Seller Disclosure in Hawaii: What Oahu Sellers Must Disclose

Seller disclosure in Hawaii is a legal duty, not a courtesy. If you sell a house, townhome or condo on Oahu, HRS Chapter 508D requires you to give the buyer a written statement of every material fact you know about the property, and the buyer gets a set window to back out after reading it.

I walk every seller I work with through this form, and the ones who start it before listing have smoother escrows. Here is what the law says, the Oahu items that come up most, and how to fill it out so it protects you. For the rest of the process, see my complete guide to selling a house on Oahu.

In this guide:

• What the law covers
• Who has to disclose
• What counts as a material fact
• Deadlines
• The buyer’s right to rescind
• Common Oahu items
• Condo and HOA sellers
• Exemptions
• Why over disclosing protects you
• FAQ

What Is Seller Disclosure in Hawaii?

HRS Chapter 508D applies to the sale of “residential real property”: fee simple or leasehold property with one to four dwelling units, or a residential condominium or cooperative apartment. Sales by exchange, auction and lease with option to buy count too.

Under section 508D-1, the disclosure statement must fully and accurately disclose all material facts that are within your knowledge or control, that can be observed from visible, accessible areas, or that the statute specifically requires, such as association documents and certain mapped hazard areas. The form must tell the buyer the statement is your representation, not your agent’s, and that they may want their own inspections.

Who Has to Disclose When Selling a Home in Hawaii?

The seller, in any sale of residential real property that is not exempt (section 508D-2). Living on the mainland does not change that; my guide to selling Oahu property from out of state covers signing from a distance.

Under section 508D-7, your agent is not required to prepare the statement. But if your agent knows of material facts that contradict your statement or an inspection report you provided, the agent must disclose them to you, the buyer and the buyer’s agent.

What Counts as a Material Fact?

The statute defines a material fact as “any fact, defect, or condition, past or present, that would be expected to measurably affect the value to a reasonable person” of the property. Note the word past: a leak you repaired three years ago still belongs on the form, along with the repair.

Section 508D-4.5 adds one specific item: any release or waiver you gave a contractor, design professional or government agency for a design or construction defect that measurably affects value is itself a material fact.

Section 508D-8 lets you leave off that an occupant had AIDS or was tested for HIV, and that the property was the site of an act or occurrence that had no effect on the physical structure or environment.

When Is the Hawaii Seller Disclosure Statement Due?

The buyer acknowledges receipt on the contract, an addendum or a separate document, and the parties can agree in writing to shorten or extend these periods (section 508D-5). My rule: finish the statement before the home goes on the market. The six month signing window allows it, and buyers can read it before they write an offer.

The Buyer’s 15 Day Right to Rescind

After receiving your statement, the buyer has 15 calendar days to examine it and decide whether to rescind. To cancel, they deliver written notice to you or your agent within that period; silence counts as acceptance. A buyer who rescinds gets their deposits back immediately.

The window can open again later in escrow:

• New information. If you learn something that directly, substantially and adversely affects value, section 508D-13 requires an amended statement, and the buyer gets another 15 calendar days.
• Inaccurate statement. Under section 508D-6, a buyer who finds an undisclosed material fact or inaccurate assertion of that kind, and was not aware of it, may rescind within 15 calendar days of discovering it or receiving a correction.

Rescission rights end once the sale records, but other remedies remain. Under section 508D-16, a seller who negligently fails to provide the statement is liable for the buyer’s actual damages, and a court may award attorney’s fees. Section 508D-17 generally allows two years from receipt of the statement to bring an action.

Want a second set of eyes on your disclosures before buyers see them? Get a free home value, or call or text me at (808) 459-6450 and we can go through the form together.

Common Oahu Seller Disclosure Items

Unpermitted work

Enclosed lanais, garage conversions and added bathrooms or units are common here. If you know work was done without a permit, or are not sure, say so. The Department of Planning and Permitting handles building permits on Oahu. Outside the mapped areas below, the statute does not require you to search public records yourself.

Water intrusion and leaks

Roof, window and plumbing leaks, water that comes in during heavy rain, and any mold that followed are classic material facts. List what happened, where, what was repaired and when, and attach the invoices.

Termites

Known termite activity, damage and treatment history belong on the form. Section 508D-9 names reports from a wood destroying insect control expert as information a seller may rely on, so share any you have.

Cesspools

Act 125 of 2017 requires every cesspool in the state to be upgraded to a septic or aerobic treatment system, or connected to sewer, before January 1, 2050, unless the Department of Health grants an exemption. The Department of Health counts over 11,000 cesspools on Oahu. A buyer will see one as a future cost, so disclose the system type and what you know about its condition.

Solar leases and power purchase agreements

Owned panels: disclose permits and warranties. Leased panels or a power purchase agreement: that contract is an ongoing obligation tied to the roof, and the buyer needs to know. Pull the agreement early and ask the solar company how a transfer to a new owner works.

