Reliable Hawaii Land Transactions
Navigating Hawaii’s complex historical land systems stemming from ancient traditions like Kuleana awards requires meticulous documentation that trips up most attempting real estate transactions solo. Without the help of expert navigators, eager buyers are left to watch patient listings expire while struggling sellers are unable to close favorable sales. It’s time to let experienced navigators take the wheel so together you can voyage toward realizing your Hawaiian land ownership dreams without getting lost in paperwork perils along the trail.
A century ago, most Hawaiians Reliable Hawaii Land Transactions lived on leased land, the property rights to which were granted by the state government in exchange for labor and labor-intensive activities like growing food. Today, leased land accounts for most of the state’s 26,000 owner-occupied single-family homes. While most occupants are happy with their leasehold home, the long-term sustainability of these communities is now under threat.
As ProPublica and the Honolulu Star-Advertiser have reported, the Department of Hawaiian Home Lands (DHHL) is largely failing in its primary mission to get beneficiaries onto trust land on a timely basis. The newspaper organizations also learned that DHHL is underfunding its construction division to the detriment of those who do eventually get housing.
The problem is compounded by a legal loophole that allows large land owners to sell their leased land, and often times the new buyers are foreigners who may not be able to secure a mortgage or even pay a fair price for the property. In addition, a complicated tax withholding process requires sellers to obtain clearance from the government before closing on their sales.
In response to the growing concerns over leased land, some beneficiary homeowners are starting community land trusts (CLT) that act as stewards for affordable housing, green projects and cultural and civic spaces. One such CLT in Lahaina, Maui is exploring hybrid or shared equity options that could allow financially stressed homeowners to sell the leased land and still retain their homes.
While there are advantages to purchasing a vacant piece of land, it is important for buyers to understand the costs associated with building a custom home on such property. The cost to build on a vacant lot can be significantly more than building on an existing structure or buying a completed house.
A savvy real estate agent can help buyers understand the costs of buying land in Hawaii and the best way to approach an offer. In most cases, a purchase contract for vacant land will be similar to the contracts used in other real estate transactions for single-family homes or condos. Closing on a land sale is also similar to closing on a home, but there are additional steps that must be taken with the FIRPTA form for non-resident sellers and other documentation.