 

,

 

 

 

, then Seller waives this

 

condition.

 

 

 

 

 

 

 

 

 

4.

EARNEST MONEY: Buyer shall deposit $

 

 

 

 

as earnest money with

 

 

 

 

upon execution of this contract by both parties.

 

 

 

 

 

 

 

 

 

5.PROPERTY CONDITION:

SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by Federal law for a residential dwelling constructed prior to 1978. An addendum providing such disclosure is attached is not applicable.

Buyer hereby represents that he has personally inspected and examined the above-mentioned premises and all improvements thereon. Buyer hereby acknowledges that unless otherwise set forth in writing elsewhere in this contract neither Seller nor Seller's representatives, if any, have made any representations concerning the present or past structural condition of the improvements. Buyer and Seller agree to the following concerning the condition of the property:

Buyer accepts the property in its "as-is" and present condition.

Buyer may have the property inspected by persons of Buyer's choosing and at Buyer's expense. If the inspection report reveals defects in the property, Buyer shall notify Seller within 5 days of receipt of the report and may cancel this contract and receive a refund of earnest money, or close this agreement notwithstanding the defects, or Buyer and Seller may renegotiate this contract, in the discretion of Seller. All inspections and notices to Seller shall be complete

within days after execution of this agreement.

Buyer accepts the Property in its present condition; provided Seller, at Seller’s expense, shall complete the following repairs and treatment:

Buyer agrees that he will not hold Seller or its representatives responsible or liable for any present or future structural problems or damage to the foundation or slab of said property. If the subject residential dwelling was constructed prior to 1978, Buyer may conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards, to be

completed within days after execution of this agreement. In the alternative, Buyer may waive the opportunity to conduct an assessment/inspection by indicating said waiver on the attached Lead-Based Paint Disclosure form.

Buyer Initials ______ _______

- 3 -

Seller Initials _______ _______

 

MECHANICAL EQUIPMENT AND BUILT IN APPLIANCES: All such equipment is sold

 

"as-is" without warranty, or

shall be in good working order on the date of closing. Any

 

repairs needed to mechanical equipment or appliances, if any, shall be the responsibility of

 

Seller Buyer.

 

 

 

 

 

 

 

 

 

 

 

UTILITIES: Water is provided to the property by

 

 

 

 

,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sewer is provided by

 

 

 

. Gas is provided by

 

 

 

.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electricity is provided by

 

 

.

 

 

 

 

 

 

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The present condition of all utilities is accepted by Buyer.

 

 

 

 

 

6.

CLOSING: The closing of the sale will be on or before

 

, 20

, unless

 

extended pursuant to the terms hereof.

 

 

 

 

 

 

Closing may be extended to within 7 days after objections to matters disclosed in the title abstract, certificate or Commitment or by the survey have been cured.

If financing or assumption approval has been obtained, the Closing Date will be extended up to 15 days if necessary to comply with lender's closing requirements (for example, appraisal, survey, insurance policies, lender-required repairs, closing documents). If either party fails to close this sale by the Closing Date, the non-defaulting party will be entitled to exercise the remedies contained herein. The closing date may also be extended by written agreement of the parties.

7.TITLE AND CONVEYANCE: Seller is to convey title to Buyer by Warranty Deed or

(as appropriate) and provide Buyer with a Certificate of Title prepared by an attorney, title or abstract company upon whose Certificate or report title insurance may be obtained from a title insurance company qualified to do and doing business in the state of Hawaii. Seller will also execute a Bill of Sale, if necessary, for the transfer of any personal property. Seller shall, prior to or at closing, satisfy all outstanding mortgages, deeds of trust and special liens affecting the subject property which are not specifically assumed by Buyer herein. Title shall be good and marketable, subject only to (a) covenants, conditions and restrictions of record, (b) public, private utility easements and roads and rights-of-way, (c) applicable zoning ordinances, protective covenants and prior mineral reservations, (d) special and other assessments on the property, if any,

