Required Disclosures

Buyers are often caught up in the excitement of the purchase and neglect to review the details. One of the most important documents that one should review is the Seller's Real Property Disclosure Statement. Sellers may be reluctant to disclose something for fear it will not be attractive and may discourage potential buyers. While there is always a risk of a buyer being turned off by a disclosure, the cost of a lawsuit for non-disclosure is substantial and can usually involve the parties in litigation for several years. Furthermore, if the seller has failed to disclose, one of the potential consequences is the Purchase Contract can be set aside or there can be substantial damages awarded.

In conjunction with the purchase of a residential home, Hawaii law requires the seller to make mandatory disclosure of material facts, past and present. Material facts are facts which a normal person would want to know in connection with the purchase of the property. This requirement is set forth in Hawaii Revised Statues and is a standard condition in the Purchase Contract, a form typically used in buying or selling residential real property in Hawaii.

Additionally, according to the State Of Hawaii Real Estate Commission March 1997 Bulletin Your Center Report on Working with Hawaii's Seller Disclosure Law: Some facts that are specifically required to be disclosed by Sellers is to notify Buyers if the property is within:

  • Boundaries of a special flood hazard area,
  • Noise exposure areas shown on maps prepared by the Department of Transportation,
  • An Air Installation Compatibility Use Zone as officially designated by military authorities,
  • Anticipated inundation areas designated by civil defense tsunami inundation maps.

Section 508D-15 (b) HRS requires a good faith effort to determine if a parcel falls within the zones but any ambiguity "shall be construed in favor of the seller." Section 508D-7 (c) HRS indicates the seller's agent shall disclose these facts to "the seller, the buyer, and their agents." "Nothing in this chapter precludes all other obligations of the seller's or the buyer's agent under Hawaii law." This means that the normal duties to ascertain and disclose material facts remain intact.

The following reference material is help to obtain this information:

  • Flood Emergency Management Agency (FEMA) Flood Maps or
  • Call the Department of Land Utilization (DLU) at (808) 523 -4131 with your tax map key.
  • Tsunami Evacuation Maps by the State of Hawaii Civil Defense System in the phone book. (However, evacuation is broader than inundation because it extends further in land. Otherwise, use the FIRM (Flood Insurance Rate Map) maps when available.