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Content Overview

In the dynamic real estate landscape of Hawaii, the Agreement of Sale form serves as a fundamental document that outlines the terms and conditions agreed upon by the buyer and seller. This contract meticulously details the mutual agreement to transfer ownership of property, underscoring the legal framework that governs the sale and purchase process. Within this confines of this document, several vital components are covered, including the legal description of the property, the sale price, the allocation of closing costs, and explicit financing terms. Additionally, it addresses key safeguard clauses such as property inspections, casualty loss provisions, and the stipulations regarding default and remedy. By incorporating provisions for earnest money deposits, appraisals, surveys, and the handling of title and conveyance matters, the form ensures a comprehensive approach to real estate transactions. Particularly noteworthy are the specific conditions related to financing, whether through cash, new loans, or assumption of existing loans, reflecting a tailored approach to meeting individual needs and circumstances. Furthermore, the inclusion of federal regulations regarding lead-based paint disclosures for residences built prior to 1978 showcases the document's adherence to legal requirements and its commitment to the health and safety of the inhabitants. Overall, the Hawaii Agreement of Sale form encapsulates a structured pathway for the seamless transition of property ownership, with its meticulous attention to detail and regulatory compliance serving the interests of all parties involved.

Document Example

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 ______ _______

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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 _______ _______
▼ PDF Form

Document Characteristics

Fact Name Fact Detail
General Purpose The Hawaii Agreement of Sale form is used for the sale and purchase of real estate without a broker in Hawaii.
Property Included Specifies detailed inclusion of items with the property, such as fixtures and built-in appliances, unless explicitly excluded.
Financing Options Includes different financing options: cash sale, owner financing, new loan, or assumption of a loan, with specific terms for each.
Property Condition The buyer accepts the property "as-is" or may request inspections, with provisions for repair or renegotiation based on findings.
Property Title Seller agrees to convey title via Warranty Deed or equivalent and provide a Certificate of Title, ensuring it is good and marketable.
Closing Costs and Expenses Details on closing costs and who is responsible for each expense, including attorney fees, insurances, and inspections.
Governing Laws The agreement is governed by the laws of the state of Hawaii, ensuring compliance with local real estate practices and regulations.

Guidelines on Utilizing Hawaii Agreement Of Sale

Filling out the Hawaii Agreement of Sale form is a straightforward process if you follow each step carefully. This form is used to document the agreement between the seller and buyer for the sale and purchase of real estate in Hawaii without the assistance of a broker. It's essential to complete this form accurately to ensure a clear understanding between both parties and to facilitate a smooth transaction. Here are the steps you should follow to properly fill out the form:

  1. Start by entering the full legal names of the seller(s) and buyer(s) at the beginning of the contract, where indicated. Make sure to include all parties involved in the transaction.
  2. In the section titled "AGREEMENT TO SALE AND PURCHASE," provide a complete description of the property being sold. This includes the street address, tax map key, and a legal description. Attach an exhibit if necessary for a more detailed description.
  3. Under "SALES PRICE," fill in the agreed-upon purchase price and how it will be paid, including the earnest money deposit, loan amounts, and any cash due at closing. Ensure both columns equal the total sales price.
  4. Specify the financing terms under the "FINANCING" section. Indicate whether this is a cash sale, if there are owner financing terms, or if a new loan or loan assumption is involved. Fill in all relevant details, including interest rates, loan type, and deadlines for obtaining financing.
  5. For the "EARNEST MONEY" section, indicate the amount of earnest money deposited and who is holding the deposit.
  6. Address the condition of the property under "PROPERTY CONDITION." Specify any inspections to be conducted, who will be responsible for repairs (if any), and any lead-based paint disclosures if the property was constructed prior to 1978.
  7. In the "CLOSING" section, state the anticipated closing date and any conditions that could lead to an extension of this date.
  8. Detail how title and conveyance will be handled in the "TITLE AND CONVEYANCE" section, including who will provide the certificate of title and how title defects will be managed.
  9. Discuss how the appraisal, survey, and termite inspection will be conducted, specifying who is responsible for these tasks and any associated costs.
  10. Outline who will have possession of the property upon closing and the condition in which the property will be delivered.
  11. Indicate who is responsible for the various closing costs and expenses in the "CLOSING COSTS AND EXPENSES" section. This may include attorney fees, title insurance, and other customary fees.
  12. Review the section on "PRORATIONS" to ensure understanding of how taxes, interest, and other fees will be handled at closing.
  13. In case of "CASUALTY LOSS," understand the options available if the property is damaged before closing.
  14. Lastly, review the "DEFAULT" section to know the consequences for either party failing to comply with the terms of the agreement.