(e) general taxes for the year _______and subsequent years and (e) other:___________________. A title report shall be provided to Buyer at least 5 days prior to closing. If there are title defects, Seller shall notify Buyer within 5 days of closing and Buyer, at Buyer's option, may either (a) if defects cannot be cured by designated closing date, cancel this contract, in which case all earnest money deposited shall be returned, (b) accept title as is, or (c) if the defects are of such character that they can be remedied by legal action within a reasonable time, permit Seller such reasonable time to perform curative work at Seller's expense. In the event that the curative work is performed by Seller, the time specified herein for closing of this sale shall be extended for a reasonable period necessary for such action. Seller represents that the property may be legally used as zoned and that no government agency has served any notice to Seller requiring repairs, alterations or corrections of any existing condition except as stated herein.

8.APPRAISAL, SURVEY AND TERMITE INSPECTION: Any appraisal of the property shall be

the responsibility of Buyer

Seller. A survey is: not required required, the cost of which

shall be paid by

Seller

Buyer. A termite inspection is not required

required, the cost of

which shall be paid by

Seller

Buyer. If a survey is required it shall be obtained within 5 days

of closing.

 

 

 

 

9.POSSESSION AND TITLE: Seller shall deliver possession of the Property to Buyer at closing.

Buyer Initials ______ _______

- 4 -

Seller Initials _______ _______

Title shall be conveyed to Buyer, if more than one as

Joint tenants with rights of survivorship,

tenants in common,

Other:

 

Prior to

closing the property shall remain in the

possession of Seller and Seller shall deliver the property to Buyer in substantially the same condition at closing, as on the date of this contract, reasonable wear and tear excepted.

10.CLOSING COSTS AND EXPENSES: The following closing costs shall be paid as provided. (Leave blank if the closing cost does not apply.)

 

Closing Costs

 

Buyer

 

 

Seller

 

 

Both*

 

 

 

 

 

 

 

 

 

Attorney Fees

 

 

 

 

 

 

 

 

 

Title Insurance

 

 

 

 

 

 

 

 

 

Title Abstract or Certificate

 

 

 

 

 

 

 

 

 

Property Insurance

 

 

 

 

 

 

 

 

 

Recording Fees

 

 

 

 

 

 

 

 

 

Appraisal

 

 

 

 

 

 

 

 

 

Survey

 

 

 

 

 

 

 

 

 

Termite Inspection

 

 

 

 

 

 

 

 

 

Origination fees

 

 

 

 

 

 

 

 

 

Discount Points

 

 

 

 

 

 

 

 

 

If contingent on rezoning, cost and expenses of

 

 

 

 

 

 

 

 

 

rezoning

 

 

 

 

 

 

 

 

 

Other:

 

 

 

 

 

 

 

 

All other closing costs

* 50/50 between buyer and seller.

11.PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and rents, if any, will be prorated through the Closing Date. If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year are available. If a loan is assumed and the lender maintains an escrow account, the escrow account must be transferred to Buyer without any deficiency. Buyer shall reimburse Seller for the amount in the transferred account. Buyer shall pay the premium for a new insurance policy. If taxes are not paid at or prior to closing, Buyer will be obligated to pay taxes for the current year.

12.CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty loss after the effective date of the contract, Seller shall restore the Property to its previous condition as soon as reasonably possible. If Seller fails to do so due to factors beyond Seller’s control, Buyer may either (a) terminate this contract and the earnest money will be refunded to Buyer, (b) extend the time for performance and the Closing Date will be extended as necessary, or

(c) accept the Property in its damaged condition and accept an assignment of insurance proceeds.

13.DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract. If, due to factors beyond Seller’s control, Seller fails within the time allowed to make any non-casualty repairs or deliver evidence of clean title, Buyer may either (a) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (b) terminate this contract as the sole remedy and receive a refund of the earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby

Buyer Initials ______ _______

- 5 -

Seller Initials _______ _______

releasing both parties from this contract.

