James T. Morrison R(S)
Selling Your Home on the Big Island: a few important things to know

When selling a home on the Big Island of Hawaii, it's important to understand the various laws and regulations that apply to the process. These laws can vary depending on the location of the property, the type of property, and the specific circumstances of the sale. Here are some of the key laws and regulations to keep in mind when selling a home on the Big Island of Hawaii.
First and foremost, there is the Hawaii Real Property Tax Act (HARPTA) which is a state law that applies to resident aliens and U.S. citizens who sell real property in Hawaii. This law requires a withholding of 7.5% on the gross proceeds of the sale of the property, which is paid to the state of Hawaii. However, there are exemptions and exceptions to the HARPTA tax, such as if the sale price of the property is less than $600,000, and the seller certifies that the home is their primary residence.

Next, there is the Foreign Investment in Real Property Tax Act (FIRPTA), which is a federal law that applies to foreign individuals who sell real property in the United States. Under this law, a withholding of 10% of the gross proceeds of the sale must be paid to the Internal Revenue Service (IRS) if the property is being sold by a foreign individual. However, like HARPTA, there are exemptions and exceptions to the FIRPTA tax, such as if the sale price of the property is less than $300,000 and the home is being used as the seller's primary residence.
To learn more about both HARPTA and FIRPTA, check out this downloadable PDF
Another important law to keep in mind is the Hawaii Fair Housing Law, which prohibits discrimination in housing based on race, color, sex, religion, national origin, familial status, disability, or sexual orientation. This applies to all aspects of the sale, including advertising, financing, and the actual sale of the property.
When it comes to the actual sale of the property, there are also certain disclosures that must be made by the seller. These disclosures typically include information about the condition of the property, any known defects, and any previous damage or repairs. The seller is also required to provide a lead-based paint disclosure if the property was built before 1978.

Finally, it is important to work with a licensed real estate agent who can guide you through the process of selling your home on the Big Island of Hawaii. A real estate agent will be able to help you navigate the various laws and regulations that apply to the sale of your property and ensure that everything is done legally and ethically.

In conclusion, when selling a home on the Big Island of Hawaii, it's important to understand the various laws and regulations that apply to the process. These laws can vary depending on the location of the property, the type of property, and the specific circumstances of the sale. It's important to comply with the Hawaii Real Property Tax Act (HARPTA) and the Foreign Investment in Real Property Tax Act (FIRPTA) and to make sure to work with a licensed real estate agent who can guide you through the process and ensure that everything is done legally and ethically. Additionally, it's important to be aware of the Hawaii Fair Housing Law which prohibits discrimination in housing and the disclosures that must be made by the seller about the condition of the property.