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 contract outlines the terms and conditions agreed upon by the seller and buyer, including the property description, sales price, and financing details. Understanding this form is essential for both parties to ensure a smooth transaction process.
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The Hawaii Agreement of Sale form is a crucial document in the real estate transaction process, specifically designed for the sale and purchase of property without the involvement of a broker. This contract lays out essential terms, including the identification of the property, the agreed sales price, and the financing arrangements. It details the responsibilities of both the seller and the buyer, encompassing aspects such as earnest money deposits, property condition disclosures, and provisions for inspections. Additionally, the form addresses closing procedures, title conveyance, and the allocation of closing costs. Buyers must be aware of their rights regarding property inspections and any existing loans, while sellers are required to provide clear title and ensure the property is delivered in an acceptable condition. Understanding these elements is vital for both parties to protect their interests and ensure a smooth transaction.
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
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 ______ _______
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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
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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.
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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
The present condition of all utilities is accepted by Buyer.
6.
CLOSING: The closing of the sale will be on or before
, 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
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.
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Title shall be conveyed to Buyer, if more than one as
Joint tenants with rights of survivorship,
tenants in common,
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
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
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
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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 ( )
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.
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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
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
(THE EFFECTIVE DATE).
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EXHIBIT FOR DESCRIPTION OR ATTACH SEPARATE DESCRIPTION
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RECEIPT
Receipt of Earnest Money is acknowledged.
Signature:
Date:
By:
Telephone (
)
Address
Facsimile (
City
State
Zip Code
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Completing the Hawaii Agreement of Sale form requires careful attention to detail. This step-by-step guide will help you fill out the form accurately, ensuring that all necessary information is provided. Follow the instructions closely to avoid any mistakes that could delay the process.
Once the form is completed, review it carefully for accuracy. Both parties should keep a copy of the signed agreement for their records. Next, proceed to coordinate with any necessary financial institutions or legal representatives to finalize the transaction.
The Hawaii Agreement of Sale form is a legal document used in real estate transactions within Hawaii. It outlines the terms and conditions under which a seller agrees to sell and a buyer agrees to purchase a property. This form is essential for defining the rights and responsibilities of both parties involved in the sale.
The Agreement of Sale must include specific details such as:
These details ensure clarity and help prevent disputes during the transaction process.
If the buyer cannot secure financing within the specified time frame, the contract will terminate. In this case, the earnest money deposited by the buyer will be refunded. This provision protects the buyer from being obligated to complete the purchase without the necessary funds.
The property condition clause states that the buyer accepts the property "as-is." This means the buyer acknowledges the current state of the property and cannot hold the seller responsible for any defects or issues discovered after the sale, unless otherwise specified in writing. Buyers are encouraged to conduct their inspections to identify any potential problems before finalizing the purchase.
If a buyer finds defects in the property after their inspection, they must notify the seller within five days of receiving the inspection report. The buyer has several options: they can cancel the contract and receive a refund of their earnest money, proceed with the purchase despite the defects, or negotiate repairs with the seller. This process allows the buyer to make informed decisions based on the property's condition.
Incomplete Property Description: Failing to provide a complete and accurate description of the property can lead to confusion. Make sure to include the tax map key, address, and legal description.
Incorrect Sales Price: Ensure that the amounts in both columns of the sales price section match. Any discrepancy could cause issues during closing.
Neglecting Financing Details: If financing is involved, it’s crucial to specify the type and terms clearly. Not doing so may jeopardize the agreement.
Ignoring Property Condition Clauses: Buyers should carefully review and understand the property condition clauses. Accepting the property "as-is" without proper inspection can lead to unexpected issues.
Missing Closing Dates: Not specifying a closing date or leaving it blank can create uncertainty. It’s important to set a clear timeline for the transaction.
Overlooking Earnest Money Details: Ensure that the earnest money amount is clearly stated and deposited promptly. This deposit shows good faith and is crucial for the agreement.