After completing all sections of the form, both parties should review the agreement carefully, then sign and date the document where indicated. Remember, this is a legally binding document, and it is recommended to consult with a legal professional if you have any questions during this process.

Understanding Hawaii Agreement Of Sale

  1. What is the Hawaii Agreement of Sale form?

    This form is a legally binding contract used for the sale and purchase of real estate in Hawaii without the involvement of a broker. It outlines the terms and conditions agreed upon by the seller and the buyer concerning the property transaction, including but not limited to the sale price, property description, financing, property condition, closing, and possession details.

  2. Who needs to sign the Hawaii Agreement of Sale form?

    Both the seller and the buyer, whether acting as individuals or as multiple parties, must sign the form. Each party may need to initial certain sections of the document to acknowledge their agreement with specific terms or conditions laid out in the contract.

  3. What property information is required on this form?

    The form requires a detailed description of the property being sold, including its address in Hawaii, tax map key, and legal description. Additionally, it lists any items to be included or excluded in the sale, such as curtains and rods, built-in appliances, and swimming pool equipment, unless specified otherwise.

  4. How is the sales price determined in the Agreement of Sale?

    The sales price is agreed upon by both parties and is broken down into subsections on the form, including the purchase price, earnest money deposit, new loan amount, assumption of loan, seller financing, and any cash due at closing. The total amount should be equally reflected in both columns provided.

  5. What financing conditions are included in the Hawaii Agreement of Sale?

    The form covers several financing arrangements, including cash sales, owner financing, new loans, or assumption of existing loans. Specific terms regarding interest rates, payment schedules, and lender approvals are outlined for each financing method. Additionally, conditions related to FHA and VA loans are addressed, ensuring compliance with their respective requirements.

  6. What does the "Property Condition" section entail?

    This section allows the buyer to inspect the property and requests the seller to disclose any known lead-based paint hazards for homes built before 1978. It also details the state of mechanical equipment and utilities at the property, stating whether they are sold "as-is" or in good working order, along with responsibilities for repairs, if any.

  7. How are closing and possession handled in this contract?

    The closing date is specified within the document, including provisions for possible extensions due to financing approvals or title defects. Possession of the property is transferred to the buyer at closing, and specifics regarding the title and deed conveyance are outlined, indicating who bears the cost of related expenses.

  8. What responsibilities do sellers have regarding the title?

    Sellers are required to provide a clear and marketable title to the buyer, free from outstanding mortgages, liens, or other encumbrances, except as explicitly noted in the contract. Any defects found must be disclosed and can be grounds for contract cancellation or negotiation for repairs at the seller's expense.

  9. Who pays for the closing costs and expenses?

    The agreement specifies which party is responsible for various closing costs, including attorney fees, title insurance, property surveys, and more. Some costs may be split between the buyer and seller, as indicated in the document.

  10. How are taxes, insurance, and other prorations handled?

    Taxes, maintenance fees, assessments, and insurance are prorated through the closing date based on actual costs or estimates. Adjustments may be made once the actual amounts are known. The buyer is typically responsible for securing and paying for a new insurance policy beginning at closing.

Common mistakes

  1. Not thoroughly identifying the property: People often make the mistake of inadequately completing the section that describes the property to be sold in Hawaii. It's essential to provide a full description, including the tax map key, address, and legal description or attach an exhibit with the details. Skipping any of these can cause significant confusion and potential legal issues.

  2. Overlooking items included or excluded in the sale: On the form, there's a place to list items that will be retained by the Seller or that are included with the property. Failing to specify these items clearly can lead to disputes over what was supposed to remain with the home and what was meant to go with the seller.

  3. Incomplete financial details: Buyers and sellers frequently err by not fully completing the financial sections, including the sales price, earnest money, new loan amounts, and allocation of closing costs. It's crucial to ensure both columns equal the total agreed sales price to avoid any discrepancies at closing.