It is expressly understood and agreed that the failure of a party to insist in any one or more instances upon strict performance of any of the terms of this Agreement, or to exercise any rights herein conferred, shall not be deemed a waiver or relinquishment to any extent that party's rights to later assert or rely upon any such terms or rights in such instance and/or in any other instance.

14.ATTORNEY'S FEES: The prevailing party in any legal proceeding brought under or with respect to the transaction described in this contract is entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney’s fees.

15.REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Buyer and (b) assumed loans will not be in default. If any representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the earnest money will be refunded to Buyer. All representations contained in this contract will survive closing.

16.FEDERAL TAX REQUIREMENT: If Seller is a "foreign person", as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a "foreign person", then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction.

17.AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement.

18.NOTICES: All notices from one party to the other must be in writing and are effective when mailed to, hand-delivered at, or transmitted by facsimile machine as follows:

To Buyer at:

 

To Seller at:

 

 

 

 

 

 

 

 

 

Telephone ( )

Facsimile ( )

Telephone ( )

Facsimile ( )

19.ASSIGNMENT: This agreement may not be assigned by Buyer without the consent of Seller. This agreement may be assigned by Seller and shall be binding on the heirs and assigns of the parties hereto.

20.PRIOR AGREEMENTS: This contract incorporates all prior agreements between the parties, contains the entire and final agreement of the parties, and cannot be changed except by their written consent. Neither party has relied upon any statement or representation made by the other party or any sales representative bringing the parties together. Neither party shall be bound by any terms, conditions, oral statements, warranties, or representations not herein contained. Each party acknowledges that he has read and understands this contract. The provisions of this contract shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective parties hereto. When herein used, the singular includes the plural and the masculine includes the feminine as the context may require.

Buyer Initials ______ _______

- 6 -

Seller Initials _______ _______

21.NO BROKER OR AGENTS: The parties represent that neither party has employed the services of a real estate broker or agent in connection with the property, or that if such agents have been employed, that the party employing said agent shall pay any and all expenses outside the closing of this agreement.

22.EMINENT DOMAIN: If the property is condemned by eminent domain after the effective date

hereof, the Seller and Buyer shall agree to continue the closing, or a portion thereof, or cancel this Contract. If the parties cannot agree, this contract shall remain valid with Buyer being entitled to any condemnation proceeds at or after closing, or be cancelled and the earnest money returned to Buyer.

23.OTHER PROVISIONS

24.TIME IS OF THE ESSENCE IN THE PERFORMANCE OF THIS AGREEMENT.

25.GOVERNING LAW: This contract shall be governed by the laws of the State of Hawaii.

26.DEADLINE LIST (Optional) (complete all that apply). Based on other provisions of Contract.

Deadline

Loan Application Deadline, if contingent on loan

Loan Commitment Deadline

Buyer(s) Credit Information to Seller

Disapproval of Buyers Credit Deadline

Survey Deadline

Title Objection Deadline

Survey Deadline

Appraisal Deadline

Property Inspection Deadline

Date

Whether or not listed above, deadlines contained in this Contract may be extended informally by a writing signed by the person granting the extension except for the closing date which must be extended by a writing signed by both Seller and Buyer.

EXECUTED the

 

day of

 

, 20

(THE EFFECTIVE DATE).

 

 

 

 

 

 

 

 

 

 

Buyer

 

 

 

 

Seller

 

 

 

 

 

 

 

 

 

 

Buyer

 

 

 

 

Seller

 

Buyer Initials ______ _______

- 7 -

Seller Initials _______ _______

EXHIBIT FOR DESCRIPTION OR ATTACH SEPARATE DESCRIPTION

Buyer Initials ______ _______

- 8 -

Seller Initials _______ _______

 

 

 

 

RECEIPT

 

 

 

 

 

Receipt of Earnest Money is acknowledged.