When entering into a real estate transaction in Hawaii, the Agreement of Sale is just one piece of the puzzle. Various other documents play crucial roles in ensuring that the sale proceeds smoothly and legally. Below is a list of forms and documents often used alongside the Hawaii Agreement of Sale. Each serves a unique purpose in the transaction process.
Understanding these documents can significantly enhance the home-buying experience. Each plays a vital role in protecting the interests of both buyers and sellers, ensuring that the transaction is transparent and legally sound. Familiarity with these forms not only aids in smoother negotiations but also contributes to a more secure investment in real estate.
The Hawaii Agreement of Sale form shares similarities with the Purchase and Sale Agreement commonly used in real estate transactions across the United States. Both documents outline the essential terms of the sale, including the purchase price, property description, and the responsibilities of both the buyer and seller. Like the Hawaii form, the Purchase and Sale Agreement also includes provisions for financing, earnest money deposits, and closing procedures. Each document serves as a legally binding contract that protects the interests of both parties and ensures clarity regarding the terms of the transaction.
Another document akin to the Hawaii Agreement of Sale is the Residential Real Estate Purchase Agreement. This agreement typically includes detailed contingencies related to inspections, financing, and appraisals, much like those found in the Hawaii form. Both documents emphasize the importance of property condition disclosures and the responsibilities of the seller to rectify any issues before closing. This ensures that buyers are well-informed about the property's condition and can make decisions based on thorough inspections.
The Option to Purchase Agreement is also comparable to the Hawaii Agreement of Sale. This document grants the buyer the right, but not the obligation, to purchase the property at a specified price within a defined timeframe. Similar to the Hawaii form, it outlines the terms of the agreement, including the purchase price and any conditions that must be met. Both agreements are designed to protect the interests of the buyer while providing the seller with assurance that the buyer is committed to the transaction.
The Lease with Option to Purchase Agreement shares characteristics with the Hawaii Agreement of Sale, particularly in its structure and intent. This document allows a tenant to lease a property with the option to buy it later, providing flexibility for both parties. Much like the Hawaii form, it includes terms regarding the purchase price, financing options, and property condition. Both agreements serve to establish clear expectations and protect the rights of the parties involved in the transaction.
Lastly, the Seller Financing Agreement is similar to the Hawaii Agreement of Sale, especially in its financing provisions. This document outlines the terms under which the seller agrees to finance the buyer's purchase of the property, including interest rates, payment schedules, and consequences for default. Just as the Hawaii form specifies seller financing options, the Seller Financing Agreement ensures that both parties understand their obligations and rights, fostering a transparent and secure transaction.
Things to Do When Filling Out the Hawaii Agreement of Sale Form:
Things Not to Do When Filling Out the Hawaii Agreement of Sale Form:
Understanding the Hawaii Agreement of Sale form is crucial for both buyers and sellers involved in real estate transactions. However, several misconceptions can lead to confusion. Here are ten common misconceptions explained:
Being aware of these misconceptions can help both buyers and sellers navigate the Hawaii Agreement of Sale form with confidence and clarity.
The Hawaii Agreement of Sale is a legal document that outlines the terms of a real estate transaction between a buyer and a seller.
It is crucial to accurately complete the property description, including the tax map key and legal description, to avoid any confusion.
The sales price must be clearly stated, and both columns for the purchase price and earnest money should match.
Buyers should be aware of the financing options available, including cash sales and seller financing, and understand the contingencies related to obtaining loans.
Buyers have the right to conduct inspections and can cancel the contract if significant defects are found within a specified timeframe.
Closing dates can be adjusted based on various factors, such as financing approval and title issues, so flexibility is important.
Buyers should ensure that they understand the condition of the property, accepting it "as-is," unless specific repairs are negotiated.
In case of default, both parties have outlined remedies, such as enforcing specific performance or terminating the contract with earnest money returned.