  4. Ignoring the financing provisions: Both parties often overlook the financing provisions outlined in the contract. This includes not applying for financing within the specified days after the contract's effective date or failing to provide seller financing details accurately. Proper attention to these areas is vital to maintain the contract's validity and prevent termination.

  5. Not handling disclosure and inspection requirements properly: Sellers and buyers sometimes do not correctly handle the requirement for disclosures, such as the Lead-Based Paint Disclosure, or misunderstand their rights and responsibilities regarding property inspections. Sellers must disclose lead-based paint for homes constructed before 1978, and buyers have the right to inspect the property. Ignoring these provisions can lead to legal issues or termination of the agreement.

Documents used along the form

When navigating the property market in Hawaii, the Agreement of Sale is a critical document that outlines the sale terms between a buyer and seller. However, to complete the transaction effectively, several additional forms and documents are often used alongside the Agreement of Sale. Each plays a vital role in ensuring the process is thorough, legal, and tailored to the needs of both parties involved.

  1. Title Insurance Policy: Provides protection against financial loss from defects in the title to the property and from the invalidity or unenforceability of mortgage loans.
  2. Lead-Based Paint Disclosure: A must for residential dwellings built prior to 1978; it discloses the presence of any known lead-based paint and gives buyers a 10-day period to test for lead.
  3. Property Disclosure Statement: This document requires the seller to disclose any known defects or issues with the property, offering the buyer insight into its condition.
  4. Loan Application Form: Used by the buyer to apply for a mortgage, this form collects financial, employment, and credit information.
  5. Home Inspection Report: A professional inspection assessing the condition of the property, including its structural elements, systems, and appliances. The buyer typically requests and pays for the inspection.
  6. Preliminary Title Report: Issued by a title company or attorney, this report provides a preliminary overview of the title's status and reveals any encumbrances or liens against the property.
  7. Escrow Agreement: Details the arrangement between the buyer, seller, and an escrow company, which holds the property, funds, and important documents until all conditions of the sale are met.
  8. Appraisal Report: An evaluation of the property’s value conducted by a certified appraiser. It’s usually required by lenders before loan approval.
  9. Termite Inspection Report: Reveals the presence of wood-destroying insects or organisms. Required in certain loans and recommended in others.
  10. Closing Disclosure: A detailed list of final credits and debits to the buyer and seller, provided by the lender at least three days before closing, summarizing the transaction's financial details.

Procuring and understanding these documents is crucial for a successful real estate transaction in Hawaii. Each serves its purpose by providing protection, compliance with federal and state laws, and ensuring both parties are fully informed about the property and the sale particulars. By familiarizing themselves with these documents, buyers and sellers can navigate the complexities of the real estate transaction process more smoothly..

Similar forms

The Hawaii Agreement Of Sale form is similar to the General Residential Sales Contract used in many states. Both documents outline the terms and conditions under which real estate transactions are conducted, specifying the details of the sale including the purchase price, property description, closing costs, and any contingencies such as financing or inspections. The General Residential Sales Contract, like the Hawaii Agreement Of Sale, serves as a legally binding agreement between buyer and seller, detailing each party's obligations to ensure a smooth transfer of property. However, the Hawaii Agreement includes specific stipulations that cater to the unique real estate laws and practices of Hawaii, such as special considerations for leasehold properties.

Another document resembling the Hawaii Agreement Of Sale form is the Owner Financing Agreement. This similarity lies in the financing sections, where both agreements provide options for the seller to finance the purchase. In the Hawaii Agreement, this option is outlined as "OWNER FINANCING," mentioning terms such as the interest rate, payment schedule, and security instruments like a deed of trust or mortgage lien. Owner Financing Agreements offer similar details, focusing on the seller's role in funding the purchase rather than relying on traditional bank financing. This method can make real estate more accessible to buyers who may not qualify for conventional loans and highlights the flexibility in structuring the financial aspects of the real estate transaction.