Flood zones and other mapped areas

Section 508D-15 requires disclosure when the property lies in a FEMA special flood hazard area, an airport noise exposure area, a military Air Installation Compatible Use Zone, a tsunami inundation area, or the state’s designated sea level rise exposure area. Check flood zones on the DLNR Flood Hazard Assessment Tool or FEMA’s Flood Map Service Center. A truly ambiguous boundary is construed in the seller’s favor, but only after a good faith effort to check.

Shoreline homes must also disclose all permitted and unpermitted erosion control structures, permit expiration dates, notices of alleged violation and related fines. More on high end oceanfront checks in luxury homes on Oahu.

Condo and HOA Sellers: Association Documents

If your property is subject to a recorded declaration, section 508D-3.5 requires you to provide the documents that apply: the articles or similar document creating the association, bylaws, declaration with exhibits, and rules on common areas, architectural control, maintenance and assessments. Other recorded restrictions must be included too. These are due 10 calendar days after both sides receive a current title report, and the buyer gets a separate 15 calendar days to review and rescind. With the buyer’s consent, you can point them to the documents online.

Under HRS 514B-154.5, the association must make records needed for resale disclosures available to owners, and copies requested in writing are due within 30 days, so ask before you list. Buyers read those budgets closely; see my guide to Oahu HOA fees. The chapter covers leasehold property too; if that is you, read leasehold vs fee simple on Oahu.

Who Is Exempt From Hawaii Seller Disclosure?

Section 508D-3 exempts these sales:

• To a co-owner, or to the seller’s spouse, parent or child.
• By devise, descent or court order.
• By operation of law, including foreclosure, bankruptcy, partition, a deed in lieu of foreclosure or debt workout, and a later sale by that creditor.
• By a lessor to a lessee converting leased land to fee simple.
• Initial sales of new property under chapter 484, and condo sales accompanied by an unexpired developer’s public report.
• Time share interests.

A sale by the trustee of a living trust is not named. If you are selling as a trustee or personal representative, ask your attorney whether an exemption fits before skipping the form. Section 508D-14 also says this chapter is in addition to any other disclosure duty a seller has.

Why Over Disclosing Protects the Seller

Section 508D-9 says a buyer has no cause of action against a seller or seller’s agent over the disclosure statement when it was prepared in good faith and with due care. That can rest on your own knowledge, government information, existing reports from licensed professionals, and facts from your association’s managing agent. You are not required to hire anyone.

• A fact disclosed up front gets priced into the offer, and the buyer’s 15 days start now.
• A fact the buyer finds later can reopen their right to cancel, often when you are already packing.
• A fact found after closing can become a claim, and your statement is the first thing anyone reads.

So when in doubt, disclose, and be specific: “Kitchen roof leak, repaired in 2023 by a licensed roofer, invoice attached, no leaks since.” Before you list, walk the house and write down every repair and issue you remember, gather permits, invoices and reports, check your flood zone, and request association documents if you have them.

Seller Disclosure in Hawaii FAQ

Do I have to disclose in Hawaii if I sell as is?

Yes, unless the sale is exempt under HRS 508D-3. As is limits repair negotiations; it does not remove the duty to provide a disclosure statement.

How long does a buyer have to cancel after receiving the disclosure?

Under HRS 508D-5, 15 calendar days after receipt, by written notice, with deposits returned immediately. The parties can agree in writing to a different period.

When is the disclosure statement due?

No later than 10 calendar days after the purchase contract is accepted. The seller signs it within six months before or 10 calendar days after acceptance.

Do I have to disclose a problem I already fixed?

A material fact includes past conditions that would be expected to measurably affect value to a reasonable person, so disclose it with the repair details.

Are foreclosures and estate sales exempt?

Sales by operation of law, including foreclosure, and sales by devise, descent or court order are exempt. Trust sales are not named, so ask a real estate attorney.

Seller Disclosure in Hawaii: The Bottom Line

Most Oahu sellers must give the buyer a signed statement of every material fact they know within 10 calendar days of an accepted contract, and the buyer gets 15 calendar days to walk away. Done in good faith, that statement is one of a seller’s best protections. This explains how the law works; it is not legal advice, so confirm your situation with a real estate attorney.

Sources

• HRS Chapter 508D, Mandatory Seller Disclosures in Real Estate Transactions
• HRS 508D-1, Definitions
• HRS 508D-3, Exemptions
• HRS 508D-3.5, Required documentation
• HRS 508D-5, Delivery and rescission
• HRS 508D-9, Good faith and due care
• HRS 508D-15, Notification required
• HRS 514B-154.5, Association documents
• H.B. 1244 C.D. 1 (2017), Act 125, Relating to Cesspools
• Hawaii Department of Health: Cesspools in Hawaii
• DLNR Flood Hazard Assessment Tool
• FEMA Flood Map Service Center
• Honolulu Department of Planning and Permitting

Getting ready to sell? Let’s go through your disclosure statement together before you list, so nothing surprises you in escrow. Get a free home value, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.