Hawaii FYI - Installment 4: BUYER'S PROPERTY DISCLOSURE FOR ISLAND OF HAWAII - PART I

What do Buyers need to know before purchsing property in Hawaii? Here's part one of the answer - the Property Disclosure.

BUYER'S PROPERTY DISCLOSURE FOR ISLAND OF HAWAII - PART I

1. Aircraft Noise and Fly-Overs: Buyers are advised that some areas in Hawaii are subject to fly-overs by various aircraft, including, among others, commercial, military and D.E.A. (Drug Enforcement Agency) aircraft. Buyers should contact appropriate federal, state, or county government agencies for further information on this Issue.

2. Availability of Utilities: Buyers are advised to check with local providers of electric, water, gas, telephone and cable services and other utility services to determine the cost (including installation charges, when applicable) and availability of desired services to the property. Utility service, and the necessary easements, may be limited or unavailable in some areas.

3. Limitations of Land Use: Many restrictions exist to limit the use of real property in the State of Hawaii including but not limited to: federal laws, state and county laws and regulations (for example county zoning ordinances), private restrictions (for example, restrictions in a deed, a condominium declaration or subdivision declaration). Buyer should contact the appropriate federal, state or county authorities and review any applicable private restrictions to determine if the use buyer intends for the property is permitted.

4. Permits and Non-Conformity: The County of Hawaii governs the issuance and administration of permits for all property improvements. Buyers are advised to check with the appropriate county department(s) to ascertain that all improvements on a property are "legal" (permitted and approved). If not, the subject improvements may be subject to fine and/or removal. Buyers are also advised that some existing buildings may be non-conforming to current governmental codes or requirements, or that the use of such buildings is non-conforming. This means that current zoning or governmental requirements, although legal when constructed, or when its use began, may not permit a structure or its use. This may cause problems with respect to rebuilding, enlargement, repair, or use of the structures, and may also affect financing and resale of the property. Buyers should check with the County of Hawaii and professionals regarding these issues.

5. Real Property Taxes: Methods of assessing real property in the County of Hawaii are complex. Tax rates and assessments differ according to the zoning and use of property, exemptions that pertain to specific homeowners (age, for example), dedications (agriculture use, for example), and other criteria. The fact that taxes are currently set at a certain rate or amount for a specific piece of property does not guarantee that the taxes will remain the same when the new owner purchases the property. The County of Hawaii also has a mechanism known as "roll-back" taxes that may make a purchaser liable for additional taxes if the use/dedications/zoning are changed after purchase. Buyers are advised to contact the County of Hawaii, Real Property Tax Office, for information in this regard as well as tax professionals (for example, accountants, lawyers). Buyers should be certain to ascertain if there are any exemptions or deductions that affect the property. If this property is to be your primary home, file your home exemptions form with the property tax office as soon as you close escrow in order to reduce your property tax.