 

 

 

 

 

Signature:

 

 

Date:

, 20

By:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Telephone (

)

 

 

 

Address

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Facsimile (

)

 

 

 

City

State

Zip Code

 

 

 

 

 

 

 

Buyer Initials ______ _______

- 9 -

Seller Initials _______ _______
Click for PDF

Form Information

Fact Name Details
Contract Type The Hawaii Agreement of Sale is a contract for the sale and purchase of real estate without the involvement of a broker.
Governing Law This agreement is governed by the laws of the State of Hawaii, ensuring compliance with local regulations.
Earnest Money Requirement Buyers must deposit earnest money upon execution of the contract, demonstrating their commitment to the purchase.
Property Condition Disclosure Federal law mandates that sellers disclose lead-based paint hazards for residential properties built before 1978.

Detailed Guide for Filling Out Hawaii Agreement Of Sale

Completing the Hawaii Agreement of Sale form is a crucial step in the real estate transaction process. Ensure that all sections are filled out accurately to avoid delays or complications. Once the form is completed, both the buyer and seller will need to review and sign it before proceeding with the next steps in the sale.

  1. Identify the Parties: Fill in the names of the Seller(s) and Buyer(s) at the beginning of the form.
  2. Property Description: Clearly describe the property being sold, including the tax map key, address, and legal description.
  3. Items Included: List any items that are included in the sale. Strike through items that the Seller will retain.
  4. Sales Price: Enter the total purchase price and break down the payment structure, ensuring both columns equal the same amount.
  5. Financing Terms: Specify if the sale is a cash sale, involves owner financing, or is contingent on obtaining a new loan or loan assumption.
  6. Earnest Money: Indicate the amount of earnest money to be deposited and the party responsible for holding it.
  7. Property Condition: Acknowledge the condition of the property and any inspections that will be conducted.
  8. Closing Date: Set a closing date for the sale, allowing for possible extensions if necessary.
  9. Title and Conveyance: Specify how the title will be conveyed and any conditions regarding existing loans or liens.
  10. Closing Costs: Identify who will pay for various closing costs, such as attorney fees and title insurance.
  11. Prorations: Agree on how taxes and other costs will be prorated through the closing date.
  12. Casualty Loss: Outline the responsibilities of both parties in the event of damage to the property before closing.
  13. Defaults: Understand the consequences if either party fails to comply with the contract terms.

Obtain Answers on Hawaii Agreement Of Sale

  1. What is the Hawaii Agreement of Sale form?

    The Hawaii Agreement of Sale form is a legal document used for the sale and purchase of real estate in Hawaii without the involvement of a broker. This form outlines the terms and conditions of the sale, including details about the property, sales price, financing arrangements, and responsibilities of both the buyer and seller.

  2. What information is required to complete the form?

    To complete the Hawaii Agreement of Sale form, the following information is necessary:

    • Property description, including tax map key and address
    • Sales price and payment details, including earnest money and financing options
    • Details about any included or excluded items, such as appliances or fixtures
    • Closing date and any contingencies related to financing
  3. What is the purpose of earnest money?

    Earnest money serves as a deposit made by the buyer to demonstrate their commitment to purchasing the property. This amount is typically held in escrow and is applied toward the purchase price at closing. If the buyer fails to comply with the contract, the seller may retain the earnest money as compensation for the breach.

  4. What happens if financing is not approved?

    If the buyer is unable to obtain financing within the specified time frame outlined in the agreement, the contract will terminate, and the earnest money will be refunded to the buyer. It is essential for the buyer to make every reasonable effort to secure financing to avoid this situation.

  5. What are the buyer's rights regarding property condition?

    The buyer has the right to inspect the property before closing. If the inspection reveals defects, the buyer must notify the seller within five days. The buyer can choose to cancel the contract and receive a refund of the earnest money, proceed with the purchase despite the defects, or negotiate repairs with the seller.

  6. How are closing costs handled?

    Closing costs are typically shared between the buyer and seller, though specific arrangements can be made in the agreement. Common closing costs include attorney fees, title insurance, appraisal fees, and recording fees. The agreement should clearly outline which party is responsible for each cost.

  7. What happens if the property is damaged before closing?

    If the property is damaged by fire or other casualty after the agreement is signed, the seller is responsible for restoring the property to its previous condition. If the seller cannot do so, the buyer has options to terminate the contract, extend the closing date, or accept the property in its damaged condition along with any insurance proceeds.