Dos and Don'ts

When tackling the Hawaii Agreement of Sale form, a careful approach ensures that the process runs smoothly for all parties involved. Here are key do's and don'ts to consider:

  • Do carefully read the entire agreement before filling it out to understand all the requirements and provisions, ensuring a comprehensive grasp of the commitments being made.
  • Don't leave any sections incomplete unless specifically instructed; an incomplete form could lead to misunderstandings or legal complications down the line.
  • Do verify all the property details, such as the tax map key, address, and legal description, to avoid any inaccuracies that could delay or nullify the agreement.
  • Don't forget to specify which items are included or excluded from the sale. This includes clearly indicating whether fixtures and fittings, like window treatments or appliances, will remain with the property.
  • Do have a clear understanding of the financial arrangements, including the sales price, earnest money, and the terms of any seller financing, to ensure that all financial obligations are transparent and agreed upon by both parties.
  • Don't ignore the contingencies related to financing, inspections, and the closing process. These clauses protect both Buyer and Seller and should be clearly understood and agreed upon.
  • Do consult with a professional, such as a real estate attorney or a title company, if there are any terms or sections of the agreement that are unclear, to ensure all legal implications are understood.

Following these guidelines can help facilitate a smooth transaction, providing security and clarity for both the buyer and the seller in the sale of Hawaii real estate.

Misconceptions

When it comes to the Hawaii Agreement of Sale form, several misconceptions often arise due to its legal terminology and the complexities of real estate transactions. Understanding these inaccuracies is crucial for both buyers and sellers to navigate the process effectively.

  • Preparation is exclusively for real estate professionals: Many believe that only agents or lawyers can prepare this agreement, when, in fact, with the right information, parties can draft their Agreement of Sale. However, consulting a professional is advised for a thorough understanding and completion.

  • It's only about the price: While the sales price is a crucial component, the Agreement of Sale covers much more, including terms of the sale, financing details, inspection rights, and responsibilities concerning property condition, among other stipulations. Overlooking these aspects can lead to misunderstandings or legal complications.

  • "As-is" means no inspections are allowed: Even if a property is sold "as-is", buyers still have the right to conduct inspections. This clause merely indicates that the seller isn't responsible for any repairs. Buyers should always exercise due diligence and inspect the property thoroughly before finalizing the purchase.

  • Verbal agreements are binding: Verbal discussions or promises are not legally binding in real estate transactions in Hawaii. All agreements should be in writing within the Agreement of Sale to be enforceable. Any oral agreements made outside of this document are difficult, if not impossible, to enforce legally.

  • Cash sales are simpler and don't need an Agreement of Sale: Regardless of whether the purchase is made with cash or financed, an Agreement of Sale is necessary. It provides a legal framework that outlines the terms of the sale, responsibilities, and timelines for both parties, safeguarding the interests of both the buyer and the seller.

Understanding these misconceptions can prevent potential issues and help both parties achieve a fair and lawful transaction. While the Agreement of Sale is a basic foundation for the real estate purchase process, its complexity cannot be underestimated, and professional advice is often necessary.

Key takeaways

When navigating the intricacies of the Hawaii Agreement of Sale form, a practical understanding of its provisions is crucial for all parties involved. Here are five key takeaways to consider:

  • Write and review thoroughly: The agreement requires specific details about the property, including its description and any items included or excluded in the sale. It’s essential to carefully complete these sections to avoid misunderstandings.
  • Understanding financing terms is crucial: The document outlines various financing arrangements, including cash sales, owner financing, and obtaining new loans. Each option has specific conditions, like interest rates and payment schedules, that buyers and sellers must agree upon.
  • Property condition and inspections: Buyers have the right to inspect the property within a stipulated timeframe and can renegotiate or cancel the contract based on the findings. Sellers are required to disclose the condition of any lead-based paint if the property was built before 1978.
  • Closing details matter: The form specifies a closing date and details who is responsible for closing costs. It also addresses how title and possession of the property will be transferred, highlighting the importance of planning for these financial and legal responsibilities.
  • Handling defaults and disputes: The agreement outlines remedies available if either party defaults. It allows for extensions under certain conditions and provides solutions for casualty losses, ensuring protection for both buyer and seller.

Understanding each section of the Hawaii Agreement of Sale form is vital for a smooth real estate transaction. Both parties should review the document carefully and consult with legal or real estate professionals if necessary to clarify any points.

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