Contract for Deed (Land Contract) - Hawaii

A Contract for Deed, also known as a Land Contract in Hawaii, is a legal agreement used for the sale of real estate. It allows the buyer to make installment payments to the seller over a specified period of time, while the seller retains legal title to the property. Once all the payments are made, the seller transfers the title of the property to the buyer.

In Hawaii, the contract for deed, also known as a land contract, is typically filed by the seller or the holder of the contract with the Bureau of Conveyances in the Department of Land and Natural Resources.

FAQ

Q: What is a Contract for Deed?
A: A Contract for Deed, also known as a Land Contract, is a legal agreement where the seller finances the purchase of property for the buyer.

Q: How does a Contract for Deed work?
A: In a Contract for Deed, the buyer makes payments to the seller over an agreed-upon term, and once all payments are made, the seller transfers the property title to the buyer.

Q: What are the benefits of a Contract for Deed?
A: Some benefits include flexibility in financing, no requirement for a traditional mortgage, and the ability for buyers with poor credit to purchase property.

Q: Are there any risks with a Contract for Deed?
A: Yes, some risks include the possibility of losing the property if payments are not made, limited legal protections for the buyer, and potential disputes over property condition or ownership.

Q: Is a Contract for Deed commonly used in Hawaii?
A: While not as common as traditional sales, Contract for Deed agreements can be used in Hawaii for the purchase of property.