Common mistakes

Filling out the Hawaii Agreement of Sale form can be a complex task, and mistakes can lead to significant issues down the line. One common mistake is failing to provide complete property identification. Buyers and sellers often neglect to fill in the property address, tax map key, and legal description accurately. This lack of detail can lead to confusion and disputes about which property is being sold. It is essential to ensure that all sections related to property identification are thoroughly completed to avoid any ambiguity.

Another frequent error involves the sales price section. Buyers may not double-check that both columns for the purchase price and total amount are equal. This oversight can cause delays in the transaction process, as discrepancies will need to be resolved before closing. It is crucial for both parties to verify that the amounts match and to ensure that any assumptions regarding loans or financing are accurately represented in this section.

In addition, many individuals overlook the financing provisions. Buyers often fail to specify the type of financing they intend to use, whether it be a new loan or an assumption of an existing loan. This omission can lead to complications later, especially if the buyer's financing falls through. It is vital to clearly indicate the financing type and ensure that all conditions related to financing are understood and agreed upon by both parties.

Finally, neglecting the property condition disclosures is another mistake that can have lasting implications. Buyers may not fully understand the implications of accepting the property "as-is," or they might fail to conduct necessary inspections within the specified time frame. This can result in unforeseen repairs or issues that could have been addressed before closing. It is advisable for buyers to be proactive in inspecting the property and to communicate any concerns with the seller promptly.

Documents used along the form

The Hawaii Agreement of Sale form is a crucial document in the process of buying or selling real estate in Hawaii. However, several other forms and documents often accompany this agreement to ensure a smooth transaction. Below is a list of these essential documents, each with a brief description.

  • Title Report: This document outlines the current ownership of the property and any liens, encumbrances, or claims against it. It helps buyers understand the legal status of the property before closing.
  • Disclosure Statement: Sellers are required to provide a disclosure statement detailing any known issues with the property, such as structural problems or environmental hazards. This transparency protects both parties and helps buyers make informed decisions.
  • Lead-Based Paint Disclosure: For properties built before 1978, federal law mandates that sellers disclose any known lead-based paint hazards. This document is vital for protecting buyers, especially families with young children.
  • Bill of Sale: If personal property is included in the sale (like appliances or furniture), a Bill of Sale may be necessary to transfer ownership of those items from the seller to the buyer.
  • Earnest Money Receipt: This receipt confirms that the buyer has deposited earnest money, demonstrating their serious intent to purchase the property. It serves as a safeguard for the seller against potential defaults.
  • Closing Statement: This document summarizes the financial aspects of the transaction, including the purchase price, closing costs, and any adjustments. It is typically prepared by the closing agent and is reviewed by both parties before finalizing the sale.
  • Inspection Reports: Buyers often obtain inspection reports to assess the condition of the property. These reports can reveal issues that may require repairs, influencing the buyer's decision to proceed with the sale.

Understanding these accompanying documents is vital for anyone involved in a real estate transaction in Hawaii. Each document plays a specific role in protecting the interests of both buyers and sellers, ensuring a clear and legally sound transfer of property.

Similar forms

The Hawaii Agreement of Sale form shares similarities with several other real estate documents. Here’s a breakdown of six documents that have comparable features:

  • Purchase Agreement: Like the Hawaii Agreement of Sale, a Purchase Agreement outlines the terms of the sale, including the purchase price and conditions of the transaction. Both documents require signatures from the buyer and seller to become binding.
  • Lease Agreement: A Lease Agreement, similar to the Hawaii Agreement, includes terms and conditions governing the use of a property. Both documents specify the responsibilities of the parties involved, although one focuses on rental terms while the other pertains to purchase.
  • Option to Purchase Agreement: This document grants a buyer the option to purchase a property at a later date. It shares similarities with the Hawaii Agreement of Sale in that it outlines purchase terms, though it does not obligate the buyer to complete the sale immediately.
  • Real Estate Sales Contract: A Real Estate Sales Contract is another document that serves a similar purpose. It details the sale terms, including financing and closing conditions, much like the Hawaii Agreement of Sale.
  • Deed of Trust: A Deed of Trust is related to financing the property. It establishes the lender's rights and the borrower's obligations, akin to the financing provisions in the Hawaii Agreement of Sale, which also addresses loan assumptions and seller financing.
  • Closing Disclosure: The Closing Disclosure outlines the final terms of a mortgage loan. It is similar to the Hawaii Agreement in that both documents summarize financial obligations and closing costs, ensuring transparency for both parties before the transaction is finalized.

Dos and Don'ts

When filling out the Hawaii Agreement of Sale form, it is important to follow specific guidelines to ensure accuracy and compliance. Below is a list of things to do and avoid.

  • Do: Clearly identify the property being sold, including the tax map key and legal description.
  • Do: Ensure that the sales price and earnest money amounts are accurate and match in both columns.
  • Do: Review all financing options carefully and understand any contingencies related to obtaining financing.
  • Do: Provide accurate information regarding the condition of the property and any inspections that may be necessary.
  • Don't: Leave any sections of the form incomplete or unclear, as this may lead to disputes later.
  • Don't: Assume that verbal agreements or understandings are sufficient; all terms must be documented in writing.
  • Don't: Neglect to disclose any known issues with the property that may affect its value or safety.
  • Don't: Rely solely on the seller's representations without conducting your own inspections or due diligence.

Misconceptions

Misconceptions about the Hawaii Agreement of Sale form can lead to confusion for both buyers and sellers. It is essential to clarify these misunderstandings to ensure a smooth transaction. Below are six common misconceptions:

  • The form is only for real estate agents. This form can be used by individuals without a broker. It is designed for direct transactions between buyers and sellers.
  • All repairs must be made before closing. Buyers accept the property in its "as-is" condition unless specific repairs are agreed upon in writing. This means that buyers may need to manage repairs after the sale.
  • Earnest money guarantees the sale. While earnest money shows the buyer's commitment, it does not guarantee that the sale will go through. Various contingencies can lead to contract termination and a refund of the earnest money.
  • The seller is responsible for all closing costs. Closing costs can be negotiated between the buyer and seller. Both parties may share these expenses, depending on what is agreed upon in the contract.
  • Financing is guaranteed. The contract may be contingent upon financing approval. If a buyer cannot secure financing, they can terminate the agreement and receive their earnest money back.
  • Title issues are the seller's problem alone. While the seller must provide clear title, buyers also have responsibilities. They must review title documents and can choose to cancel the contract if defects are found.

Key takeaways

Here are some key takeaways about filling out and using the Hawaii Agreement of Sale form:

  • Identify the Property Clearly: Make sure to provide a complete description of the property, including the tax map key and legal description.
  • Sales Price Agreement: Ensure that both columns for the purchase price and total amount are equal. This includes earnest money, new loans, and any seller financing.
  • Financing Contingencies: Understand whether the sale is contingent on obtaining financing. Buyers must apply for financing within a specified timeframe.
  • Earnest Money Deposit: Buyers should deposit the agreed amount of earnest money upon execution of the contract.
  • Property Condition Acceptance: Buyers accept the property in its "as-is" condition unless otherwise specified. Inspections are allowed at the buyer's expense.
  • Closing Date: The closing of the sale should occur on or before the specified date, with potential extensions if necessary.
  • Title and Conveyance: The seller must convey title by Warranty Deed and ensure that all outstanding mortgages are satisfied before closing.
  • Appraisal and Inspection Responsibilities: Buyers are typically responsible for any required appraisals and inspections unless otherwise agreed.
  • Possession of Property: The seller should deliver possession of the property to the buyer at closing.
  • Casualty Loss Provisions: If the property is damaged before closing, the seller is responsible for restoring it unless otherwise agreed upon.

Understanding these points can help streamline the process and ensure a smoother transaction.